Saving for a Rainy day? | The Savings Wife

Tuesday, March 19, 2013

Saving for a Rainy day?

Life is messy. Have you prepared financially?

One of the things My husband and I have learned is that we should have at least enough money saved for 3 months of income for emergency purposes.  This is the same advice you will get from most financial advisers.  But it is often hard to find the resources to devote to your savings account.

Here are a few ways to make a positive balance in your savings account.  

Make a budget:  

Devote 10 % to your savings account for each pay check and live on the difference.  This will require you  to become financially savvy and require to you look at what you spend where and why closely. The hardest part about having a budget is sticking to it.
My husband and I in order to cut down on the amount of money we spent eating out have a eating out envelope.   We put a certain amount in that envelope and if there is enough to eat out we eat out, if not, we don't.   It's a way of not letting each other slip just because we are tired and don't want to cook.  
Here are are few more questions you will want to ask even after you have a budget made:
  • Is it a need or a want?
  • Does it have to happen now or can we wait?
  • Can I get a deal on this product elsewhere?
  • Is there a cheaper alternative?

The Next step is obviously to Get a Savings Account.

Look for a savings account that has no fee's and has a higher interest rate.   It is a good idea to draft the 10% out at the beginning of the pay period before you start spending the money elsewhere.   I do this with our tithe also.   When getting a savings account, make sure you look at minimum balance requirements.  Shop around for your bank, although most banks offer similar services, one may fit better with your lifestyle. 
For example:  At my bank, if I do direct deposits they will give me a fee free savings account.   Don't forget to look at online banking , you can also find deals there as well. 
Having a savings account will help you in a number of situations such as buying a home or securing loans.  It is also safer than having a large amount of cash hid under your mattress.  If you do well about keeping a balance in your savings account, consider a short term CD to increase the interest rate on your account.

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Making a Budget!