Financially Preparing for the Unexpected
Life happens. We may not know when or in what way, but we can be assured we will face a crisis at some point.
With that knowledge comes the responsibility to be prepared.
How will you handle that next unexpected life event?
Credit cards? Payday loans? Asking for money from family?
When you’re working hard to change your financial future even a little bump in the road could mean complete derailment.
It would be great to have the peace that comes with knowing you’ve planned for “life.”
“Every prudent man acts with knowledge, but a fool flaunts his folly.” Proverbs 13:16
Having savings set aside for emergencies could mean the difference between financial failure and freedom. Don’t let a little crisis set you back. Once you’ve made the commitment to get out of debt and begin the journey towards building wealth, it’s important to have a game plan!
Stop the Bleeding
Cut up all credit cards and close the accounts. No more borrowing money, ever.
Set Up Your Budget
Telling your money where you want it to go. Every dollar needs a home. Create a budget that accounts for a dollar and assigns each one to a category. Don’t forget to plan for things you know will happen, like Christmas, birthdays, insurance bills, etc. Those types of expenses should be planned for and should not be considered an emergency. Speaking of emergencies…
Build Your Emergency Fund
Quickly save $1,000. This cushion is to cover the “life” that happens while you plug away at finding financial freedom. Emergencies are unexpected things like hospitalizations, cars repairs, job loss, and so on. These expenses would be considered an emergency and that immediate $1,000 would be able to soften the blow while you regain your footing.
I know Step #3 might sound daunting. You may be thinking, “That’s all well and good but ONE THOUSAND DOLLARS?!? Are you kidding? That’s SO much money! I could NEVER save that much money!” You can. It will be hard. It will take focus and determination. It will be worth it!
Proverbs 3:5 & 6 tells us we need to:
“Trust in the Lord with all your heart, and do not lean on your own understanding. In all your ways acknowledge him, and he will make straight your paths.”
God will make your path straight as you honor Him with your finances.
What can you do to work towards saving $1,000?
One approach is to sell things you aren’t using. Dave Ramsey, the author of Total Money Makeover, says, “Sell so much stuff the kids think they’re next!” What items do you have that may be just taking up space (physical, mental, emotional) that you could do without? Get a group of friends together and host a joint yard sale. Find an online marketplace and sell stuff. Get creative!
Another approach is to take on a second job like waiting tables, serving at your local coffee shop (maybe you’ll get free coffee out of it!), working at your favorite retail store, or any standard part-time job. You could even discover a “side hustle”. A “side hustle” is something you are already good at and could turn into a business. Are you good at makeup? Maybe you could be paid to do make up for school dances or weddings. As a mom, maybe you could watch other peoples’ kids as a way to pull in an extra income. Love the outdoors? There’s good money to be made in landscaping. Just remember to check on local laws and regulations for business owners. Need more inspiration for your side hustle? Check out Christy Wright author of Business Boutique.
Regardless of what approach you take, we are charged to be responsible with what we are given.
“One who is faithful in a very little is also faithful in much, and one who is dishonest in a very little is also dishonest in much.” Luke 16:10
Take the leap of faith. Set your eyes on the prize and build a nest egg to protect your future.
About the author: Vanessa Hull is passionate about helping women become who they were created to be. Drawing on her life experiences and her love of learning, she seeks to always move women towards Jesus, encouraging them through challenges and helping to bring clarity and truth to their circumstances. Vanessa holds a B.A. in Religion and Psychology with a minor in Philosophy. She seeks freedom from the world’s expectations so she can more fully live up to the only expectations that matter – God’s.