Organising Personal Savings for a Rainy Day
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Organising Personal Savings for a Rainy Day

Organising Personal Savings for a Rainy Day

Where does all my money go? This is the question on the lips of almost every worker and person between the ages of 18 and 80. Are you able to play the role of the squirrel and stick away some money for a rainy day? Many people throughout their lives berate themselves on their lack of ability to save, but there is always a way to stow away that little bit of financial sunshine for a rainy day. Sounds a little too good to be true, or some kind of fairy tale that grandmothers’ tell their children while bouncing them up and down on their knees before putting them to bed? With a couple of useful tricks and tips, you’ll be able to control the flow of your personal finances and save some money for a rainy day or a special vacation.

Creating a Personal Budget

Keep records. Every business has realised that in order to realise where things are going well, or poorly, is to have data to analyse. Keeping track of your income, tax payments and monthly deductibles is key to being able to save money. If you are not comfortable with using all of Excel’s spread sheet functionality, there is a wealth of free personal finance programs or templates that you can use to get a sense of your finances. Once you have deducted your monthly expenses from your net income, you can start to understand where you can cut back, and what money can be saved for a rainy day.

Automate your Finances and Savings

In the same way that you have your gym, medical aid and rental agreements automatically deducted from your account, debit orders can be made for savings accounts as well. Speak to your bank manager and decide on an affordable amount that you’d like to be stashed for you. Many large banks have rounding off services that automatically bank change from any card transaction and add it to your savings account. This system of saving simply relies on counting your saving as an expense that you automate to keep it separate from the spending system of an open wallet.

Start Saving Early and Establish Milestones

There is never such a thing as too little saving. It’s a habit that you will learn to develop over time. Much in the same way when you start gym, set yourself goals and milestones so that you don’t get disappointed and give up. Reward yourself with small bonuses occasionally and think long term saving policies with greater interest. Saving is not only an action but, to hit the cliché, a way of life. Always remember, that when it start raining, it’s always handy to have your financial savings umbrella.