Rain Money is that money you put aside in a “do not touch” account. This is not an emergency fund but it is your very own security blanket to offer you warmth when you need it the most. After computing your monthly income and expenses, the extra money left over, that you may spend on trivial things, save it. This money can be a few dollars to hundreds of dollar, that little cash must be placed in a Rain Money account. This account must be treasured and revered and respected. The hardest part in this plan is convincing you that the money does not exist and the need to be self-disciplined.
This money should be used in those die-hard situations and not just for what you want when you want things. The catch is if you have to use that money for an emergency, you need to repay your Rain Money account. This sounds crazy and impossible to do, because most us leave from pay check to pay check, a couple of checks from homelessness. The more money you may save the more security you can build for yourself.
I can attest to this simple way of increasing your buying power. You do not need to wait until you can make a lot of month, because this opportunity may never come for some of us. I am still a work in progress. In my twenties I used to work in a fast food restaurant making I believe $4.85 an hour. Minimum wage in those days was really that minimum, but I was armed with a dream to be financially independent from creditors. Even though I was making about $4 an hour, I managed to save my pennies and dollars. My Rain Money account still exists now twenty years and I am still moving forward with this tip. Let me say my Rain Money account is looking pretty good now.
This account is not used as part of your daily expenditure. It is only used when you have thunders and storms ahead of you. Having extra money here and there helps build your financial stability and the building of your credit for that right time when you have a true emergency. When you are ready to make your biggest investment-your home, you will need an immaculate credit to get the best deal. Always remember that credit cards are not your friend, so please use them wisely and never let them enslave you.
Taken from the book, Emotional Makeover, A Practical Guide
By S. Pauline Zulu