So you’ve used your emergency fund, now what do you do?
Tis the season to review your finances, to go over your budget and come up with a new saving’s plan for the New Year.
When reviewing your financial situation you may have discovered that there were circumstances that caused you to use your emergency fund last year. And you may be sitting here wondering what now?
Well, for starters, instead of beating yourself up for having to use your emergency fund, be thankful you had an emergency fund to use. Just think of the jam you would’ve been in if it wasn’t there? Let’s not forget that an emergency fund is exactly that, a fund for “emergencies!”
So now that you used it, it’s time to rebuild, and here are a few tips.
Purpose to save something from every paycheck to start rebuilding your emergency fund. Don’t underestimate the smallest amount you’re able to save. The Bible tells us that he who gathers little by little will increase their riches.
“Wealth [not earned but] won in haste or unjustly or from the production of things
for vain or detrimental use [such riches] will dwindle away,
but he who gathers little by little will increase [his riches].”
~ Proverbs 13:11 (AMPC)
If you find that you don’t have anything extra in your budget to allocate for re-establishing your emergency fund, then take a closer look at your budget and make some adjustments. Many times we have the means to rebuild we just have to find it. You’ll be amazed where you can find cut backs, if you simply take the time to look. Possible cut backs could be:
Eating out less, fewer haircuts, or if you allocate spending money, you may need to cut back there too. When you’re in rebuilding mode, you must be willing to reduce unnecessary spending.
In the midst of cutting back resist the temptation to cut back on the following:
Tithes- While this might seem tempting, trust us, you’re going to need God to supernaturally increase your finances. You can’t afford, not to give Him what belongs to Him first. However, if you’re new to tithing or honestly feel you can’t afford to tithe, check out this blog where we give you practical ways to tithe even on a tight budget.
Insurance (Renters, Health, Life, Auto, etc.)- When you’re having trouble making ends meet, insurance premiums may sound like a good idea to cut back, but believe us, it’s not. When money is tight, the last thing you need, is to develop a health condition, or experience an unexpected death. We have seen this happen to many families who cut those expenses in an effort to get by each month; only to find themselves in a deeper hole.
Sometimes starting over is the perfect place to be. It gives us a new perceptive and helps us to set financial goals we may not have, had we not experienced a hardship. If you find yourself in a season of rebuilding, embrace the time and seek God for His wisdom and leading.
PS…If you need a little help staying on track with your savings consider down loading the money challenge available on our free resource page!
~ André and Timberley Gray