SAVING FOR A RAINY DAY

As we have moved around this grand country of ours, the concept of rain has changed everywhere we have lived.  In Northern Virginia, some years our garden flooded when we got more rain than Seattle.  In Colorado, we could expect an afternoon thundershower almost every summer afternoon.  Here, my little kids don't even know what rain is.

No matter where you live, having some extra money put away is always a good idea.  Our family has leaned toward the Dave Ramsey method of "emergency funds."  (I receive no monetary or product reimbursement from Dave, I just think many of the things he says make sense).  So, fan of Dave Ramsey or not, I am going to tap into a couple of his ideas for this post.

In Dave's "baby steps," he lists having a $1,000 emergency fund as the #1 financial priority.  If you need to use this money, make sure it is an emergency.  Christmas is not an emergency, that comes once a year and you can plan for it.  This is for if the car breaks and needs fixing or an unexpected health cost, etc.  I like this concept because it give a small cushion for life's unexpected happenings (which always seem to happen).  If it is used, be sure to pay it back as soon as possible so that it is always available.

Baby Step #3 is to set aside 3-6 months of expenses in an emergency fund.  I think this concept is extremely smart as it protects against bigger unexpecteds and allows one to be self-reliant in case of a job loss, disability, death, large medical cost, relocation need, and much more.  I have always thought that to help this 3-6 months of money last longer, a healthy food storage plan is helpful.  (Remember last week?).  If an event happens that my family will need to live on this emergency fund, we likely would need to live off of it for an unknown period of time and my goal would be to help it stretch as long as possible.

I often think of the advice the church gives when it comes to families in need:  Use all the resources you have first, enlist extended family help second, and ask the church for help third--and after all other options have been exhausted. 

Planning for the day when we need extra financial help is not only smart, it is responsible.

I challenge you to take a look at your budget with your husband and family and find a way to incorporate saving for a rainy day.   A $1,000 emergency fund should be established fairly quickly, but saving the 3-6 months of expenses will not happen overnight.  It will take thoughtfulness and diligence, but it is possible.