Should You Save Money For A Rainy Day?
Absolutely, this is a smashing idea!
I know, we should always think positive but life throws curve balls or in this case some rainy days and having a stash of cash is useful in these occasions.
It can be a sudden loss of job, injury, or a car breakdown. Whatever it is, having an emergency fund of saved money is important to have.
How does one go about this?
Well, read these tips to know what do:
1) set up a savings account specifically for the emergency fund. Try to get one that pays the highest interest
2) Deposit a specific, consistent amount of money on a weekly, biweekly, or monthly basis in your account, whatever feels comfortable. A helpful maneuver would be to set up automatic deposits to your account such as direct deposit.
3) Save at least 6-8 months of living expenses. This should be enough money to cover your bills for that period. This amount will hopefully allow for a cushion just in case of a job loss.
4) The money saved in the emergency account cannot be used for other things but that. That means no dipping into this account to buy a new car or vacations. That would only defeat the purpose.
By establishing an emergency fund, this will give a peace of mind if life becomes a little a harsh. The sooner money is set aside for a rainy day; more money would be saved to go towards any emergency, so it starts today!