Learn how to save for a rainy day fund with the following suggestions.
This rule suggests that 50% of your income go toward necessary, day-to-day expenses, like food and transportation; 30% go toward lifestyle choices, such as entertainment and hobbies; and the remaining 20% go into your savings.
In addition to using the 50/30/20 rule to save for a rainy day, these tips can help your put away money for those inevitable rainy days.
A study found that 62% of Americans have less than $1,000 in their savings account. while 20.7% don’t have a savings account at all. Don’t follow the crowd—take control of your finances and start saving for emergencies by having a savings account.
A great option is a high yield savings account that is FDIC-insured with no minimum balance and offers quick access if an emergency occurs.
In 2015, the average tax refund was $3,120. Instead of using that money on a big purchase, add it to your savings. Do the same with work bonuses or overtime pay.
Cut back on your day-to-day expenses and set aside this extra money for a rainy-day fund. Since spare change can add up, keep a jar for loose coins and deposit it into your savings account once it’s full.
A money market account (MMA) or certificate of deposit (CD) allow you to earn interest over time.* Additionally, both types of accounts are FDIC-insured. These are great options for letting your money grow over time.
Synchrony Bank offers savings accounts that are FDIC-insured up to $250,000, per depositor for each ownership category. Call 844-345-5789 or open an account today to get started saving for your rainy day fund today.
Social Security Administration: https://www.ssa.gov/planners/lifeexpectancy.html
*National Average APYs are based on specific product types of top 50 U.S. banks (ranked by total deposits) provided by Informa Research Services, Inc. CD Rates: Average APYs are based on certificate of deposit accounts of $25,000. High Yield Savings Rates: Average APYs are based on High Yield Savings Accounts of $10,000. Money Market Account Rates: Average APYs are based on Money Market Accounts of $10,000. Although the information provided by Informa Research Services, Inc. has been obtained from the various institutions, accuracy cannot be guaranteed.
*ANNUAL PERCENTAGE YIELD (APY): All APYs are accurate as of 07/14/2018.
APYs are subject to change at any time without notice. Offers apply to personal accounts only. Fees may reduce earnings. For Money Market and High Yield Savings Accounts, the rate may change after the account is opened. For CDs, a minimum of $2,000 is required to open a CD and must be deposited in a single transaction. A penalty may be imposed for early withdrawals. After maturity, if you choose to roll over your CD, you will earn the base rate of interest in effect at that time. The APY shown for CDs and IRA CDs is for a 60-month CD with a balance of at least $25,000. Click here for all CD rates and terms offered.