Imagine this.

You wake up one morning and your car won't start.

You need a repair that costs hundreds of dollars or worse,

you lose your job unexpectedly.

How do you cope with these sudden expenses?

And truth is these things can be overwhelming.

Especially if you don't have a financial safety net.

But today we're gonna change that.

We're gonna explore why starting an emergency fund

might feel like a distant goal.

But I'm going to provide you with five faith fueled practical tips

to help you begin that journey towards financial security.

So stay tuned because by the end of this episode, you're gonna feel

empowered to take that first step towards building your emergency fund.

So what's stopping you from starting your emergency fund?

Let's find that out on today's show.

Thank you for joining me on the show today.

I'm your financial evangelist Ralph, and I am here to help you escape the cycle of

financial shame and do it with confidence.

That's the entire goal to show.

We're going deep into a crucial topic that can transform your financial outlook.

Emergency funds stick around because we're gonna tackle some common roadblocks, and

I'm gonna give you some concrete steps to start your emergency fund today.

Today's episode is all about changing that narrative on emergency funds.

You're gonna learn why so many people struggle to start one, and how

you can overcome those challenges.

We're gonna address some common misconceptions, and I'm gonna

provide you with actionable steps to build your safety net.

And here's my promise to you.

By the end of the show, you're gonna have a clear roadmap to financial

peace and a renewed sense of confidence in managing your finances

from a Christian perspective.

So let's get started.

Yesterday we tackled a really tough topic and that's how do I save my mom from dad's

$200,000 IRS nightmare, and maybe more importantly, should I even try and listen.

The key takeaway was understanding the importance of seeking professional help.

Setting those boundaries when dealing with family finances.

So if you missed it, you can catch up on all of our episodes@askralph.com.

Now we've got a terrific listener question for you today.

Today's question comes from Gina, and Gina writes this.

She says, Ralph, I know I need an emergency fund, but every time I try

to start one, something comes up.

Whether it's an unexpected bill or a family emergency, it feels

like I can't catch a break.

I'm living paycheck to paycheck and savings feels impossible.

I have a mountain of debt and I'm trying to pay it off, and it seems

like every dollar I have goes towards just keeping my head above water.

I feel like I'm stuck in a cycle of financial stress and

I don't know how to break free.

What can I do to finally start building an emergency fund?

Well, Gina, thank you so much for your question, and I know how

frustrating it can be to feel like you're constantly treading water

trying to stay afloat financially.

Listen, I've been in that situation and it's really tough when you

constantly feel like you're drowning.

I. Many people struggle with the same challenges you're facing, and

it's so easy to feel overwhelmed.

But today I wanna give you hope because yes, there is hope

and it all starts with a plan.

So today we're gonna break down those barriers and I'm gonna

provide you with practical steps to start your emergency fund.

And trust me, I've seen this work firsthand, both in my own

life and with many clients.

And together we can make a change, Gina, and trust me on this.

You wanna make this change, today is the day to change your perspective.

And remember, if you've got a question you'd like me to answer, just head over

to just ask ralph.com because here's the truth, I love answering your questions

and it is the central part of the show.

My goal is to provide you with the answers you need to achieve financial success.

Now let's get started.

On today's show with today's Bible verse, Gina, this is one right to the point of

your question, and it comes to us from Proverbs chapter six, verses six to

eight, and it says this, go to the ant.

You sluggard consider its ways and be wise.

It has no commander nor overseer or ruler yet it stores its provision in summer

and it gathers its food at harvest.

Now that verse is very direct.

I couldn't say it much more direct myself.

And this verse teaches us the importance of planning and being prepared.

Just like the ant that stores food during the summer.

For winter, we should prepare for future uncertainties by

building an emergency fund.

See, this isn't just about being financially savvy.

That's a big part of it.

It's about being good stewards of what God has entrusted to us.

And let me be very bold.

It's our obligation as Christians.

It's what's expected of us.

So Gina, I am grateful for the opportunity to help people like you

navigate their financial challenges.

Because the Lord has given me experience, he's given me understanding to help

guide others towards financial peace.

And I am thankful for the chance to make a difference in people's lives.

So today, we'll use this knowledge to help you get started with your emergency fund.

So Gina, if you're ready to get started, let's get to it.

Lemme tell you about a client I worked with years ago named Brett.

Now, Brett was this hardworking man, but he was always one step

away from financial crisis.

I bet you know, somebody like this one day, his car broke down and he

just didn't have the money to fix it.

Listen.

I've been there and done that.

I remember when I was about 20 years old, I was leaving the, the house one

morning on my way to college, and all of a sudden I, this, my engine started

making these crazy, like whining sounds and I, and I coasted downhill.

I got to the end of the driveway, I turned, I started going north, and

then all of a sudden my car did one of these boom, boom, boom, boom.

And I was on the way to see my girlfriend at the time.

And like I said, I got outta the driveway, got onto the road, and bam, nothing.

I seize that engine.

And let me tell you, that was certainly a lesson.

But let's get back to Brett now, Brett, again, he was this single dad.

He was juggling two jobs and trying to provide for his kids.

And the truth is his car was his lifeline.

Just like our cars, a lot of times our, our lifelines, they help

us get to work and they help us pick up our kids from school and.

With Brett without that car, he was feeling trapped.

He was feeling stressed, and he felt completely hopeless, and

he needed to get this car fixed.

So to get his car fixed, Brett had to borrow money from a friend

and he had to take on extra shifts at work to make ends meet.

And let me just tell you, Brett shared this with me after the fact.

It was not an easy process.

So he came in, he sat down with me, we did some financial counseling, and

we worked together to create a budget.

Now, we set a small savings goal at first, but I encouraged him, I'm

gonna talk about that in today's show.

I encouraged him to set that savings goal and then automate his savings.

And let me just tell you, within a few months, Brett had enough to cover

those unexpected expenses without falling back into that debt trap again.

Or even worse, having to borrow money from friends and family.

And this was a real game changer for Brett.

He went from that constant worry to a sense of peace and security, all because

he had built that emergency fund and Brett even started a small side business with

extra money he had saved, providing an additional income stream for his family.

See, Brett learned to budget as well as be resourceful because

he never wanted to find himself.

In that position again, listen, I was in that position.

I just finished the rest of that story.

So I called my dad.

I didn't know what else to do.

My car's sitting on the side of the road.

He comes out to the side of the road and he says, son, turn the key.

And it just did nothing.

So we had it towed, took it to the shop, and guess what?

The engine had seized.

And here's the worst part of the whole story.

It seized because it had run out of oil, uh, issue that I

can completely have prevented.

But guess what?

I needed a brand new engine.

I'm 20 years old.

I didn't have the money, so guess what?

My dad had to bail me out, and that's helped taught me

two very valuable lessons.

Number one, I never want to go without getting those oils changed and

check that oil level and number two.

I don't ever want to be borrowing from my dad or borrowing from family.

Now, another story that comes to mind is about a young couple that

I work with named Emily and Matt.

Now Emily and Matt had just started their careers and, and like many of

us when we're first getting started, we're living paycheck to paycheck, man.

I've been there, Gina.

I bet you've been there too now.

Well, well, they were, they were newly weds and they were excited about their

future, but they were also overwhelmed by their new financial situation.

They had moved in together.

They had bought a new house and they had this car, and they had furniture,

and all of a sudden one night they're, they're getting ready for bed in there,

noticing it's a little cold in the house.

They did some research and they realized that their furnace had

broken down and it was the middle of winter and they had no choice but

to put that repair on a credit card.

Listen, I shared that story about when I bought my first townhouse,

and it wasn't two or three weeks later my air conditioner blew.

Now these two, they were already struggling with high credit card

balance, and this just completely added to their financial stress

and set them back even further.

They didn't just stop there, they decided to take action.

I say this all the time.

You have to take action.

Things are not gonna happen on their own.

And for them, they started by just setting aside $50 each

month into an emergency fund.

And like I said, it wasn't much.

But it was a start.

And I've said sometimes it starts with just creating that habit.

It's kind of like a stone rolling downhill.

It starts with a small roll forward and then that momentum

carries it further along.

And over time they increased their savings and eventually had a comfortable cushion

to handle those unexpected expenses.

And see, Their story shows that even small steps can lead to significant changes.

Emily and Matt also started meal planning.

They started using coupons to save even more money.

They found creative ways to have fun without spending much like hosting

a game night and out at home instead of going out and their dedication.

It was truly dedication to building that emergency fund.

Not only provided them with financial security.

Here's one of the best parts of it.

It brought them together as a newlywed couple, and that was

a great part of that story.

See, Gina, you can do this also, it just takes some action to get started.

So let me get to my five tips to help you start your emergency fund.

My first step is this.

You've got to acknowledge God's ownership and seek his guidance.

See, the truth is everything we have belongs to God before we

make any financial decisions.

We gotta start by praying for wisdom and we gotta pray for guidance.

See, building an emergency fund isn't just practical.

It's, that's, it's so much more than that.

It's an act of worship and obedience.

Let me say that again.

It's an act of worship and obedience.

See, I remember a time when I was struggling financial decisions.

I was really having a hard time felt like.

Every step I took, I was knocked back two steps.

And what I did at that point is I said, you know, Lord, I'm

gonna put it in your hands.

And I took a moment and I prayed about it.

I said, God, give me your guidance and let me just tell you the piece that

came upon me made all the difference.

It gave me clarity and it gave me confidence to move forward.

So Gina, here are some practical steps to start this first tip.

First thing I'm gonna tell you is to set aside quiet time.

Each day to pray about your finances.

And I know you might be saying, wait a second, Ralph.

I was always taught that finances and God don't go hand in hand.

Well, if you're listening to this show, you better know that

that's not the case because it all starts with prayer for guidance.

You don't have to do this on your own.

We've got a God who wants to help us.

We've just gotta ask for his help.

Now, I'm gonna encourage you to write down those financial

goals and speak 'em to God.

Ask God for guidance in achieving them.

Reflect on biblical principles of stewardship.

Listen to more episodes of the show.

I talk about those biblical principles of stewardship every day

and apply them to your situation.

Now my second tip is this.

You've got to set realistic and God-honoring savings goals.

If you don't have a goal, you're never gonna get to that destination.

And listen, start small with an attainable goal, maybe $500 or a thousand dollars.

Hey, you can even start with a goal of a hundred dollars.

You've just got to set a goal and get started.

One of the things I'm gonna encourage you to do is to calculate your essential

monthly expenses and break down larger goals into smaller milestones.

This is gonna make the process less daunting and more achievable.

I remember when I started my first emergency fund, I set a goal of a

thousand dollars, and it felt like it took a lot of time, but breaking it down

into smaller steps made it manageable.

I put it down in terms of I gotta set aside this much a week.

I've gotta set aside this much a month.

And then every, each and every small victory gave me

the motivation to keep going.

So Gina, here are some practical steps to start doing that.

And I'm, like I said, I. The first thing I'm gonna tell you to do is

list your essential monthly expenses, those things like housing, utilities,

groceries, transportation, insurance, and then those minimum debt payments.

And then I'm gonna encourage you to set a small, achievable savings goal.

Maybe it's $500, and break that goal down into smaller, manageable steps.

For example, if your goal is that $500, maybe you aim to save

a hundred dollars each month.

Then in five months you've done it.

See, setting these small steps will build that momentum, and like I said,

it's about that rock rolling downhill.

As it keeps rolling, the momentum builds and trust me on this.

As you start to see results and you start to see that momentum

growing and that savings growing, it will build upon itself.

Now let's get to my third tip, and that's create a budget and

find margin with intention.

Now you might be wondering.

What is Ralph talking about?

But budgeting is crucial for managing your finances effectively.

Yes.

I'm talking about budgets again, but they are critical.

They are crucial.

As I say, what gets measured gets done.

Hear me on that?

What get measured.

Gets done.

So track your income, track your expenses, and . Find areas where

you can reduce your spending.

That's what I mean when I say fine margin that money you

save by reducing the expenses.

That's your margin.

Be intentional about your spending.

Be discerning between those needs and and wants and see.

This is crucial.

You've got to understand this.

You've got to understand your needs versus your wants.

And listen, if you're working to build this, um, this emergency fund,

this is a time to just live on those essentials and put off those wants

until you reach your savings goals.

See, when we view our finances as resources that we've been entrusted

by God, budgeting becomes an act of responsible stewardship.

That's what I said.

It's our obligation to do that, and I've seen clients transform their

financial situations by the simple act of creating a budget and then

more importantly, sticking to it.

It's amazing how much margin you can find when you're

intentional about your spending.

So, Gina, here are some practical tips.

Now, one of the things I talk about on the show all the time is maybe use a budgeting

app or, or maybe just a spreadsheet to track your income and expenses, because.

You've got to determine where your money is going because here's the

truth, you're never gonna manage it until you see it in black and white,

or if you're using it out maybe in, in 256 colors, man, there's a flashback.

But identify areas where you can cut back, maybe eat out less, or, or

cancel those unused subscriptions.

Man, that is a pet peeve of mine.

I don't know how many times I've worked with people, they're paying for

subscriptions and they don't even know what they're, what they're paying for.

Also allocate a portion of your income to savings before

spending on non-essential items.

So have those that income, and then right below that in your

budget are those essential items.

Those are the things you gotta pay.

You gotta have food, clothing, and shelter.

But then before you get to those, those once, before you get to those

non-essentials, put in that savings plan now review that budget regularly to

ensure you're staying on track because.

As I've said with budgets, this is not a time to set it and forget it.

These aren't two big stone tablets that you, that you use a hammer

in Chisel, a good budget is dynamic and it's ever changing.

You might consider using the envelope system for cash.

Manage it.

You know, I've talked about that on the show before.

My grandparents used to use that.

That's where you allocate specific amounts of money to different

categories like we talked about, maybe groceries or or entertainment.

And then you only spend what's in each envelope.

But this is the time to look for ways to reduce those fixed expenses.

Maybe you negotiate lower rates on insurance, or maybe you have a

mortgage, you refinance a mortgage to get a lower interest rate.

Maybe it considered downsizing or eliminating non-essential expenses.

If those non existential expenses add up like cable TV or, or gym memberships.

Hey, listen, if you're not using them.

Why are you paying for them?

Maybe even if you're using them, Hey, desperate times,

call for desperate measures.

You don't wanna find yourself in this situation again, do you, Gina,

plan your meals in grocery shopping.

Avoid those impulse buys and look to reduce food waste.

You can find freer low cost entertainment options such as visiting parks or,

or libraries or community events.

There's a ton of stuff out there that if you've gotta live on that tight budget

while you build that emergency fund.

You can do this.

See Gina, consider this.

Imagine you're at the grocery store and you see a sale on your favorite snack.

You might think, oh, it's on sale.

I should buy it.

But that's when you pause and ask yourself, and this is a tough one.

Is this a need?

Or if this is a want, and if it's a want, remember that every

dollar saved and hear me on this.

Every dollar saved is a step towards your emergency fund.

Listen, I once had a client who loved buying gourmet coffee every morning.

She loved to do that.

That was her daily routine.

She switched to brewing coffee at home and she said, and listen to me on this.

She saved a hundred bucks a month.

Think about that.

That's 1200 bucks in a year.

Imagine what you could do with the extra money in your emergency fund and

how that would give you peace of mind.

Well, let's move on to my fourth tip, and my fourth tip is this, automate

your savings as an act of discipline.

I talk about this on the show all the time.

The idea of automated day, automating those savings is going to help.

To build that momentum, you can set up automatic transfers from

your checking account and do it in a separate savings account.

A lot of people say, well, I'll just keep it in my checking

account and I won't spend that.

Guess what?

You're probably not gonna do that.

But if you schedule these transfers to occur shortly after you receive

your paycheck, it will put you in the habit of making savings your first

priority, because here's the truth.

Automation is gonna remove that emotional aspect of saving, and it'll promote

that consistency because it's one of the best decisions that I ever made

when I started automating my savings.

I still do that to this day when I pay myself a paycheck, the first thing

that comes off of that is I put X number of dollars in a savings account.

In fact, I put it in a savings account in a bank that's nowhere near me.

I've been doing it now for five years.

And guess what?

It took the guesswork outta savings and it ensured that I was consistently

putting money aside for emergencies.

Now, it's not a lot of money, but it's consistent.

So Gina, here are some more practical tips.

As I said, set up those automatic transfers from your checking account

to a separate savings account, and then schedule those transfers to occur

right after you receive your paycheck.

So if you get paid weekly, set it up to be right after that, or maybe it's biweekly.

Do the same thing.

And you don't have to start with a big amount.

Start with a small amount, maybe 20 bucks per paycheck, and then increase

it as you become more comfortable.

And then just sit back and watch it grow.

Watch that momentum.

So think about it for a second, pause and think about your current saving habits.

If you haven't automated your savings yet, consider setting

up automatic transfers today.

It's a simple step that can make a huge difference in your financial future.

Now let's get to my fifth and final tip for today, and this is one

that may often be overlooked, and this is a time to celebrate your

progress and seek accountability.

See, building an emergency fund takes time and it takes dedication.

You've got to celebrate the small milestones you reach along the way.

Share your savings goals with a trusted friend or or a mentor, because that's

gonna help build accountability.

See, having someone to share your progress with and to offer

encouragement can significantly.

Increase your likelihood of success.

So Gina, Here are some practical steps.

First thing I'm gonna tell you to do is set small achievable milestones and

then celebrate each one that you reach.

Share your savings goals with a trusted friend or a mentor, and an ask them

to hold you accountable regularly.

Update your friend or mentor on your progress and discuss

any challenges you face.

Imagine this.

Imagine you saved your first $500.

Hey.

That's a big deal.

Celebrate it like you would a birthday or an anniversary.

Treat yourself to a special, but I'm gonna say affordable meal or activity.

One of my clients celebrated her first savings milestone by having a

picnic in the park with her family.

It was simple, it was inexpensive, but it was a way to mark her achievement.

Stay motivated.

So Gina, these are my five tips to start building that emergency fund.

And let me just tell you right now, Gina, you can do it.

And now's the time to get started now.

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others who are also working to escape the cycle of financial shame with confidence.

Well, Gina, let's move to today's reflection questions.

I know we covered a lot, but let's reflect on that first one.

What is one small step you can take today to start building your emergency fund?

What does that look like for you?

What is that one step?

You gotta start today.

Start moving towards that second question.

How can you incorporate prayer and seeking God's guidance

into your financial planning?

We started off with that.

We started off with prayer.

It's fine to say to God, listen, God, I can't figure this out on my own.

I'm struggled.

I have found myself broken.

Go to him.

He wants to hear from you.

and number three, who can you share your savings goals with to hold you

accountable and support your progress?

Because listen, it is very important that you share those goals, you celebrate

those goals, and having an accountability partner will help you along that path.

Now, Gina, here are my takeaways from today's show.

I wanna just.

Reiterate those real quickly.

First thing, acknowledge God's ownership and seek his guidance

in your financial planning.

Set realistic and attainable savings goals.

Create a budget to find margin.

We talked about what that margin was and save intentionally.

I encourage you to automate your savings, to promote consistency,

and then celebrate your progress.

And seek accountability for support.

Now tomorrow we're gonna be discussing another great topic, and that's what

seven daily steps can I take to rebuild my confidence with money kind of goes

alongside of what we talked about today, but tomorrow we're gonna handle

what seven daily steps can I take to rebuild my confidence with money.

So make sure you join me for another insightful episode.

That will really help you build your confidence.

Well, thank you for your time today and thank you for supporting the show.

I encourage you to share this show with somebody.

And remember, my passion is to help you achieve financial success.

I wanna see you live out your dreams and I wanna see you grow in your faith

and I know together we can master your finances from a Christian perspective.

So as I always end this show, stay financially savvy out there

and may God bless you abundantly.