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What is a rainy day fund?
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17th Dec 2009 by Gary
This is any type of investment you make for the purpose of protecting yourself over the short term in case something unexpected happens. It could be a savings account, liquid CD, money market account, and something like that which doesn't generate a fee if you want or need access to your money immediately. While you could have a fund which generates fees through your investment, it wouldn't make any sense to do that and lose a portion of your money when needed it.
This is any type of investment you make for the purpose of protecting yourself over the short term in case something unexpected happens. It could be a savings account, liquid CD, money market account, and something like that which doesn't generate a fee if you want or need access to your money immediately. While you could have a fund which generates fees through your investment, it wouldn't make any sense to do that and lose a portion of your money when needed it.
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1st Dec 2009 In Budgeting
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