Welcome to Day #20 of your “30 Days To Breakthrough” journey.

Yesterday we talked about Breaking Out of the Debt Trap. Today we focus on Emergency Savings and Insurance. Tomorrow we’ll wrap up this 7-day series on financial stewardship by talking about Investing.

QUOTE
A prudent man foresees evil and hides himself, but the simple pass on and are punished. (Proverbs 22:3)

LESSON
Let’s first talk about setting aside money in Emergency Savings. Are you prepared for a sudden and unexpected financial crisis, such as a broken down car, failing home appliance, or decrease in income?

My pastor recommends setting aside $1,000 in an emergency fund ASAP after giving the 10% tithe to God. This emergency fund is not dedicated to anything else. Do this before eliminating debt. This money needs to be very liquid. This builds margin into your life and helps relieve financial stress.

Realize this This is a baby step. Almost all good financial advisors recommends having 3-6 months worth of your monthly expenses in a savings account.

What about you? How much have you set aside in an emergency savings account? How much is reasonable?

OK, let’s talk about insurance now.

In simple terms, insurance lets you pay a little now to cover major expenses in the future due to illness, death, accident, litigation, damage and/or destruction, or theft. Buying insurance is like storing grain for winter months (Proverbs 6:6-8). When it’s used properly, insurance is a wise investment, especially if you’re protecting your family against potential financial devastation.

Insurance is neither good nor bad, moral nor immoral. However, when we become so fearful of the future or of potential loss that we overspend on insurance, it consumes money that should be going to other family needs. This not only represents poor stewardship; it also shows a lack of trust in God and in His provision.

What types of insurance are commonly recommended today?
Auto insurance
Life insurance
Homeowners insurance
Health insurance
Identity theft insurance (this is a biggie nowadays)

QUESTION
Lord, what counsel do you have for me regarding emergency savings and insurance?

LINK
Save money on insurance

PRAYER
Heavenly Father, you teach us over and over again in the Bible to plan and prepare for the future. Help me to take appropriate precautions to be ready for financial challenges that may come. In Jesus name, I pray. Amen.

Blessings to to establish an appropriate emergency savings fund and to have adequate insurance!

R. Joseph Peck, M.D.
“Blessed to be a blessing”
THE CONNECTOR and The Journal Guy
Changing Lives to Disciple Nations
Community Transformation Specialist