rainy day VS. emergency fund (guess what?!?..these AREN'T the same)

rainy day VS. emergency fund (guess what?!?..these AREN'T the same) | SAVING MONEY TIPS

Рет қаралды 24,272

Жыл бұрын

How to save money fast on a low income & personal finance tips // A rainy day fund and emergency fund (types of savings accounts) aren't the same...here's how they differ and why you need one of each. Different types of savings accounts for different purposes.
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Пікірлер: 55

@educatedwanderer9293 Жыл бұрын

I have a month ahead fund, and a 3 month emergency fund. The month ahead (rainy day) fund is there to help me keep me from using credit cards for everyday expenses. The emergency fund is for true emergencies like car engine failure or job loss.

@bridgettetraveler658 Жыл бұрын

Thank u for telling us the difference between emergency fund & rainy day fund! Ppl talk about me being cheap, but thanks to videos like this I always have money! I should be a millionaire now, but yrs ago I blew through money like water. The 1st person GOD sent me was Suze Orman. Now I listen to u & ppl in banks are amazed that I know so much about making & saving money!!!

@deirdreocarroll1975 Жыл бұрын

Well done you. Must go check out Suze O

@johnstack5008 Жыл бұрын

I agree with all you said except I wouldn't keep the rainy day in the bank. With some potential emergencies you may lose access to a bank account. I would keep the $1000 in physical cash (in ones, fives and twenties) and hide it in a stash somewhere. and don't tell anyone about it.

@BimmerBabe Жыл бұрын

Emergency for me is random car repairs or pop up things that i can't afford out my regular budget. Rainy day for me is when my girls say lets go! If i dont have it in my regular budget then i have my rainy day fund.

@ivysapphire6944 Жыл бұрын

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@ruthappel6464 Жыл бұрын

This is excellent advice and I wish that I learned it before 2020. We had all of our savings, both emergency and rainy day, in one mutual growth fund. We needed a major repair on our house right after the market dropped. Thankfully, we were able to make it through without too much of a loss. Now our rainy day fund is in a low interest savings account.

@danicegewiss862 Жыл бұрын

I have multiple categories of savings. Each one has its own purpose. Home purchase, auto repair, auto purchase, unemployment, etc. I even have a life insurance fund. I have an emergency fund as well. I add money to these weekly. They're constantly growing.

@thebrokenwallet Жыл бұрын

Love it! I feel this strategy makes it so much easier to hit goals.

@CashwithCallie Жыл бұрын

Great video! I appreciate your clear distinction between rainy day funds and emergency funds - it's an important point that often gets overlooked. The two serve different purposes and it's essential to understand this to effectively manage your finances. Another point to consider is the psychological aspect of having these two separate funds. Knowing that you have a specific fund for minor inconveniences (rainy day fund) and another for significant emergencies can provide a sense of security and peace of mind. Keep up the good work!

@saritamoorebansa4485 Жыл бұрын

Thank you for this video. I have emergency fund but need a rainy day account. I was just reviewing my money and paying bills. I see that I have car insurance and car maintenance, I need a little extra saved in a rainy account so I don’t have to charge it.

@janinejackson9477 Жыл бұрын

You give such good advice. It might be an idea to mention that if bills go up and cost of replacement items increases so to must the emergency account and other purpose accounts. purpose accounts need to correspond to the rise of living by increasing by at least 20% or more each year

@icycici6191 Жыл бұрын

That is a great advice on having the right mindset on savings!! 👍🏽

@NaturallyPrettyBrownK26 Жыл бұрын

Wow I immediately realized the purpose of having two separate accounts when starting my debt free journey ❤

@lbottroff Жыл бұрын

Short, sweet and to the point! ❤❤❤

@jamesw8951 Жыл бұрын

WOW ok I get it and it makes more sense now 😂. I've been doing it wrong by thinking they are the same! I've had it set up, but have been playing it wrong! Rainy day fund will stop me from using credit cards, Emergency fund is for dealing with stuff that will drag on potentially. GOT IT! Thanks again!

@RonnieWisdom Жыл бұрын

Amazing advice! Quick, clear, and concise! Thank you!

@mwashi401 Жыл бұрын

Wow! I literally just created a rainy day fund after looking up the different between the two. Now I have both and I’m glad I learned their true purposes.😊

@UlfilasNZ 8 ай бұрын

Nice channel! I'm self-employed - I pay for almost everything with a cash-back credit card (which I pay off completely every month). I keep 2 months of expenses in an account connected to my checking account, then 6 months expenses with a separate bank in a high-yield account.

@audreyhuggins8822 Жыл бұрын

Thank you! I had no clue as to the difference. I too thought of the two types of funds interchangeably. What an eye opener. You're the best!

@thebrokenwallet Жыл бұрын

You are so welcome!

@BimmerBabe Жыл бұрын

We must be twins. All your tips i already do. I have had 2 types of savings for 10+ years and hearing your points on why makes me keep it up and add more. Thank you for affirming positive money habits

@middlechamber3574 Жыл бұрын

This is Soo on time. I was just talking about this today...and I too made rainy day amd emergency fund concepts interchangeable. You are awesome...thank you for breaking these concepts down.

@reneapalmer6977 Жыл бұрын

Very good information, thank you 😊 have a great weekend!!!

@CourtneyRobinson Жыл бұрын

I hope you love the hummus. The carrot is my favorite. It has a lil’ heat. ❤

@michelarosier1918 Жыл бұрын

Thank you, for the reminder 🙏 I'll keep in my plans and goals.

@philipw4849 Жыл бұрын

Great job!

@ljrockstar69 Жыл бұрын

Thanks for this great idea! I will open a "short-term" / rainy day fund.

@natalieguffey3936 Жыл бұрын

Thank you for your great videos

@thebrokenwallet Жыл бұрын

You're welcome!

@dtr579 Жыл бұрын

I have a savings account for anything that I consider an emergency above normal bills. Job loss, car problems, home, death and etc. I keep around $100K in that account and $5K in my checking account. The savings only get touched if necessary. Otherwise I keep adding to it, along with my 401K & IRA investments.

@kevinmoore9524 Жыл бұрын

Thank You. Merry Christmas

@RocketRenee46 6 ай бұрын

I almost skipped your video and I’m so glad I didn’t! Ty! L&S ing.

@thebrokenwallet 6 ай бұрын

You are so welcome

@coupe_dville Жыл бұрын

Great video. Thank you for clarifying the difference. 💜💛💜💛

@blondspike74 Жыл бұрын

Excellent!!! You’re the only person I’ve heard talk about this! Thank you! I thought I was the only one budgeting like this.

@MRJLS15 Жыл бұрын

Great tips

@jalupot Жыл бұрын

Beautiful explanation. Thank you

@thebrokenwallet Жыл бұрын

You’re welcome

@Zero-Investing Жыл бұрын

Great video 👌

@saraibucciarelli1821 Жыл бұрын

Good video. I just keep one account labled emergency fund in a money market account with check writing privileges that is not at my regular bank.

@Red_1976 Ай бұрын

Thanks for the tips. I find it’s the savings that take ages to get together!

@mangayakposowa4334 3 ай бұрын

I agree with having them in different accounts. Great video m, like always!

@thebrokenwallet 3 ай бұрын

Yes! Thank you!

@LilySaintSin 10 ай бұрын

I have both

@slickpanther06 Жыл бұрын

Great info 👍🏾 By the way, you’re beautiful and have pretty skin.

@thebrokenwallet Жыл бұрын

Thank you so much! And thank you for the compliment 😀

@slickpanther06 Жыл бұрын

@@thebrokenwallet You’re welcome 😊

@CreativeThinking52 Жыл бұрын

Knowledge is power. Thanks for sharing valuable information. Have a great weekend. 🤑 730 likes

@thebrokenwallet Жыл бұрын

Thanks! You too!

@randomguy6189 Жыл бұрын

Is a rainy day fund used to cover a shortfall if expenses exceed income in a particular month or does something else serve that purpose? I have one month during the year where I have several bills due so just wondering how I plan for this.

@thebrokenwallet Жыл бұрын

For irregular expenses you can also try a sinking funds, since these aren't technically emergencies. If you have $1,000 in irregular expenses each year, you could save $83 a month for these.