Easy Ways to Build Up Your Rainy Day Fund
Life doesn’t always go according to the plan on your budget spreadsheet. Sometimes you need to spend money to address an urgent need, like replacing worn out brakes on your car, buying a new furnace or covering a pet’s medical bill. By building a rainy day fund, you’ll be able to weather any storm to keep your financial goals on track. Whether you think you’ll need a few hundred or a few thousand, here are some easy ways to increase your savings for those short-term unexpected expenses.
Save on Pay Day
One of the simplest ways to grow your rainy day fund is to set aside money from each paycheck. Even if you can only contribute a small amount, your diligence will add up over time. Within Landmark’s Online Banking, you can even schedule recurring transfers so you can automatically move a set amount from your checking account to your savings account on a regular basis. That way you’re saving without having to think about it!
Create a Dedicated Account
If you’re tempted to dip into savings when money gets tight, consider creating a dedicated account for your rainy day fund or other savings goals. At Landmark, we offer a You-Name-It-Savings account, so you could even name it Rainy Day Fund if you like. That might help you be more disciplined about how you use your savings.
Use Your Tax Refund
If there isn’t much to spare after you pay your bills and expenses, consider putting your tax refund toward rainy day savings. It can be a great way to boost your fund quickly.
Raise Your Savings
If you get a raise or a better paying job, take a moment to evaluate if you can put some of your increased income toward your fund. Higher income can make it easier to reach your savings goals.
Loan Payment Replacement
If you pay off a vehicle loan, student loan or credit card balance, put the same amount you would have paid on your loan toward your rainy day fund. You’re already used to allocating that amount in your budget, so it won’t be hard to live without it.
By using these tips to build your rainy day fund, you can breathe a sigh of relief knowing you’re prepared to handle the next unanticipated expense that pops up. We’re here to help you achieve your financial goals. Check out or savings and money market options to find a solution that best suits your needs.