The Daily Item, Sunbury, PA

Business

March 18, 2013

The Color of Money: The case for rainy day funds

(Continued)

"If more Americans could automate the funding of a rainy day fund, such as through payroll deductions to a separate bank account, then we could extend the automated model to foster emergency savings," Walsh said. 

But we understand. The economy is still tough. You may be facing a furlough or perhaps you just found a job and you're playing financial catch-up.

"Many families are having trouble making ends meet, and for some families accumulating a large rainy day fund is just not realistic," she said. "But even saving $10 a week for a year could help you fix your car if it breaks down. Even a small emergency fund is better than nothing."

Let me put it this way: It recently rained heavily where I live and all I could find rushing to get to my office was a small umbrella that kept collapsing when the wind kicked up. I got wet. But I didn't get drenched.

 Readers can write to Michelle Singletary c/o The Washington Post, 1150 15th St., N.W., Washington, D.C. 20071. Her email address is singletarym@washpost.com. Comments and questions are welcome, but due to the volume of mail, personal responses may not be possible. Please also note comments or questions may be used in a future column, with the writer's name, unless a specific request to do otherwise is indicated.

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