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 curveballs, the greater peace of mind you and your family will have.
The importance of a rainy-day fund
While balancing everyday expenses, trying to provide for your family and save for your child´s future, if you’ve ever been hit with an unexpected expense you´ll know how much this can throw a spanner in the works.
Maybe it´s a couple of weeks until you´re next paid. 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 essential way of protecting you and your family in the event of unexpected happenings and expenses.
How much money should I put into the fund?
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 and, of course, your lifestyle. However, experts agree that you should aim to have at least 3-6 months´ worth of expenses saved.
Start somewhere and build on it
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?
Start small. 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 short-term loan such as a Ferratum Microloan can be a welcome relief.
Apply online anytime 24/7. No paperwork, no waiting in line. Applications take only minutes to complete and, once approved, you can get the funds you need transferred into your bank account within 1 hour.
Merely repay the loan and associated interest within 45 days and continue managing your finances and building your rainy-day fund as before. Now that´s peace of mind!