How to Prepare for Rainy (Financial) Days
- Make savings part of your monthly budget.
- Keep your savings out of your checking account, as it may prevent you from spending it.
- Open a savings account at a different bank than where you have your checking account so it won’t be too easy transferring between them.
- Direct deposit to your savings account so only the money you want to spend goes to your checking account and your savings are preserved as they stay out of your mind.
- Consider switching to a credit union; they could be the place to go for better customer service, kinder loans, and better interest rates on your savings accounts.
- Only use your emergency savings account if you’ve lost your job, have a medical emergency, a car break, emergency home expenses (like a leaky roof), or you need to travel to a funeral.
- Think about investing if you have more than six months’ savings in your emergency account (nine months if you’re self-employed), and you have enough socked away for your short-term financial goals.
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