Saving for the Rainy Days

Last weekend, the United Arab Emirates (UAE) experienced the heaviest downpour in its history. It rained for almost three consecutive days, though on and off.

The heavy downpour resulted in flooding of the main thoroughfares. The streets and most of the places were flooded and the waters will take days or even a week or two before it subsides, for the drainage system is not designed to accommodate so much volume of water as rain is a luxury in this place of the world.

Even most of the villas experienced leaks over its roof for these were not tested for water leaks when it was constructed. It seldom rains in this part of the world. Rain in this part of the world would only visit the place one to three times a year, in so far as I had been experiencing for the last five years. And it was not so heavy as, it was lately.

Who would have thought such a thing would happen? So you may ask or say. But, it happened.

Let me now drive to the importance of having an emergency fund set aside, using the recent event in the UAE that was just narrated in the preceding paragraphs as an analogy.

Even if rain seldom visits the desert, but still it will eventually visit. The same is true with our own lives. Bad things will eventually happen as long as your heart still beats. As long as you are still walking consciously, it is inevitable that one of these days there will come some emergency. From a breakdown of your car, home appliances to a sickness or death of loved ones.

As UAE has not provided enough provision for its drainage system, once it rained for a few minutes, streets are easily flooded and water would subside turtle pace. A heavy downpour that was just experienced recently made the municipality of Al Ain deploy trucks to siphon out water on the major thouroughfares, so that it would still be passable by motorists. If you had not set aside an emergency fund, and a heavy rain would visit you, then you are forced to take out of the ordinary course of actions like using your credit card or borrowing just to make your way out of the flood caused by the rain.

Finally, as a result of deploying those trucks on the streets posed dangers to motorist as it is blocking the way. So if you are using your credit card for emergency payments, then you are at risk of not paying it off for it is now blocking off some of the portions of your income. In other words, it caused a heavy strained on your budget.

If you already have set aside an emergency fund, it is suggested that you review it and see to it that the amount is approximately three to six months of your living expenses. Most financial advisers recommend that this amount is a comfortable level of emergency fund. And this fund should not be tied up in any other investment, where it is not readily available as cash when neeeded.

Now for those who do not have one as yet, this is the best time for you to meditate on its importance as laid down above. It is up to you to heed this advise for you to set up one. Like in my previous article, it is suggested as your first baby step to set up a 1,000 dirhams and build on this month after month until you reach your targeted amount.

As it rained heavily in the desert, so will come in your life too. Start saving for the rainy days.