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Rainy Day Business Funds

Rainy Day Business Funds

Aug 09, 2022

Have you ever considered having Rainy Day Funds for your business? Many people think this is only necessary for their personal finances.

By having a great nest egg for your business, we can avoid jumping into things like credit cards, quick cash loans, and all those other nasty finances traps things that just put us behind. 

You should be prepared in your personal finances, to keep a roof over your head, and put food on the table. This is where our mind goes because these are the most important things to our basic living needs. What about the basic needs in your business? 

If your business has overheads (expenses) to pay on a regular basis, how would you pay these if the business needed to stop unexpectantly?


As business owners, we need to expect the unexpected. This is why I want you to consider having emergency funds for both business and personal cover all the bases and take comfort in the position of knowing if something was to happen. The stress and pressure of a situation are far less. When we are financially covered for a minimum of three months of expenses, six months, if you can, including, if you pay yourself a wage needs to be on the ready. 

I highly recommend having it somewhere separate from your everyday funds, either in another bank account or even another banking institution, if you need it really tucked away.

A question I get a lot with this topic is what percentage should I budget to save these funds? And I prefer to work this out in numbers, looking across the expenses in your business and making a plan to save the funds as quickly as possible. 

Create a savings line in your business budget to contribute to rainy funds until the desired amount is saved. This comes down to the number of rainy day funds you need in your business, and over what period of time you can save that up.

Having 3-6 months to cover the business expenses is a great place to start.

If the unthinkable happens and you need to use some emergency funds, I would also be planning to top those funds back up later in case it's needed again in the future. The best part about your own emergency funds, when you need to use it, you don't have to worry about paying interest. You don't have to be concerned about missing payments because it's already your money.