Why Start a Rainy Day Fund Today

Into Every Life Some Rain Must Fall

Even when times are good, people can face sudden financial crises such as appliances that stop working, a job loss, a long illness or an accident. In uncertain times like today, it makes extra sense to safeguard yourself against unforeseen eventualities and interruptions to your income.

Building up a “rainy day fund” is the best way of giving yourself a cushion and stopping a drama turning into a crisis. “Rainy day” money is cash that is not tied up in investments and which you can get at a short notice.

Why Should This Be A Priority Now?

The current cost of living makes it tempting not to put money aside. But if and when that rainy day comes, without an emergency fund, you could be as good as broke. Remember, even expected expenses become emergencies when you don’t have the money.

Not Preparing Could Cost You More Later

If you don’t have any money set aside but own investments or other valuables, in a crisis you may be forced to sell some of these to take care of urgent needs – and to do so at a throwaway price. Or you may have to borrow at exorbitant interest rates, entering into debt which can take many years to pay off.

A Stitch in Time Saves Nine

If you don’t have any spare cash and are living paycheck to paycheck, you could be just one blown car transmission or one dead tire away from bankruptcy. Putting even a little money aside bit by bit in a rainy day fund can stop difficult situations from becoming a crisis.

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