Saving for a Rainy Day
As the new year begins, everyone is busy seeking to fulfill New Year’s resolutions. Hopefully as you set your goals for 2009 you included your personal finances on the list. The list could include items such as personal debt reduction for mortgage and credit card debt, retirement savings or the sale of assets and purchases for the year. Of course, our giving back to the Lord that with which he has blessed us should be at the top of the list. These items are vital, but I would like for us to consider one area that often gets overlooked. Everyone views this as being a good idea; however, we never quite seem to be able to discipline ourselves to begin. In this issue, let’s consider the area of saving. We have all heard the term “saving for a rainy day,” but when the rainy days come, it seems there is seldom anything put aside. Hence comes our dependence on credit cards and the resulting greater burden of debt.
Differing philosophies abound regarding how much savings one should have set aside for emergencies. The purpose of this article is not necessarily to help you determine how much to save, but rather to encourage everyone to save something. Listed below are ten simple ideas to assist you in saving for that “rainy day” need.
- If your employer offers direct deposit, direct a portion of your pay check directly into a savings account. It is easier to keep from spending it if the funds are not easily accessible.
- Make saving a priority when preparing your budget.
- Determine whether there is wasteful spending in your budget. If there is, delete or decrease that budget item and put the extra in savings. (I.e. coffee shop, outside dining, etc.)
- Put your savings in an interest-bearing account.
- Pay off credit card debt and redirect the monthly payments to your savings account.
- Drive less, and put the money you would have spent on gas in your savings account.
- Sell items that you no longer use, and place the proceeds in a savings account.
- If you refinance your mortgage for a lower payment, put the difference saved in a savings account.
- Buy generic instead of name brand items, and put the difference into savings.
- Set a goal for how much you want to save, and determine what you will have to do to achieve that goal.
Methods for saving are many, but perhaps these ten simple ideas will help you make a start as we head into this new year of 2009.