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Ready For That Rainy Day

You probably already know you need to save for a rainy day. Problem is, there doesn’t seem to be enough money to put aside for that rainy day. All of your money seems to be going for today’s needs – and you’ll just have to worry about the future when you get there.

Unfortunately, that is the financial equivalent of sticking your fingers in your ears and shouting “I can’t hear you!” Just because you don’t want to acknowledge that a savings account could literally save you doesn’t make it untrue. Job loss, unplanned pregnancies, car accidents, medical emergencies, transmission blowouts – they happen to all of us. Say it with me, “Something WILL happen.”

Right now, you might feel like you are stretched so far that you’re ready to give up before you’ve started. You might be paying off debts from years past, or borrowing just to get to the next payday. That does not mean you shouldn’t start putting a little bit aside. Forget about saving for retirement or your next vacation. Let’s figure out how to save for your next emergency.

Financial experts recommend saving 10% of your income. But unless you are in excellent financial health (and let’s be honest…you would have stopped reading by now if you were), this might look unattainable. So let’s start small. We’re going to take a teeny baby step and start a habit of saving. Let’s shoot for 1%. That’s right. Just 1%. How much is 1%? Look at your paystub. Then move the decimal point to the left 2 spaces. Try to put that much money aside every paycheck. Here’s an example:

  • Tina makes $800.00 every paycheck. Now, Tina going to shift that decimal point over to the left by 2 spaces. How much is that? $8.00 every paycheck. If she gets paid every two weeks, that would be over $200.00 saved in one year! It is not a lot of money and will not shield her from life’s emergencies for very long, but it will help her get into the habit of setting a little bit aside every paycheck.

I challenge you to find that little bit of money every time you get paid or get a windfall (like a tax return). As you get into the habit of saving, up the percentage even more. Challenge yourself to find ways to save 2%, 5%, or 8% of your paycheck. You will start to feel a sense of control over your finances. And you’ll be a little more prepared the next time your car doesn’t start.


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