The idea of a woman having her money is not just a smart one, but it’s a wise move, particularly if it also includes a rainy day fund for those just in case emergencies in life.
It’s something many women having been drumming into me this week as I prepare to launch another article on financial abuse and problems with the current legal framework in Australia.
Some women are telling me that a rainy day fund, or simply having your own bank account is absolutely crucial when it comes to being able to get out of an abusive relationship, or indeed fight one through the courts.
But there’s more to it. Having your own money is a sign of financial independence, which is not having to ask anyone else for permission on how you spend your money.
Those savings also serve as a safety net for if or when things go bad, even if that’s just when your car breaks down, unforeseen medical expensive or when house renovations become urgent.
So what is a rainy day fund? Well it’s considered to be that spare and reserved cash to be used in times when regular income is disrupted or decreased in order for typical operations to continue.
It’s something I am rather big on, but the question is how much money should you have in it?
Most financial planners will tell you that you should aim to have at least two to three months pay saved in an easily accessible account.
This is money that could be used to pay for your everyday living expenses such as
- Accomodation costs such as rent or mortgage repayments
- Debts such as any loan and credit card repayments
- Transport to and from work etc
- Power and gas bills
- Internet and phone
Once you have that ideal figure in mind, it’s time to start saving and the best way to do that is to chip away at it.
Consider using a small change savings jar, or automatically transfer $10, $20 or $50, even $100 a week into your designated rainy day account.
The best rainy day savings accounts are those that allow you easy access to them without break fees, and which also pay a decent amount of interest – which in today’s money market is frankly not that much, but stick with me.
There are so many financial comparison website out there today, including finder.com.au, mozo.com.au and ratecity.com.au – so just click on one of these links and you will be taken to the latest savings accounts to choose from.