South Jersey's 1st Affordable
CERTIFIED PUBLIC ACCOUNTANT
- Computer Systems Consultation
- Business and Sales Acquisition
- Sarbanes-Oxley Section 404 Compliance
Saving for a rainy day is an important part of your financial planning.
At some point common sense dictates that you're going to encounter an unforeseen expense and if you don't have some funds to cover it you're going to have to use expensive borrowing. The average cost when such expenses do occur is believed to run into several thousand however whether it's a large amount or a small amount a rainy day fund is essential to cover it.
-The best way to save this cash is by using an instant access savings account which pays the highest rate of interest available to you.
-Do not be tempted to use your current account to build up your rainy day fund. Your current account makes it too easy to dip into the savings without realizing it and this probably means you don't have enough money left when you need it. Also most current accounts do not pay as high interest rates as savings accounts do. To avoid temptation or accidentally spending your savings keep your current account for everyday bills and expenses.
-Before you start saving you should clear any debts you may have. Paying interest on your debts will almost certainly be at a higher rate than even the best savings accounts can earn. If your rainy day fund has a few hundred stashed away use it to clear your expensive store card instead.
If you are living on a tight budget and just can't find any extra cash to set aside. Sit down look at all of your expenses for the last (3) months and decide what can label as WASTE!
- Cut out these expenses and start to put that money to work for yourself.
NEVER USE YOUR CURRENT ACCOUNT TO WORK AS THE RAINY DAY FUND.
Central Park East
222 New Rd Suite 306
Linwood, NJ 08221
Phone: (609) 798-1CPA
Fax: (609) 653-2230