Tips To Save For a New Rainy Day Fund As A New Years Goal In 2012

A new year means new beginnings and new promises to oneself when it comes to spending less and saving more. With the dawn of 2012, it is crucial that we begin to consolidate and save our money, saving us from unnecessary expenditure heartache and also protecting us during times of emergency, which is doubly essential with the kind of inflation and price hike the world is presently facing, and the best way to ensure this is a Rainy day fund. Also known as a rainy day reserve, these funds are emergency funds, created to help to cover unexpected expenses.

A rainy day fund in a broad sense is a savings fund where a reserved amount of money has been set aside by a state (government) to be used in times of unexpected emergencies, revenue crunch or irregular state-wide/nation-wide income and becomes a barrier in the course of normal financial operations, etc. Most countries use their Rainy day funds during times of severe revenue shortfall that is when the incoming revenue is shorter than the overall expenditure, helping with the overall budget shortfalls, thereby stopping nation-wide panic and is also beneficial than having to borrow funds and thereby collect debt.

Now we all have ups and downs in life, and there is a time when an emergency fund will prove extremely beneficial to you, especially for those unplanned moments when an extra dose of money helps. Getting into debt is actually much easier than we realize, especially long-term debts, like clearing credit card debts or your bills. Also, sudden emergencies don’t always arrive announced. And with the arrival of the New Year starts, saving money should definitely be one of your resolutions, and following some simple tips, you can ensure to save up for those emergencies.

What you can do is follow a simple pattern. Create a check-list for yourself, marking the rough expenses you will require for the month. Then, make sure you curtail unnecessary expenses by cutting out on things that one can do without. Also, when you receive a salary, rather than paying off your dues, make sure to take out some and put it into your rainy day account first. Don’t worry if you cannot save a large amount right at the beginning. Even little things are helpful when you save them up, like the little drops of water that make an ocean.

The next step to do is create a budget for your entire month, making sure to remain within that and using smart living techniques, setting rules up where necessary and promising yourself to stick to it no matter how difficult. Set up an account for your Rainy day fund, but make sure you don’t go around withdrawing from it every minute. You can also ask your employer to automate an account for you, sending a certain percentage of your income directly to it.

Make use of windfalls, cash advances, prizes, lotteries for your rainy day fund and stash it away in the account safely. Sell unwanted stuff lying around your house, like that old lawn mower or the ratty couch in your basement. Also, don’t indulge in sudden unnecessary expenses, and if an emergency does arise, always ask yourself how important it is before breaking your rainy day fund. Once you follow these simple tips, and promise yourself to control your expenses, it is remarkably simple to build up a strong Rainy day fund for you and your family.

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