While financial emergencies can happen anytime, rainy days are the prime time for such unexpected expenses. Whether it is because the cold weather results in a cold or flu, driving is more hazardous, or you just have unplanned expenses, you must save money for rainy days. The US Federal Reserve reveals that only 45% of Americans have the cash to pay an unexpected bill of around $400 and the remaining 55% depend on credit cards or loans to make up for the expense. However, you can save money for a rainy day to avoid being cashless during emergencies.
Open a savings account and ensure you put some money in it every month for your rainy day expenses. Over time, you will build a good cash reserve. Some people living paycheck to paycheck may find it difficult to save, as they may have expenses already due. In such circumstances, you can set up your paycheck to automatically transfer $20 of your paycheck to your savings account. You will find you don’t miss it if you don’t have it.
You should try to save money despite your monthly expenses. To do so you must cut down on unnecessary expenses, and one among them is having coffee at a restaurant or coffee shop. If you compare the costs of food and beverages at your home vs. buying them outside, you can save at least $50-100 per month by preparing food/beverages at home.
Some credit cards offer monetary rewards of up to 5% on all or select purchases. Using such cards and paying your expenses through them will help you redeem the money, which you can put into your wallet or savings account for future use.
Low-quality products may come at an affordable price, but they won’t last for a long period. High-quality products might be slightly more expensive, but you can use them for an extensive period, eliminating the need to make repairs or replacements and saving you money. Whether it is clothing, electronics, or home décor, try to select proven quality items.
Investment is an excellent way to boost your savings. All you have to do is explore investment platforms that have less risk and guaranteed interest payouts. If you are a first-timer, be very careful, as investments are subject to both gains and losses, and special knowledge is needed to do-it-yourself. Start by investing a few dollars or have a financial advisor help you choose the best options.
If you are paying for multiple subscriptions like gym memberships, phone apps, and other such expenses, then make sure you use all of them regularly. Otherwise, cancel the ones that you don’t use often. You can also share membership/subscription costs with your friends or family to save on them.
You may want to give gifts to your friends and family on special occasions, but you can save money by making gifts yourself instead of buying them. With a little creativity, your gifts will be very thoughtful and safe money too.
While you cannot avoid taking hot showers on cold days, you can reduce your utility costs by doing some simple things. Consider installing dimmer lights or LEDs, self-washing your clothes, fixing leaky pipes, and buying energy-efficient appliances.
Sell things that you will no longer use, including furniture, clothing, home decor, dishware, appliances, kitchen supplies, etc. This way, you can get some decent payouts, which you can move to your savings accounts to increase your rainy day funds.
If you need some things for temporary use (like a lawn trimmer for weekend backyard work or a handheld blender for making soup), you can simply borrow them from your friend or neighbor rather than spending some dollars to buy your own.
These tips and more can ease your worries about your rainy days' money emergencies. However, at times even these tips might not save you enough money for an unexpected emergency expense. In such cases, you might need another source of funds, such as a payday loan.
If your rainy day savings are not enough to cover your unexpected expenses, you can use emergency payday loans. At LoansinaDay, we work with over 100 direct lenders to help you receive emergency payday loans in just one business day. All you need to do is to fill in the loan request form and, if approved, receive your money the next business day.