Keeping some money tucked away for a rainy day is a way of securing your future.
Those last minute emergencies such as important home appliances or the car breaking down – or even something more serious like a funeral to arrange – can bleed your finances dry and even put you in debt if you have no money saved to use towards them.
Rainy day savings ensure you’re always covered and that you don’t have to scramble for cash or borrow unnecessarily should a situation arise where you need to pay out a large sum of money. If you don’t have any savings to your name, here’s how to get started:
Set up a budget
When it comes to saving money it’s important you try to reduce your expenses to ensure you have a few pounds you can tuck away. This means budgeting, setting certain amounts of money for common expenses such as your food shop, petrol and special events on top of your regular bills.
Finding ways of cutting costs is relatively simple, from meal prepping – cooking large amounts to freeze for dinners later in the week or month – to buying second hand items to being strict when it comes to little luxuries throughout the month (sadly, that means cutting down on the wine and meals out!). Netmums has some great advice on how to save money on the food shop.
Choose a high interest savings account
Once you have some extra cash to put away it’s time to scour the high street for savings accounts that offer the best rates on your money. Of course the amount you get back is taxed and depends on how much you put in but it’s worth spending some time doing your research before you sign up. An accessible savings account is the best idea, because then you can move money back and forth as and when needed throughout the month.
Take advantage of club cards
Supermarkets offer great rewards when you shop with them regularly, so take advantage of these throughout the year to save you money that can then be moved into that savings account. Tesco, for example, sends out money off coupons throughout the year that can be used for discounts on food items or as actual money vouchers which you can save for Christmas or big shops.
Rainy day savings are great security, start putting away a few pounds today and feel confident you can tackle any issue that comes your way! However, if you do find yourself in debt and need more information on your options then there are services available out there who offer free advice and guidance. You’re not alone and it’s important you tackle these issues immediately before the amount you owe accumulates.