Easy Steps For Building a Rainy Day Fund


Life is unpredictable and full of surprises. Like when your car breaks down or your house needs a repair or when you fall skiing and need to get expensive surgery. These situations happen to everyone and sadly in 2020, it seems like a frequent occurrence. So it’s important to set money aside while things are going well, because at least if things go wrong, you’re prepared to deal with them financially. A rainy day fund can help you pay for these unexpected expenses.

Having some money saved for a surprise bill will give you peace of mind that you can afford to fix the issue without charging it to a credit card or taking out a personal loan. Both of these charge interest making the unexpect bill even more expensive.

What Is a Rainy Day Fund?

A rainy day fund is monies that you have set aside for expenditures that are outside of your normal living expenses. The idea is to use a rainy day fund for one-off expenses, such as a car or home repair, an unexpected medical bill, or that new phone you had to buy because you broke yours and never insured it.

Signup for the USA Herald exclusive Newsletter