Four easy ways to start putting aside rainy day money
Jun 22, 2018, 7:17 PM | Updated: Feb 7, 2023, 11:20 am
SALT LAKE CITY, Utah – You just never know when you’ll get hit by one of life’s little emergencies. But, they can easily turn into a big disaster when you don’t have any money to cover them.
A recent Federal Reserve survey of 5,000 Americans found nearly half didn’t even have $400 saved up for an emergency.
Bankrate has found nearly one in four Americans have no emergency savings at all. Many people surveyed by Bankrate said if an emergency does come up, they will have to use a credit card to cover it, or borrow money from family or friends.
Fortunately, there some easy ways to get started on putting together a fund large enough to handle one of life’s emergencies.
SELL YOUR STUFF
First, consider selling things you don’t need. Stuff like old clothes, toys, unused electronics, dusty exercise equipment can be turned into cash. Sell them on eBay, KSL Classifieds, or at a consignment shop or yard sale.
AUTOMATE YOUR SAVINGS
Next automate your savings, so part of your paycheck goes straight into your rainy day fund. You don’t have to think about it. Out of sight, out of mind.
TRY A MICRO-INVESTING APP
Apps like Acorns, Digit and Qapital not only automate your savings, they can turn invest your money for a return. KSL Newsradio’s Heather Kelly started investing $5 a week with the micro-investing app, Stash, before upping it to $20 weekly. Three months later, her “stash” grew to $324.
“What if I blow out a tire?” Kelly told KSL. “I can now cash in this stash and buy myself a new tire.”
Also, go over all your monthly and yearly memberships. Streaming services, preferred shopper clubs, magazines and here’s a big one: gyms. These payments add up, so cancel the ones you’re not using and stash that money in your rainy day fund.