Wisdom Recognizes Risks

Rainy Day Funds can Work For You

Life has risks. Therefore, a prudent person plans for some risks with ant-like preparations. This includes having an emergency fund. Proverbs 6:6-8 says we should examine the life of the ant. “Go to the ant, O sluggard; consider her ways, and be wise. Without having any chief, officer, or ruler, she prepares her bread in summer and gathers her food in harvest.”

Egypt’s Emergency Fund

Furthermore, even the Pharoah recognized the need to have an emergency fund. In chapter 41 of the book of Genesis, Pharaoh had a dream where some fat cows were eaten by some skinny cows. He didn’t know what it meant, but someone remembered Joseph was successful in the interpretation of dreams. So Pharoah wanted to know the reason for his dreams and asked that Joseph come into his throne room. Joseph told Pharaoh that seven years of plenty would be followed by seven years of famine. He then told Pharaoh that he ought to find a wise administrator to oversee the emergency day (non-rainy-day) fund.

Joseph’s faithfulness and trust in God resulted in the following:

“This proposal pleased Pharaoh and all his servants. And Pharaoh said to his servants, ‘Can we find a man like this, in whom is the Spirit of God?’9 Then Pharaoh said to Joseph, ‘Since God has shown you all this, there is none so discerning and wise as you are. You shall be over my house, and all my people shall order themselves as you command. Only as regards the throne will I be greater than you.’ And Pharaoh said to Joseph, ‘See, I have set you over all the land of Egypt.’ Then Pharaoh took his signet ring from his hand and put it on Joseph’s hand and clothed him in garments of fine linen and put a gold chain about his neck. And he made him ride in his second chariot. And they called out before him, ‘Bow the knee!’ Thus, he set him over all the land of Egypt. Moreover, Pharaoh said to Joseph, ‘I am Pharaoh, and without your consent no one shall lift up hand or foot in all the land of Egypt.’ And Pharaoh called Joseph’s name Zaphenath-paneah. And he gave him in marriage Asenath, the daughter of Potiphera priest of On. So, Joseph went out over the land of Egypt.” Genesis 41:37-45

Roof Damage

Hail damage can make owning a house expensive.

During a hailstorm in 2021, the roof on our home was damaged. Our insurance company sent us a check for the repairs giving us the depreciated value of the roof. However, it was too late in the year for our roofer to start the process, so I moved the funds from the insurance company to Ally Bank. The reason is simple. This is one of our rainy-day funds, and I don’t want to risk losing it. However, I also want to earn interest on the funds while we wait for the sunshine. Just because interest rates are low, you don’t have to settle for 0.01% interest. I’d rather earn 0.50%.

The interest makes the emergency fund grow until the roof is replaced.