Blog

17Aug2017

Tips for Building a Rainy-Day Fund

For many people, having to unexpectedly pay for a car repair or hospital bill can result in financial ruin. Many people live from paycheck to paycheck, and these sudden bills can drain whatever little money you have on hand. If you want to protect your finances as fully as possible, you want to make sure that you have something known as a rainy-day fund.

A rainy-day fund is money that you’ve set aside for emergencies, helping you to stay afloat when those surprise expenses hit. Here are a few tips for building a rainy-day fund and some advice for getting cash loans in Las Vegas when you don’t have enough to pay your bills.

Understand the Fund

The most important factor in building a rainy-day fund is understanding its purpose. Many people make the mistake of thinking that their rainy-day fund is simply extra money and that it can be used for whatever they desire.

On the contrary, a rainy-day fund is for emergencies only. This means that you should not touch the money in your rainy-day fund for anything other than an emergency bill. Emergency bills can include unavoidable home or car repairs and medical bills.

Choose How You Save

Depending on your finances, your rainy-day fund should be between $1,000 and $5,000 or $10,000 and $15,000. However, despite the size of your rainy-day fund, you need to make sure that you’re saving it the right way.

For many people, the best option is a no-fee savings account. Call banks and credit unions in your area to see if they offer savings accounts free of fees. Some people choose to keep their fund in a Roth IRA, a type of fund that limits the amount of taxes that you pay. You should avoid a mutual fund, however, as your goal should be to save your money for emergencies instead of growing your funds.

Making Deposits

When you’re building a rainy-day fund, you want to make sure that it contains enough money to cover your emergency expenses. As you might expect, this will take a little effort at the beginning. In the early stages of building your fund, any extra money that you receive should go directly into your rainy-day account.

If you receive a bonus at work, put that bonus into your fund. Or, if a bill is less than you expected, put the money that you already planned on spending towards your rainy-day. By tightening your belt and putting your extra cash into your fund, you’ll be prepared for any unexpected bill that comes your way.

Get Cash Loans in Las Vegas

Building a rainy-day fund is one of the best ways to protect yourself financially. Unfortunately, building your fund takes time, and it’s possible you’ll be hit with an emergency expense before you have the rainy-day funds to cover the bill. If so, then your best option is applying for cash loans in Las Vegas from Koster Cash Loans.

Cash loans from Koster Cash Loans can give you the money you need to pay unexpected bills. We offer flexible payment options, and unlike other loans, you don’t need a checking account to qualify for one of them. Learn more about our cash loans and apply today.

Share This Story

Categories