Saving For The Rainy Day
By madlees
@madlees (1377)
India
June 27, 2008 3:21am CST
Hi there,
Have you ever thought of saving for the rainy day? An emergency fund, or rainy day fund, is a savings fund that you have to keep separate from your other savings accounts.
That can only be used when it is absolutely necessary.
We have mediclaims and other insurances for that but for emergency cash what have you done?
I have a little amount locked up. I put in whenever I can save a bit every week. Then I can use it when I fall short unexpectedly. may be some guests come home or kids needing something at school like that... Have any of you thought like that?
3 responses
@saivenkaat802003 (4823)
• India
28 Jun 08
Good idea.. and it is my bad habit to spend the money, that i used to save.. in small amounts..in piggy banks .. right from childhood..and now in SB accounts.. in case of any small situation that needs money. Actually this would be the thought that conquers my mind.. " okay.. i have these much amount of money lying as deposit.. and so much in piggy banks.. why not use that money now..." The first things that i would lay my hands up on..
But i have other forms of savings as you said , like insurance, RD's Mutual funds, investment in shares...etc..
@madlees (1377)
• India
28 Jun 08
Dear Sai,
You can save in RD's Insurance etc but you can't get it out in short notice.. You'll lose interest. But the savings account should always be there for emergency.. That will help, you can always go to an ATM and get the money in an emergency.. We never know when we will need the extra money and so always save some cash and do not put your hand into that..
@madlees (1377)
• India
28 Jun 08
Yes Tigertang, what you said is right. We have to think of saving for the leaner days. When we do not have a fixed income every month it is all the more necessary to have a savings account, from which you can encash whenever you need. All the other savings come after that..
@madlees (1377)
• India
27 Jun 08
Yes, Muelitz,
It is very much a necessity now, that the prices are going up and we are finding it difficult to make the ends meet.
Saving a little everyday even cents will do, will make a big difference later on. We will not have to worry to whom shall we go and ask for a loan etc. Don't you think so?
Saving it in the Banks and the mutual funds are safe but you will not be able to sell immediately if it is in the mutual funds. So I think Savings account is the best bet for emergency fund.
@madlees (1377)
• India
27 Jun 08
You can Alok,
Even try putting a rupee a day, after a month or so it will be 30 rupees.. Start like that, little drops make an ocean isn't it?
You can do it, but just do not touch it unless you require that urgently.. and it should be an emergency. Otherwise no touching it.. Keep away.. you will and you can do it..
