Establishing an emergency fund should be a top priority. Savings provide the seed for future stability and independence. As Galatians 6:7 reminds us, we reap what we sow. Sowing money into savings prepares for life’s uncertainties.
Most advisors recommend having 3-6 months’ expenses saved before investing elsewhere. This provides a contingency cushion without relying on debt when emergencies arise.
For those with incomes under $20K, aim for at least $500 in emergency savings as a starting point. Above that, shoot for $1000. This fund should keep growing until you reach your 3-6 month goal. Resist investing long-term until your emergency fund is established.
Without adequate emergency savings, unexpected costs often force people into debt. Credit cards become the fallback, potentially leading to deep debt bondage. Break this cycle by sowing into your contingency fund first.
Saving provides the foundation for wise money management and smart investing. It demonstrates self-control and trusting God’s provision more than possessions.
Build your emergency fund through automatic transfers and lifestyle adjustments. Limit expenses, look for deals, and downsize discretionary spending. Make savings an essential line item in your budget.
A strong emergency fund prevents panic during life’s curveballs. It offers peace of mind knowing you can weather storms without sinking into debt. See it as an act of faithfulness today that reaps dividends down the road.
In Christ,
Stephen H. Hammond
President
AUTHOR BIO
Stephen H. Hammond, president and founder of Christian Values Investing Inc., established the first “fee-only” Biblical responsible investment advisory firms in 1993 to help Christians align investments with their values and better manage finances from a biblical perspective. He graduated from Georgia Southern University with a finance degree and worked in the Investment Banking industry before joining Merrill Lynch in 1988. Stephen is a published author and speaker, a spirit-filled Christian who traces his faith heritage to preacher ancestors. In 2005, he established the nonprofit Covenant Financial Ministries to teach biblical stewardship principles and money management. Stephen has decades of experience in money management and financial planning. and serves with Kingdom Advisors and the National Association of Christian Financial Consultants. He has appeared on radio and television, spoken at churches, and authored books including Mission Possible: An Investment Guide for Christians and The Successful Life Manager. He married Angela in 1990, and has two adult children.
