How To Create A Rainy Day Fund
|Money : Money Management|
It is always a good idea to have some money left over for emergency situations. For instance if you are unexpectedly made unemployed, then this fund acts as a cushion and will give you a few months money to live off whilst you adjust to finding new employment.
But how do you go about actually creating that fund in the first place?
Well, the key is simple: save little, and save often.
Every week, take one five pound note out of your wallet, and place in a safe place or pot - either a separate bank account or literally keep safe at home. Then once a month, add a 20 pound note in the fund in addition.
At the end of the year, you will end up with ?500 in the fund. If your partner does the same each week, then you will have ?1000 in the fund. After a couple of years, you will have built up ?2,000 without even noticing and no loss at all.
That's how easy it is to build a rainy day fund!
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