You know that feeling when your car needs a surprise $600 repair just before rent’s due? Or when your washing machine gives up mid-cycle and floods the kitchen?

That’s where a rainy day fund steps in.

But what if it’s something bigger - like losing your job, needing unexpected surgery, or supporting your whānau through a tough time?

That’s when you need an emergency fund.

They might sound similar, but rainy day funds and emergency funds serve different roles in your financial life. Both funds can be the deciding factor between stressed and sorted in emergency scenarios.

As part of Sorted Money Month 2025, the focus is on building your emergency savings, and building a rainy day fund is one of the smartest first steps you can take.

It’s not about having heaps. It’s about having a plan.

Let’s break it down.

So, what is a rainy day fund?

A rainy day fund is your go-to for smaller, inconvenient expenses. These are the kinds of things that aren’t regular, but aren’t totally unexpected either.

Think:

• Fixing the car
• Replacing a broken appliance
• Unexpected vet bills
• A last-minute trip to visit family

These aren’t emergencies, but if you’re living pay to pay or don’t have a buffer, they can throw you off track fast, often pushing people to use a credit card or buy-now-pay-later options like Afterpay.

And what’s an emergency fund, then?

Your emergency fund is your financial safety net. It’s there for the big stuff that could seriously impact your ability to earn or meet your living costs.

Think:

• Losing your job
• Facing a major health issue
• Needing to leave a relationship or living situation quickly
• Supporting your kids or parents through a crisis

These situations can come out of nowhere. That’s why your emergency fund should be larger, separate, and only touched when it’s truly needed.

Already working on your emergency fund? Great - check out our full guide here for tips on how to build it faster.

Here’s how they compare:

Here’s how they compare:

Do you really need both?

Yes - and here’s why.

If you only have an emergency fund, you’re more likely to dip into it for smaller costs, which defeats the purpose. But if you only have a rainy day fund, you might not be prepared when something big hits.

Think of your rainy day fund as your everyday shield, and your emergency fund as your backup armour.

Tips to get started (even if you’re on a tight budget):

• Start small: Even $10 a week adds up.
• Automate it: Set up a regular transfer the day after payday.
• Keep it separate: Out of sight, out of mind.
• Celebrate milestones: Reaching your first $500 is worth a high five.

It’s not about having heaps, it’s about having a plan.

You don’t need thousands of dollars to start feeling in control. A bit of breathing room can make a huge difference when life throws a curveball.

So this Sorted Money Month, why not take a small step?
Set up a savings account, name it “Rainy Day”, and put in $20. That’s the beginning of your buffer - and your peace of mind.

Where does KiwiSaver come in?

KiwiSaver is designed for your long-term future — buying your first home or retiring comfortably. It’s not built for short-term needs (and it’s hard to access unless you’re in serious financial hardship).

That’s why at Kōura Wealth, we always encourage people to sort out their short-term financial foundations alongside their retirement planning.

You shouldn’t have to pull money out of your KiwiSaver just to cover a dental bill or a car. When you’ve got the right buffers in place: rainy day, emergency fund, and a well-chosen KiwiSaver plan - you’re building real, long-term confidence with your financial future.

Want to feel more in control of your financial future?

We help everyday New Zealanders figure out their KiwiSaver plan based on their goals, income, and risk comfort — no jargon, no judgement.

Try our free Guided Choice Tool — it only takes 5 minutes and gives you a personalised plan based on your income, goals, and risk comfort.

It’s your future. Let’s make it work for you.