Saving for a rainy day

Why you need to be saving for a rainy day...

A
a
-
Saving for a rainy day

This time last year the Guardian claimed fewer Britons were saving their pennies. Despite our troublesome economic climate, large inflation and lower interest rates meant the average family had less to spend on themselves and therefore less to save. A fifth of those surveyed mentioned they didn’t have any savings whatsoever. So with this we ask, should you be saving for a rainy day?

We save for many reasons. A holiday of a lifetime, new car or the home of your dreams, but do we ever put money aside “just in case”? We can often be caught completely off guard when it comes to saving. We think everything is under control then every household appliance decides to break, you’re hit by an uninsured driver or burgled in the middle of the night. Granted, these things are unlikely, but they can happen and when they do, have you got it sorted? 

It’s important to set money aside for life’s little mishaps. An urgent repair on your boiler or calling someone in to fix the washing machine is made so much easier when you don’t have to race around withdrawing money from various accounts. Let’s not forget the stress and potential arguments you have avoided when asking family or friends for help.

Emergencies or an unforeseen crisis is made ten times easier, but putting money aside for something that may never happen can be demoralizing. Surely spending your hard earned wages on something more enjoyable is a much more appealing option?

It isn’t just bad luck and fortune you should be thinking about when saving. Everything is getting more and more expensive and having that a little bit extra in the bank can go a long LONG way. Take for example, education. Fees for universities have hiked, not to mention the part-time courses and if you decide you want to learn something later in life, the option may not be there anymore. If you’ve kept money aside, you’re in a much better position to follow your hopes and dreams. The perfect home comes within reach, or perhaps you can think about taking that early retirement. Let’s not forget saving for your future. Education for yourself is one thing but what about if you decide to start a family. You want to give your children the best start to their lives (not mentioning the middle and end too!) and saving is the best way to do that. Think about the amount of interest that will be added on too! 

The general rule of thumb is to save the amount that you would be able to live on for four months. This includes rent, food, bills and to live fairly comfortably. This should be more than enough if you (touch wood) lost your job, crashed your car, etc. Although it’s not always possible to save the amount you may want each month. Let’s not forget events like birthdays! You can start to save little amount from each pay packet. Once you’ve created an aim you wish to meet, saving a bit at a time will become easier and you can go on living comfortably without worry. 

Not everyone is good at saving. In fact, the ability to save money has a lot to do with your brain with researchers discovering that those who use the left side of their brain’s more are more likely to save than those who use the right. If you’re more inclined to save, you’re a deeper thinker who refuses to give in to any impulses the left side encourages. You can probably guess which you’re more partial to but saving manageable chunks is simple for everyone.

Saving for a rainy day isn’t about entertaining yourself when we have a spot of rain. Let’s face it, that would be fairly often in our climate! It’s about preparing for the worst by creating a healthy and reassuring back-up plan. Knowing that cash is there will give you peace of mind and the ability to combat any of life’s problems. 

For tips and advice on how to save, check out our articles on getting your finances in order and the best ways to save...

Contributor profile

Sarah Ponsford

Sarah is a recent graduate who has contributed to a number of websites and...

Sarah Ponsford