1. Save 10-15% of your income – Automatically transfer a fixed amount for savings each month, or with each paycheque.
2. Start a rainy day fund – Put aside a set amount of money for unexpected expenses so that when the unexpected arises, you don’t have to dip into other savings.
3. Put extra money into savings – Any money that you don’t spend each month should be put into savings. This could be from bonuses, tax refunds or any other extra income.
4. Sell unwanted items – Clean out closets, the garage, the basement and any other areas of the house and sell what you don’t need. The extra money will prepare you for those unexpected expenses.
5. Create multiple savings accounts – Consider having a savings account for each purpose such as vacations, holidays, repairs and emergencies. Set up direct deposits for each of these accounts. When you separate your funds it will be easier to track and manage.
6. Create a budget – Create a budget and stick to it. Knowing how much money you have and what you can afford will help in preparing for rainy days.
7. Invest your money – With the right moves stocks, bonds and other investment vehicles can be beneficial when it comes to saving for the future. But be sure to research and understand investing before getting started.
