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Why It Is Hard to Save for a Rainy Day

Building a sufficient rainy day fund is one of the early steps toward true financial freedom. It is not to be confused with an emergency fund, which is intended for more significant, unexpected expenses. A rainy day fund is designed to serve as a cushion against smaller, unplanned financial emergencies such as a pet surgery, a minor home improvement, or a car repair.

Relying on signature or title loans in Salt Lake City, Draper, Midvale, or West Jordan is a symptom of an inadequate rainy day fund. Knowing that you need it, however, does not guarantee that you can build it sooner rather than later. It is challenging to set aside enough cash for it for different reasons.

You Do Not Have a Goal

Much like other financial objectives, a rainy day fund requires a target number. It is easier this way, for you can see your progress and reinforce your positive behavior.

When saving up for an emergency fund, you can aim for an end-goal of three to six months’ worth of your living expenses. But a rainy day fund is a bit more ambiguous. It depends entirely on your lifestyle. As a general rule, it should be enough to cover your occasional expenditures outside the regular outflow of funds in your monthly budget.

You Have Too Much Debt

Reaching all savings goals are more challenging if you are heavily indebted. Make no mistake about it. You need debt to build your credit or even make money. However, you should not be over-reliant on borrowing cash to survive paycheck to paycheck.

If you want to save up for a rainy day fund fast, you should free yourself of financial obligations. Pay down your existing ones, and do not apply for more unless it is necessary.

It is not feasible to pay off all of your debts at once since your sources of income are limited. What you can do, though, is to prioritize some of them over a short period to make your life easier.

You can focus on your debts with the highest interest rate first, and then take care of the minimum payments of others. Or, you can concentrate on the smallest balances to reduce the number of your debts more quickly.

You Mix Your Finances

Once you begin building your savings, make sure to create a designated bank account for your rainy day fund. It can serve as a prohibitive mechanism, so you will not touch it needlessly.

Again, a rainy day fund is designed for a specific purpose, and you should use it only for small financial emergencies. If you take out money from it to purchase a designer bag or another pair of shoes you can live without, you might spend forever building it and still not succeed.

You Can’t Control Your Expenses


Last but not least, stay on top of your finances. Understand the difference between your needs and your wants. You might be used to a particular lifestyle, but you need to curb lavish expenditures if you are to save up for a rainy day fund successfully.

It is not a crime to indulge yourself from time to time, so you will not feel like your rainy day fund buildup is a burden. However, avoid living beyond your means, or else surprise expenses can catch you off guard.

Accept the fact that saving up for a rainy day fund requires work because it is the only way to build it seriously. The sooner you embrace this challenge, the more you can set aside enough money for a rainy day quickly.

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