How and Where to Save for a Rainy Day


  1. This was SO helpful. I am looking into these accounts now because I really need a separate, high yield account. Thanks Sara :)

  2. Great articles, Sara! One other great aspect of the online savings accounts (which I use), is that it takes at least a few days to transfer the money out. I like to think this prevents me from using it to make stupid purchases. I feel like it’s out of reach.

  3. Please consider one recommendation. I recommend setting your target amount at 1 year (rather than 3-6 months). Admittedly it is a more lofty goal, but you’ve already rightly advocated for setting a personal savings rate. Here are two reasons; one mental, the other pragmatic.

    (a) When it comes to “money stuff”, “comfort” is a big deal. This becomes more and more true as you age; like anger, money worries can creep into your head slowly and can/will, if unchecked, consume you. More comfort means more options; more options means a happier life. For example: it’s no news that the job market sucks right now (especially in your age demographic). If you get outsourced or otherwise screwed, or if you really really need to tell your boss that he/she is a total douche with the cranial capacity of a small empty soapdish, then having that nice fat emergency account is freedom.

    (b) For tactics such as “rolling CD’s”, MMA’s, and so forth, you can get higher rates on one year terms (and with higher amounts of money). When it comes to money, flexibility is huge.

    Keep up the good work.

    • Yes, I actually agree, 6-12 months is definitely better and closer to what I’m aiming for personally. I chose to say 3-6 months because I know how difficult it is for many people my age to work up to that much in savings and I wanted to create a reasonable goal. Perhaps I should have delved deeper into that. But yes—I agree.

  4. This was awesome advice, thanks for writing such an easy and fun to read article on personal finance!

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