Build Up Your Rainy Day Fund

Build Up Your Rainy Day FundDid you know that having a rainy day fund is crucial to maintaining your financial fitness?

I recommend that you have enough money set aside to cover 3 to 6 months of your living expenses. This money should cover all of your bills, minimum debt payments as well as food, gas and other necessities.

I have 2 suggestions to help you to get there.

First you can set aside some money from each paycheck and put it into a savings account.

You should also plan to put any extra money you make from garage sales, gifts or side jobs into this savings account until you hit your target amount. I recommend that this savings account be out of sight so you are less likely to dip into it.

Your second option is to get a line of credit that acts as a rainy day fund. You can apply for one at your local bank or credit union.

If you have a decent credit score and a solid work history, you might be able to qualify for a line of credit that is equal to the amount you need. It’s easy to set up and will be available for those rainy days.

Remember though… use this only for emergencies. Do not use your line of credit to buy stuff.

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