Life is full of ups and downs. You can sail through tough times if you have the support of your loved ones and adequate funds to see you through. It is important to save for rainy day funds. With high rates of unemployment and inflation it is important to plan well in advance for the future. A rainy day fund is also known as an emergency fund which will ensure your financial liquidity at all times. You can consider putting away some amount of your income in an interest earning savings account to secure your future. Do not use this amount of money for investments.
Maintaining a savings account
For rainy day funds a regular saving account is ideal. The savings can get you through tough financial situations and help you to finance emergencies. You should keep this section of your savings in a different account where other transactions do not affect this savings. It is essential that you are consistent and savings become a regular part of your monthly budget. Decide on how much you can save and ways in which you can reduce your spending. This additional amount of money can go into your rainy day funds. Do not wait for the end of the month to make the deposit and do not make withdrawals from the saving account until it is necessary.