Unexpected Events You Will Want A Rainy Day Fund For

Unexpected Events You Will Want A Rainy Day Fund For
  • Opening Intro -

    While car, life and home insurance provide financial protection for some events, many unexpected scenarios occur that can cause financial hardship.

    Here are some situations for which you will want to set up a rainy day fund.

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Car Repairs

Those who have a vehicle usually rely on it for transportation to work. When the car breaks down, it can become difficult to get to work on time to earn that paycheck. Even seemingly minor issues can become expensive when the mechanic finds other problems that need addressed. Having money set aside for repairs can save valuable time and get a car back on the road quicker.

Medical Bills

When you or family members experience health issues, even good insurance plans can leave you with out-of-pocket expenses. Without a rainy day fund, you might have to take money away from other obligations in order to take care of health issues.

Home Repairs

Home owners are especially advised to keep money on hand to cover expenses for common malfunctions like air conditioning or heating unit repairs. Additionally, you never know when you might need a plumber, electrician or other contractor who will require payment at time of service. As a renter, you still need to consider home expenses, depending on your lease clauses. This especially applies when you are responsible for your own appliances.

Deductibles

Relying solely on car and home insurance policies to provide protection in the case of accidents and damages is not a good idea because they usually come with deductibles when you file a claim. Make sure you know your deductibles, so you know how much money to set aside.

Unplanned Travel

If you have a family emergency, a rainy day fund allows you to emotionally stay close to family members, even when they live far away. Not having travel money to lend emotional support when a loved one needs it can lead to regret and ill feelings in the future.

Legal Expenses

If you abide by the law, you don’t expect to have legal expenses. However, sometimes even common incidents like traffic tickets or accidents can lead to legal expenses. Additionally, if you ever need to prove yourself against criminal charges, you’ll need a criminal defense lawyer in Abbotsford on your side to represent your best interests.

Remember that the term unexpected does not have to mean unprepared. Provide peace of mind for yourself, and establish a rainy day fund by setting money aside regularly. That way, a minor setback won’t turn into a major financial crisis.

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