How to Know when to Use Your Rainy Day Fund
Check if the expense is necessary.. Ask if the expense is urgent.. Confirm the expense is unexpected.
Steps
1
Check if the expense is necessary.
Check if the expense is necessary.
2
Ask if the expense is urgent.
Ask if the expense is urgent.
3
Confirm the expense is unexpected.
Confirm the expense is unexpected.
4
Identify common emergency expenses.
Identify common emergency expenses.
5
Spend the money if you need to.
Spend the money if you need to.
6
Tap your savings instead.
Tap your savings instead.
7
Ask friends or family for a loan.
Ask friends or family for a loan.
8
Sell valuables.
Sell valuables.
9
Use a credit card.
Use a credit card.
10
Take a loan from your 401(k).
Take a loan from your 401(k).
11
Seek a hardship distribution from a retirement fund.
Seek a hardship distribution from a retirement fund.
12
Start right away.
Start right away.
13
Separate your rainy day fund.
Separate your rainy day fund.
14
Avoid investing to make up a shortfall.
Avoid investing to make up a shortfall.
15
Find additional work to build your savings.
Find additional work to build your savings.
16
Save at least six months of income.
Save at least six months of income.
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