Saving for a Rainy Day

By
Real Estate Broker/Owner with Open Sky Real Estate

I feel the ole adage of our grandparents is truer than what we thought at the time as we would laugh at them.  Have you ever heard you need to save for a rainy day?  Well with all the rain we are getting and remind me of this because it seems no one wants to buy a home on rainy days.  lol  I can usually watch the weather and know if I will be selling homes or doing paperwork.  If rain is in the forecast it seems I am usually not showing property or answering my phone.

We all need to save money irregardless of what business we're in but do we all do it?  Usually no but we all have good intentions yet that does not make us do it.  Don't get me wrong because we do very well for ourselves but these rainy days make it rough because what you have put back, thinking you are getting way ahead, seem to disappear.

We have always invested our money into our rental properties but sometimes I wish we would sell them all and have this big pile of cash setting in the bank for these rainy days.  It makes you wonder if you would still have this big pile of cash though.  My thoughts are that a big pile of equity is always there but when we have the cash readily available there is always something to buy.  lol 

How do you provide for those rainy days?

Comments (2)

Chip Jefferson
Advanced Building LLC - Lexington, SC

We keep 6 months reserves in the savings 1 month in checking and the rest in IRA. I already sold the rentals but I have a few tracts of land.

May 15, 2008 10:32 PM
Cheryl Johnson
Highland Park, CA

I'm afraid the current rain storm (down market cycle) in some parts of the country may last longer than many people could possibly have prepared for.  6 months reserve is great .... but what happens when a market slump drags on for a year ... or two years ... OMG!!  :-)

May 15, 2008 10:44 PM