How to save money for a rainy day

Posted by Kevin Quinlan ADD COMMENTS

Saving money for a rainy day is easier than you might think. The trick to saving this type of money and not spending it is keeping it out of sight or separated from your other savings.

Many people find that creating a second savings account is a great way to save some extra money on the side. Consider changing your direct deposit settings so that a percentage or specified dollar amount is deposited into your rainy day savings account every month. You will be surprised by how quickly the money accumulates!

Investigate the savings plans offered by your bank. Several banks will take a specified amount of money every time you use your debit card and deposit it into a savings account. These accounts generally are eligible for interest which will allow you to quickly save money for a rain day. After you sign up for a program like this, make sure to use your debt card as much as you can to take advantage of the rewards!

Another great way to save money for a rainy day is to start a change jar. Pick a jar or container and place it next to where you keep your wallet. When you return home each day, deposit any change you may have accumulated into the change jar. If you have a few extra dollar bills in your wallet, throw them into your change jar too. Chances are you will never miss those dollars and they will allow you to save money quicker.

The trick to the change jar is to roll the accumulated coins in wrappers on your own. While machines like CoinStar are fine alternatives, you will spend a good portion of your rainy day savings on service charges. That’s just not fun!