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Does your savings account look like it needs some desperate, life-saving mouth to mouth resuscitation? Get ready to breathe new life into your stash, without feeling overly deprived. Here are 4 simple, and almost pain-free ways to start building or rebuilding your “rainy day” fund.

1.Auto Withdrawals that sync with your payday schedules

If you bank online you can most likely set this one up yourself. Each time you get paid, have $50, $100 or whatever amount you’re comfortable with automatic transfer to your savings. If done correctly and in conjunction with a savings account with a decent interest rate, your money can take advantage of the 6th wonder of the world, compound interest. Simple enough right?

Put your savings on cruise control. Basically, “set it and forget it!”  

2.Pay Yourself First

This one may be tough but don’t worry, it’ll get easier. Every month we’re so accustomed to paying our phone, credit card, and car bills, but our personal savings accounts are running on E for empty.

That’s great, please do stay on your creditors’ good side, but consider yourself as a biller as well. This bill is for your future. Whether it’s for a brand new used car purchase (see what I did there?), saving up for a down payment, or just saving for your annual girls’ trip, you matter too. Wouldn’t you agree that you’re a worthwhile cause as well?

We’ve been taught and programmed that as soon as we get our paycheque to give it all away to our creditors. Then we pick up the leftover pennies and wait for the next payday, and repeat. This doesn’t have to be your reality though.

Consistency is key. So, like clockwork, if you don’t want to set up the auto transfers, put money aside into your savings as the first “bill” you pay.  

3.Trim Your Budget

How are you supposed to trim your already lean budget? Trust me, I know you got a little more fat on your budget that could be trimmed still. This is how you “find” money to save. Are you ready?

First, write down all your bills and all your budget categories down on paper. Then, write down the average amount you pay each month. Can you reduce your grocery spending by $10 every 2 weeks? How about reducing your phone plan? Or can you downgrading your chequing account plan by $5 without inquiring overage fees?

This is your task: find all the ways that you can lower your expenses. Call your creditors, see if you can get any fees waived, interest rates lowered, and any kind of discounts.

You’re digging for gold here! Now that you’ve thoroughly mined your expenses, gather your riches, I mean your savings, and deposit your nuggets into your account. If you’re committed, you may have easily gathered another $50. That extra $50 totals to $600 to bulk up your savings by the end of the year.

4.Windfall Cash Into Your Savings

Any additional money that comes your way in the form of gifts, bonuses, tax returns or even quarters you find between your seat cushions needs to go directly into your savings. Put your money to work for you rather than blowing it on another Starbucks run. If it works out right, this will become a habit and you’ll be saving money effortlessly.

  Why is it so important to save? You already know the answer to this. Every time you have to take out your credit card for an unexpected expense, your stomach starts doing summersaults and your facial expression gets a bit more serious. This is part of budgeting. Budgeting isn’t only about having enough for your monthly expenses, it’s about planning for upcoming costs while you have the time.

Be smart about your spending today and you’ll have less stress tomorrow.

Post Author: Chadene Mbouogno

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