NUM­BER 4.

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Save. Build an emer­gency fund. Proverbs 13:11 states: “Who­ever gath­ers money lit­tle by lit­tle makes it grow.”

3 Sav­ing is im­por­tant. Even if you have a well-crafted bud­get and are liv­ing within your means, there are im­por­tant rea­sons to save. You prob­a­bly no­ticed those en­cour­ag­ing words in the verse from Proverbs about sav­ing—“lit­tle by lit­tle.” Any amount you can save is worth­while, and it’s worth­while to start sav­ing at the ear­li­est op­por­tu­nity.

A notable point on the topic of sav­ing is cre­at­ing an emer­gency fund. Emer­gen­cies hap­pen to everyone, and there’s no way to know when they’re go­ing to hit.

Ex­perts rec­om­mend hav­ing an emer­gency fund that would cover three to six months of your ba­sic liv­ing ex­penses. This wouldn’t nec­es­sar­ily cover three to six months of your full bud­get, but rather the min­i­mum that you can get by on with­out go­ing into debt.

Start by adding an “emer­gency fund” en­try to your monthly bud­get. Even if you can only put a small amount aside each month, it will grad­u­ally grow. Re­mem­ber the “lit­tle by lit­tle” ap­proach spo­ken of in Proverbs.

An emer­gency fund is not to be used for any­thing that is not a true emer­gency. The key words are “un­ex­pected” and “un­avoid­able.” You want this rainy-day fund to be there when it ac­tu­ally does rain hard, when you re­ally do need it. That’s the value of the emer­gency fund.

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