A rainy-day savings account is an account set up to cover
those unexpected expenses that you may incur.
For example, if your car breaks down or you need to make
some minor repairs around the house.
Anything could happen at any time, so a rainy-day account
helps to handle the expense at a moment's notice.
Here are some easy steps to take to set up
a rainy-day savings fund.
1. You can open a saving account and begin to
deposit as little as $5.00 a week to start.
2. If possible, your rainy-day savings account should
be opened at a different bank from your checking account.
You should also decline a debit card or cut it up for
that savings account. This makes it a little more difficult
to use the money, if you HAVE to go to the bank
to make withdrawals.
3. If it's not possible to open the account at a different bank,
keep your savings and checking account deposits separate.
You can keep better track of the savings, and if the money is in the
checking account, you might mistake it for extra cash.
4. When creating your budget be sure to include
your rainy-day amount so that you don't forget about it.
5. You can also set up direct deposit for the weekly,
bi-weekly or monthly deposits to your savings
account so you will not see it.
(When it’s out of sight it’s out of mind.)
6.The amount of money in your rainy-day account
varies from person to person. You should set an amount to
reach that could cover your highest unexpected
expense and work to have that amount in your account.
(For example, $1,000 may be able to cover minor home
or car repairs or medical expenses that you didn't expect.)
So now that you have an idea of where to start, let’s
get the umbrellas open so we can be covered on a rainy day!