‘It’s not a rainy day fund’: Why it’s smart to build a ‘me fund,’ according to a CFP

While you’re probably well aware of the importance of building your emergency savings to prevent unexpected expenses from wrecking your finances, there’s something else you may want to set aside money for as well: a ‘me fund.’ As the name implies, your “me fund” is money you’ve earmarked for purchases that aren’t necessities but would still be nice to have, such as concert tickets, clothing or other splurges.

“It’s not an emergency fund. It’s not a rainy day fund. It’s just for you,” Rita Cheng, a certified financial planner and chief executive of Blue Ocean Global Wealth, tells CNBC Make It. Although saving for emergencies is important, a “me fund” allows you to treat yourself every so often without breaking the bank. Here’s why you should consider one and how to get started.

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