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How To Save Money For A Rainy Day?

Life is very uncertain and you never know when you might be faced with financial troubles in life. When you are faced with an emergency in life or an uncertain event, you will need access to money as emergencies often bring with a lot of expenses. Unfortunately, you will not usually have access to a lot of resources when you are faced with an emergency and so it is important that you save money. By saving money for a rainy day, you can make sure that you have access to the funds needed to meet your financial responsibilities, without affecting your lifestyle.

Saving money for a rainy day is easier said than done and you might find it difficult to save money on a frequent basis as most people end up spending all the money that they have at their disposal. Here are a few tips that will help you to save money for a rainy day:

Do not keep excess cash at home

When you keep extra cash at home or in your wallet, you will be tempted to spend the same and the sad part is that you will not even realize when the amount will be spent. Given at ATMs are available at places across the city, you can easily withdraw cash whenever you have the need and so there is no point in keeping extra cash at home. Moreover, you can pay for different types of goods or services with your credit or debit card, or through online banking and so you will not need to keep extra cash with you.

When you keep extra cash at home or in your wallet, you will be tempted to spend the same and the sad part is that you will not even realize when the amount will be spent. Given at ATMs are available at places across the city, you can easily withdraw cash whenever you have the need and so there is no point in keeping extra cash at home. Moreover, you can pay for different types of goods or services with your credit or debit card, or through online banking and so you will not need to keep extra cash with you.

Open a fixed deposit account

By opening a fixed deposit account, you can deposit a certain amount of money for a fixed period of time and then earn interest on the deposited amount. The interesting part about fixed deposits (also known as time deposits) is that even if you want to withdraw the cash before the end of the term, you will have to pay penalties for the same. Hence, you will make an effort to withdraw the amount only when the term expires and you will earn a decent amount of interest in the process. You will also get the chance to choose a term that will be best suited to your savings related needs.

Invest in Singapore Savings Bonds

Singapore savings bonds are a type of Singapore Government Securities (SGS) that will enable you to save money and grow your financial assets without any risks. They will be ideal for you in case you are looking for a risk-free and long-term investment plan. The capital amount is guaranteed and you will only need to make an initial deposit of S$500 for investing on Savings Bonds. The best part is that, you can invest for a period of up to 10 years and will be offered with comparatively higher interest rates on the deposit amount. Moreover, the interest rates offered will increase with time.

Become a peer to peer lender

If you have some additional cash at your disposal and if you are not expecting any big expense in the foreseeable future, you can try becoming a peer to peer lender. There are many online communities where that connect lenders to peers who are in need of money. You can lend money to them at a certain interest rate and for a particular period of time. However, you have to be careful and only lend to someone who has a steady income so that he or she will be able to pay off the borrowed amount.

Make a budget and stick to it

You should make a budget and stick to it so that you will not end up spending more than you are supposed to. The idea is to ensure that you live within your means and that your expenses do not exceed your income. Besides, you can manipulate your expenses and try to find ways through which you can save a minimum amount of money every month without having to compromise on your lifestyle. The budget should be created at the end of a month so that you can adhere to it the following month and make sure that you are able to save money. Such a practice should be repeated every month.

BankBazaar.sg is a leading online marketplace in Singapore that helps consumers compare and apply for the best offers across all financial products: personal loans, home loans, credit cards & investments. Like BankBazaar Singapore on Facebook to discover tips, clever hacks, and deals to save and earn you more money.

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