Chuck Bentley on How to Build Your Emergency Savings

Dear Chuck,

I make a good salary but am unable to build my emergency savings beyond $1,000. It seems like unexpected things always prevent me from putting more away. My goal is to have 3 months set aside. Any tips?

Living on the Edge

Dear Living on the Edge,

Well first, congratulations on saving the $1,000! That’s more than almost half of the people in America. Setting a goal of 3 months of living expenses in this account is a great next step forward.

The problem most people in our society have is that they confuse their needs and their wants. Many people have not learned to exercise self-control and therefore give in to their own wants or those of their family and often forfeit having what they actually need, like an emergency savings account.

But, in Titus 2: 11-12, Paul wrote: For the grace of God has appeared that offers salvation to all people. It teaches us to say “No” to ungodliness and worldly passions, and to live self-controlled, upright and godly lives in this present age…

Developing the ability to say “No” to selfish desires helps us lead a disciplined lifestyle that avoids debt and has the margin necessary to save and invest.

Saying “No” to what we want today grants money for what we need tomorrow. You see, discipline is forward-looking. It is preparation for what we need in the future.

Contentment As A Financial Strategy

The lack of contentment, the fear of missing out (FOMO), and anxiety are so prevalent in our society. But we cannot be satisfied until we look to God as our provider. Recognizing His omnipotence and sufficiency is motivation to humbly steward what He provides. Learning to be content with what we have allows us the opportunity to spend less and save more.

The average American wastes thousands of dollars a year. The reasons vary, but you might analyze your lifestyle to see how you can make adjustments.

Reasons We Overspend

  • Convenience
  • Laziness
  • Ignorance
  • Gluttony
  • Bad Habits
  • Peer Pressure
  • Frivolous, feel-good purchases (“retail therapy”)

Click here to read more.

SOURCE: Christian Post, Chuck Bentley