“I am upset. I have been saving up for a vacation and now the basement has flooded. This is a nightmare! All these unexpected bills are ruining my savings. I’m crestfallen that there is not going to be a vacation due to these unexpected bills.”

 Have you heard the saying – a shower of unexpected surprises?

Emergency Fund.

Rainy Day Fun.

They are all the same but it is definitely important to have one. Your financial umbrella will allow you to go through life’s storms with regalness and kindness.  

Weather Forecast: Financial Showers

Weather is unpredictable, it can be raining to be warm to sudden cold to snow similar to life’s weather. Whether it’s medical bills, shopping extravaganza or home repairs, these downpours are inevitable. Having this rainy day fund, can help us not get drenched in financial stress. 

 Financial Umbrella 

This is a protection from the rain. It’s basically a pool of your savings that you set aside just in case there are unforeseen expenses. Each month, if you set aside a portion of your income net current expenses, you can contribute to this fund. Thus when it rains you don’t get poured. 

The Benefits of a Financial Umbrella 

Safety

This allows you to be safe in case there are any setbacks. The fund is like a buffer helping you to bounce back up building financial resilience. 

Peace

Rainy day fund gives you peace as you can thrive in life knowing that you have an umbrella protecting you from the rain. This can help to get rid of that stress and anxiety that sits in the back of your mind. 

Reduce Debt

When people do not have a rainy day fund, they turn towards loans, credit cards and debt to cover these unexpected costs, which in turn leads to a spinning wheel of debt – interest builds up and you end up spending more money than you need to. Remember, Rakstars, you have to preserve your financial well-being. 

After the rain comes blooming flowers

When you have a financial umbrella, this can help you not just for the unexpected expenses but for the choices that you make. After all, you are the reign to your kingdom, thus you can pivot and do what suits you. Want a career change, want to do something out of the norm, invest in personal development – well now you can. With the financial umbrella – you have savings which can help to yield opportunities. 

Let’s build the Financial Umbrella

Always start small

Set a small amount that is reasonable to you each month to contribute to the umbrella. Remember, be consistent – the amount will add up. 

Savings Automation

You can set up automatic transfers, so you can contribute to the fund without thinking twice. 

Remove the unnecessary expenses

Take a look at your budget, your costs and see if you can cut back on anything. If you can, reroute those funds to your umbrella. 

There you have Rakstars, with surprises comes umbrella’s and now you can walk through life not scared of any raindrops. No rain is going to stop your parade. Contribute to your financial umbrella so you can remove the unnecessary stress and debt.