Why
You Need An Emergency Fund
It
was 2:20 in the morning, and I awoke to a hissing sound. I went to
investigate and found 300 gallons of water had leaked from a failed
connection under the sink in the kitchen. Water had saturated
everything in the kitchen and the basement of our home. We had
insurance but our portion of the repair was over $30,000.
We did not have an adequate emergency fund so the most of this repair
was incorporated into a refinance of our mortgage, which was a major
set back to getting our mortgage paid off.
Whether you are living in a rural or urban setting you need an emergency fund
For
generations our grandparents have been teaching us that we need a
rainy day fund. Why? Because it is going to rain! Proverbs 21:20
says, “ In the house of the wise are stores of choice food and oil,
but a foolish man devours all he has.” The American culture has
forgotten this Biblical principle. Let's dig a little deeper to
understand the principle of saving.
The
discipline of saving needs to be a priority in the life of the
believer. In Financial Peace University (FPU), we teach that the
budget much include first giving, saving, and then paying bills. If
you don't prioritize saving before you pay bills, there will never be
money left over to save. We already studied giving and generosity in
the February ARC Magazine article, so let's explore the concept of
saving.
The
Spiritual Role of Money?
Saving
money reflects our attitude and contentment.
I
Timothy 6:10 says that, “the love of money is a root of all kinds
of evil”. It does not say that money itself is evil. It indicates
the importance of our attitude towards money.
Money
is a tool. It is amoral, neither good nor evil. Many Christians
misunderstand this verse and conclude that making and saving money is
morally wrong. It is difficult to prosper financially if you think
making money is wrong. Having the wrong view of money will short
circuit the whole process of saving.
Genesis
says it is the believer's spiritual obligation to have dominion over
money (Adam and Eve towards creation) and have a healthy attitude
towards generosity, money and possessions (Abel vs Cain). If we
don't, we surrender God's resources to the enemy.
Having
an emergency fund is the first step towards taking control of money
in our lives.
See the next article on how to implement the emergency fund..
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Brian and Lisa wrote this article for the June issue of Autumn Ridge Magazine. They have coordinated Financial Peace University for over 420 people.
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