There are certain things in life that we just couldn’t have foreseen. Perhaps a large purchase like a house or a car set your family back a huge way financially. Or it could be due to larger causes like a nationwide economic meltdown. Whatever it is, your budget needs to be firm enough to maintain provisions for basic needs while being flexible enough to bend to the times.
Keeping a budget is a pretty easy way to manage the family’s finances. Even kids know how to budget their allowance and save some for future use. It keeps you on top of everything in your home and makes sure that all bill is paid on time and all services are available whenever you need them.
Planning for something in advance is a good way to prepare for anything that might come up. You don’t have to be specific about what your saving should be for; you just have to know what it could be for. There is a major difference between being prepared and being just plain paranoid. You need to learn what this difference is.
Open a savings account that is specifically meant for your emergency rainy fund . Whatever you want to call it, just establish one! Some of the tips on how to save for a rainy day are:
Deposit a certain amount of money on a weekly, biweekly, or monthly basis in your account. You may want to set up automatic deposits to your account via your payroll department. Or, you may want to have your bank automatically withdraw a certain amount of money from your checking account into your emergency or mad money savings account.
Try to save at least 2-3 months of your monthly salary to cover your bills for at least three months if you were to loose your job. This amount of time will hopefully allow you the cushion you need until you secure new employment.
Chart Out Your Monthly Budget
It is very much necessary for you to make a monthly budget plan. It should prioritize all the regular expenditures which have to be met without dearth of financial resources. Your monthly budget must be a balanced one, in accordance with your earnings and avoiding credits. Your recurring payments have to be made in cash to avoid credits. All the extra recurring costs have to be reconsidered and managed within the budget. Always try to pay up your credit debts in slow progression. This will certainly boost up your savings.
The money you save in your emergency or mad money account should be used for household emergencies, personal emergencies or if you’re no longer able to work. Don’t use it for other expenditures such as bills, travel, house rent just leave it for rainy day emergencies.Get the idea? It’s a savings account that you don’t want to touch unless it’s necessary!
Make sure the bank account you put your emergency rainy day money into, is paying you the most interest you can earn for this account! Research as many sources as possible on securing the best interest rate you can get. Check with your bank, the internet, newspaper and other sources for the prevailing interest rate. You want to make sure your money can be accessed easily and quickly if you need it for an emergency!
You also might want to keep some cash that covers up to four months’ worth of expenses. This is probably the most important aspect of saving up for a rainy day. It gives you leeway and a margin of time to start again financially. You’ll appreciate this greatly once disaster strikes.
Budget keeping is an essential part of running the daily motions of a normal household. It helps you easily manage your money and save for a rainy day.
By establishing an emergency fund, this will give you a better peace of mind if you need access to money when there is an emergency in your life like rainy day. So, the sooner you start setting money aside for a rainy day, the better off you will be! Make sure the amount of money you contribute to your emergency or mad money fund, is realistic for your budget. Save as much as you can without upsetting your overall personal or family finances.
No matter how much you save, life is unpredictable. Even with insurance and emergency funds, there are times in the lifes of some that aren’t enough. At times like this, if you require help, come find us for a non-obligatory meet up to see how Easy Credit can help you