Frugal Challenge Saturday – Saving for a rainy day
August 11, 2007 by kellys
Filed under budget, financial matters
Ever wonder how much you should save for a rainy day? The rule of thumb that I have always heard was 6 months living expenses. Our goal is definitely 6 months. It just makes us feel better to know that nest egg is there to help. The challenge for Saturday is to figure out how to save for a rainy day. Here are a few ways to do that painlessly.
- Take your spare change and invest it.
- Set aside money each paycheck before you have the chance to spend it.
- Take the time to talk to a financial planner about the best way to find a few extra dollars you didn’t know you had.
- Enjoy the time you don’t stress about your future.
So don’t worry about the future and all the things that could go wrong. Plan now for that rainy day and enjoy the time to play in the rain instead of getting in the mud.
Dave Ramsey recommends:
1. save $1,000
2. pay off all debt, other than your home
3. save 3-6 months living expenses
It seems when you have that nest egg, you don’t seem to need it as much. Isn’t that the way it goes? That’s ok, I’d rather have it that way.