Many people love using a debit card rather than a credit card because it’s clear and simple. At any given time, you can look and know exactly how much money you have available. You don’t have to wait until the end of the payment period, and you can’t spend money you don’t have.

Recently, I’ve been getting more and more questions about whether or not it’s safe to use debit cards with so much fraud, skimming, hacks, and scams going on. What are the risks we take on by using our debit cards and how would we handle the fall out?

A rainy day fund provides us with a lot more than cash in case of an emergency. It gives us freedom to make choices, take risks, and have peace of mind, and it leaves space for creativity.

For most of us, a rainy day fund is the first savings goal on our list. It protects us in case something unexpected comes up so we don’t have to put it on a credit card (and pay high interest rates) or borrow from elsewhere.  

Despite the practicality of a rainy day fund, so few of us have them. How do I know? The average American has less than $400 saved, at any age. That means the average Amercian has very little to no rainy day fund. 

Here’s what you need to know to get started. 

When I got an investment banking internship, I was SO excited about my future paychecks. At the time, interns made the same salary as a first year analyst, prorated for the amount of time we worked. So I divided $60,000 by 12 to figure out what I’d earn each month. $5,000 - wow, great!

I thought, “Yay! I am going to save so much money this summer!” Just kidding. Let’s be real. I didn’t think about saving at all. I thought, “this is going to be the most fun summer ever!”