How do you save for that rainy day?

It’s not just our farmers who keep their eyes on the horizon for rain.

Recent research found almost twice as many Australians think saving for an emergency or a rainy day is more important than putting cash away for a holiday.

Indeed, saving for a rainy day is our number one savings priority.

According to AMP Bank, those aged between 35 and 44 years old are most likely to contribute regularly to an emergency fund. Unsurprisingly, the young are focused more on today. A significant number of 18 to 24-year-olds cited holidays as their number one savings goal. Almost one in five is saving for luxury items or fashion, compared with one in twenty of Australians overall.

Women take security most seriously, with 82% making a provision compared with 62% of men.

What type of saver are you?

Our approach to rainy day savings falls into four broad types.

Find out which fits you best, and what you could do next.

Distracted saver

As the distracted type, you’re easily swayed into getting something you want right now. Though you know you probably should do something about it, sometime, you prefer to leave later till later.

This could be the moment to think about the ‘B’ word. A budget can help you get back to basics and work out what’s going where and when.

Once you can see where your money is really going, and where you tend to go over the top on designer labels or trendy restaurants, you’ll have the power to change.

The good news is it might take only a few small lifestyle adjustments to get you on track and in charge.

Natural saver

Planning for the future is in your blood. You’ll go out of your way to put something away for a rainy day.

You’re on the right track, so use your natural tendencies to shop around for the right deal. Be savvy with your savings and look out for accounts that deliver competitive interest rates.

It’s a good idea to keep up to date with what you’re currently being offered. AMP Bank found that savers who know their interest rate end up saving more than twice as much each month than those who don’t.

Pendulum saver

You switch between the approaches above.

Although you understand the logic of saving, you tend to go too hard. Tightening your belt too hard, you end up splurging all that good work in a blow-out. You end up feeling guilty, cutting back hard and the cycle begins again.

Go easier on yourself and consider a more regular approach to reduce pendulum swing.

You might take stock of your finances regularly to see where you could be getting a better deal, for no extra outlay. Set some savings goals and commit to putting aside a certain amount each month, no matter how small it may seem. Slow and steady can still reap benefits.

With a more consistent approach, you’ll be able to move away from boom and bust.

Driven saver

Just dare you to hit a target and you’re there.

You don’t need any persuasion to keep you on track. Whichever account you’re using for your safety net, you’re already committed to the idea.

Take advantage of your iron will by setting new savings goals and see if you can beat last year, or last month. Remember that your mindset can help you with your other financial goals, such as investments and super.

Whether you’re a poncho person or prefer that golf umbrella, saving for that rainy day seems as natural as checking the weather forecast. You may not need it right now, but you’re happier knowing that you’re prepared.