Saving for a Rainy day
words | Justin Figueredo - Financial Analyst
It’s a new year...a new year for more opportunities, more successes, and unfortunately, more rainy days. Things happens, and sometimes we find ourselves in need of cash like when our car breaks down, we drop our cellphone, or we need new gear. Here are ideas on how to save money for unexpected expenses knock on our doorstep.
1. You’ll need to find a spot to store your money such as a bank. Typically, you just need to name a parent or guardian as a joint account holder if you’re in between the “minor” ages of 14-17 and want to start a savings or money market savings account. When you turn 18, you can convert your minor savings account to a regular savings account. Savings accounts have a feature called 'accruing of interest', which is basically additional income you earn for storing your money at the bank. Banks pay a small percentage to you. Worst-case scenario, you can always buy an old-fashioned piggy bank, but realize you won't accrue interest using one.
2. The next step is sometimes the hardest - saving! Start small. For every dollar earned, put away at least a dime. Talk to family members about your goal to save money this year for rainy days.
3. Lastly, ask family if they would match your savings at least dime for dime or maybe even at a two for one ratio-two dimes! Sounds little when we’re talking in coins; however, if you earn $100 in a week, and save $10 (10% of $100), your loved ones would match your saving investment with $10 or up to $20!
Week after week, you’ll see your savings account grow. It never hurts to start saving today for tomorrow’s rainy days!