Why You Should Start Saving for a Rainy Day

As much as we try to be ready for unfortunate events, life somehow finds a way to throw us a curveball. But, as Filipinos, we still try our best to save up and prepare for rainy days. Unfortunately, there are times that it seems impossible to do so because we have other responsibilities or priorities that cause us to get sidetracked.

Having a separate savings fund prevents you from facing dire consequences should a crisis occur. When you make it a habit to set aside money for emergencies, you can weather all storms.

Here are the many reasons that you should start saving before the rainy days come.

1. It helps you develop financial discipline.

When building a financial plan, you start by trying to develop a habit of budgeting and saving, and you have the ultimate goal of improving your financial discipline over time. But, your financial maturity doesn’t grow as fast as other things do, like planting bean sprouts that seemingly grow overnight.

Indeed, going through the process of putting your finances in order is easier said than done. There will be times when you’ll find yourself unable to make as much progress as you would want. When this kind of thought strikes you, you should focus on the action more and less on the result. As long as you’re setting aside something for your savings fund on a regular basis, the habit will eventually become almost natural and involuntary on your end.

2. It gives you peace of mind.

You’ve probably heard stories of financially troubled individuals having sleepless nights. By preparing for the stormy days in your life, you can sleep more soundly at night knowing that whatever happens, you’ll have funds to help get you by.

You won’t have to beg, borrow, or do something desperate to get the funds you needed. In case your savings can’t cover the entire amount that you need, it will be easier to raise some extra funds through online loans with low-interest rates, just like what Cashalo offers, or other similar means.

Here’s some no-nonsense tip from financial gurus: Although you’ll want to make your rainy day fund accessible to you, setting up a secondary savings account that’s not tied to your ATM-based account will give you more control over how and when you can withdraw money from it.

3. It gives your budget some breathing room.

Admittedly, it’s difficult to have a fool-proof budget that works for you or your family. Some days, your budget will fall short, and the next payday seems to take forever to arrive. Having an emergency fund helps extend your household’s financial means in a way that doesn’t inconvenience anyone. You don’t have to go up to your boss with a cash advance request or ask a family member for financial assistance that will never get paid.

4. It keeps you on track of your money goals.

The ultimate goal of saving is to work towards your financial freedom and to prevent a financial meltdown.

As you make regular deposits into your savings fund, you are, in effect, making your goals more achievable. By planning your daily, weekly, or monthly finances, you can manage your general expenses, and at the same time, you’re able to set aside some money for emergency use.

The small yet consistent steps you’re taking to be able to save will eventually grow into bigger, greater things. These small habits will help you achieve financial stability and secure a stable future for you and your family.

5. It makes you ready in times of emergency.

Life is full of surprises, both the pleasant and the not-so-pleasant ones. The latter may come from your company suddenly folding up, an unfortunate accident or sickness in the family, and other major unforeseen circumstances. There are also emergencies that have a less serious impact on your finances, such as car or house repairs and routine medical expenses.

These are all events that you have little to no control over, but the damage of which is something that you can mitigate if you build a savings fund early on.

6. It shows how much you can achieve over time.

Having a contingency fund is not just for practical purposes, but it can also work well for your morale. When you see that you’re slowly but surely growing your savings fund, you will feel rewarded. It also gives you the confidence to accomplish all of your money goals.

Indeed, you have nothing to lose but everything to gain when you save for the rainy days. The amount of money you put away each time will seem small compared to the strong sense of security and comfort that makes you enjoy each moment, come rain or shine.

Get the money when you need it most through Cashalo’s online loan!

About Cashalo

Cashalo is a fintech platform that delivers digital credit to Filipinos – helping them elevate their financial well-being. All loans under the Cashalo Platform are financed by Paloo Financing Inc., with SEC Registration No. CSC201800209 and Certificate of Authority No. 1162

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