Building up any savings fund requires commitment and discipline. The amount of your income doesn’t matter. On the contrary, what counts is that you mind your own earning, paying, and saving capacities. That way,  you can find out how much money you can work with.

According to financial advisers, a rainy-day fund is different from an emergency fund. The latter refers to the fund you set aside to keep you afloat temporarily in case you’re jobless or if you cannot work for the time being.

On the other hand, a rainy-day fund is what you put up gradually only to use for a significant unforeseen reason. For example, medical or hospital bills, house or vehicle repairs, and other unplanned and unavoidable situations.

“A rainy day fund is something less catastrophic that you want to have money on hand to cover. It’s to deal with an unexpected, one-off event that you wouldn’t have the money for in your checking account.” –  Stephanie Genkin, Personal finance advisor.

Just how do you save for a rainy day? It is not difficult at all. Here’s how:

Be clear about why you’re saving

A goal wihout a plan

A rainy-day fund is not meant to buy you what your heart desires. Instead, it is created and left to grow for more substantial, unexpected, and “life-threatening” events.

If you have the means to save for something that you want, keep this amount separate from your rain-day fund.


Choose your savings tool

Today, banks and other financial institutions offer a broad range of alternatives. They base this on your risk profile, financial objectives, and the amount of money you’re putting on the table.

All you need to do is to research, visit the bank, and listen to a trusted advisor who can answer your questions. Don’t put all your eggs in one basket, but consider more than one savings option.

Record your goal and progress

Make an accounting of your rainy-day targets for specific milestones. It is natural for you to experience some bumps along the way. For instance, a medical emergency may occur before you reach your desired target. However, if you keep growing figures “in black and white”, then it will be much easier to make adjustments.

Take it easy on any windfall

Whenever you find yourself with extra money, stave off the temptation to indulge in a shopping spree. From the onset of your saving-for-a-rainy-day journey, save some, if not all, of any extra income.

Collect your “change”

Your parents might have given you your first piggy bank.The concept should remain when you’re all grown-up and working. Get a large jar or container with a sealed lid. In the lid, start collecting any spare change you have. It’s not just a decorative item in your room.  Who knows! It might come in handy when you need to “break the glass in case of a fire.”

Take advantage of credit card rewards

Today, credit card companies have reward features. What are the benefits of these features? They enable you to earn points in exchange for items. All you need to do is select your desired item and work towards earning that special reward. This way, you don’t need to save up for and spend on such stuff. Just use the money to add to your rainy-day fund.

Throw away those bad habits

If you’re not ready yet to say goodbye, cut down on them. If you’re dead-set on saving for you and your loved-ones, then you should be willing to compromise.

To convince yourself to get rid of the vices, to compute for the daily, weekly, monthly, and yearly costs of maintaining those habits. You’ll be surprised to realize how much money you spend on them.

Savings to grow

In conclusion, you better start saving for your rainy day now. It’s all a matter of discipline and determination.



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