• fabianlau

Save for Rainy Days

Updated: Apr 8, 2020


 

When it rains, be ready to celebrate!

 

Almost everyone would have heard of this term or being advised by someone to always save for rainy days. While it may seems like an Emergency fund, Rainy day fund is different.

Rainy day fund is for unplanned repairs, unexpected medical or dental bills, and unanticipated events. It is not meant for personal wants and desires, and may comfortably be between $2,000 to $8,000.

On the other hand, Emergency fund sustains your living expenses if you lose your job or can’t work, and as a rule of thumb, we will set 6 months of your monthly expenses as emergency fund.

On this aspect, you will likely build your rainy day fund before you build your emergency fund.

 

Rainy day fund is for the unplanned, unexpected

and unanticipated events

 

Some simple tips to save for Rainy day fund:

- Piggy bank your loose change: a little a little can add up to a big sum.

- Keep a separate account for rainy day fund: you don’t see it, you don’t use it.

- Kick that habit: for the drinker, smoker, overeater, possession possessor.

- Save up your increased income: that 5% pay increment or variable bonus is extra anyway.

- Finish paying off a loan for a car or some other items? Keep paying that same amount, this time into your rainy day fund. You are already used to living without that cash.

- Resell what you don't use: chances are you have a few things in your room that you wish you hadn't bought or that you never use. A gift that you received at the last Christmas party or (sadly) on your birthday. If you haven't use it in 1 to 3 years, you probably won't use it ever. Just sell it!

When it rains, be ready to celebrate!

#investment #wealthmanagement #financialadvisory #financialfreedom #financialadvisory #comprehensive #money #endowment #medicalinsurance #savings #finances #goal #certifiedfinancialplanner #financialconsultant #advisory #wealthdestined #todolist #wealth #healthcare #insurance #entreprenuer #financialservices #financialplanning #hospitalisation #medical #insurancebroker

9 views0 comments

Recent Posts

See All