SERIES: Build The Wall – Part 2 – Protection
I am PUMPED about this new series on JosephSangl.com – “Build The Wall”! I truly believe that if people will do this, it has the potential to completely change their lives!
Build The Wall – Part 2 The wall offers PROTECTION!
When you have built a wall between you and the “life happens” events, you are protected from being distracted by those events. For example, when I was B-R-O-K-E I would be very distracted and frustrated by a car breakdown. Now, if I had faced reality, I would have known that my car would break down and would have prepared for it by building the wall. However, because I did not recognize reality, I did not have a wall built. This caused me inordinate amounts of stress as I dealt with a broken down vehicle, the annoying task of getting back and forth to work while it was being repaired, AND having to pay for it!
I will NEVER forget the day that I built the wall. I took an entire tax refund in 2003 and BUILT THE WALL. It wasn’t as fun as spending it on some nice purchase, but for the first time in my adult life I experienced financial margin. Financial margin equals PROTECTION.
This protection enabled me to breathe easier in a way I had never experienced before. It was so worth it!
BUILD THE WALL!
ACTION STEP: Build your starter wall with $2,500. Your ultimate goal is between $20,000 and $30,000.
YOU can do it!
So, based on the 5th/last comment on your previous post, do you suggest building the wall or an emergency fund first? To me this sounds like a stupid question because without the wall, your emergency fund becomes this wall…. But I would like your thoughts on this as we prepare to file taxes and should receive a return that will go into savings of some sort.
Thank you,
Ginny
Ginny… It is a great question, because if you are thinking it, I am sure others are too!
The previous comment to which you refer stated.
by Karen
“Joe, Your timing is perfect! I was just mulling this over for the past few days. We have an emergency fund but not a wall. I was trying to remember how many months you had suggested that we save after the emergency fund is in place, I believe it was 3 or 4 months of income for the unknown future. So now we are starting to build on that wall. Thanks for reminding us of some of the basic things you taught us so long ago. It never gets old!!”
First let me state that I can often be proven wrong.. but Here is my take on the intent.
See if you agree/follow along.
The wall and the emergency fund are essentially the same thing. (each term being interchanged in both illustration/posts)
However, there ARE two levels of emergency fund/wall. The “starter” and the “ultimate”.
The first level is the “starter” wall/emergency fund at $2500 level. Purpose is to provide some critical separation between you and life, while getting out of debt.
Part of the reason the starter wall/emergency fund is lower ($2500) is that the lower amount of money will evoke that “feeling” in the pit of your stomach that $2500 is not enough and will give you some extra MOTIVATION to get the debts paid off.
The next level of “ultimate” wall/emergency fund (as Karen state in her post) was the 3-4 months of household income/expenses. Joe referred (in the Action Step) to this “ultimate” wall/emergency fund goal amount is to reach $20K-$30k.
This “ultimate” level is more of a Permanent (if you will) solution of keeping the “bear” off your doorstep.
Hope that (was correct) and helps give you food for thought.
travis
be blessed
I love this stuff!
Thanks Travis! This does help quite a bit.
I am taking a Crown Financial class at church and it addresses the same principles, but sometimes the specifics vary. So I like to learn different ideas/opinions on the specifics so that I can try to pull it all together to fit it to our situation. Unfortunately, I have never had the opportunity to hear Joe speak so I learn what I can here.
Thanks again!