NUMBER 4.

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.