A rainy day fund is a savings fund for unexpected situations, such as a layoff, a family emergency, or home repairs. Ideally, it should cover your living expenses for three to six months.

Overwhelmed? Don’t be. You can start building it with these small and easy steps:

1. Open a savings account. After each paycheck, deposit a small amount before your start paying off bills. If your bank offers an automatic savings feature, use it.
   
   
2. Study your spending habits. How much is your family paying for unnecessary phone or Internet services? How often do you head to a café for an expensive cup of coffee? You may be surprised at the amount of extra cash you can save.
   
   
3. Every day, collect all your loose change in a jar. Deposit all the coins once it’s filled. This will help add to your rainy day account.
   

Remember, a rainy day fund serves as your family’s financial cushion in case of emergency. Keep working on it—it just might be your family’s lifesaver.