{"id":12990,"date":"2017-02-10T10:00:12","date_gmt":"2017-02-10T10:00:12","guid":{"rendered":"https:\/\/smallbiztrends.com\/?p=432856"},"modified":"2017-02-10T10:00:12","modified_gmt":"2017-02-10T10:00:12","slug":"small-business-owners-have-you-created-a-rainy-day-fund","status":"publish","type":"post","link":"https:\/\/businessnewsbox.com\/?p=12990","title":{"rendered":"Small Business Owners, Have You Created a Rainy Day Fund?"},"content":{"rendered":"

\"When<\/p>\n

You\u2019ve got your emergency fund set up — three to six months of living expenses set aside for unexpected events — and you\u2019re finally feeling a sense of financial security. But what, exactly, constitutes a financial emergency?<\/p>\n

We asked financial advisor Laura Scharr-Bykowsky<\/a> for tips on when to tap your emergency fund<\/a> and other advice\u00a0on saving up for a rainy day.<\/p>\n

When Should People\u00a0Tap Their Emergency Funds?<\/h3>\n

Emergency funds provide peace of mind when there\u2019s an unusual or catastrophic event in your life. Loss of income due to unemployment or disability\u00a0is the primary intended use. Your emergency fund can also provide much-needed money\u00a0if you face a major medical event.<\/p>\n

Your fund should be able to cover out-of-pocket deductibles for your health, property and casualty insurance and at least six months of income to cover your expenses during a job search. Keep the money in a cash account insured by the Federal Deposit Insurance Corp.<\/p>\n

Does it Ever Make Sense\u00a0to Use It\u00a0for a Non-emergency?<\/h3>\n

Some people may decide to tap this account if they have a large, unexpected maintenance or repair bill such as a new roof or heating and air conditioning unit. Others may raid their account to buy a new car. If you deplete your account in this way, try to build it back up as soon as possible, because you\u2019ll be vulnerable if you have a true emergency<\/a>. I would recommend this only if you have a stable job and good insurance.<\/p>\n

Any Other Savings Tips?<\/h3>\n

Set up separate savings accounts<\/a> for different goals and include a line item in your monthly budget to save for these less frequent expenses — for example, one savings account for home repair, one for car replacement and another for at least six\u00a0months of living expenses.<\/p>\n

This method can prevent you from raiding your emergency fund. Setting up separate savings accounts is easy and helps us stay honest with our spending.<\/p>\n

Republished by permission. Original here<\/a>.<\/small><\/p>\n

Rainy Day Umbrella<\/a> Photo via Shutterstock<\/em>
\n<\/small><\/p>\n

This article, “Small Business Owners, Have You Created a Rainy Day Fund?<\/a>” was first published on Small Business Trends<\/a><\/p>\n

\n<\/img><\/a> <\/img><\/a> <\/img><\/a> <\/img><\/a>\n<\/div>\n

\"\"\/<\/p>\n","protected":false},"excerpt":{"rendered":"

Your personal or business rainy day fund isn’t necessarily untouchable but emergency funds for your small business exist for a reason.<\/p>\n","protected":false},"author":34,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[59,27],"tags":[],"class_list":["post-12990","post","type-post","status-publish","format-standard","hentry","category-finance","category-publisher-channel-content"],"_links":{"self":[{"href":"https:\/\/businessnewsbox.com\/index.php?rest_route=\/wp\/v2\/posts\/12990","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businessnewsbox.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businessnewsbox.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businessnewsbox.com\/index.php?rest_route=\/wp\/v2\/users\/34"}],"replies":[{"embeddable":true,"href":"https:\/\/businessnewsbox.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12990"}],"version-history":[{"count":0,"href":"https:\/\/businessnewsbox.com\/index.php?rest_route=\/wp\/v2\/posts\/12990\/revisions"}],"wp:attachment":[{"href":"https:\/\/businessnewsbox.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12990"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businessnewsbox.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12990"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businessnewsbox.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12990"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}