Emergency!

Ed McClanahan

In Dave Ramsey’s course named Financial Peace University, he promotes a series of “baby” steps to financial freedom. Baby step number three is to have 3-6 months of expenses in an emergency fund to avoid going into debt when an unplanned emergency strikes. If the engine or transmission on your car blows up, the furnace goes out at your house, or you suddenly need a new roof, you’ll be spending thousands upon thousands of dollars to fix these things. 

But I’ve found that very few people actually practice this savings principle. Why? Probably because we’re so accustomed to using credit cards to pay for stuff. Many of our friends do, so why shouldn’t we? Plus, those things only happen to other people, not to us. That is nonsense of course. Our next financial crisis is just around the corner. Having this emergency fund in place will keep us from going into debt the next time something happens to us.

The Bible reminds us that the borrower is slave to the lender (Proverbs 22:7), and to let no debt remain outstanding (Romans 13:8). It’s so much easier to work your budget when you don’t have debt. You have much better things to spend your money on than paying it to a bank or credit card company.

If you don’t have an emergency fund, with 3-6 months of your expenses saved in it, now is the perfect time to get started. You may have to be very aggressive. Those trips to a restaurant or that expensive coffee shop need to be put on hold. Stop paying for things that aren’t an absolute necessity, and get those dollars into an account to build your emergency fund.

You can do this, and you’ll be thrilled you did so when that next crisis occurs. It’s coming! Be wise and use biblical principles with your finances. That’s an assurance you can take to the bank.