Discover the Financial Principles of the Bible

Few People Have Adequate Emergency Savings

As you head home from another busy day of work, pause for a moment and consider what you would do if tomorrow you are laid off? What happens if you car breaks down and needs $1,500 worth of repairs? How will you afford a new water heater, air conditioner or refrigerator? The unfortunate reality is that few people have adequate emergency savings set aside for these types of expenses.

Financial experts recommend that you have at least six months worth of living expenses set aside as emergency savings. However, a recent survey by Bankrate.com discovered that only 24 percent of people have adequate emergency savings.

Nearly one in every four people has not set aside any emergency savings at all! They are hardly heeding Solomon’s wisdom, “A prudent man foreseeth the evil, and hideth himself: but the simple pass on, and are punished.” Proverbs 22:3.

It takes discipline to be able to save money each month, but it can bring you financial peace of mind. Even if you start by just saving $100 from each paycheck, in two years you could have over $5,000 set aside in an emergency savings fund.

Even if you don’t earn another dime for the next six months, you should be able to live comfortably until you can replace your income. With high unemployment these days, you need to plan on at least a six month job search…maybe even longer.

You may not experience something as drastic as a job loss, but everyone has to deal with unexpected expenses. Having adequate emergency savings can help you deal with those surprise costs that seem to always pop up at the most inconvenient time.

Filed in: Budgeting, Christian Finance, Stewardship

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