by Scott L Nelson, Stake Finance Specialist
25 May 2022

Without savings, a financial shock—even minor—could set you back, and if it turns into debt, it can potentially have a lasting impact. An emergency fund could be the safety net you need.

Without savings, a financial shock—even minor—could set you back, and if it turns into debt, it can potentially have a lasting impact. An emergency fund could be the safety net you need.

• Strategy: Create a savings habit – Contribute regularly: Set a specific monetary goal and if you aim to occasionally save a little more, you’ll watch your fund grow even faster
• Strategy: Manage your cash flow – Timing: You’ll start to see opportunities if you schedule and track your contributions, and you won’t find yourself running short at the end of the week or month
• Strategy: Take advantage of one-time opportunities to save – Spend some, keep some: If you receive a tax refund or a cash gift, consider investing a chunk of it to help you quickly increase your emergency fund
• Strategy: Make your saving automatic – Set and forget: Set up recurring transfers through your bank so money is moved automatically from your checking account to your savings account or to an investment account
• Strategy: Save through work – Free employee money: Take advantage of your employer-based contributions for retirement first and then look for an option to split your paycheck between your checking and savings accounts

Adapted from the Consumer Protection Financial Bureau

In the Personal Finance for Self-Reliance manual, you’ll find many helpful ideas and principles to help you improve your financial situation, including Building an Emergency Fund.

May the Lord bless you in your efforts.

Sincerely,

Scott L Nelson

Stake Finance Specialist