How to Use Your Emergency Fund
Jumper cables are a blessing when your car won’t start, but you have to know how to use them or you might be in for a shock. The same can be said for your emergency fund. You have to think of your savings as a piggy bank, not a cash cow, or you’re just setting yourself up for trouble. Today, host Rob West and Steve Moore talk about how to use your emergency fund, and how not to.
· You need to protect your emergency fund so it can protect you.
· You shouldn’t use your emergency fund for things that are expected but might be infrequent (Christmas gifts, taxes, back to school shopping).
· Anything you can plan for, you should.
· Don’t use your emergency fund on things that aren’t required for living.
· Use your emergency fund for housing, food, and transportation, as long as the need is unexpected, absolutely necessary, and urgent.
· Make sure you spend as little of your emergency fund as possible.
· Reduce regular spending to make your emergency money go further.
· Rebuild your emergency fund as quickly as possible, because you never know when the next emergency will come along.
· Remember that it’s not foolish to use your emergency fund when you have a real emergency, that’s what it’s there for.
Here are a couple of questions we answered from our callers on today’s program:
· I sold my home about 2 years ago. I’m looking for a biblical, profitable way to invest the proceeds from that property. Do you have any ideas on how to invest that money?
· I have a whole-life insurance policy and I no longer want to have it. I’d like to invest the cash I get from it. How would you suggest I do that?
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