HOW TO SAVE FOR A RAINY DAY: PERSONAL FINANCE GIVES YOU SOME BASICS

When it comes for budgeting for a rainy day, this clearly accounts for your common sense, which urges you to undertake some unexpected costs when you do not have enough funds to cover that expenditure. Often this cost multiplies into quite a lot of, clearly not depending upon your amount of money. So a rainy day fund is always crucial.

FIRST THING: TRY SAVING MONEY (NO MATTER WHAT AMOUNT IT IS) IN A BANK
In this way, you will end up saving cash in a bank, which will give you immediate right to use whenever it is necessary( that also with high interest rates).

Avoid paying taxes. And also go for a bank which provides you with a simple debit or bank transfer.

Don’t run for higher interest rates, for that could be risky.

Don’t spend your money in the stock and shares.

Try to keep in mind the primary purpose of saving money. You are saving money not for any high interest rates but for the sake of saving it. Having an easier access is more important than earning a bit more.

Don’t think of hoarding thousands, as your essential need lies in providing yourself with enough money to cover up your rainy day expanses.

NEVER USE YOUR CURRENT ACCOUNT TO WORK AS THE RAINY DAY FUND.

This accounts for several reasons. Your present bank account will make it too easy to make available for saving funds without letting you realizing it. And when you will need money, you will probably realize that you don’t have enough money to go for it.

Generally current accounts don’t compensate for high interest rates as savings accounts do. Avoid using it. Remember current account means for daily expanses, while savings account for the mere purpose of savings.

Be debt-free before going for a savings policy. Paying high rates of interests, while at the same time earning less from a savings policy, would be a foolish idea.

And now, when you are free from the past debts and unpaid sums, you can, in a state of peace, go on saving funds for a rainy day expanses.