Why You Need a Rainy-Day Fund

Rain can ruin your day. If you’re out for a walk, you could get drenched from head to toe. Your bag could get soaked through. Your shoes could get ruined. Having something as simple as an umbrella on-hand would’ve stopped this small problem from bothering you.

A rainy-day fund does this. It stops a small problem from becoming a big one. Find out exactly what is and why every mom should have one.

What Is a Rainy-Day Fund?

A rainy day fund is a set of savings meant to cover a small emergency. It could be when your kitchen sink gets clogged, and you need to call a plumber to fix it. It could be when one of the warning lights on your car dashboard starts flashing after dropping the kids off at school, and you need to take an unplanned trip to the mechanic.  

The fund could be a collection of dollar bills in a jar that you leave on top of the fridge, or it could be a savings account that you don’t touch until you absolutely need to. Essentially, the rainy-day fund is a stash of easily accessible savings that you can dip into whenever something goes wrong. Using the fund means that the expense has no effect on your household budget.

A rainy-day fund is sometimes confused with an emergency fund. An emergency fund has a similar purpose as a rainy day fund, which is to help someone cover unexpected and urgent expenses without hurting their budget. The main difference is that it’s designed to handle large scale problems like a sudden loss of income — not just car trouble and plumbing fixes. So, once you’ve achieved enough savings for a rainy-day fund, you should keep saving so that you can build it up into a reliable emergency fund. 

How Do You Get Started?

Have a Safety Net:

The first thing that you should do is make sure that you have a safety net to fall back on. Otherwise, these emergencies could catch you by surprise. Without a rainy-day fund, you should consider applying for a line of credit. See how a line of credit is an effective option when you need to get help covering unexpected expenses and handling small emergencies.

You don’t have to jump through hoops to get one. You can apply for the quick line of credit online and receive a notification of your approval. It’s simple and convenient.

Save Up Money:

The next thing that you have to do is start saving money for your fund. Set up a budget. The budget will show you what savings you have leftover after you’ve covered all of your essential costs for the month. If you’re not sure where to start, you should download one of the best budgeting apps on your phone and follow the instructions.

If you’re not finding enough savings by the end of the month, you should see if you can start trimming variable costs in your household budget. You could spend less on food and groceries by using coupons and discount codes. You could cut energy costs by turning down the thermostat. Here are some other ways that you could cut everyday costs so that you can stretch your budget and make more savings.

Take your savings and add to your rainy-day fund every single month. Eventually, you’ll have a little safety net.

A rainy-day fund is a small financial tool that every mom should have. You may not need it on most days — but on the day you do need it, you’ll be thankful that you have it nearby.


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