10 Ways to Save Money for a Rainy Day

In a world that revolves around consumption and debt, saving money is a hard thing. According to American Debt Advisor approximately 80% of all Americans are in debt, many of them owing thousands of dollars. On a daily basis we are bombarded with messages to buy more, no matter the cost. However, those who consume with reckless abandon almost always find themselves in difficult financial situations.

Becoming financially secure can lead to a decrease in stress and an overall greater enjoyment of life. Doing that requires an understanding of how to save. Consider the following 10 ways to save money for a rainy day.

1. Make and stick to a budget

If you don’t know exactly where your money is going, you’ll find yourself running out sooner than you think. Make a list of things you need to pay for with the highest priorities at the top of that list. Know how much you can spend in each area. Most importantly, stick to that budget and don’t make exceptions.

2. Be smarter with entertainment

Maybe you can make it to a matinee showing of that movie you want to see. Instead of buying a movie rent one from a Red Box. If you buy a lot of music albums, consider subscribing to a streaming service instead.

3. Don’t eat out

If you buy a $5 dollar lunch everyday at work, that adds up to about $1,300 per year. And that’s just for one meal. Go grocery shopping every week and make lunch instead. Not to mention improved health as a side benefit. 

4. Deposit part of your weekly check into your savings account

Take a cut out of every paycheck and pretend it’s part of your necessary expenses. Slowly these additions will start to build up and leave you a nice rainy day fund. 

5. Home energy

Save money by turning off the lights when you aren’t using them, taking shorter showers, or opening the windows instead of the turning on the AC. Unnecessary use of energy is wasting free money.   

6. Deposit extra money into savings account

Whenever you earn any bonus money including tax returns or a bonus at work don’t splurge. Deposit that money in a savings account instead and enjoy the feeling of financial security.

7. Put up barriers to buying online

Online shopping is dangerous. All it takes is the click of a button in the comfort of your own home. Consider removing your credit card information from the online stores you like to shop at. This will force you to take time and think about your purchases instead of buying on impulse.

8. Sell excess items online

There are several online formats including EBay and Craigslist that allow you to sell personal items. There are likely things laying around the house that you never use that someone else would love. Post them online and see if you can earn some excess cash. 

9. Save on gas

When you purchase a new car, consider one with high gas mileage. If you have the ability to bike or walk somewhere instead of drive, do it. Small things like changing the air filter or filling up the tires can increase gas mileage as well.

10. Discipline

Nothing works better than a little old fashioned self-control. Ask yourself if you really need those new shoes, or that bigger TV. Many people go into debt buying luxury items that they could really survive without. 


 

About the Author:

David Glenn is a freelance writer with many years of finance and home improvement experience.  He also freelance writes for Budget Direct.  To save money on home contents insurance, consider checking out Budget Direct.