Emergency Fund

Yesterday, I mentioned that an emergency fund can deal with unexpected expenses. But I did not explain it. An emergency fund is money set aside for an emergency. It can be at a bank, or a shoe box in your closet. Every month you set aside some amount, $25, $50, $100, etc, in this fund for unexpected circumstances. The key is to not take any money out unless it is truly an emergency. As the money builds up, don't be tempted to dip into it. This should be a scheduled item of your budget.

The ideal is to build up the emergency fund to 3 to 6 months worth of income. If you are contributing a small amount every month, this will take some time. Once it is built up and you didn't have any emergencies, you can take a portion and turn it into a new car fund or something similar. Don't be tempted to just spend it after all the time it took to build it up. This fund can really save you when unexpected occurrences such as car repairs, medical emergencies, hospital bills, etc.

The more you stick to your budget and emergency fund, the more money you will have available for the really important things in your life - your beliefs, your family, your home, vacations, etc. The simplest advice I can give with spending money is this priority list - 1-God, 2-family, 3-everything else. If you follow this, you will not have financial problems. This is even stated from the Bible reference below. A tithe is 10% of your income.

"Will a man rob God? Yet you rob me.
But you ask, 'How do we rob you?'
In tithes and offerings. You are under a curse—the whole nation of you—because you are robbing me. Bring the whole tithe into the storehouse, that there may be food in my house. Test me in this," says the LORD Almighty, "and see if I will not throw open the floodgates of heaven and pour out so much blessing that you will not have room enough for it. I will prevent pests from devouring your crops, and the vines in your fields will not cast their fruit," says the LORD Almighty. "Then all the nations will call you blessed, for yours will be a delightful land," says the LORD Almighty. Malachi 3:8-12 (NIV)

If you have questions or comments, please feel free to email me at the address below.
Email: DeltaInspire@panama-vo.com