Here are a few other things to take into consideration when constructing a rainy day fund:
- Take it slow. Don’t think that you’re going to have a $5,000 emergency fund in a day.
- Celebrate milestones. Every time you reach a goal, treat yourself or your family.
- Be sure to insert this money into a low-risk, liquid and accessible account.
- Only use this emergency money for real emergencies and not for shopping trips.
- Give up on some of your vices, such as cigarettes, alcohol and lattes.
Saving money doesn’t have to be a dreadful task. It can be fun and informative, and it helps you feel accomplished every time you meet a new goal. Instead of treating it like a trip to the death house, consider it as an important hurdle to overcome. Besides, emergencies are never foretold, so you’ll be ready if/when something bad happens.