Rainy Day Funds

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Greetings world viewers and knowledge seekers! I thank you for subscribing to my blog. So let’s dive deep into building a Rainy Day Fund.

   A rainy day allows me the opportunity… OK more like excuse, to stay indoors, chill and do some serious writing, I meant introspection, literally. Every now and then we can all use a break from the daily grind of a job to afford the life we have created. Right?!  So, here’s to the weekend warriors! Woohoo!

   The other day, I was speaking to a friend who said to me “I really want to know how I can spend less money.” My response was simple, “just be mindful of where your money is going and change your spending habits. Like that Starbucks coffee you purchased today. Did you forget that we have free coffee here at work! Just add a sweetener, like apple spice, or caramel macchiato- there’s several flavors.

  Free means you can save that money for your rainy day fund.” winkingsmiley

Well, I guess she didn’t like what I said, cause she rolled her eyes at me and walked away saying something to the effect of “…I’m not doing that, that’s boring!” Then I said, “Hey, I can only help you, if you are willing to help yourself”.  Which brings us to the title, Rainy Day Funds. Hello There!

Here are five tips to saving more money right now:

  1. Open a savings account and if you have direct deposit from an employer or government entity, set up a recurring $25.00 every pay period or whatever you can afford.
There are a few online accounts (just google “online savings accounts”) that have been around for a while, like Capital One 360 and they have a higher interest rate than a brick and mortar bank. Check with your Credit Union too. The idea is to keep it (your savings) from going into your checking account where it can get used before you know it. The time tested formula of paying your self first!
  • 2. Know where your money is going by creating a budget sheet. Once you see where your cash is going you can scale back as needed. If you prefer a journal, you can create one of your own with a composition book (any dollar store) or pick one up at your local bookstore/office supply store.Daily Budget Sheet
  • 3. Open an online investment account like Acorns with very low maintenance fees or Robinhood which has no fees at all. There are also banks that offer to save your spare change, like Bank of America.
  • 4. Get an accountability partner that will keep you on track. Someone you trust and respect their judgement when it comes to managing money.
  • 5. Set a routine of managing your funds and stick to it! Sit back and trust the process. As a last alternative, you can keep it under your bed (not recommended), just remember to not touch it until you have reached your goal(s).  Tip for couples:If both of you are spenders, open up several joint accounts and title them under nicknames. One as a household bills, and one for groceries, one for gas, and so on. Then keep a copy of the account numbers in a safe with a key (purchase one at any office store), or get a free safe deposit box from your nearest branch.Of the couples, pick the one who is the most creative and thrifty when it comes to shopping. Personal finance can be a fun and rewarding journey, so don’t sweat the small stuff and you can always bend the rules; but keep it all in moderation. That’s all for now. I hope you found this information helpful. Please like, share and/or comment. If you have some ideas, join the conversation. We’re all one big community.

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    Until next time… Peace, love and prosperity, ET- Your Financial Literacy Advocate
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