You should remember your parents telling you when you were quite young, that you always need to put aside money for a rainy day. The hope is that this advice has carried through to your adult years, and you do have funds set aside in case of emergencies. Everyone needs to expect the unexpected, and it is reassuring to know that there is extra cash available should you need it. It acts as a kind of buffer against the unknown, and it just takes a little bit of a change in your thinking to be able to put it into place.
You always want to make sure that the funds are tangible, or they can be made tangible very quickly. This is one of the reasons why many people buy and sell silver in Sydney, because this is a precious metal that can be turned into money fast. This is an excellent way to make sure that you have money tucked away, so that when you need it, it is there for you.
If you’re not sure if you need a rainy day fund, the following are some of the reasons why it makes perfect sense.
- You get peace of mind – You have enough to be worried about in this increasingly competitive world that we live in. Everyone is competing for the same job, for a salary and anything else that we need to put bread on the table. When money is tight, it occupies our minds to the extent that we can’t concentrate on our jobs and our lives. Knowing that you have funds put away gives you the peace of mind that you need.
- It provides the answers – When an emergency does come along, you are ready for the unexpected. You’re putting money aside as an insurance policy, so that when something unexpected happens, you’re ready for all eventualities. It makes more sense to start putting money away today, as this allows you to be ready for an unexpected tomorrow.
- It stops you from borrowing- This can be a very slippery slope if you go down this road initially. If at all possible, you do not want to approach any kind of lending institution or moneylender. In many cases, they charge far too much interest, and as well as paying back the principal, you also have to pay back the interest. By putting money away, you will not find yourself in this difficult situation.
Once you start saving for the rainy day that might never come, it puts you in the right mindset for saving. It is a fantastic habit to get yourself into, taking a little bit out of your salary and putting it away for emergencies. It also teaches you about the importance of self-reliance and not having to turn to family members or lenders when you need money quickly. It is an emergency fund that you hopefully will never have to dip into, but it is reassuring to know it’s there.
