Moving is… expensive 💸
Welcome back! I hope you’ve had an amazing week. It’s been sunny every day in London, it’s starting to feel like summer and I’m all for it.
This week my boyfriend and I officially moved into our new flat. We spent the past 4 days packing or unpacking until midnight, and I think we both underestimated how much stuff we actually own.
That being said, it is such a relief to be in the new flat knowing we can stay for at least a few years. I’m so excited to be decorating it over the next weeks, and I will of course be taking you along during the process!
Maddie xx
She’s working on… rainy day funds 💸
Let’s go back to 2 months ago when I first found out that the lease on my previous flat would not be renewed. I was in shock. Both my boyfriend and I had been under the impression that we could renew it every year. It never crossed our minds that we would have to go through another move so soon. Yet that was the reality of the situation.
No matter where you live, moving is expensive. For the past weeks, the costs have kept adding up. Up front deposits, up front rent, cleaning fees, packing materials - the list goes on. Moving has taken a serious toll on my finances and put me under financial stress because I didn’t see it coming.
So let’s talk about rainy day funds, and why I have committed to saving for one.
A rainy day fund 💸 is an emergency account meant for life’s unexpected events. Or as Haley Sacks put it in the Call Her Daddy podcast, your “whoops money” or “financial safety net”.
This is the money you need to get out of a sitation or deal with surprising situations that put you under financial stress. Like suddenly losing your job, or having to leave your flat before you planned and needing to pay a big deposit.
I also loved what Sacks said about how we can get stuck in unfortunate situations because we don’t have the funds to move forward. The rainy day fund is there to save your a**.
I wish I would have had a rainy day fund to tap into for all of my moving expenses. It certainly would have left me with a lot less financial worry. This is why I have committed to saving up for a rainy day fund - to prepare myself financially for the next unexpected event.
Because as it turns out, they can happen to anyone at any time.
Open a seperate savings account and make it clear to yourself that this account is only for big emergencies.
Set aside money every month. Right after you get your salary, transfer a set amount to your rainy day account. It can be helpful to set up a direct debit so you don’t forget.
3 months of your expenses is the suggested minimum amount of money you should have in the account.
Still not convinced? Here’s some more reasons to start saving
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According to Sacks, a rainy day fund is the first thing you should be saving for. If you haven’t yet started your savings journey, this can help you build up your money-saving mentality.
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A rainy day fund gives you time to make choices that align with your long-term goals. Like having the option to wait and not rush into the first job you find if you get fired.
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As Michael Housel writes in his book, “the most important part of a plan is planning for your plan not going to plan. Save for things you can’t yet possibly predict or comprehend”.
My favourite things
Since this week is all about money, here’s some of my favourite things I’ve recently read, watched and listened to on the topic.
📗 Book: On the money. Easy to read introduction to savings, credit cards, retirement and investing in the UK.
📘Book: The Psychology of Money - Michael Housel. Helped me understand our behaviour with money - and why it matters.
🎙 Podcast: Call Her Daddy - it’s time to manage your finances. Easy to understand guide about how to spend and save.
🎥 YouTube Video: How to invest for beginners. Great introduction to investing, the terminology and how to get started.
📺 Series: How to get rich by Netflix. Entertaining and educational docu-series where finance expert Ramit Sethi helps people make better decisions with their money.
