Tuesday, May 26, 2015

Why You Need an Emergency Fund

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..


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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