Yet, few people have one, despite the fact that cars break down, roofs leak, and pandemics hit.
Today I listened to this story of a businessman and it reminded me of the responsibility businesses have to build rainy day funds. After 22 years in business, this man was unable to pay his business rent the first month of the pandemic. Since then, he has borrowed $130K to keep his business open and had to scrap his retirement plans.
A personal rainy day fund is a responsibility we have to protect our families. A business rainy day fund is a responsibility we have to protect our employees, suppliers and customers.
If you don’t have one, start one today. If you do have one, make sure it can cover one year of expenses.
It will rain again.
This post was originally published on The Ethical Leader and is reprinted here with permission.
Writing as “The Ethical Leader,” Yan Tougas draws on 15 years of experience as a compliance & ethics officer at a Fortune 500 company, sharing insights, wisdom and lessons learned. This post originally appeared on “The Ethical Leader” and is reprinted here with permission. Views expressed are that of the author. Visit him at YanTougas.com, connect with him on LinkedIn or follow him on Twitter.