4 Reasons to Have a Rainy Day Fund
Saturday, July 9, 2016, 6:00 AM | Leave Comment
A rainy day fund can fulfill many different needs. It can be there for you when you need to go shopping for a new interview outfit, it can help you pay for unexpected car breakdowns, and it can even be there to help you indulge in some pizza and movie therapy after a rough day.
There is an unending number of reasons why you might want a rainy day fund, here’s a brief look at four of them.
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Life is Unpredictable
It would be great if we all knew what hazards and celebrations were ahead of us in life. But that’s not the way it works. Instead, every day brings its own surprises and no matter how carefully we’ve planned, some of those surprises are bound to catch us off guard.
When you have a rainy day fund you’re better equipped to handle the financial impact of these surprises. No matter what you need it for — whether you have a wedding coming up or have an unexpected death in the family and are in need of a wrongful death attorney Jacksonville, your rainy day fund can help you get through the expenses without too much stress.
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Credit Cards are Expensive
Individuals who don’t have a rainy day fund are more likely to use credit cards to cover unexpected expenses and to help them get through from paycheck to paycheck.
If they can’t afford to pay that credit card bill in full each month, they’re going to begin accumulating interest on those charges. That can cause a lot of problems in the future and can even lead to debt. That is why it is a good idea to start saving now.
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Payday and Title Loans are Dangerous
When an individual wants to avoid using credit cards to help cover emergency expenses, and they don’t have a rainy day fund, their only other alternative might be to use payday or title loans.
These loans are extremely expensive, featuring fees that can push a budget past its breaking point. Paying back loans is also a lot of work and can lead to a lot of stress. If you can, it is a good idea to avoid it.
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Security is About Savings
When you want financial security, what you really want is savings. Savings, in the form of a rainy day fund, is your port through the storms of life. They help you remain secure and deal with any obstacles lining your path.
It is always a good idea to have a good amount of money in your savings account. All you have to do is save up a little bit of money each month. It is amazing how fast it can build up.
Overall, by starting to save for a rainy day fund, you’re putting your future first and helping secure your finances for the days to come. You’re giving yourself one of the most important things possible — options.
While it might require some sacrifice to build your rainy day fund, when the time comes to use it you probably won’t regret that you did.
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