Having a secret stash of cash for a rainy day is a fantastic idea, but actually building one … that’s a different matter. If you find it difficult to save money, you’re not alone, but think about it, if something goes wrong, you lose your job, need to travel overseas at short notice, or the car dies, what would you do? No actually, what would you do?
Sure, there are lots of options out there for fast loans, but these still need to be paid back and interest rates can vary – you could quickly end up in financial trouble.
An emergency savings fund is a great way to protect yourself. It makes so much sense and isn’t as hard as you might think to achieve. You just need a plan, and that’s where Frollo can help.
Here’s what you need to do to build your rainy day fund:
1. Set up a separate savings account. Check out the Finder guide to make sure you get a good deal.
2. Set a goal for your savings. Start by aiming for $1,000 and build from there. Your real goal is to have enough saved to last you 3-6 months. This will be the buffer you need if the worst happens and you lose your job or get hit by a large bill.
3. Put aside an amount each payday as soon as you get paid. You’ll soon get used to it and if it’s safely squirrelled away, you won’t be tempted to spend it.
4. Add even more to your account by taking a challenge in the Frollo app – there are lots to choose from and you’ll be amazed at how much you could save. We all enjoy our daily coffee (or two), ordering Thai take-out, or work lunches at the café rather than taking our own – these things are great, but all that money could be put to much better use. It could be poured into your emergency savings fund!
Once you’ve got your emergency savings at a healthy balance, you can use the same principals to save of other things, but start with your emergency fund – it’s important, you’ll be so glad you did.