Goals for your Contingency fund

Everybody should allocate a set percentage of income in emergency savings until an contingency fund is established. Savings are the seeds of your financial independence. The Bible often talks about the seed as the potential of what will be. Galatians 6:7 says, “Be not deceived; God is not mocked: for whatsoever a man soweth, that shall he also reap.” If you sow money into your savings/contingency fund until it is established, you then can sow money into long-term investments. The long-term investments will reap financial independence for the sower.  If you’re not sowing into a combination of savings and long-term investments it will be almost impossible to reap financial independence.  Most financial professionals advise their clients to have a minimum of three to six months of living expenses saved up in a contingency fund before they start the investing process. If you are in debt (other than home mortgage), I would suggest your first step or short-term goal is to save $1000 in your contingency fund. However, if your income is below $20,000, your goal should be to save $500. This $1000 is to stay in your contingency fund until you can build it up to meet your long-term goal of three to six months of living expense. The sad fact is that most Christians who live without a contingency fund at some point in their lives (especially during an emergency) will have to go into debt and rely on credit. Some of them will dig themselves into a deep hole of debt, and credit will eventually become a necessity; a way of life.

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