Having a personal rainy day find is a necessity for everyone as you never know when an emergency strikes. You can use an emergency fund calculator to determine how much money you should save up. However, the general ‘rule of thumb’ is to have enough to cover your living expenses for 3-6 months. And the sooner you accumulate this amount, the better. Here’s how you can do this without giving up on your comforts completely:
Build Up a Personal Rainy Day Fund Fast with 4 Simple Strategies
Become an active user of coupons
The best way to build up your emergency fund fast is to set aside some money every week. And an easy way to increase this amount is to use coupons to cut your weekly expenses. This way you get to enjoy about the same level of comfort, because you don’t have to cut your spending. However, you get extra money to save due to finding the best money-saving deals.
I recommend focusing on grocery coupons and planning your menu according to the things you find on sale. Meanwhile, set aside the leftover amount from your weekly grocery budget.
Invest In Crypto
Like most investments, crypto can be used as a long-term strategy for boosting your retirement funds. However, it is an equally great solution for short-term rainy day savings. The volatile markets allow calculated investors to generate significant capital growth in a short space of time. Meanwhile, the versatility of being able to trade coins and withdraw to your bank account allows quick access to your funds. This is a vast improvement on having money tied up in property, for example.
It is important to seek the best interest rates for crypto, especially if planning to trade rather than hold. When the administration costs are smaller, you are able to enjoy the full benefits of your investments.
Start a ride-sharing program at work
Get your colleagues on board and create a program that will allow all of you save on commuting. Plan shared rides so all of you only pay a part of the gas cost. You will also be saving the planet this way.
Stay-at-home parents can set up similar plans for school rides. And you should consider mass-grocery runs for your community.
Look for free entertainment
You don’t have to give up on entertainment completely, but you should make more of an effort in finding free options when you are building a personal rainy day fund. If there aren’t any free concerts, exhibits, or festivals, you can look for deals like ‘first drink of the night is free’, etc.
Overall, you’ll need to put a lot of effort in planning your time off and your options might be limited. However, with other savings at play, you shouldn’t need to hold back from partying for long.
Spend your holidays at home
When actively working on your personal rainy day fund, you should avoid traveling. However, you can spend your holidays discovering your home area instead. Have you seen every landmark around? What about hiking?
Invite your family or friends over and set out exploring together.