It can be tough just making your money stretch to cover the bills, let alone being able to save some money too. However, if you can put a little aside each week or month, it does have some benefits. Here’s why you should consider saving for a “rainy day”.
Unfortunately, things break, and they often break at the most inconvenient times. Some things you can live without for a while, but items such as your car, your boiler, your cooker, fridge or washing machine might need replacing more urgently. Having a savings account with some emergency money in means that if you do have an unexpected cost, you have money available to cover it.
You might want to put some money away to gift your children in the future to help with their first car, first home, wedding or university costs. Putting a little aside each month in a separate account means you can give them a nice lump sum. Saving just £3 per week from when they are born until their 18th birthday will build a total of over £2500.
What if you were suddenly out of work or there was a problem with your benefits? How would you cope if you needed time off work for sickness? Without an income, you could find yourself in a stressful situation. Having a “rainy day” fund will help ease the pressure on you financially while you find a new job, reinstate your benefits or recover. Try and have enough saved to cover three months’ rent, bills and food.
Put a little aside every payday
Some people say they will be more careful with their spending and put whatever they have left at the end of the week or month into savings. Unfortunately, this rarely works as they find excuses to spend the money. Maybe a friend invites them out, or they decide to treat the family to a takeaway. Suddenly, there is nothing left to save.
The best way to save is to work out what you would have left after all the bills and essentials have been paid for, then decide how much of this you want to put away. Perhaps you work out you will have £50 left each month, so you will save £25 and keep the other £25 for extras. Every time you get paid, transfer the agreed amount straight into a savings account. This way you are less likely to dip into it. The more you have saved, the more peace of mind you can have that you’ll be able to manage if something unexpected happens.
At Morses Club, we understand that planning for those sudden costs isn’t always possible, even when you are careful with your money. We specialise in providing cash loans to cover any financial emergencies that crop up; you can find out more about what we do in our about us section.