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MAKING A RAINY DAY FUND

These days it's important for all families to keep some savings for whenever something might pop up that requires a large amount of money. Lots of things in life can happen unexpectedly when you move in with a partner,, and many of these events and incidents can be very costly. If you don't have a savings set up, then you are likely to be in a bad spot. You may find that you have to borrow money from friends and family, or you might have to borrow some money from one of your retirement accounts. Neither one of these situations are ideal, so you should try to avoid them if you can.

One way to make sure that you have enough money to cover such unhappy surprises is to make a rainy day fund. If, for example, something happens to your vehicle and it needs some repairs, then you will be able to use your funds to help pay for these expenses. Making such a fund is not very difficult if you know what to do. If you can be disciplined and focused, then you should have no trouble creating a fund and adding to it on a regular basis.

Starting Your Fund

One thing that you need to do before you start your fund is take a look at what your finances are each month. If you are going to be saving money, then you need to have a good idea of how much money you have coming in each month and how much you have going out. If you have a clear picture of the situation, then you will be able to figure out how much money you can afford to put away each month. Spend a considerable amount of time finding out what your situation is and you will be well on your way to creating a nice fund.

Once you have determined how much money that you can put way each month, then you need to think about what you want to do with it. Do you want to create a savings account in the bank, or do you plan to just hold onto the money for yourself? If you're thinking about just keeping the money at your home, then you need to think of some of the drawbacks of this. What would happen if someone breaks in and steals it? When you choose to use a savings account, your money will be safe and you will even earn interest.

If you want some good advice on how to create a rainy day fund and generate a lot of money for it, then you may want to speak to a financial planner. These individuals are the ones who can best advise you of what to do with your money. Sometimes you can find a financial planner who is willing to give you free advice, or you might be able to find those who will offer you a reduced price for services.

Never Borrow from Your Fund

One thing that you need to keep in mind when you are making a rainy day fund is that you shouldn't borrow from it for something that isn't really a necessity. If you just want to purchase something frivolous, then you should not tap into your special fund to make this purchase. Instead, you should only use funds such as these for things that you really need. If, for example, you have some expensive doctor bills, then this would be the right time to tap into your funds and pay the bills.

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