Rainy Day Saving: An Application of Game Theory

So you might know how much you are SUPPOSED to save over the course of a year. But, for most, it can be difficult to make sure you write down what to save when each paycheck comes. Plus, spending can tend to be sporadic, and not always predictable (e.g. your car suddenly breaks down). As such, a way for you to sporadically “spend” on savings might in turn help you to get what you need.

To better illustrate this concept, here’s an exercise. Find out the average number of rainy days your city receives. Then divide your savings goal by that number. The last part is easy, every time it rains, move that amount to your savings. This works best if you have a checking and a savings account, and are well-versed in your bank’s online interface.

Say you live in Washington DC and your savings goal is $6000. Washington averages 41 days of rain every year, which would lead to $146.34 saved for every rainy day. By this logic, every day that the skies open up, you would move $146.34 from your checking to your savings account. Then, by the end of the year, you would have around $6000 saved up — your original savings goal.

Naturally this method is a bit unorthodox and tongue-in-cheek. But committing to a savings plan is challenging for most, and so you sometimes have to think outside the box to try and maintain a comfortable savings buffer. Plus, this way’s a lot more fun.