”The wise person saves for the future. But the foolish person spends all that they get.”
— Proverbs 21:20
”Do not save what is left after spending, but spend what is left after saving.”
— Warren Buffett
An Emergency Fund is a bank account with money set aside to pay for large, unexpected expenses, such as
- unforeseen medical expenses,
- home appliance repair or replacement,
- major car fixes or
- job or income loss
WHEN TO USE YOUR EMERGENCY FUND
- Is it unexpected?
- Is it necessary?
- s it urgent?
Possible Pastor’s Emergency Fund Uses
- Emergency room visit ($1,000 – $2,500)
- Home Air Conditioning repair ($1,500 – $2,000)
- Washing machine replacement ($700-$1,000)
What Your Emergency Fund is NOT for…
- Tires for your car. You can see that expense coming 40,000 miles away.
- Family vacation…you need help with the mortgage payment because of your
- vacation trip to Disney last month.
- Christmas gifts.
- Items that should be budgeted.
For most people, the alternative to an emergency fund is credit card debt, which is financial suicide. The average credit card interest rate is currently over 20%.
COMPASS 2.0: If go through our 90-minute 2.0 Financial Education, commit to save a total of $750 in an account that you name “Emergency Fund” and you e-mail us a statement showing this, NBUSA will match this 100%! NBUSA will then send a $750 check to your church for them to pass on to you for your Emergency Fund, giving you $1,500 total.