You know what they say… “Plan for the worst, and hope for the best.” That’s because life tends to surprise us every now and then — with joyful things like new family members, weddings, and vacations or with the not-so-fun stuff like flat tires, natural disasters, and accidents. But while we can’t always plan for unexpected events, we can at least plan to budget for them before they happen.
Sometimes called a “rainy day fund,” an emergency savings account is something everyone should have on hand. The typical rule of thumb is to set aside enough money for three months — three months of rent or mortgage, other bills, and groceries. Of course, that number will vary from household to household, but having enough cash to get by for at least a couple of months will help you plan for the future and insure against any bumps in the road.
How to budget for that emergency fund
Saving for a rainy day takes time, but simple steps like building a budget and setting aside money each week will make that goal much more attainable. Here are some easy steps to follow to start building your emergency savings today:
#1. Calculate your monthly income – Determine how much money you bring in each month after taxes.
#2. Track your purchases – Be diligent about watching your spending habits for a month. Take note of how much you spend on essential purchases, and how much you’re spending for fun and non-essential items.
#3. Set your budget – Now you can start planning ahead for essential spending each month (rent or mortgage, bills, groceries, gas, etc.). Don’t forget to set yourself a “fun” budget!
#4. Agree on a set amount each month for savings – – Once you’re clear on take home pay and expenses, you’ll have a better idea about what you can set aside each month. It can be $10 or $100 or anywhere in between, but it helps to stay consistent.
How can cash back sites like Ibotta help?
Ibotta gets you real cash back at your favorite retailers when you shop for groceries, online purchases, and more. Yeah, it’s really that easy. While planning your spending and shopping lists for the month, browse the thousands of grocery stores, pharmacies, movie theaters, retailers and more partnered with Ibotta, and start saving on things you buy every day. Ibotta users can save hundreds each year by downloading the app or browser extension and taking advantage of cash back offers both online and in-store. Watch those savings add up, and add them to your rainy day fund!
Download Ibotta’s Cash Back browser extension today
Click here to download the Ibotta browser extension today and start building your emergency savings for those not-so-sunny days.