Rainy days aren’t just terrible weather and heavy downpours. At times, they can look like a medical emergency, a malfunctioning appliance, or a suddenly unstable job. While it’s unlikely to predict these rainy-day circumstances, there’s always a way to ensure they don’t catch you off guard when they happen.

Especially reserved for emergencies, a rainy-day fund is your own financial cushion. Although not for everyday use, it’ll keep you afloat when the weather turns. Along with strengthening your safety net, your rainy-day fund equips you with:

Peace of mind. Even when life takes a turn, you and your loved ones will be able to navigate it with no stress knowing you’re amply prepared.
Freedom from debt. Gearing up for what’s ahead will keep you from swiping your credit card or resorting to loans in times of setbacks.
Stability for your goals. No matter when a crisis strikes, there won’t be a need to sacrifice the preparation you’ve made for your long-term plans.

Easy, attainable ways to build your fund
Neither a substantial salary nor financial degree is required to get started. All you need is a plan that makes sense to you, a state of mind that’ll keep you motivated, and a bit of discipline. 

Here are some of the steps to keep in mind:

1. Start small but start today. Seemingly minor but even just setting aside PHP 50 to PHP 100 a day adds up in the long term. These small deposits build into a meaningful buffer over time.
2. Automate your savings. Making your transfers from payroll to a checking account automatic removes the temptation to spend what you intend to save.
3. Trim the extras. Browse through your day-to-day expenses. There could be unused subscriptions that would be rather advantageous to discontinue.
4. Use bonuses and windfalls wisely. Though your bonuses are your well-deserved rewards, try apportioning some of them straight into your savings before spending the rest. This is one of the easiest, least painful ways to boost your funds.

Where to Keep Your Rainy-Day Fund

• High-yield savings accounts – safe and accessible with better interest rates.
• Money market accounts – slightly higher returns with similar liquidity.
• Insurance plans with investment – if you’re looking for insurance with a vehicle that lets you play around with your investment, VUL plans may be in your best interest. As long as you have sufficient policy values, these plans have you covered.

You don’t have to wait for the storm to rain on your parade. Instead of waiting for the worst, it’s all about being strong enough to handle it when it comes. Build up protection for what’s ahead, so you and your dearest ones stay secure no matter what life brings.