THREE SIMPLE WAYS TO STOP YOUR RAINY DAY FUND FROM SPRINGING A LEAK
Photo by Karolina Grabowska
Originally Posted On: Three Simple Ways To Stop Your Rainy Day Fund From Springing A Leak – MoneyMagpie
Now, more than ever, we all know the importance of a rainy day fund. As such, most of us make at least some effort to save towards those much-dreaded downpours, with the average savings pot in the UK now sitting at a comfortable £6,757.
But, for all the attention that we put into savings themselves, few of us realise that, often, those rainy day funds leave space for some rather significant leaks. That’s terrible news, especially if you’ve piled a load of effort into your savings pot in the first place, but it by no means suggests your attempts here have been in vain. Nor does this mean that savings aren’t as important as you’ve been led to believe (trust us, they are!)
You simply need to sure up the savings that you’ve managed to accrue by pairing them with the following leak-proof final touches.
Accidents, breakages and other such setbacks can accrue such extreme costs that even a decent saving pot will struggle to cover them. What’s more, secondary issues, such as time off work, secondary accommodation, etc., can make the situation worse, leading to a tsunami that no one could cope with.
Hence why, as well as making efforts towards savings, you need to seek affordable insurance to sure up your defences. Luckily, this is now easier than ever, with comparison sites making it possible to find and save on everything from comprehensive life insurance to cheap motorcycle insurance online, and more. Specifically, you want to look for inclusive offerings that provide anything you feel stands to stop a storm from sweeping your savings under the carpet.
Too often, we wait until things break or go wrong to turn to rainy day savings but, sometimes, it’s better to spend when you spot the first trickle of a problem.
Obviously, you aren’t always going to get a warning about issues in advance, but things like leaks, electrical faults, or broken boilers rarely happen without some lead-up. Given that spending as soon as issues make themselves known is going to save you later, you certainly shouldn’t feel guilty about diving in and getting the job done.
Too often, we assume that once we hit a pre-set amount we can put our savings strategies aside. But, for obvious reasons, the more money you save, the better position you’ll be in to weather every eventuality.
While you don’t need to keep piling thousands into the bank once you’ve reached a figure you’re happy with, it definitely makes some sense to keep even just £50 or so going into those savings, helping you to stay ever-more afloat if the worst happens.
Savings and rainy days can feel like headaches that we’d rather assume we’ve got sorted than delve into deeper. But trust us; if you don’t want to drown, you need to implement these pointers sooner rather than later.