Financial Fitness with Alan Akina - Making a Rainy Day Account

1 Mar 2011 · 2 min

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This content was created by Alan Akina. This content was uploaded by Alan Akina. This is a YouTube video segment titled "Financial Fitness with Alan Akina - Making a Rainy Day Account" (KHON 2 'Wake Up Today'), created March 1, 2011. It is a short on-air financial-tip piece where two introductory speakers segue to Alan Akina, who explains how to build a rainy day savings account (recommendations include 3–6 months of living expenses, automating transfers, and starting by saving one month at a time). Participants include two intro speakers and Alan Akina as the presenter; the context is practical personal finance advice for viewers.

Well, every Monday we share some tips on how you can keep financially fit.
Alan Akina joins us for that.
Good morning, everyone. When you hear the phrase, when it rains, it pours, most times we relate that saying to our financial lives. I know it seems like when the refrigerator goes out, it's also time for new tires and a transmission, and For those of you that have children, it's like all their field trips and sports fees are due on the same day as their lunch ticket. So in today's tip, I want to help you to build what I call a rainy day account that can be used to cover all of those unexpected expenses. So first, I want you to set up a new savings account with your primary bank or credit union. Next, review your cash flow to determine how much you can afford to go into this rainy day account each month after paying all your bills and expenses. Now let's make it automatic by asking your bank or credit union to automatically draw out a specific amount each month or each paycheck. Now how much you should have in a rainy day account depends on your monthly expenses, but a, a good general rule of thumb is 3 to 6 months of living expenses. Now I know that's gonna be tough to put away that much money, so just get started by saving up for the first month then move on to the second month. The most important thing, folks, is to get started today. Now, all of our tips are on the KHON 2 website. For Wake Up Today, I'm Alan Akina. See you next week.