5 tricks to build your Rainy Day fund

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We’ve talked far and wide about the emergency fund , but what do we know about the Rainy Day fund?

The so -called rainy day fund comes into play for one-time petty expenses that were not included in your monthly budget. Think of a boiler failure, a small dentist surgery or even a surprise party or your parents’ wedding anniversary.

Here, the fund for rainy days serves to cover these unexpected short-term costs, which will thus avoid weighing on your daily budget.


Rainy day fund or emergency fund?

The emergency fund comes into play in the event of a job loss, large medical bills, or a major home renovation. It serves to cover those situations that require massive financial outlays and should incur 3 to 6 months of expenses .

Savings for rainy days are smaller: you are accumulating money now to take advantage of an opportunity in the future. With the emergency fund you are preparing for the worst case scenario, which you hope will never happen.

Regardless, having a stash of cash to draw on without piling up debt will allow you to tackle unexpected expenses with a sense of calm and control.


How much you should have to save in rainy day fund?

Saving money is more important than ever in today’s world, and having a rainy day fund is a great way to start.

In general, you should aim to accumulate between € 500 and € 2,500 in a dedicated Goal on your plan, depending on your lifestyle and how safe you want to feel.

How to start your Rainy Day Fund?

Setting aside savings for rainy days is quite simple and definitely worth it. Here this are 5 simple steps to get you started:

1.Open a dedicated savings account for rainy days

A great way to start is to commit to saving: create a Goal dedicated to rainy days and choose the Smart Rules to associate.

In this way, not only will you always have a reminder of your goal at hand, but you can see it grow automatically and recurring every week, without having to worry about drops in motivation.

2. Create your savings plans for rainy days within your budget

Take a look at your monthly budget to find out where you can draw extra funds . The money has to come from somewhere, so you’ll need to cut an existing budget line to feed your new fund.

Is your best friend pregnant with her first child and you want to throw an epic baby shower? Or do you want to organize an outdoor picnic to celebrate your birthday with all your friends? Immediately start quantifying the expense and planning where that money comes from.

3. Start with what you have, no matter how little it is

If your income is currently scarce or if you have just exhausted your savings for example by buying a house, start setting aside a small weekly sum with your Smart Rules, even € 2 a week can make a difference in the long run. period.

Every euro set aside in your Rainy Day Fund will help ease your worries when (and if) some unexpected expense comes along.

4. Train habit and consistency in saving

Imagine giving up a dinner out or a food delivery evening every month and set aside that € 30 in your fund for rainy days. By the end of the year, you will have a small 360 € lifebuy with very little effort.

The habit of constant savings matters much more than the amount you are able to save, especially when you are at the beginning of the journey.

It’s about giving yourself some time and breathing space for those moments when unexpected events happen.

5. Increase your savings as your financial situation improves

Once you have a habit of saving money on a regular basis, be sure to take stock of your situation periodically .

If you get a raise or a better-paying job, how much more can you put into your rainy-day fund? Or conversely, if your working hours are shortened or customers are short, consider whether you need to reduce your Rainy Day savings over a period.

There is no correct amount to save – it all depends on how you want to protect and improve your financial position.

Your shopping umbrella on rainy days will keep you from being overwhelmed by the financial “storms” of life, covering you from the stress and worries that come with not being prepared.

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