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Knowing how much free cash you have available to you will let you maximize how much you set aside and reach your goal faster. Here are the best ways to save for a rainy day fund:

• Set up a direct deposit: Create a separate direct deposit so that some of your paychecks go straight to your rainy day fund.
• Download an app: Some budgeting apps automatically split your paycheck according to your budget and give you regular savings advice and tips.
• Transfer cash monthly: Set up an automatic transfer that occurs once a month. For example, you may want to transfer $50 per month from your bank account to a money market fund.
• Create a rainy day fund jar: Throw your spare change into a jar or piggy bank. While your fund will start out small, it will build over time and is easy to access.
• Replace some discretionary spending: If you normally have a latte in the morning, order take out for most meals or shop for new clothes every month, consider scaling back for a few months. Place that discretionary money in your rainy day fund until you reach your goal.

Where to put your Rainy Day Fund?

Your rainy day funds should be readily available and kept in an account that’s liquid. This means you can retrieve the funds quickly without any fees. Money market and savings accounts, as well as high-yield bank accounts, are great options. Most major banks and regional banks offer at least one of these options.

Additionally, it's important to keep your finances organized. Your rainy day fund should be separate from your other investments and accounts. This will make it easy for you to know exactly how much you have and can pull out the funds when you need it.

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