The Benefit of a Rainy Day Fund

Sometimes life throws us unexpected curveballs – and more often than not they can have a comparatively large financial burden attached to them. If you’re floating paycheck to paycheck with no wiggle room, one of those curveballs can turn into a major disaster in your life. Suddenly it becomes a panic to figure out how to pay your weekly bills, where you can turn up some extra money or even if you have to let something broken (like a car) remain that way for awhile. It’s exactly why you need a rainy day fund. The concept of a rainy day fund isn’t unfamiliar to many people – it’s that little bit of extra savings you keep hidden or allotted in a bank account to help out when it seems like everything is going wrong. But you’d be surprised how many people know about the concept, but don’t personally utilize it! We all like to think and hope that tragedy (or at least a speed bump in the road of life) will avoid us as we merrily plug along, but sometimes it doesn’t. If you aren’t prepared, it’s time to start making yourself.Start by looking at what you have right now and trying to put a nice chunk of savings directly away to a new rainy day fun. Make a monthly plan to keep contributing consistent amounts to it until you think you’ve got a healthy savings built up to help stave off any financial emergencies. Remember, they’re called that because they can be quite costly! By setting a plan for a rainy day fund and sticking to it, you’ll be better prepared for when life throws one of its curveballs – and ready to get back up to the plate and keep knocking them out of the park.