Single Mom Money Tips - Rainy Day Funds

Here are a few more tips in the Single Mom Money Tips series. Establishing a rainy day fund is a key to successful money management.

1.    Have a savings plan to prepare for emergencies. It is hard to predict when an emergency will happen that requires a large chunk of cash.

2.    Putting away money for a rainy day is very empowering (I’m speaking to myself here).

3.    If you have money saved, that is specifically for these times, your stress level will go way down.

4.    A stash of cash can relieve feelings of desperation and resorting to uncharacteristic behaviors.

5.    It is recommended that you have $1k-3k in savings. If you can manage to save at least $500 that is better than nothing.

6.    Open up a separate account for your rainy day fund. Use your tax refund, raises, or other windfall of cash to fund this account.