Money Series: 3 Easy Ways to Build Your Rainy Day Fund.
Welcome to part 4 of 4 in our Money Series. If you’re just joining in and haven’t checked out parts 1, 2, and 3 you can do so here:
In the previous post we talked about how to make a budget, how to stick to your budget, and how to pay off debt and save an Emergency fund.
In this part of the series we’re going to talk about your “Rainy Day Fund.” You know, the money we hide in the back of the sock drawer that we save for a rainy day otherwise know as a treat yourself or fun day.
When you’re on a tight budget it’s hard to find extra money to do the things we love. So, I have listed 3 simple ways to build your Rainy Day Fund while sticking to your budget.
All of these tips are based on a cash only budget. So, make sure to go back and read parts 1-3 to find out about budgeting tips and why cash is King.
Never break a dollar
This is a simple, easy, and somewhat sneaky way to save. Here’s what to do. We all have loose change lying around the house that somehow never makes it to our wallets. I want you to gather all the loose change lying around your home and put it into a jar.
Now, let’s make loose change a habit by adding to that jar every chance you get.
All you have to do is “Never Break a Dollar.” The next time you go to the grocery, pay a bill, or shopping DO NOT whip out your loose change. Instead, break a dollar every time.
For example, the milk you buy cost 3.10$, instead of paying with 3 dollars and then finding .10 cents in your wallet, pay with 4 dollars and save your change. Do this every time you make a purchase.
Then, once you get home take the loose change that you have accumulated through out the day and put it into your Loose Change jar.
You will find that by the end of the month you’ll have quite a bit of change and at the end of 3 months you’ll have quite a bit of dollars. Just imagine how much money that will be after a year of never breaking a dollar.
The Coupon Rule
This is another effortless way to save. Here is how it works.
Every time you buy an item, use a coupon! It’s that simple.
Now, I know what you’re thinking, you don’t like clipping coupons! I don’t either, but I can use my phone to find them. Here’s what to do.
The next time you make a purchase search the internet to find a usable coupon. For example, the other day I went shopping for clothes. I had a budget of 350$ for clothes that month. When I got to the register with my items the total came to 300$ and some change.
I went into my phone and found a coupon for that retail store and guess what? I received 125$ off of my purchase. That’s 125$ that I would have spent had I not took the time to find a coupon. And, because it was money that I had already planned to spend, it won’t be missed. I then took the 125$ savings and added it to my rainy day fund. I paid my self instead of the store.
Voila! How easy is that?
You can do this at restaurants, retail stores, grocery stores and just about any business. There’s coupons for everything! So, remember the coupon rule next time you go out to make a purchase.
Do you like going to movies? Maybe you enjoy eating out, or perhaps you love reading books! Well, what ever you love splurging on, you can save big with rewards clubs.
I love movies and I frequent the theatre. So, I decided to join the rewards club that was made available by the movie theatre. By doing this I get points every time I purchase a movie ticket or go to the concessions stand. The points add up quickly and I can redeem them for free popcorn or even free movie tickets!
These types of rewards clubs and savings are provided by many businesses. I have even joined a rewards club for my car. I get a free oil change on every 3rd visit. And, since an oil change for my car is about 55$ a pop, that’s a huge savings. I take the 55$ that I budget for my oil change and pay it to myself, which I then add to my rainy day fund. This really helps when you’re trying to save coins.
Finding extra money in your budget may seem hard, but it’s not impossible. I hope you found these effortless ways to save for your Rainy Day Fund helpful.
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photo credit: marcoverch Münzen in der Hand und Sparschweinchen auf dem Tisch via photopin (license)