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Build Your Financial House: Step 2

The House You Live In

Your physical house, your home, is built to provide a secure physical environment for you and your family. You have a strong foundation, walls, a roof and a sturdy outside wall for protection. Your financial house should be just as important as your physical house. Just as your physical house has four components, so should your financial house. Throughout this Financial Framework Seminar Series™ we are going to focus on helping you create a strong, secure financial house.

Your Financial House: Step 2 – Emergency Fund
Build Your Structure

Proverbs 22:3 "A prudent person foresees danger and takes precautions. The simpleton goes blindly on and suffers the consequences."

Unfortunately, the vast majority of families have no form of liquid cash set aside and often rely on the
use of credit cards to help them through rough times, taking a short-term need and turning it into a
long-term terrible debt. An adequate Emergency Fund should contain a minimum of three months
worth of living expenses, with the ultimate goal being six months’ worth of fixed expenses. From a
qualitative angle, an Emergency Fund can act like a security blanket allowing the financial center of a
family to feel more secure about the future. Your personalized Equity Creator® Financial Blueprint will detail your Emergency Fund information. Take a look at the sample chart below:


Make a commitment to build and maintain your Emergency Fund!

  1. Ideal funding – the best way to build your Emergency Fund is to treat it just like any other expense obligation. Pay a set amount into it every month until you reach your goal.
  2. Reality – the truth is not many of us have the extra funds each month to put a consistent amount in our Emergency Fund. As you follow your personalized Equity Creator® Financial Blueprint and the EC Budgeting System™, you will begin to free up money each month to build your Emergency Fund as well as saving for retirement.
  3. Get started – it does not matter if you save by dollars or cents but get started now in building your Emergency Fund. In your Financial Life Book™ we will discuss some tips that may sound very silly or seem like they could not possibly help you achieve your goal of building an Emergency Fund but trust us, they work. You don’t have to try all of the tips listed in your Financial Life Book™, but pick a couple of them and start immediately. You will surprise yourself at how easy it is to get started and you may even decide to add more tips to your list.

Session 5 of the Financial Framework Seminar Series™ explains all that you need to know about Emergency Funds. If you need any assistance or information, you have access to the Equity Creator® Coach that is assigned to your church. The Coach service is available to you without any charge and will assist you in the construction of your Financial House.