Rainy Day vs. Emergency Fund: Why and How to Build Both

A rainy day fund and an emergency fund serve two different purposes:

  • A rainy day fund covers life’s little hiccups, the unplanned expenses like replacing a tire or paying to repair the washing machine.
  • An emergency fund is for bigger, unforeseen crises like job loss, medical emergencies, or property damage from natural disasters.

Both funds provide peace of mind. A rainy day fund allows you to pay for smaller surprise costs, while an emergency fund is a financial lifeline that lets you survive a crisis without wrecking your finances. It’s important to have both and avoid dipping into them for unrelated expenses.


How to Build a Rainy Day Fund and Emergency Fund

The rule of thumb is that you need $500 to $1000 in your rainy day fund and between three and six months’ worth of living expenses in your emergency fund.

To build these funds, you have a couple of options:


1. Get a Collateral Loan in Phoenix, Arizona

These short-term loans allow you to borrow money using valuables like jewelry, timepieces, designer bags, antiques, collectibles, artwork, and more. The lender will hold onto your item until you repay them.

How Does It Work?

The process is simple. Bring your items to a collateral loan broker or pawnbroker, or make your life easier by bringing them to our office in Scottsdale or Chandler, AZ. We will assess the item to determine its resale value and loan you a percentage of that amount. The loan is for a fixed term, often 30 to 90 days. As long as you repay the loan plus interest and fees before the due date, you get your item back. If not, the item is forfeited.

What Are the Benefits?

Collateral loans provide quick cash when needed, with no credit check required. The money can go right into your rainy day fund. Since you’re borrowing against an existing asset, the interest rates are usually lower than other short-term loans. And, as long as you pay on time, you incur no long-term debt obligation.


Tips for First-Time Borrowers

  • Use items of significant value that you can live without in case of default. Interest rates, although lower than other options, may be higher than bank loans. Fees may also apply, including for appraisal and storage.
  • Understand all costs before borrowing. Consider if the loan makes financial sense for your situation. If not repaid, you lose your item, so only borrow what you can pay back.

Collateral loans are one way to generate extra cash from the valuable assets you already own. But like any loan, borrow wisely and make sure the terms work in your favor. With some forethought, these loans can be a win-win, providing fast access to funds without incurring long-term debt.


2. Sell Your Luxury Items in Phoenix, Arizona

Turning the unused valuables into cash is an easy and effective way to jumpstart your rainy day and emergency funds. Many of us have items we no longer need but have yet to get around to selling. Designer handbags, luxury watches, jewelry, collectibles, antiques, and electronics – why not turn them into money instead of leaving them to collect dust in your home?

Here are your options:

Sell Online

Platforms like eBay, Craigslist, and Facebook Marketplace make it simple to sell just about anything. Post photos of your items, set a competitive price, handle shipping and local meetups, and the money from your sales can go straight into your respective savings accounts. If selling smaller or related valuables, you may want to bundle several together into a lot to make it worth your while.


Visit a Pawn Shop or “Cash for Gold” Store

Pawn shops will buy luxury goods, gold and silver jewelry, designer accessories, musical instruments, tools, and electronics for cash on the spot. They may not offer the best price, but it’s immediate money in your pocket. Check prices from multiple shops and online to determine a fair offer.


Have a Yard Sale

If you have a variety of smaller valuables to sell, a yard sale or garage sale is an easy way to make some money. Price each item, display them attractively, advertise your sale on local Facebook groups and websites, and you will likely find buyers for most of your goods. You can donate whatever is left to charity. The cash from your sales goes into your rainy day fund and emergency fund.


Get an Appraisal and Sell to Specialty Buyers

For higher-value items like antiques, collectibles, artwork, and designer goods, contact specialty buyers and consignment shops that focus on these types of items. For example, Biltmore Loan and Jewelry specializes in appraising and purchasing almost every imaginable item of high value. We pay competitively, ensuring every customer who walks through our doors gets their money’s worth. Check out the list of things we buy.



A collateral loan, like a pawn shop loan, uses items you own as collateral for quick cash. As long as you repay the loan, you get your stuff back.

On the other hand, selling valuables to Biltmore Loan and Jewelry turns your unused gold, luxury handbags, and collectibles into instant money.

Either option can generate hundreds or even thousands of dollars to cover unexpected costs.

If money is tight, start small and build up gradually. Even a few hundred dollars is better than nothing. Consider a collateral loan, where you use a valuable item you own as collateral. Or sell unused valuables for quick cash to kickstart your funds. Every dollar helps create stability and the means to handle whatever comes your way.


For Urgent Cash Needs

So you’re strapped for cash and life just threw you another curveball. Car troubles, medical bills, home repairs – whatever the expense, you need money now. While most people recommend saving up for life’s surprises, that doesn’t help when the crisis is already here. What can you do? Consider a collateral loan or selling valuables you no longer use. Visit us at 10830 N Scottsdale Road, Scottsdale, AZ 85254, or 670 N 54th St, Chandler, AZ 85226 to find out how much you can make in a day.