Money Monday

Build a Reserve

We have been counseled to build our three-month food supply, get our water and then build a financial reserve. The church has not stated a specific amount. Most money gurus will advise anywhere from 3 to 6 months. Longer if you can. No matter what your end goal is it is better to take baby steps then kill your self trying to make huge leaps and bounds. Start with a week then a month and then start again.

You can start by setting up a separate savings account. My good friend Daphne writes our financial column for our wards Provident Living newsletter and this is what she said about savings accounts, " Saving money is a challenge, and what works for one may not work for another, but this is what has worked for us. We have several accounts set up in a high interest bearing account (ING). Typically it takes 2 business days for funds to transfer to your checking account, so you tend to think twice if you really need that thing you want to buy--as a side note, we also keep a savings account attached to our checking acct., in case we need to transfer some over quickly for emergencies. " She also suggest that you have your savings automatically withdrawn each month or paycheck what ever works for you. you can sometimes set this up through your employer if you have auto deposit or through your bank.

President Gordon B. Hinckley has taught: “Set your houses in order. If you have paid your debts, if you have a reserve, even though it be small, then should storms howl about your head, you will have shelter for your wives and children and peace in your hearts” ("To the Boys and to the Men," Ensign, Nov. 1998, 54).