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

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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[educatedwanderer]

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.

[bridgettetraveler]

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!!!

[johnstack]

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]

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.

[ivysapphire]

I love Ally for their bucket system. Currently at 3.00 APY

[ruthappel]

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.

[CashwithCallie]

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!

[danicegewiss]

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.

[icycici]

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

[jamesw]

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!

[janinejackson]

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

[saritamoorebansa]

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.

[UlfilasNZ]

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.

[RonnieWisdom]

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

[mwashi]

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.😊

[audreyhuggins]

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!

[NaturallyPrettyBrownK]

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

[BimmerBabe]

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

[middlechamber]

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.

[michelarosier]

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