4 Reasons To Have A Rainy Day Fund

Life is always full of surprises. Some of these surprises are unfortunate, and can even be costly. That is why it’s best to plan ahead and keep savings on hand to avoid disaster. You want to make sure that you are always prepared for anything. That is definitely something that can help save you a lot of stress in the long run. Try challenging yourself to save as much as you can in a year.

For example, Bola Sokunbi saved $100,000 in just 3 years.

Now that is super impressive!

It’s a really good idea to start a savings account as soon as you can in case of emergencies. By doing that, you can really take a lot of stress off of your shoulders and make sure that you are always financially stable. There are tons of reasons to always have a rainy day fund. Let’s consider these four common scenarios people can find themselves in unexpectedly.

 

Medical Emergencies

Broken legs and certain conditions, such as pneumonia, can pop up at any time. You absolutely never know when someone could become sick or get injured. That is why it’s best to keep money on hand to pay for deductibles and co-pays. Medical emergencies can also be costly in other ways because there are other expenses to consider, such as ambulance costs, and it’s not uncommon to miss work because of an injury or an illness. When it comes to unexpected medical conditions you definitely want to make sure that you are as well prepared as possible.

 

Car Accident Lawyer

Car accidents are fairly common. Most people will get into a car accident at some point in their life. When it happens, it can be difficult to determine the best course of action. As if it wasn’t bad enough dealing with injuries and damages to a vehicle, there is the pressure of dealing with insurance companies. It’s also not uncommon for insurance companies to pressure people to settle quickly and often for less money than they deserve. Also, when it comes to car accidents you may not even realize that you have been injured at first. Injuries may surface at a later point giving you even more to worry about and pay for. This is why contacting a car accident lawyer for help with things like this is wise. Lawyers like this can help accident victims recover damages and fight insurance companies to get the maximum compensation allowed.

 

Vehicle Expenses

It’s not uncommon for vehicles to break down either. Vehicles that are over 100 thousand miles may be in need of a new transmission or engine. These can cost around $1200 to take care of. A cracked windshield can cost $500 and may not be covered by vehicle insurance. Other expenses come in the way of registration and regular vehicle maintenance. It’s best to plan ahead to avoid charging these items on a credit card or having to take out a loan. It is a really good idea to have a savings and budget just for car expenses. By doing that you can make sure that you always have enough money to keep your car safe and up to date. This also can be really easy to do because you should be aware of when your car needs a new update of inspection. That can really help give you a good goal to work towards.

 

Loss of Work

Loss of work can be unforeseeable, but it’s a good idea to have three months of savings on-hand at minimum just in case it happens. It is recommended that a person has six months to have a better cushion. This can really help allow time for securing employment. You can actually even save money during unemployment by doing things like biking and dining in. This is definitely not something that you can plan for, but you can prepare for it. Losing a job is always something that is hard, however, if you have taken the time to save up and prepare just in case you can have a much easier time getting through this specific trial.

 

Overall, foreseeing the future is not always possible. You never know when an accident could happen. While any one of the circumstances above can happen, it’s a good idea to plan for them all, because you never know. Start off with saving money for potential loss of work and keep saving additional money from there. It’ll make life easier. It is definitely always better to be safe than sorry.

Kara Masterson
Kara Masterson
Kara Masterson is a freelance writer from West Jordan, Utah. She graduated from the University of Utah and enjoys writing and spending time with her dog, Max.

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