Why You Need a Rainy Day Fund

Saving money is difficult. We work so hard that when there’s an extra bit of cash, our first thought is to treat ourselves. Why not, right? After all, we can’t take it with us when we’re gone. However, there will always come times in life when we need money unexpectedly. It can be easier to save for the unexpected when we know what could potentially go wrong. If you have some these things in the back of your mind, you’ll always be prepared to tackle them.


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Medical Care
The most important kind of rainy day fund should be one that sets aside money for your health. We sometimes expect to remain healthy forever but things can crop up that we’re unprepared for. For example, you may notice yourself suddenly squinting and need glasses or your child may come home from school with toothache and need a filling. The same goes for pets. Even if you have pet insurance, when you take your pet to the vet for care, you’re sometimes asked to pay up front so your insurance can reimburse you directly.


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Utilities
Things like the washing machine and fridge freezer aren’t meant to last forever. They will break eventually, and whether you decide to buy a new one or get new parts from http://www.norrisspares.com.au/, it costs. You’ll also have to consider smaller items, like toasters, kettles and blenders. These aren’t large expenses but it’s worth putting money away so you don’t have to dip into your income when the time comes.
Car Repairs
Generally, a new car will only come with a maximum of three years on its warranty. After that three years, it’s your responsibility to pair for any repairs. And, guess what? A car is far more likely to have problems after the warranty period, as it gets older. You also have to be prepared for paying car insurance, car tax and maintaining services and MOT’s.


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House Repairs
No matter how new or old your home is, you’ll always have to spend money on it. Perhaps you’ll find a damp patch on a wall one day or maybe one of the kids will break a window playing football. Maybe you live in an area with heavy winds, tornados or earth quakes. Although they may not happen all the time, breakages are part and parcel of life.


Losing Your Wage
Employment is more fragile than ever these days. It’s not nice to think about but anyone could lose their job at any time. Putting money away just in case will ensure your family has a back-up plan if the worst happens. You don’t need to be stressed about finding another job while trying to figure out how to pay the bills. A bit of cash put aside will mean you have the time to find a job that matches your skills.

Rainy days aren’t any fun to deal with, but making sure you’ve got an umbrella over your head will be half the battle won. Take a look at how to save for a rainy day.