Making money takes a lot of hard work, while saving it takes a lot of discipline. However, you need both hard work and discipline to be successful. It is usually advised to save towards a project in view as well as for unplanned crisis.
More often than not, rainy days happen unannounced and at a time when you least expect it. It could come in form of an unfortunate event or it could be an opportunity to travel for something really important or for a crucial assistant to a family member.
Wherever any of these urgent needs for money meets you, try to be ready. As a member of the working class, you need a savings enough to cater for you and your dependents for at least three months even if your income flow is cut off.
Here are five practical ways to prepare for rainy days
- Stick to your budget
It is not always possible to meet the recommended 50/30/20 saving goals, the best way to try is to cling to your budget. 50% of your salary should cover your basic needs, 30% for your wants and then 20% should be put aside for rainy days – savings and clearing of debts. Beware of unaccounted small spending, because little by little they accumulate and drown your finance. You may talk to a financial advisor about ways to limit your wants to fit into its allocation because spilling over of wants is the beginning of an extravagant budget.
- Daily Bread
As kids, we were taught to put out money in a wooden saving box, which has now been modified to piggy banks. Surprisingly, that money accumulates over time and comes in more useful than planned. Irrespective of your age, you can also own a piggy bank where you put away both low and high denominations of money that you do not have urgent need for. Who knows, this might be your last resort on days where you don’t have cash at hand and can’t reach an ATM.
- Grow Monthly Savings
Monthly savings is a standard method of saving for most working class, although it is a struggle for some others. As long as you are sure of a monthly income and the amount, it is wise to put out a certain percentage of it in paper even before the pay cheque arrives. Take out your monthly savings first before tagging your salary to other budgets, so you don not end up saving left overs. You can grow your savings in a lucrative business or in an account that allows interest on a yearly basis.
- Spend Wisely
Do you know you can actually save money while spending it? With Spend2Save, you save a pre-chosen percentage of any amount you spend using any GTBank account. The more you spend, the more you save, and over a period of time, you can use the money to do something tangible.
- Proximity Living
Living and working in a populated city like Lagos can be exhausting when a huge chunk of your income goes towards rent/transportation. However, you can cut down your expenses significantly by living closer to your workplace. Some people prefer staying in cheaper houses with longer commuting hours, while others stay close to work [even though in a more expensive house] and spend less on fuel/transport. The second option is more efficient because it saves time spent on traffic/commuting, thereby increasing productivity. You can use your extra time for other money-making ventures and dedicate that income to saving for rainy days.