Why Every Family Should Have A Rainy Day Fund
As a young family, one of the most important things you can do for the financial security of your family is set up a rainy day fund. Life is full of surprises with unexpected twists and turns and the better prepared you are for life's curve balls, the greater peace of mind you and your family will have.
The Importance Of Your Rainy Day Fund
While balancing everyday expenses, trying to provide for your family, and saving for your child's future - if you've ever been hit with an unexpected expense you'll know how much this can throw a wrench into your daily life.
Maybe it's a couple of weeks until your next pay. Maybe your car breaks down at the exact same time you have several bills due. Whatever the situation might be, it doesn't take much to throw your entire budget off course.
This is where the relief of a rainy day fund comes in. Starting a savings fund is an important way of protecting you and your family in the event of unexpected bills and expenses.
So, How Much Should You Save?
How much money you should put into your rainy day fund will vary depending on
- Your income
- The size of your family
- Your monthly costs
- Your lifestyle
However, experts agree that you should aim to have at least 3-6 months' worth of expenses saved.
Start Small And Build
While 3-6 months' worth of expenses might sound like a lot, most important is that you start somewhere. What is the minimum amount you can save each pay?
Do what you can afford to do and, rest assured, it will soon add up. After six months of saving your minimum amount, increase the amount you can save each month, even by a small amount.
When It Rains, It Pours
While steadily building your rainy day fund, we all know that often when you get hit with one unexpected expense, more follow. As the saying goes, when it rains, it pours.
When such an event occurs although you've been developing your savings you may not have enough to cover an unexpected event. Then what?
That's where a Ferratum Personal Loan can be a welcome relief. Apply online 24/7. No paperwork, no waiting in line. Applications take 10 minutes to complete and, once approved, you can get the funds you need transferred into your bank account the same day.
Now that's peace of mind!