The Bible advises us to operate with prudence so we wisely choose the right path to a worthy goal.
The prudent don’t live at the mercy of their circumstances. They wisely prepare for the days ahead. Like airline passengers, they buckle their seat belts upon hearing, “Ladies and Gentlemen, we’re expecting turbulence ahead.” The pandemic revealed that many were unprepared for a year of financial turbulence. That’s why we must be prudent and ready ourselves for future storms.
I recommend saving a maximum of 15 months of your annual income in a risk-free account that’s accessible without penalty. Since savings accounts aren’t paying much interest, you may only want to keep 3-6 months there while putting the rest in liquid assets. Keep one month of cash on hand at home. Store it in a waterproof, fireproof location. It will carry you through a disruption in online banking or an emergency that requires you to flee. A small amount of gold coins can be insurance against a currency collapse. Reduce debt because it limits your personal financial freedom, mobility, and your choices. Maintain liquidity above the bare minimum in order to meet financial responsibilities and unexpected expenses. Liquid assets can readily be converted to cash without substantial loss in value. Illiquid or fixed assets are possessions of value that are held long-term, like real estate or equipment. Continue to give and invest, remembering that faith is of greater value than any financial asset. Choose to live prudently and glorify God.
If credit card debt prevents you from giving, saving or investing, I recommend Christian Credit Counselors. They can create a debt management plan that works for you. For more information call the Crown Helpline: 800-722-1976 or visit online at crown.org/ccc.