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How to build a ‘rainy day fund’ to protect your finances

Written by Jimmy Rustling

Despite seemingly having enough money, a surprise, emergency payment can catch even the best of us off-guard, and so having a buffer in place, a pot of money that you can fall back on should you need to in the event of a crisis, should be a priority. This is especially true for those with commitments to others, or families to take care of. Not only will this put your mind at ease, knowing that you’ve got somewhat of an insurance policy should something go awry in your life, but it will also allow you to go out and spend money on what you want to be able to, without feeling guilty.

Want to build up a financially secure buffer, so that you don’t need to live in fear of running out of money all the time? Here are some quick tips on habits and ways to save your money, as well as some advice on what next steps you might decide to take if wanting to further your finances in the future – from saving for that next big purchase to making a long-term investment in a property, for example.

Building that financial buffer

A great first step to try and stick to when building up a financial savings pot is to try and save at the start of the month when you’ve just been paid, rather than at the end of the month when you’ve got tuppence to spare. Put an amount in that’s manageable, but significant, and if you end up struggling without it, you can always withdraw it later down the line if you choose.

We’ll often spend silly amounts of money on things that we don’t necessarily want or need, and your bank account can at times feel like a ship with a lot of leaking holes in it, emptying out fully by the end of the month. Try to patch up these holes by cutting down your outgoing payments first, before spending money on luxuries.

What should I do with my savings?

So, if you’ve successfully built a rainy-day fund, what should you do next? Well, if you no longer need to build up that buffer in order to live comfortably, and want to look forwards toward building a better financial future for yourself, you might decide to do something productive with your money. Here are some examples of ways you could make efficient use of your money, or even invest it in order to put it back to work for you and perhaps generate an even further income:

  • Some people building up a rainy-day fund are working towards a big, significant purchase, rather than small, inconsequential things that can add up to be a waste of money. If you want to build up a deposit for a house, for example, or a new car etc., then you won’t do any harm in putting away money incrementally.


    • If savings account percentages and rates just aren’t doing it for you, and you want to increase the amount of passive income that you can receive, then investing your money could be a good step. From small, fast-paced investments that you can carry out on your phone using apps, to large, long-term investments in property, there are a range of different investment methods and strategies out there, so do some research if this interests you, and start learning about a market that you might want to delve into. Buy to let property investment, for example, is a great idea if you want to be able to make a secondary, passive income stream. RWinvest state in their guides that it’s one of the most secure and lucrative investment options out there at the moment, providing you do it correctly of course.


  • Got young children in your family that you want to be able to provide for in the future? Many people decide to put a small amount into a savings account for their young children so that they have a lump sum to kickstart their own financial profile and portfolio when they come of age. Property investment is again a relevant and viable option here, too. A tactile and long-standing investment, an estate is something that you could pass onto your children as an inheritance. You can work on an investment portfolio and strategy together with your child, and they’ll surely thank you for it in the future!

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About the author

Jimmy Rustling

Born at an early age, Jimmy Rustling has found solace and comfort knowing that his humble actions have made this multiverse a better place for every man, woman and child ever known to exist. Dr. Jimmy Rustling has won many awards for excellence in writing including fourteen Peabody awards and a handful of Pulitzer Prizes. When Jimmies are not being Rustled the kind Dr. enjoys being an amazing husband to his beautiful, soulmate; Anastasia, a Russian mail order bride of almost 2 months. Dr. Rustling also spends 12-15 hours each day teaching their adopted 8-year-old Syrian refugee daughter how to read and write.