Importance of having a rainy day fund
Lake Charles, LA (KPLC) - Southwest Louisiana is no stranger to the devastation that can be brought on by a natural disaster. We may be in the clear for now, but we are still in the middle of hurricane season and need to stay as prepared as possible - that includes having emergency funding or a rainy day fund.
J.L.H Financial Coaching LLC owner Jackie Higginbotham has some advice on the best ways you can make sure you are prepared for when those situations occur. A big thing she focused on was that often people don’t think they make enough to save, but she said as long as you’re saving, it doesn’t matter how much you’re actually putting away.
“When you evacuate, for instance, you’re going to need gas, food - you need to be able to get a hotel room,” Higginbotham said. “And you don’t want to max out all of your credit cards trying to do that. So, as long as you have a fund to the side, separate from your regular accounts, when you get back you can just pay that card out.”
Now, Higginbotham gave KPLC some tips about how to start putting money aside if you’re in trouble. She said that the first thing she asks during her consultations is what a person’s needs are.
Most of the time, she’ll find out it may be more of a person’s wants than needs.
The next big thing is self-discipline, which is something she finds that a lot of people struggle with.
But, Higginbotham said eventually, it becomes part of your lifestyle. But a good place to start is with a budget.
“Well, for me, I always say it starts with a budget,” Higginbotham said. “Because with a budget, you’ll see how much you actually have left to save, because I always put together an emergency fund and savings. So, it all depends on what you have left.”
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