Building a rainy day fund of money you can call on should the need arise is always a good idea, and even more so at the moment in the current uncertain economic times. Creating this kind of cushion that you can fall back on to cover any unexpected costs gives you something more valuable than the balance alone – it gives you peace of mind. So it should be an aim for all of us to have a little something put by. Sometimes though, this feels easier said than done, what with precarious jobs, rising rental costs and the expense of daily life. So how can you make it happen?
Use The Power Of Tech
Money management is easier than ever these days, largely thanks to the plethora of apps that can support you to save. From options like Moneybox, which allow you to save little and often with optional ‘payday boosts’ to a financial personal assistant like Plum that will scan your current account and text you suggestions on how to make savings, getting a good view of where you overspend and making the process of saving seamless makes it far more likely that you will stick to a plan and reach your goals faster.
Have A Money Free Week
How much money do you really need to spend on a weekly basis? Sure, we’ve all read those annoying articles about foregoing takeaways and skipping your takeaway coffee to save money. While those measures do add up, not many people can stand to live a life without these small pick-me-ups for long. What is more achievable – and adds up a lot faster – is dedicating one week out of the month as a no-spend zone. Make sure that you have the essentials, such as enough food in, and then put your cards away for a week. Any money that you would have spent during the week can go into your savings. This is very doable, especially during lockdown when you’re based at home. You can also think about things like saving on your insurance with Call Wiser or shopping around for utilities to get the best deals and save money.
Start A Side Hustle
More and more people are using the internet to source an alternative stream of income alongside their day job. This strategy diversifies their income, and gives them a pot of money to put towards savings or extra treats that isn’t already accounted for with household bills. This can be as simple as becoming an upseller on eBay, looking into running a dropshipping business or even signing up to review websites and take online surveys for a little extra cash. If you have a talent think about how you could monetize it. Is there something you can make and sell on a platform like Etsy? Is there a skill you could offer lessons in? Think outside the box and you might be surprised. Use sites like TaskRabbit to help you bid for odd jobs that fit in alongside your other commitments.
Those are just a few ideas to get you started, and once you begin to get together a rainy day fund you are likely to find other ways to give it a boost.