Hi friends! Do you maintain a rainy day fund or shall we call it “emergency fund”? Most of us have that in mind but still hard to start saving. If you are in this situation, continue reading.
Emergency fund I’d say is a must for everyone.
We have Russell Matthews in the house to share about rainy day fund. Russell Matthews is an accountant with a passion for household budgeting. From coupons to savings, he often writes about ways everyday people and spend smart and save smart.
Rainy days aren’t always about the weather. Unexpected expenses can assail us at any time with their high costs and immense inconvenience. The fact is we all need to build our own financial safety nets if we can by saving money to pay for those unexpected expenses. The following seven expenses are common problems that might strike at any time forcing us to dip into our rainy day fund.
1. The Furnace Goes Out
Furnace repairs can become major household repairs. For people that have been paying for continual repairs and still facing unreliable heating, it might be time to purchase a brand new furnace that is reliable. Since such items are considerably expensive, the time to start saving is now. Try adding just a little savings continually in order to build up your fund. Apply the savings you get from SumoCoupon to your rainy day fund to help pay for new household items like a new furnace.
Paying for a new or used car is a considerable expense. Even if you plan to apply a down-payment, you’ll need to use your rainy day fund to help defray some of the cost. The more you pay up front, the less you’ll have to finance. Financing involves interest and that will cost you quite a bit by the time the car is paid off.
3. Going Out of Town
Sometimes unexpected travel plans arise. You may have to head out of town for a job interview or to help family in need. Many people are unprepared to face the added expense of traveling out of town. When you have a rainy day fund, you can take comfort knowing that you have some backup cash if you have to make an unexpected journey.
4. The Kids Need Help
Perhaps you have a kid that all of a sudden wants to play hockey or is invited to play on a traveling team. This can prove quite expensive. Even so, these can be important and enriching activities for kids and parents don’t want to disappoint them. To afford these ‘extras,’ use your rainy day fund to help cover these unexpected costs.
5. Pet Expenses
Just as people can incur medical costs, our pets can too! If you have a rainy day fund and find that your dog needs some emergency surgery, you’ll have a means to pay for the operation. Veterinarian costs can be quite expensive so if you have pets, be sure to set aside some extra money for their care.
6. Job Loss
If you are fired or laid off from your job, you’ll be hard pressed to find another right away. It takes time to effectively job hunt. You’ll need to rely on your rainy day fund to help pay all the bills during this trying period.
7. Time to Move
Moving is a huge expense, but if your employer suddenly wants to transfer you, you’ll need some extra cash on hand. Many employers will pay some of the moving costs but, perhaps, not all. You may need to return several times in order to sell your home and these travel costs add up.
It’s important to save up as much as you can for your rainy day fund. You may have to cut back on entertainment and stick to a strict budget, but you’ll be grateful you did when these unexpected costs come up.
Thank you so much Russell! Friends, follow Russell on Twitter.