Do you ever find yourself thinking, “If only I had $1,000 dollars saved away, my life would be so much better. I could buy 500 lattes and 300 muffins and be so happy.” Well, maybe the details of what you would do with the money are a little bit different, but the basic idea of having money saved for a rainy day is pretty common. Here are some ways that you can easily be on your way to saving that rainy day money.
First, cut extraneous expenses out of your life or at least save them for that rainy day. People spend hundreds of dollars a year on things that they could save a lot of money on. For example, if you made coffee at home instead of buying Caribou or Dunkin Donuts coffee everyday you could save upwards of ten dollars a week. While that might not seem like a lot, it certainly adds up over the course of a month and a year.
Another similar way to save is to eat out less. Even if you go out to eat and take home leftovers, you are not saving yourself money by not having to cook again later. Again, you can save the money and only go out on those rainy days. And of course, making meals at home will always be less expensive than eating out, no matter how much food a restaurant gives you.
Additionally, look at what you spend on your cell phone, car, and energy bills every month. If you can switch to a cheaper cell plan, drive less, or use less energy, do it! Most people spend more money than they have to on these things because they don’t pay attention to what they actually are using versus what they are paying for. Make sure you are only paying for what you use!
Similarly, do things for yourself, or, if you have kids, assign them chores for a weekly allowance. They will most certainly mow the lawn for less money than the landscaping person you’ve been hiring to do it. You can very easily cut money out of your budget by doing your own lawn work, washing your own car, and cleaning your own house. This can be really great for many reasons, such as keeping you and your family active and doing things together. It will also help your kids grow a work ethic and learn the importance and relationship of working for money. There is also a great sense of accomplishment in doing something yourself, for example, cleaning your house. While yes, it sucks and you will probably hate doing it, when you are done and have a sparkly clean house and no less money, you will undoubtedly be proud of yourself.
Next, open a high interest savings account and direct the money you are saving there every month. If you figure you save forty dollars a month by making your own coffee, make sure forty dollars goes into your savings. Without interest, it will take you about two years to save one thousand dollars. With interest, it will go faster. Put your money in and watch it grow!
Just imagine having a drought and you will have that $1,000 to spend on a rainy day in no time.