subject: 7 Ways To Build Your Rainy Day Savings Account [print this page] Having a rainy day savings account sounds nice in theory, but are you able to stash away a few dollars from each paycheck to build it up? If not, you are in a lot of company. Millions of people live paycheck to paycheck.
So what are people doing during these tough economic times to help make ends meet? Read on for some answers.
Americans Decrease 401k Contributions
One of the best things about contributing to 401k retirement plans is you can set the amount and forget it. Since it comes out of your paycheck before taxes, you hardly miss it. According to a poll by CareerBuilder of over 5,000 workers this summer, 34% said that they are not contributing to a 401k, IRA or other type of retirement plan while another 21% have reduced the amount of their retirement contribution.
7 Luxury Sacrifices To Build Your Rainy Day Savings
In addition to drastic measures such as lowering retirement contributions, people are thinking harder about small expenses such as these:
1) Coffee
Why is coffee less than a dollar in some places and over three dollars elsewhere? Buy it on the cheap or better yet, make it at home and bring it with you in the car.
2) Lunches
My very first job after college paid less than $7 per hour. I could not afford to eat in the company cafeteria. I packed my own lunch and paid $0.21 per day for a small carton of milk. Cafeteria or fast food lunches at $6 per day will drain your wallet to the tune of almost $1,500 per year! Isn't a peanut butter and jelly sandwich and a fresh apple an acceptable sacrifice to save that kind of dough?
3) Convenience Stores
Grabbing a drink or snack while stopping to gas up your car exposes you to huge mark-ups. Single bottles of water at convenience stores can cost as much as a whole case at a regular store. Trust us, 7 Eleven won't miss you.
4) Home Internet Access
High speed Internet access at home costs $40 or more per month. That is almost $500 per year you can save by turning this service off (even if for one year). Instead, use your library for Internet access or stop by local spots that offer free wifi. Many fast food restaurants like McDonalds and coffee shops have free wifi.
5) Netflix
Ten dollars or more per month get sucked out of your pocket whether you use Netflix or not. If you are not getting a lot of use out of your subscription, turn it off. You can always restart later.
6) Bottled Water
Suck it up and drink tap water. It is perfectly fine to drink (unless your local municipality says otherwise), not to mention better for the environment. This is easily $20 per month expense you can eliminate.
7) Energy Drinks
Looking for a caffeine boost? Drink coffee (see coffee tip above). Energy drinks are expensive and if you enjoy them you are probably spending $30 per month on them without realizing it.
You do not have to go cold turkey on eliminating some of these luxuries. In fact, you should reward yourself along the way as you achieve savings milestones. For example, for every $100 you stash away in your rainy day savings account, treat yourself to lunch out at work.
