What is a “Rainy Day” Fund?
A rainy day fund is also called an emergency fund, or an emergency savings account. It is money that is held if the worst should happen, such as a layoff, the illness of a child or spouse, or any other great emergency that might cause loss of work or loss of a job. Most financial experts advocate that the rainy day fund should contain enough money to help a family survive for three months if a layoff or something similar occurs. Some have now raised the bar on the rainy day fund and believe it should have enough for five months of survival on no income. Lots of people might wonder if they’d need an emergency fund. Wouldn’t they get unemployment benefits and such if they lost jobs? While it is true that some people do get unemployment pay, this is of short duration. Plus, it is usually less than pay for a regular job, and people may have to pay huge amounts to maintain health insurance in countries that don’t have government health programs. These large health insurance payments could e
