Just when the daily grind is filled with predictability, life throws a curve ball in your direction. Being prepared for life’s windy roads by having funds on hand lessens the burden of any obstacles thrown your way. Whether you’re saving to avoid financial turmoil or saving for an actual rainy day, rest assured it’s a good idea to do so.

6 Smart Reasons You Should Have A Rainy Day Fund

Car Trouble

For most people, cars are a necessity. A day off from work can set you back more than you can comfortably afford, and with the added cost of repairs, you might have to borrow money or use credit cards to get back on the road.

Medical Issues

Nobody is immune to medical issues, whether from an injury or an illness. If you lose the ability to work, even temporarily, your rainy day fund would become a lifeline. Having a few months of income on hand helps pay deductibles and bills, allowing you to take the time needed to focus on healing or getting better. Sometimes it might be a smart idea to contact a Seattle personal injury attorney to help get the money needed to pay medical bills if you have been injured in an accident. Considering all avenues can really help mitigate stress during a trying time.

Loss of Employment

Michele Lerner from bankrate.com suggests having 3-6 months of income saved in the event of unemployment. While Unemployment Benefits help you pay your expenses, it’s meant to be a portion of your lost income, not all of it. Not all terminations allow for Unemployment Benefits, either.

Loss of a Loved One

While hard to think about, losing a family member may result in wake, funeral, cemetery plot, gravestone or travel expense. During your time of loss, expense should be the last thing on your mind. Having money on hand allows you to concentrate on mourning when it matters most.

Household Expenses

Machines are not meant to last forever. Water heaters, sewage systems and large appliance purchases can set you back on credit cards or loans if you don’t have cash on hand. If you don’t have credit available to you, you might have to save quickly and without the use of say, a refrigerator.


If you like to take a vacation here and there without paying interest on it, a rainy day fund can support a big trip or a spontaneous get away. You never know when you might have the opportunity to join friends in a group trip at a discounted price.

Whether for fun or emergency, a rainy day fund supports you in more ways than one. Chances are, more than one of these unexpected losses or even adventure will come your way at some point. Be ready and always have your rainy day fund ready.