Should I Save Mad Money For A Rainy Day

Should I Save Mad Money For A Rainy Day



Should I​ Save Mad Money For a​ Rainy Day?
Yes,​ this is​ a​ good idea! I​ know you want to​ know what is​ mad money? Well,​ a​ long time ago this term came about when a​ young lady went out with her friend to​ a​ party and her friend left her at​ the​ party with no way home .​
So,​ the​ young lady was mad with her friend that left her at​ the​ party and luckily for her,​ she had money stowed away in​ her shoe to​ take a​ cab back home .​
She thought to​ herself on​ her way home in​ the​ cab,​ that it​ was good that her mother had taught her to​ always have money set aside for emergency situations such as​ this!
Thank goodness,​ this young lady had the​ forethought to​ stash her mad money away so she could take a​ cab back home,​ since her friend left her in​ a​ lurch .​
Get the​ point? Having an​ emergency fund whether it​ be mad money or​ saved money is​ important for you to​ have .​
You say,​ how do I​ go about doing this? Well,​ you can read these tips to​ help you learn what you can do:
1) Set up a​ savings account specifically for your emergency fund or​ mad money fund .​
Whatever you want to​ call it,​ just establish one!
2) Deposit a​ certain amount of​ money on​ a​ weekly,​ biweekly,​ or​ monthly basis in​ your account .​
You may want to​ set up automatic deposits to​ your account via your payroll department .​
Or,​ you may want to​ have your bank automatically withdraw a​ certain amount of​ money from your checking account into your emergency or​ mad money savings account.
3) Try to​ save at​ least 2-3 months of​ your monthly salary to​ cover your bills for at​ least three months if​ you were to​ loose your job .​
This amount of​ time will hopefully allow you the​ cushion you need until you secure new employment.
4) the​ money you save in​ your emergency or​ mad money account should be used for household emergencies,​ personal emergencies or​ if​ you’re no longer able to​ work .​
Don’t use it​ for other expenditures such as​ bills,​ travel,​ etc.. .​
Get the​ idea? It’s a​ savings account that you don’t want to​ touch unless it’s absolutely necessary!
5) Make sure the​ bank account you put your emergency or​ mad money into,​ is​ paying you the​ most interest you can earn for this account! Research as​ many sources as​ possible on​ securing the​ best interest rate you can get .​
Check with your bank,​ the​ internet,​ newspaper and other sources for the​ prevailing interest rate .​
You want to​ make sure your money can be accessed easily and quickly if​ you need it​ for an​ emergency!
By establishing an​ emergency or​ mad money fund,​ this will give you a​ better peace of​ mind if​ you need access to​ money when there is​ an​ emergency in​ your life .​
So,​ the​ sooner you start setting money aside for a​ rainy day,​ the​ better off you will be! Make sure the​ amount of​ money you contribute to​ your emergency or​ mad money fund,​ is​ realistic for your budget .​
Save as​ much as​ you can without upsetting your overall personal or​ family finances .​
So go ahead,​ get started today!




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