“Where is the best place to stash an emergency fund?”


If you are still taking baby steps in your personal money revolution, then this may not be a huge pressing question on your mind. You may be more concerned right now about how you’re going to pay your light bill this month. But that’s okay. You are working toward your goals. You are paying down debt through your Christian debt relief program, and you are slowly but surely building that all important emergency fund that will insure you against the horrific, “borrowing from family” scenario should your hot water heater blow up next month!

However, for those who are a little bit further along on this financial quest, it may be time to consider the best place for this emergency fund that you have worked so hard to establish.

An ideal emergency fund should be three to six months of regular expenses. This is quite a bit of cash, so it would do you well to put it somewhere in which it can gain the most interest for you. This is especially true when you consider that this money is going to stay put, hopefully.

Emergency funds are different than investment funds. You want investment funds to be active and flowing and accomplishing as much for you as possible. Investment funds are money at work. Emergency funds need to stay put, be still, and be safe. You do not put your emergency fund at risk in any way. However, you also do not want it to just sit there for five years and not earn a penny either.

The balance between risky action and stagnant inaction is to place the money in the highest yield type of savings plan possible.

Online Savings

Online only accounts have increased in popularity in the last few years. Many online only banks such as Ally or Capital One 360 can offer higher interest rates on their savings programs because they are not dealing with the overhead of running a brick and mortar establishment.

This translates into only good things for their customers.

Many of these banks offer a full range of savings products including Money Market Accounts. These online money market accounts offer higher interest rates than regular accounts, plus have limitations in place which will discourage you from touching the money except in true emergencies.

The drawback is that all types of savings plans, including online only money market, are seeing really low interest rates right now. This can improve with time, and something is always better than nothing.

Breakable CDs

Breakable CDs offer a higher interest rate right now than most online savings plans. This is because your average 5 year CD will charge you a small fee for early withdrawals. Your money is not quite as accessible as it would be with a money market account, but you will be earning more on money that is just sitting there.

The drawback is that the money is not immediately available like it would be from savings or money market.

I-Bonds

Series I US Savings bonds are a great low risk place to store cash.

If you have already established a great emergency fund putting some of the money in I-Bonds could be a wonderful option. However, putting all of your emergency fund money is not wise as I-Bonds cannot be cashed out until after the first year. However, the interest rates are better than just about any other low risk product available.

Chocolate. Meat. Sugar. These are some of the most common indulgences given up for Lent, the 40-day season of preparation that leads up to Easter Sunday.

It’s a time when many Christians honor Jesus’ ultimate sacrifice of giving up his life by making a small sacrifice of their own.

Because Lent has long been associated with traditional fasting, it’s no surprise many people turn automatically to food when choosing how they’ll recognize the season, which begins on Ash Wednesday (March 5th this year).

If giving up candy for 40 days works for you, keep it up. However, if your Lent sacrifice has become routine and expected—or if you’ve never tried giving something up for Lent—perhaps you should consider doing something a little different this year, like making a sacrifice that hits your wallet more than your waistline.

Let’s be clear: Lent in its purest form is about growing closer to God. It’s about being thankful for what we have and recognizing that all of our best efforts will never come close to matching the sacrifice Jesus made 2,000 years ago. At its heart, Lent is about our spiritual state.

That being said, a 40-day sacrifice can naturally have a positive effect on our physical, emotional and even financial health as well.

Here are seven Lent-inspired ideas that could help get you back on spiritual and financial track at the same time.

Whether you give up chocolate, red meat or Instagram, remember not to do it in your own strength. When you’re tempted to indulge, pray for help. God promises to provide a way out (see 1 Corinthians 10:13). And if you do stumble, don’t be discouraged. Give your plan a reboot and keep going, and you may find yourself making—or breaking—a habit by Easter.

A video version of one of our most popular posts.

Plus, see the article below. Enjoy!

When an individual is attempting to get out of debt any extra little bit of cash helps the cause. Most people think that they are doing everything they can to further their goal of debt free living. However, you would be surprised at some of the super simple ways you could make an extra $250 dollars a month or more. That extra $250 dollars a month could help to drop the balance on a credit card or other type of debt really fast.

Here are a few realistic ways to make an extra $250 each month.

Babysitting

Most folks think this is a job for bubble popping teenagers, but child care is in very high demand. Quality child care is hard to come by.

My family just went through the process to place an ad in the newspaper and go through an interview process with several adults to help us avoid the higher cost of day care. We found that we would feel much more comfortable with our child being cared for by an adult, especially one who has children of their own. If you do, parents will know that you have the necessary experience to give their child proper care.

When you consider that most babysitters charge about ten dollars an hour, you can see how quickly a few babysitting jobs could add up toward your goals.

Holiday Work

During the holidays, especially Halloween and Christmas, there are many venues that pop up for a few months offering seasonal services and seasonal employment. Pumpkin patches and Christmas tree farms are two of the most popular seasonal employment locations.

Many of these seasonal employers especially need help during the evenings and on the weekends. That makes this a great addition to your regular day job. Another perk included in this type of work are the discounts on holiday items you may need anyway. Extra income plus extra savings!

Ebay

You may not be interested in becoming an Ebay businessperson, but reselling on Ebay can bring in some much needed extra cash when you are trying to supplement your income. You may find it helpful to sell your unneeded items to supplement your debt management program. They even offer a great write-up on how to get started.

You can take this advice a step further, however, buy buying and reselling items from yard sales and thrift shops that you know will bring in a good profit. Thrift shops will often have high dollar items such as purses and shoes that can be resold for huge profits. Keep an eye out for name brands or high dollar items being sold at a deep discount.

Saving is Earning

Do not underestimate the power of saving money in places you usually spend. If you save some money on a normal monthly expense, you have earned that money. If you manage to reduce your electric bill by $50, then you have earned that $50. The same is true for all of your utilities. Conserving water, gas and electricity can really add up over time.

Renting a Room

I know of several people who have made this maneuver with tremendous success. If you have some extra space in your home, you can make it available for rent to easily make an extra $250 a month. Platforms such as AirBnB make it easy and safe to do so. I have had friends report that they earned over $1,500 in one month and made friends along the way, all by making sue of that spare bedroom.

Regardless of your situation, there are always ways to supplement your income if you are able to put a little bit of time and effort forth. Create an honest budget and start using two or three of these methods to make some extra money, and you’ll be debt-free in no time!

Our electric bills are a huge fluctuating expense which can be very hard to budget because our heating, cooling and electric needs seem to change from month to month. Obviously there will be some fluctuations between the seasons, but some common mistakes can make power bills soar unnecessarily.

Check Your HVAC

There are a lot of HVAC issues that can drastically affect your electric bill.

One thing you can keep a check on is whether all of your vents are opened properly. This is a small detail that many people rarely think about. If your system vents are closed your system will struggle to keep your home comfortable. The more your system struggles the higher your power bill will be.

Filters are another small chore that can cost you money when you do not pay it close attention. Dirty or dusty filters can greatly hinder the air flow in your system. Filters should be changed out about once a month.

Reconsider Laundry

You can also rack up savings by paying close attention to the way you do your laundry.

Washing your clothes with cold water only saves up to 90% of the energy that your washer puts out. Cold water only detergent will ensure that using only cold water settings will not cause any damage to your clothing. This is also a time saver as you will not need to separate lights from darks if you use cold water only.

Also keep in mind that overstuffing your washer uses more energy because it will cause the washer to struggle with the larger load. You should only fill your machine about three fourths of the way full.

Understand Your Power Company

Take the time to research your particular power company so that you can better understand how exactly they charge and at what rate.

Many people are unaware that several power companies actually begin charging their customers a discounted rate for electricity after eight at night because this is a non-peak time of electrical use. Finding out if your company operates this way could save you money if you choose to shift large energy sucking tasks such as running the clothes drier to later in the evening.

Turn Off The Lights!

The most basic of energy saving techniques also happens to be the one most people have the least faith in. Do you really believe that one closest light burning all day affects your electrical bill?

It absolutely does.

When you are attempting to reverse your financial situation through Christian debt management you must remember that every little bit counts. Just like pennies in a coin jar add up over time, every time you switch off an unused light you are really, honestly saving money.

As a bonus, the next time you have an old incandescent light bulb burn out, replace it with a compact florescent bulb. They not only reduce energy use but because they last several years, you will save on new bulbs over time too.

Set a Goal

A great way to commit to reducing your electric bill is to set a savings goal each month. If you have a set budgeted amount each month for your power bill, you can set a goal to try and go under that amount. When you receive your next bill and you accomplished your goal, take the amount of the difference, even if it is just five dollars, and apply those five dollars to another financial goal such as your emergency fund, or Christmas fund. When you know that the saved money is designated for something worthwhile, you will try harder to conserve power and save money.

Many individuals who are currently involved in a Christian debt relief program may feel like they are doing everything they can to reverse their bad financial choices of the past. Some of the tenants of Christian money management do require a great deal of sacrifice.

You may not be able to believe that there are any other areas in your life in which you could possibly save another dime to go toward your debt relief efforts. You would be surprised, however, at how some old school savings methods can really translate into extra cash over time.

Coin Jar Magic

Simply collecting change in a coin jar can really add up if you deal mostly in cash for all of your purchases. Using only cash is a good habit to adopt for individuals who struggle with controlling credit cards.

All that change left over from each transaction goes straight to the jar and does not leave till you are ready to deposit it into your checking or savings account. Only use bills to pay with, reserve all change for your jar. Get Rich Slowly author Danny Iny, tried this experiment for seven months and was able to rack up over $700 for his emergency fund.

The Forbidden Dollar Bill

If you really want to see some savings add up with very little effort then designate the dollar bill as the forbidden bill. Refuse to pay for anything with a dollar bill. Take all of your dollar bills and hide them away in a designated place at home.

This can actually become a  fun game especially if you play with a spouse or other family member to see who can save up more each week. Each month pool the money together and apply it to your largest debt bill. The satisfaction you fell at saving that money and paying down those debts will make the dollar bill sacrifice well worth it.

The 52 Week Challenge

This is a great New Year’s resolution savings plan that can help you save up over $1,000 dollars in one year. Each week of the year deposit or hideaway in cash the amount of money corresponding to that week. Week one= $1, week 2=$2 and so on till week 52 when you will put $52 in your savings and you will have accumulated $1,378! Not bad for a rainy day.

My favorite twist: do it in reverse. Save $52 this week, $52 next week, etc. This way, it gets easier and easier as time goes on.

The Old Coffee Can Trick

Do you remember the old movie “Where the Red Fern Grows”? The young hero had a dream of owning his own set of coon dogs. The only way he knew to make this dream come true was to start doing some side work for neighbors and stuff that cash away in an old coffee can. After several months he made his dream a reality when he emptied that can and bought his dogs.

This is not just a piece of movie fiction; this is a tried and true old school savings plan that can actually make an impact on your budget.

Taking on extra work to make a budget work is what our grandparents and great grandparents considered the only answer to a tight budget. You need more money, you do more work.

Designating side income toward a single goal is a great way to feel the psychological satisfaction of actually seeing a goal accomplished. In most cases side income does not have to be a permanent change to your life. Do the extra work until you have reached your goal and then resume your usual work schedule.

If you need a jumpstart on simplifying your finances and increasing your savings, consider speaking with a Christian debt relief advisor at FaithWorks Financial. A debt management plan or debt settlement program may be a great way to reduce your monthly outgo and give yourself some much needed breathing room.

You’ve heard it said that you have a better chance of being struck by lightning than winning the lottery. That’s certainly true, but perhaps we’ve heard it so many times, we’ve become a bit numb.

A recent article by National Geographic put things a bit more colorfully. Turns out, you’re far more likely to be killed by a shark, hit by an asteroid or comet, or—wait for it—injured by a toilet, than you are to win the lottery.

So, what are the actual odds of, say, winning the Powerball grand prize? According to the Powerball website, they’re 1 in 175,223,510. And the odds of winning second place? 1 in 5,153,632.

Perhaps you’re aiming much lower than that, and you’d be happy to win the smallest prize of just $4. Your odds are still not great: 1 in 55. And if you spend $2 per ticket and it takes you 55 tries to win, are you really winning after all? You just paid $110 to win 4 bucks.

We know all of this in our minds, but it’s another matter entirely to grasp it in our hearts. It seems there’s still something inside many of us that fights against logic and says, “But it could happen to me.”
To help move our lottery knowledge from our heads to our hearts, let’s take a quick look at what the Bible has to say about the matter.
Proverbs 13:11 says, “Wealth gained hastily will dwindle, but whoever gathers little by little will increase it” (ESV).

I’d say winning the lottery is the definition of gaining wealth “hastily,” and there are scores of sad stories detailing the misery of lotto winners who experienced the truth of that proverb.

But that only addresses the problem of winning. What about the desire to win in the first place? And the money spent in pursuit of that win?

“For the love of money is a root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many griefs” (1 Timothy 6:10, NIV).

Those who find themselves chasing after a Powerball win in hopes of becoming rich are not only in danger of distancing themselves from God, but hurting themselves through unnecessary heartache.

As for all the money spent trying to win—$520 a year if you buy just one Powerball ticket every weekday—it’s difficult to justify when held up against Proverbs 3:9.

“Honor the Lord with your wealth and with the best part of everything you produce” (NLT).

For those who find themselves giving into the temptation to chase after the latest jackpot, those are words worth considering. Does that ticket purchase honor God? Are you giving Him your first and best gifts through tithes and offerings? Or is your lottery habit preventing you from giving God your best?

That’s a lot to think about, but let’s wrap this up with one last idea, from Jesus Himself, as recorded in Matthew 6:24 (NIV):

“No one can serve two masters. Either you will hate the one and love the other, or you will be devoted to the one and despise the other. You cannot serve both God and money.”

If you are hoping to win the lottery to rid yourself of your credit card woes, contact FaithWorks Financial at 877-232-5109 to learn about our Christian debt relief programs. You’ll have a much higher chance of seeing your debt disappear!

A huge amount of our monthly budgets are set aside for food.

Food is a strange expense because it can kill a budget but it is not the kind of spending that you could just cut out if you wanted to. You do have to eat, but you do not have to spend massive amounts of money to do so. The food industry has devised very clever ways to make sure we spend more than we should on this most necessary of expenses.

If you can understand some of these ploys, however, you can stop falling into their trap and begin taking control of how much you spend on food each month.

It Starts at Home

The restaurant business must start their ploys before you ever set foot in their establishment.

Food has a lot of very strong emotional and psychological strings attached and the powers that be in the food industry know this. That is why they spend millions of dollars every year on television commercials. When you begin seeing images of food and family and friends having fun together while you’re sitting at home watching television, it gets the wheels of your mind turning. These images can have a powerful effect on your decision making.

The way to avoid letting these images change your budget is to have a set night of the month or nights of the month that you designate as evenings you will eat out… if your budget permits eating out.

Stick to this schedule and when you begin to feel tempted by what you see on television, jot down on your calendar what restaurant you would like to visit on your night out. You will then have something to look forward to and not feel you are at the mercy of advertising.

Another great trick is to look at a restaurant’s menu at home before ever entering the establishment. According to financial author John Pacenti, restaurants actually employ menu engineers to design a menu that works on your psychology when you are hungry. However, if you look at the same menu online when you are not hungry you will most likely choose something entirely different, and usually less expensive.

The Convenience Trap

The fast food industry also uses television images to work their magic, but in most cases our own crazy schedules and lack of planning, provide plenty of opportunity for them to swoop in with their quick drive through windows and sabotage our food budget for the week.

The fast food industry has done everything in their power to make their restaurants the fastest, simplest option for dinner, but they are not the cheapest option. The money you spend on one fast food meal for a family of four could generally be used to buy three times that amount of food in a grocery store.

The trick to beating them at this game is plan, plan, and plan and then have a backup plan.

If you are blessed with a large, busy family you cannot just leave meals to plan themselves. If everyone is working outside of the home then you have to be even more careful to plan out what will be eaten when. Menus made up a week or two ahead of time will give you a sense of control over the whole, “What’s for dinner” dilemma. Some websites provide menu planning that can help you get accustomed to planning meals in advance.

Grocery Store Games

Grocery stores are next in line when it comes to manipulating you into what to buy. Grocery stores are arranged in such a way to make sure you pass expensive items over and over.

The key here is to take the menus you have created each week and write a very detailed list of exactly what you are going to buy, and then stick to that list as if your life depended on it. Decide what you will buy while you are still in the safety of your home, before you begin to get bombarded with advertising psychology at the store. Also never shop hungry, you will buy more unnecessary items just because of your own hunger.

The Biggest Food Related Money Saving Tip Of All

Eat. Healthy.

Contrary to popular belief, it is much less expensive to eat healthy than not. Boxed meals are quick and convenient and seem inexpensive. The truth is though, you can often make twice as much of a dish for the same price when made at home. It may take a few more minutes to prepare the meal from scratch instead of from a box, but the savings will add up.

The real whammy comes down the road though. Eating your whole grains, fruits and veggies may save you from a heart attack, high cholesterol or diabetes. Aside from your health, you can save thousands on medical expenses by preventing them in the first place.

Our food is one of our largest expenses. Fortunately it is one expense that we do have a great deal of control over. Happy eating!

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When the most recent recession hit our country, many people were really traumatized as their long held ideas about money were destroyed.

For a few generations, America had bought into the idea that wise money management was defined by your credit score and anyone with a college degree and a 401K was financially invincible. Then companies closed, 401Ks disappeared and engineers with master’s degrees walked into unemployment offices for the first time. We have had to rethink our ideals concerning money on a personal as well as national level.

Many people are going farther than just re-thinking their ideas on money, though.

Many individual’s are beginning to realize that our core ethics are really at the heart of our money choices. When poor money choices determine the rise and fall of an entire nation affecting millions of families in the space of just a few years, it becomes apparent that we are dealing with something much more profound than just personal financial choice. We are dealing with a morality issue, not simply a money issue.

Indulgence, excess and entitlement are all contributing factors to money mismanagement on every level; personal, business and national. We indulge ourselves with possessions beyond our budget, our spending exceeds our income and we justify it all with a prevailing sense of entitlement that has no basis in the Christian religion.

There is a movement in America, especially among Christians, to reverse these ideas and to establish a new money morality that can be passed on to our children so that the next few generations will not face the same disasters.

No Easy Money

One tenant of this new view is to realize that there is no such thing as easy money or a free pass.

Working hard to earn a college degree is a wise investment of time and money, but at best it can only increase your odds of good employment opportunities. There are no special groups that get special employment opportunities. We must all do our best to secure honest employment for our self and we are all at the mercy of our economy.

Rethinking Social Status

Another aspect of our money morality that is changing, although slowly, is the way our society thinks of social status.

Social status has traditionally been defined by our education, employment and possessions. However, there is a new way of determining who we admire in many of our social circles. Financial security is the new cool kid on the block and it is better than brand new cars, three story houses or designer clothing. Manageable mortgages, paid for vehicles and chunky emergency funds are what many turn green with envy over.

After watching families lose their homes and struggle to even put food in their mouths, many Americans are much more concerned with security  than they are with impressing their neighbors.

Less Is More

One of the most apparent changes folks are making to reflect their new money morality is to scale back things such as vacations, birthdays, and holidays. Many families are finding that simple vacations, low key birthdays and modest holidays can be just as enjoyable as the excessive, indulgent events of the past.

The feeling of maintaining control and sticking to a budget is much more fulfilling than the short lived enjoyment of extravagant spending.

Explaining Yourself to Others

If you are among these financial revolutionaries there will be some who do not understand your new stand on financial choices. When you are facing questions from others you can take one of two approaches. You can either try to explain all of your reasoning behind your choices and attempt to educate others, or you can simply inform people that this is your new financial lifestyle, nothing more needs be explained than that.

Many individuals in our country have undergone severe financial difficulties. If not you, likely your neighbor. We must learn from the troubles that have arisen from living in excess. We must adopt a new money morality and change our entire outlook on money management, especially if we are wishing to manage our finances from a Christian perspective.

There are a lot of things that society tends to dictate as being “normal” and “acceptable”, even if that is very far from reality. This applies socially, politically, religiously and financially.

Over time, our society has adopted certain modes of financial management that have become the normal way of life. The problem is that many of these financial practices are unscriptural and are based on greed, indulgence and laziness.

These misconceptions are why so many Americans are swamped with debt, live above their means, cannot be charitable and have little hope of preparing for the future.

One of these financial philosophies that so many of us tend to swallow hook, line and sinker is the belief that owing a car payment is just a way of life and because you will always owe a car payment you might as well owe it on the coolest, newest model.

This is simply not true… You do not have to always owe a car payment.

You can drive clean, reliable, attractive vehicles with absolutely no payment. You can even upgrade to another vehicle every four or five years and STILL not owe a car payment.

Sound impossible? Think again.

The Facts

According to financial hero Dave Ramsey, the average American whose pride insists they drive a brand new car every year or so is dragging around a debt of about $26,000 at a 9.6% interest rate. The “plan” in most cases is to never pay off these vehicles, but rather drive them until a newer, nicer model comes out and then trade in with the previous debt still hanging on.

This is financial insanity and is entirely based on pride. There is no other explanation for why an individual would choose that sort of debt when a used, clean, reliable car can accomplish the same task as a brand new one. The task of the car is to move you from one place to another in a reliable fashion. Let’s be honest, a five year old car can do that. A ten year old car that was well cared for can do that. So what would be the reason behind strapping yourself with almost $30,000 dollars of debt?  

The reason is the need to impress others with our possessions. An un-Christ like desire to draw the attention and envy of others.

The Alternative

The alternative to this prideful, financially destructive practice is to evaluate need first. Do you need a vehicle right now? If the answer is yes, I need to purchase a vehicle right now then you need to tap cash reserves and purchase the cheapest car you can trust and pay cash for it.

Let’s say you buy a $2,000 clunker. To begin with you may have to drive something less than attractive in order to get your vehicle plan on the road, so to speak. If you are a prideful person this will be a sacrifice and a healthy exercise in humility. Buy your clunker and drive. While you are driving begin plopping the amount you would normally spend on a car payment into a savings account.

By most standards the amount will be around $300 a month. You save this for twelve months. After twelve months sell your clunker maybe for $1,000. Add that cash to the savings and buy a nicer $4,600 vehicle. You continue to save your $300 a month you would spend on a car payment. Perhaps this nicer car will last you two years. After two years you’ve saved (before interest) $7,200. You sell your current car for $2,600. Add that cash to your savings and you now have almost $10,000 cash which will buy you just about any nice used vehicle you want.

This only took you three years! Less time than it would take to pay off a brand new car that is depreciating each month.

This vehicle will last you several years if you maintain it properly. And while you are driving this nice, used vehicle which you love and are not ashamed of, you will still be saving for your next vehicle. If you continue to save $300 a month and drive your car for five years then re-sell it you will have over $20,000 in your car fund!

If you increase your common sense and decrease your pride there is nothing you cannot accomplish financially. Don’t fall into the vehicle trap!