Building a Rainy-Day Fund

This may not seem like the right time to consider saving money. But, perhaps it’s the perfect time to realize that a rainy-day fund could help solve a lot of your family’s problems. If you are currently struggling to find the extra cash needed to pay for Christmas presents, as so many of us are, you’ll know how useful an extra little bit in a savings pot could be.

Having a rainy-day fund means you’ve always got a little set aside for presents you can’t afford, holidays you desperately need, or repairs to your home or car that simply can’t be ignored. Many families today struggle to get by and live hand to mouth, unsure how they are going to get through the next month, never mind save for luxuries or treats. For these people, one small financial blow can be crippling.

So, whether you end up using your rainy-day fund for essential maintenance, occasional treats or you leave it intact to cover next year’s Christmas presents, it’s vital that you have one. Here’s a look at some of the best ways to start to grow your rainy-day fund into a useful amount of money.

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Regular Savings

The key to amassing a significant savings fund is regularly making deposits into a high-interest savings account. Set up a standing order for a small amount every week, so even on weeks where you can’t afford to put any extra aside, you still make a small contribution.

Use an App

There are many apps that you can use to help you save money. Some, such as Wally, help you to budget, allowing you to find room to save. Whereas others do a little more of the work for you. Some, round up purchases and put the extra straight into your savings fund. So, if a coffee costs $2.75, 25 cents will go straight into your rainy-day fund. Others, track your income and expenditure to figure out how much you can afford to save and when without you even noticing. They then move the money at the best time. Using technology can mean that saving is easier than ever.

Make Some Cutbacks

If you are struggling to find the extra cash to save, it might be time to make some cutbacks to free up some money. Look at your utilities and use comparison sites to see if you could be paying less. Cut your mobile phone contract or get rid of that gym membership you barely use. Then start meal planning and writing shopping lists to save money on your weekly food shops. Just make sure you put anything you save straight into the rainy-day fund.


Stocks and shares and investments can be overwhelming if it’s not something that you are experienced with. But, there are plenty of tools out there to help you get to grips with things like a covered call screener and investing even a little cash can be a great way to boost your income and build a savings pot.

Try to keep building up your emergency fund; you never know when you might need it.

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