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  • Writer's pictureMajida Malik

Protect yourself in emergencies! Build a rainy-day fund.

Updated: May 19, 2022



What is a rainy day fund? Certainly not a fund just for rainy days, it is a sum of money that you put aside for emergencies or any uncertainty, for example, loss of a job or actual rain if you are a resident of Karachi during the Monsoons.


If you don’t have a rainy day fund, start saving for it today even in small amounts. The first thing you need to do is to set a target for your rainy day fund. The target can be of three types depending on your expenses :


1-Basic (Single Person): A beginners rainy day fund is equal to three months living expenses. This is a good amount to have to protect yourself.


2-Added Security (Family): If you are saving not just for yourself but your family too, then it is advisable to have an amount equal to six months living expenses saved as your rainy day fund.


3-Advanced (Higher Income bracket): If you are someone with a high paying job, then it is advisable to have an amount equal to 9 months expenses. High paying jobs are always harder to find and remember we all get used to spending more when we have that income, therefore having an advanced fund will come in handy if you lose your primary source of income.


It may take you a long time to build your fund, but you have to start somewhere! Take part in an Oraan Committee to start saving for your emergency fund!

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