Banner image

Blog

4 Ways to Make Sure You Have Money in the Bank

The value of saving has been instilled in us since our childhood years. We were taught to save for the proverbial rainy day and other emergency situations. If you’re having a difficult time grasping the concept, it basically means making sure you have enough money in the bank. This could be for hospital expenses, calamities, or other issues which may arise unexpectedly.

Here’s how to start your own emergency fund:

  1. Start Right Away

Don’t put it off. Start saving as soon you can. You can be a student, a young professional or a recently divorced single Mom. Do it now and start with something that you think is right to put away for the rainy day. If you wait until you receive your bonus  or commission or your pension, it may already be too late.

  1. Treat It as a Monthly Expense

Look at savings like a bill. You set aside a certain amount every month to cover it. Treat savings the same way, if you can set aside 10 or 20 percent of your income, well and good. Do it regularly – no ifs no buts!

  1. Open a Savings Account

It’s called a savings account because you’re supposed to put in your savings there. Make it different from your payroll and checking account. Remember that this is emergency money that you shouldn’t be touching, no matter what.

  1. Know What a Rainy Day Truly Means

You can’t withdraw money from your savings to cover your credit card or water bills. No, that’s not how it works. When your car breaks down you can charge the expenses on your card and pay it off the next month. This is also applies when you want to shop because of a really big sale. Learning to differentiate between needs and wants is key here.

These four tips are just basic things you need to do in order to start your own savings account. The more you put in, the bigger it grows. And, you’ll be very thankful that you’ve resisted the urge to spend every cent of it many years down the road.

Get matched with a qualified lender today!

Warning: Late repayments can cause you serious money problems. For help, go to moneyadviceservice.org.uk