Definition
Savings set aside for unexpected expenses or emergencies, acting as your financial safety net.
What to consider
- Automate transfers to steadily build up your reserve.
- Keep it separate from your regular spending money.
- Review your target amount periodically as your needs change.
Real world scenarios
- When a flat tire leaves Evan stranded, his rainy day fund covers the repair, avoiding credit card debt.
- Marsha regularly sets aside a small percentage of each paycheck into a separate savings account, ensuring her rainy day fund grows steadily.
- Nate dips into his rainy day savings for minor home repairs, relieved he doesn’t have to derail his long-term investments.
Related terms
Related Playbooks
Get instant access to all our expert playbooks and 1-1 financial coaching when you join the Bolder Money community. Learn more here.
Banking & Savings
Align Your Banking with Your Values: A Complete Guide
Banking & Savings
Community Banks & Credit Unions: Your Guide to Value-Based Banking
Banking & Savings
The Ultimate Guide to Choosing Your Perfect Checking Account
Banking & Savings
Choose Your Perfect Savings Account: From Basic to High-Yield
Banking & Savings
Travel Planning System
Banking & Savings
Smart Banking Secrets: Master Your Accounts & Save Money
Banking & Savings
Strategic Savings Planning
Banking & Savings
Financial Security Planning
