A rainy day savings fund is an extremely useful thing to have. This past year or so, countless people across the globe found themselves with mortgages and rent to pay without any kind of stable income. This is a nightmare situation everyone hopes will never happen to them, but the coronavirus pandemic proved just how easy it is.
If you’ve been thinking more and more about your financial well-being of late, it might be time to start a rainy day savings plan. This way, you can ensure you have access to necessary funds in case of all sorts of emergencies. Read on for five very good reasons to have a rainy day savings plan.
1. It Prevents Stress and Worry
Studies show that over 70% of Americans regularly stress about money. This is understandable, as having enough money to take care of everything life has to throw at you isn’t always easy. Creating a rainy day savings plan can help alleviate some of this stress and offer a financial safety net—allowing you to worry less.
2. Keeps You on Track for Your Financial Goals
Everyone should have financial goals. Whether it’s to have a certain amount saved within a certain time frame or to be able to retire comfortably at a certain age. A rainy day savings fund will help to make sure that you don’t disrupt your financial goals and stay on track for whatever you’re working towards.
3. It Offers More Freedom
A rainy day savings fund offers a little cushion to your finances that allows you more freedom to spend on other things. When you know you’ve got an emergency fund waiting to take care of any urgent matters, you’ll be able to have more freedom to do what you like with the rest of your income and savings.
4. It Improves Your Financial Literacy
Not everyone is born with innate financial literacy skills—and it’s not something that’s taught in school either. However, it is an important life school to have. Learning how to create and maintain an emergency savings fund will help you to become better with money overall—a win-win situation.
5. It Can Help Out in Case of Emergency
A rainy day fund is so-called because it’s something designed to be there for you when—metaphorically speaking—life begins to rain on you. You never know when you will get ill, have to move house—or when a global pandemic might hit. Because of this, it’s always a good idea to have some money saved, so you’ll be ready for any eventuality.
Start Your Rainy Day Savings Plan Today
If you’re interested in starting your own rainy day savings plan, but you’re unsure of where to begin, don’t worry. My Guaranteed Income can help.
Our experienced team is ready to advise you in whatever way you need. Get in touch today to see how we can help you reorganize and revamp your finances for amazing results.