If we have learned nothing else from the pandemic, we should now know that planning for the unexpected is the new norm. Creating a separate account for these expenses is no longer a “rainy day” strategy, rather it is to be anticipated and written into the DNA of all businesses. Whether the business is large or small, if unexpected expenses hit, the strain on the business will be hard to bare. During the two-year covid 19 pandemic and shutdown, the majority of businesses had not planned to be closed for that significant amount of time. With no income coming in they quickly exhausted their limited business savings and profit margins dropped precariously.

Layoffs and loss of commercial spaces quickly ensued and many businesses and families are still trying to recover. Creating a rainy-day fund of 6-9 months would be a good use of business profits and tax refunds. Instead of that annual cruise or red bottom shoes, building up a fund to cover unexpected expenses would be a sound strategy.

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