Why having a Rainy Day Fund is so important
What is a Rainy Day Jar, how much should I have in my Rainy Day Jar and why is it so important?
So….2020 has been fun so far right? If you’re like us we’ve gone from ‘this is our year’ to ‘Um can we get started with 2021 now’?
Who’d have ever thought we’d be living through anything so devasting! The whole world’s been thrown into a frenzy of uncertainty and panic, and I’m not referring to the toilet paper situation. With so many instant job losses, reduced pay or not even knowing how many paychecks you have left, it’s become clear how vital having an emergency fund is during these times of uncertainty.
Now’s the time you’d want to dip into your rainy day fund to cover those key essentials such as: rent/mortgage, utilities to get you through these times while protecting your savings and mental health. No, buying that 15th pair of sneakers doesn’t class as an emergency.
Why it’s so important?
When you’re prepared for an unexpected situation, you have a way to help fund financial hiccups, without setting you back or having to dig deep into your savings.
If you’re not convinced, here are a few reasons why:
So you don’t make bad financial decisions, potentially sending you into debt
Alleviates financial pressure (and stress & anxiety)
Boost your confidence, helping you have a clearer head during these crazy times
Although it feels like a sacrifice every payday when the money is transferred (and you cry a little bit), setting aside regular contributions for an emergency can provide true peace of mind and should be applauded. In this current climate, it has never felt more prevalent!
We’ve made preparing an emergency fund easier than ever at Douugh, with our Rainy Day Jar
What is the Douugh Rainy Day Jar?
Well…. It is a fantastic little Jar where you put your cash. It is a nifty savings pot with built-in goal-based features, helping you to stash away money with confidence for those unexpected emergencies.
A bonus of the Rainy Day Jar is we’ll keep you on track and motivated, even helping you find spare change to tuck away - you will have to check your sofa yourself, sorry.
How much money should you plan to stash away?
Ideally, you should aim for a minimum of $1,000. Why $1,000 you ask? Well, some smart people wrote a report, which showed that only 40% of Americans* would be able to pay a $1,000 unexpected expense! We don’t want you to be in that percentage, we care about you!
So, if you haven’t started already (and you’re in a position to do so given COVID-19), let’s start stashing away! We think you’ll sleep better at night knowing you’re prepared for any financial situation, a glass of wine also helps.
I’ll leave you with one final parting gift, as quoted by the great Warren Buffet “Do not save what is left after spending; instead spend what is left after saving.”