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World Bank chief warns of financial crisis World Bank chief Robert Zoellick on Saturday warned of a "new and more dangerous" time in the global economy...
US Recession Risks Rises The threat of a new recession is rising in the United States, economists say, as they slash their ..
Unsafe US debt remains safe haven US Treasury bonds remain a hot ticket for investors looking for a low risk investment in a volatile market despite the unprecedented ...
US borrowing tops 100% of GDP US DEBT shot up US$238 billion (S$287.2 billion) to reach 100 per cent of gross domestic project after the government's debt ceiling was lifted
Consumers consumed by debt The average consumer may feel far removed from the heated debates concerning the $14.3 trillion debt ceiling. But the truth is...
Financial Crisis II. Get out of debt now There is increasing talk among traders and financial analysts that the latest slump in global share markets
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Savings can save you


Scriptural Financial Freedom Obtaining God's blessings






Savings can save you

Savings is the conservation of money and can save you from some trouble in the future. Savings is part of the second step to financial freedom. In a world of growing uncertainty, having an emergency fund can go a long way especially for families. Although there may be several variations and investment options, there are generally only three purposes for savings: emergency, accumulation and investment.

Emergency or reserve fund is not the same as expenses. Expenses is to be used for daily necessities and then replenished. An emergency or reserve fund is set aside for sudden or large item purchases, such as hospitalisation, furnitures or such. It is typically an amount of about three to six month of your income set aside as a buffer.


Remember the story of Joseph? He knew of a coming crisis and prepared for it. Each family should have an emergency amount reserved for unexpected needs. Whenever the fund is used, the amount must be replenished immediately, if not as soon as possible. The emergency cash should be placed where the money is absolutely safe like in a bank, yet not so easily accessible like with a daily bank card - lest you be tempted to spend it on expensive toys.

An accumulation fund si, in effect, a short term investment fund. An accumluation fund allows you to have a longer time frame in mind for example 12 months to 24 months, it also allows you to accumulate higher interest and returns. The most popular form of accumulation fund is a certificate of deposit (CD). They offer safety and reasonable returns but lack flexibility due to early withdrawal penalties. Everytime you have extra cash apart from your emergency fund, throw it in, or start a new account. Shop statewide or nationwide to get the best rates. Employ the math of compounding, and you'll start to see your money grow and accumulate.

The third type of savings is for investment. This investment is for the long-term. It is to help your family achieve a greater degree of financial security and provide for their future. These investments are not intended to be used for quick get-rich schemes. As a general rule, only 10 percent of your investments should be in cash. These include bonds, certificates of deposit, treasury bills, and money market fund. Moreover, no more than 10 percent should be in high risk investments.


Today's Bottom Line

Savings is the best way to prevent yourself and your family from being in debt.

The Bible does show many ways to overcome any financial crisis. Many of these principles are laid out in our successful course, the Scriptural Financial Freedom series. To learn more, you can download the Small Groups kit from our estore.

Calculate your mortgage, credit card repayment, loan interest as well as your compounding interest and more with our 25 calculators!

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