Rainy day accounts are dead. Meet the Adventure Fund!
Heard the expression ‘Rainy Day Account’ a lot but never felt inspired enough to set up one yourself? You’re not alone. That’s where an Adventure Fund comes in.
For those of you that have never heard of them, Rainy Day Accounts are a an old school description for the act of putting some money aside to cope with unexpected expenses – car damage, medical bills, anything that comes out of the blue and hits you in the hip pocket.
Don’t believe that this concept comes from ancient times? Then check out these immortal words from Confucius:
“He who will not economise, will have to agonise.” – Confucius
Which translated, says:
“Get a rainy day account dude, so you don’t experience unnecessary pain later!”
But why don’t many of us have one?
If the concept of a Rainy Day Account has been around for thousands of years, why then do so few of us have one set up? How is it that something talked about SO often it has become part of the finance lexicon, is actually used by such a tiny portion of the population?
Well, if you ask the finance pundits, they’d say that it is a lack of education and understanding. The general public simply don’t understand how important it is to have money set aside for these little hiccups in life. “Once they experience a large unexpected expense, they’ll see the light” they say with nodding heads, and knowing looks.
But the truth of the matter is, that most adults have at some point had some large expense come flying out of the air, hit us up the back of the head and land in our proverbial lap. Interestingly, there still doesn’t seem to be a wave of Rainy Day Accounts set up after this experience.
“But this is at the root of responsible fiscal management” the finance pundits say.
And that’s their first mistake. Because when we hear “responsible”, we hear obligated, dull, and down right un-fun. And who wants to put money away that we are secretly hoping we won’t need to spend anyway?
And that’s why I believe we all need to acknowledge that Rainy Day Accounts are dead, particularly as I’m not convinced they ever really had legs anyway. Now this stand is not necessarily going to make me popular in finance circles, but I honestly think we have been coming at this from the wrong angle for YEARS.
Instead of a Rainy Day Account, I would like you to imagine an account that lets you leap when great opportunities arise, when once in a lifetime trips are offered to you, when your mates start a new company and you really want to invest in their great idea.
Meet … the ADVENTURE Fund
Now doesn’t that sound just a bit more interesting!
Imagine building up a pool of money ready for life’s next great opportunity. You don’t need to know when or why, you simply get ready by putting some money away regularly for that next awesome adventure that comes your way. Now imagine the FREEDOM that goes with having that. It feels good, right?
Now it seems only natural that you might set a minimum balance on that account as a type of reserve, a backup for when you need some short term funds after something unexpected goes wrong. So that even when you use some funds towards an exciting adventure that comes up, you always keep the minimum balance there, ‘just in case’.
Rather than a Rainy Day Account, we now have an Adventure Fund with a Downside Reserve. How cool do we sound!
As you start building up the money in your Fund with regular (even direct debit) contributions you will find you very quickly reach your ‘reserve’ level, which means that every dollar you save on top of that is pure Adventure Money. Knowing that each dollar you save is for a future adventure is inspiring, motivating and pure fun, and that is the secret sauce of this whole caper.
Dealing with our money is a struggle, it’s dry, boring and mind numbing. But if instead, we can align what we are doing with something that inspires us, then suddenly our minds have shifted from being resistant teenagers, whining at every step, to action heroes attacking life adventures with gusto (and a little zaptitude 😉 ).
All hail the Adventure Fund, and let’s leave those Rainy Day Accounts to rest in peace, eh?
p.s. If you want to hear more about setting up an Adventure Fund, and what to use it for, then head over and checkout my new book Finance Action Hero: Mission Possible, or you can download it on a Kindle from Amazon here.
p.p.s What would your next great adventure ideally be? If you had a $10,000 Adventure Fund, what would YOU use it for?
p.p.s.s Need some Adventure Inspiration? Head over to our Instagram page where we will be regularly sharing incredible adventures we have come across 🙂