We all know we should be saving more. But adding to that rainy day fund when you’re already on a tight budget isn’t the easiest thing in the world. Most of us think we’ll do it next month instead, or simply hope for a large cash injection in the near future. Saving can be a little daunting, especially if you have a target in mind, like the deposit on a new car, or your first property; it can feel like you’ll never get there! Having savings accounts or cashing in an ISA – you can check out Wealthify’s range of ISAs here – can certainly help boost your savings, but if you’re starting from scratch then it can seem impossible!
Well, help is at hand. Here you’ll find 4 ways to improve your relationship with your rainy day fund and hopefully add a few more pounds to it!
Budget, budget, budget
Never underestimate the power of a well thought out budget. Esepically if you’re working with limited funds right now. If you do it right, then you should have plenty left over to pop into your savings. Remember, every little helps. Many people use something called the 50/20/30 rule to help them budget where 50% of their monthly income goes towards their bills, rent and food etc, the 20% is for savings and the 30% is leisure activities like treating yourself to a night out or heading to the cinema. Give it a go.
Make saving automatic
Many of us have good intentions when it comes to saving. We intend to send money across from our current account to our savings account the moment we get paid…however we usually forget, or we tend to think – maybe next month. Well, this could be a complete game changer. When your paycheck comes in, have it land in a separate account that is specifically for savings, then transfer any money out of that account for things like bills, rent etc. That way, anything you have left over will already be put aside for your savings.
Keep on top of your debt
Most people have debt of some kind, whether it’s a credit card or a store card. The trick is to keep ontop of your debts and prioritise paying them off as soon as possible. If paying them off isn’t possible right now, don’t worry just stick to the minimum payments each month and you’ll get there. Leave your credit card at home!
Try the 30 day rule
If there’s something you really want to treat yourself to, then of course you should spoil yourself once in a while. However, if you’re trying to save then try to exercise a little restraint. The 30 day rule is where you write down why you want this particular purchase and then wait 30 days. If you still feel the same after 30 days then go ahead if not, then you’ve certainly saved yourself some money!
This is a commissioned post.