How to Quickly Build Up Your Rainy Day Fund
Money grows on the tree of patience - Proverb.
Everyone has that one, special container that’s kept in a private place in their home. It holds a few extra dollars that you didn’t spend while you were buying your weekly groceries. It contains a pile of spare change you collected when you were recently cleaned out your car. That’s right; it’s your rainy day fund.
Every rainy day fund naturally means that there’s going to come a day when you’re going to spend that precious, carefully stored money. How did you always envision spending that money? Maybe it’s buying a sleek new laptop. Perhaps there’s a trip you’ve always dreamed of taking, and this saved money will turn that dream into a reality. You might have even had your eye on a brand new car.
But then, the unexpected occurs; your current car needs to be fixed, a repair is needed on your home, a larger-than-planned bill needs to be paid. Soon that rainy day fund is quickly depleted, and you’re saying goodbye to that trip to Florida with kids, or that new car.
But never fear, there are plenty of ways to quickly restore that precious fund so you can spend the money how you want to spend it! Here are a few of our favorite ways that you can be saving money for your next rainy day:
Understand its Purpose
Having a specific definition of what this money will be used for is the best way to ensure you are working towards that goal. Maybe you want to refurnish the basement for the kids to use. What will the costs be to do that? Now picture the outcome and how happy everyone will be. Having a vague outline of how you will spend that money will only encourage your to be more frugal and less impulsive with your purchases.
Be Honest With Yourself
It’s time for some self-exploration—think about your current spending habits and have an honest conversation with yourself on how they can be changed. Make the commitment to yourself to alter how you save; it will let you reach your goal quickly.
Spend Extra Income Wisely
It’s tempting to treat yourself to a night on the town, or splurge on an expensive purchase, but think before you splurge. If extra income comes your way, put it in your rainy day fund right away, before the temptation to spend it kicks in.
While going on vacation, getting a massage, or buying that golf membership is a fun way to spend that extra money saved, sometimes practicality and responsibility have to take over. That rainy day fund would make a big difference in a Savings Club Account at Fairmont Federal Credit Union. You can save up for something specific, such as auto expenses, home insurance and, yes, even that dream vacation very easily with an account like this. Not only is there no minimum balance required, but you can earn dividends with regular savings, make unlimited deposits and withdrawals, and you don’t have to follow a payment schedule. It doesn’t get much better than that.
For more information on our Savings Club Accounts and how they can help you save for your rainy day fund, trust your friends and experts at Fairmont FCU. Visit our website for more information on how your rainy day fund container can become an electronic banking account instead.
