Rainy day keeping you stuck inside the house? Take advantage of the down time by being productive with your finances. Start with these easy money moves.
1. Start an emergency fund
If you don't have an emergency fund, a rainy day is the perfect time to start one.
An emergency fund is money set aside for a major unexpected and urgent expense, such as a car repair, medical bill, or job loss. One rule of thumb is to save between three and six months' worth of daily living expenses. If you have a lot of daily living expenses, or a job that would be hard to replace, you should aim to save closer to a year's worth.
A bigger emergency fund will always offer more protection for your finances, but you can start an emergency fund today even if you can only contribute a few dollars. Start by creating a new savings account specifically for your emergency cash. By keeping it in a separate account, you are less likely to use the money for non-urgent needs. (See also: 5-Minute Finance: Start an Emergency Fund)
2. Up your retirement contributions
Have five minutes to spare? Log in to your retirement account and increase the percentage of your paycheck you are having withheld for your 401(k). By increasing it by even just one percent, you are ensuring you have more cash for retirement. It's likely you won't even miss that cash in your paycheck.
3. Fine tune your budget
When's the last time you gave your budget a tune up? Use a rainy day as an excuse to give it a makeover. Are you spending your money like you planned? Do you need to make any adjustments?
If you don't have a budget at all, now is a great time to make one. You can get started by listing your income, expenses, and savings goals for the month. Add information as time goes on and you become more familiar with your spending and money habits. (See also: 5-Minute Finance: Track Your Spending)
4. Sell items around the house
If you're stuck inside, take inventory of the clothes, electronics, dishes, and more you have lying around your home that you no longer use. Don't just throw everything out; you may be able to sell your stuff for cold, hard cash.
You can post your items for sale on an app like OfferUp or LetGo, or upload a listing on Craigslist or eBay. And as an added bonus, you can use the cash you earn from selling household items to jump start your emergency fund. (See also: 5 Things You Can Resell on eBay That Make the Most Money)
5. Create a filing system
What does your desk look like? If you tend to leave bills and financial documents piled up, it's probably a good idea to take some time to create an easy organizational system. You may as well get started on a rainy day.
To cut back on an influx of paper bills, you might find it beneficial to sign up for autopay so you don't have to worry about papers cluttering your space or getting lost. You'll want to be sure to store important and confidential files away in a locked drawer or safe.
6. Cut a bill
Once you've taken a look at your budget, you may have noticed a bill or two that is higher than usual. Or, maybe you realize you are still paying for a service you no longer use. Whatever the reason, take advantage of a rainy day by calling your providers to see if they can lower or cancel the service.
Since most bills are a regular monthly expense, lowering or eliminating them entirely can save you hundreds of dollars, if not more, every single year.
7. Read or listen to financial resources
There are a ton of free financial resources available at your disposal. If you need an excuse to take it easy on a rainy day, why not learn something while you relax? Try kicking back with a personal finance book, magazine, blog, or podcast. (See also: These 10 Money Podcasts Will Help You Save Tons)
