Stewardship Well Done Journey: Emergencies

Waypoint 4 on the Stewardship Well Done Journey is EMERGENCIES – assess insurance needs and build/maintain an emergency fund of 3-6 months of living expenses.

We all deal with emergencies both great and small. When we are prepared, we can address emergencies without disrupting our budget and impacting our priorities.

For short-term emergencies, an emergency fund is ideal. Start with $1000, and then build the fund until you have 3-6 months of living expenses saved. Use a line item in your budget to initially fund this account and to replenish it as needed. Be sure to put boundaries around the account so you don’t dip into it for that new pair of shoes that caught your eye!

For long-term emergencies, adequate insurance coverage is essential. For many of us, our largest asset is our ability to earn an income. When a situation arises that disrupts that income, insurance policies can assist us in maintaining our financial picture over the long term. FM Financial or another professional can be helpful in assessing your unique insurance needs and determining the proper amount of coverage.

Saving for emergencies can minimize the burden on loved ones and provide peace. When you are adequately prepared, financial emergencies simply become an inconvenience, not a dire situation.