To have your own personal rainy day fund, you need to create a habit of saving your money. A good way to start saving is to simply put aside a set amount of money each time you get paid. This amount can be as much or as little as you can afford per paycheck. You’ll be on the right track as long as you stay consistent in saving this specific amount or gradually increase this amount over time. Decide what is doable for you, and plan to save as much as you can each pay period.
Pretend your savings account is in a distant, inaccessible land
You’ll want to be sure that you separate your spending money from your savings. When considering how much spending money you have to take with you through the week, don’t even factor in your savings! Treat your savings as if it isn’t there in order to keep from spending extra money. If you want to be very consistent about your savings, create an emergency sub-saver account. With this kind of account, you won’t even have to pull from your regular savings when you’re in need of money.
Pay yourself back
If you do need to go into your savings, be sure to replace what you’ve withdrawn. For example, if you had borrowed money from someone else, you’d pay them back. Consider this paying yourself back. The point of your savings account is to continue building, not to withdraw until your fund dwindles down to nothing. If you’re feeling extra generous, pay yourself back with interest. Your pockets will thank you!
Avoid making unnecessary purchases
When it comes to your spending money — not your savings — this is a golden rule to live by, in terms of financial planning. If you see an item that you really want, and it’s not needed, then leave it where you found it. If you have to think twice about purchasing it, you probably shouldn’t buy it. When it’s time to spend, or even splurge on items you want or need, you won’t have to think twice.