bounce back strong with a rainy day account


A little bit of money tucked away ‘just in case’ is a great way to feel more confident about your finances. Quick and easy access to funds gives you breathing space if the something happens.

With these tips and tricks, you can build up that all-important financial buffer so you feel confident and ready to meet those unexpected expenses that may come up.


A rainy-day account can:

  • help you and loved ones to deal with emergencies such as sickness, accidents and difficult personal events
  • help cover those lump-sum expenses you can't control such as repairs and maintenance
  • cushion the financial blow that comes with losing your job or income
  • protect your independence.


Here are five tips for starting a rainy-day account


1. Set a target amount

Start by thinking about what amount would give you peace of mind.

As a guide, two months of your salary put away for a rainy day is good. If you can make it to three months or more, that's even better. But ultimately, whatever number helps you feel comfortable is a great step.


2. Keep it separate

Consider how you can put this money aside and keep it separate from your day-to-day accounts. That way you’re less likely to ‘dip into’ it until you really need to. If you can, create a separate account that isn't linked to your everyday accounts (and maybe give it a name that inspires you!). This might be through a:

  • savings account with your bank
  • mortgage that has redraw or offset options. You may want to boost this account but speak to your lender to understand your options.




3. Contribute a regular amount

Save first, spend second. Decide on a regular amount you can commit to putting aside each pay. If you start small, once you're in the habit, you might find you can save more to help you reach your goal amount faster. If you saved $20 a week in your rainy day fund and didn't touch it, before you know it, in just one year this will add up tp $1,040.

A good goal amount to set aside may be 10% of your salary until you’ve hit your target, but you can start with what you’re comfortable with saving. Think about setting up recurring automatic payments so that when your pay comes in, you're saving regularly without any effort. A good time to consider doing this is when you get a pay increase, so the extra amount gets saved before you even miss it.

Aim for what you can afford, and remember, no amount is too small to put aside. This is about building a great habit for a brighter future.


4. Give it a boost when you can

One great way to quickly build up your rainy-day account is by tipping a little bit extra in when you can. Tax returns are a great example – if you get a tax refund after completing your tax return, you could consider putting this into your rainy day account. 


5. Use it when you need it (that’s what it’s there for!)

Just remember to keep topping it back up as soon as you can so you have a safety net for the next time you need it.



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