A rainy day fund will get you through a sudden job loss, an injury that leaves you unable to work, or some other unforeseen expense. An ideal rainy day fund should cover costs for three to six months, including rent, cell phone, hydro, and debt payments (loans, credit cards, etc.).
We know it can be challenging to save money, but even as much as $10 per pay period is enough to build a rainy day fund slowly. If you can afford it, save more than that, but it needs to go into a separate account from your chequing. Talk to us about opening a Tax-Free Savings Account (TFSA) as these accounts allow for tax-free deposits and withdrawals.
To start saving, consider setting up an automatic withdrawal through Casera, but as always, talk to one of our financial specialists. They’ll point you in the right direction and build a solid plan to change the course of your financial future.