If you’ve lived any number of years in this world, you understand that life is a very unpredictable entity. You have the power to shape your world to an extent, but life throws us curve balls all the time. Sometimes, those curve balls are expensive.
Enter the “rainy day” fund. When your car suddenly breaks down or your kid breaks their arm, you’ll need a little extra money to smooth the situation. Check out a few reasons why you need to consider setting up a rainy day fund for your life.
Sometimes you need a lawyer
You never know when a situation may arise where you need legal counsel to help you navigate. If you’re injured in a car accident, you may need a lawyer to make certain you get the compensation you are owed.
If you are a victim of medical malpractice, you will need a lawyer to seek justice and restitution for the negligence. There are a hundred and one different reasons you could need the help of a lawyer, and they’re not cheap.
When the literal rainy day happens
Flood damage is often not a concern of your insurance carrier, especially “minor” damage. A rainy day fund would be very useful for repairing the damage done to your home or belongings during an epic storm.
Of course, you could simply use a portion of your rainy day fund to do something cool on a dreary day. The beauty of the rainy day fund is the flexibility it offers.
Self care can be more valuable than money
If you have a healthy rainy day fund stashed away, it’s no issue to take a day for self care. Use your extra dough to spend the day at the spa. Get a massage.
Treat yourself to a nice meal, and relax with a bottle of wine as you melt into your couch. The next day, you’ll have a deeper understanding of the excellent potential created by the existence of a rainy day fund.
Your rainy day fund will secure your emergency fund
If you don’t already consider a rainy day fund and an emergency fund to be two separate things, then now is the time to do so.
Your emergency fund should be a stockpile of at least six months worth of income to support your lifestyle should you lose your job or experience a significant life change.
Your rainy day fund should be allocated to the less serious financial challenges of life. If you get a speeding ticket, take it out of the rainy day fund.
Financial flexibility means opportunity
The simple truth is that the more money you have stashed away, the better off you will be in the future. More money means more flexibility, more opportunity, and more security in life. There’s really no downside to establishing a rainy day fund.