3 Ways to Create a Rainy Day Fund
Having a rainy day fund is such a necessity that all of us should be involved with. Sadly, most of us struggle enough to make ends meet at the end of each month without the added strain of putting money into a savings account. A rainy day fund, otherwise known as an emergency fund, is a sum of money that can be used in the event of an unexpected situation such as losing your job.
This fund should ideally contain at least three months worth of money that would cover your usual outgoings. If this is something you think you would struggle to achieve, take a look at these tips for three great ways to create a rainy day fund.
Invest your money
Investing is a great way to give your finances a boost, making it perfect to aid the creation of an emergency fund. Out of all investment types, property investment is generally considered the best route to take if you want to benefit from consistent returns month after month. Property investing also allows you to make a large sum of money later in life if the property you own has increased in value by the time you choose to sell it.
If you’re interested in investing in property, then make sure you seek out a reputable company like RW Invest, who have a trusted name within the property industry and a proven track record for success. Using a good company can help you find the best opportunities that meet your budget and that are located in the most profitable areas. Any money you make from property investment success should then be put towards your rainy-day savings account, leaving you with plenty of peace of mind.
Focus on budgets
Budgets, budgets, budgets. If you’re keen to generate a significant amount of savings, then budgeting is, unfortunately, something you need to do. While it can be hard to stick to, putting a monthly budget in place is helpful as it lets you see where your money is going and gives you better clarity on what you can do to spend less money.
If it helps you, you can use tools to track your budgeting efforts. There are some great tools out there, such as the downloadable budgeting spreadsheet offered by Money Saving Expert which goes in-depth and tracks every element of your monthly spends. You can then calculate the amount of money you should be left with after all your outgoings, giving you a better idea of how much you can afford to put towards your rainy day fund.
Make some extra cash
If you’re not making enough money to be able to invest or be left with expendable income, then you might need to look into making some extra income. If you have some free time, focus on using your products or services to earn money on the side of your usual job. Sites like People Per Hour and Upwork allow you to find freelance jobs if you’re skilled in areas like copywriting, graphic design, web design and more.
If you’re not keen on spending time doing freelance work, selling your unwanted items is another great way to generate some extra money that you can put towards your savings. You could do this the old-fashioned way by selling items at a car boot sale or put some listings up on sites like eBay for a more hassle-free approach.