Budgeting for Rainy Days

Have you ever been worried about what you would do in times of emergency when you just do not have the money to spend?

Rainy days are when unforeseen expenses, like your car needing repairs, a broken tooth or maintenance on your house, take you by surprise.

Having rainy days savings is important so that you don’t struggle during these bad times. There are many ways to budget for rainy days, from old-school envelope budgeting system to various digital alternatives available.

Here are 6 ways you can save for rainy days:

1. Find Alternative Ways to Make Extra Money

Whether it be selling your old stuff online on Carousell or turning your hobby of baking into home-based business, there are various ways in which you can make some extra cash.

2. Start Cutting Costs in Areas of Your Life That Won't Greatly Impact It

People are unaware of how much money they spend on miniscule things. Make yourself a cup of coffee instead of grabbing from Starbucks or even the coffeeshop. A cup of Starbucks Cappuccino (grande size) costs $6.60, while a homemade cup of coffee costs about $0.50. That's a savings of about $183 every month, and you certainly can use that savings for your rainy day fund.

3. Make a Separate Account

Make a separate account specifically for rainy days and emergencies. This will prevent you from using this money in times when it is not in need.

4. Make Sure You Have Adequate Emergency Funds

Save a fair bit every month to make sure you have adequate emergency funds to cover at least 3-6 months of your expenses.

5. Stash Your Loose Change

It is surprising how much loose change we have lying around. Put them in a specific place and you will be amazed by how much money will add up.

6. Track Your Spending Habits

By doing this, you can see exactly what you spend your money on and it will also help prevent those impulsive buys.