Saving with a Purpose

Over the last two weeks, we explored what savings is and why it matters. We saw that saving isn’t just a financial best practice — it’s a biblical principle that reflects wisdom, foresight, and stewardship. Then we looked at how to start saving, even when money feels tight. We focused on practical strategies and mindset shifts to help you build a consistent habit — no matter your income level.

Now, it’s time to level up.

Saving money is a great start — but simply setting funds aside isn’t enough. The real transformation happens when your savings is organized, intentional, and aligned with your goals and values. When every dollar has a job, your savings stops being a passive pile of money and becomes an active part of your financial strategy.

This is where saving moves from habit to lifestyle — a way of living that reflects purpose, peace, and preparation.

When you give your savings a purpose, you:

• Spend more mindfully

• Resist the temptation to dip into it

• Build clarity and confidence in your decisions

• Become more generous and less anxious

• Create margin for opportunities, not just emergencies

Saving with a purpose is also a form of worship. It says, “I trust God enough to plan ahead, to prepare with wisdom, and to steward what He provides.” It’s a way to love your family, honor your future, and reflect God’s character in your financial choices.

This week, we’ll explore how to assign purpose to your savings — including the most common types of savings buckets, how to plan for them, and how this approach leads to greater peace, freedom, and faithfulness.

💡 This Week’s Focus: Saving with Intention

It’s one thing to save a little here and there — whenever you can, without a specific goal. That’s a good start. But the real power of saving is unlocked when you begin to assign purpose to every dollar you save.

When you give your savings a specific job, you gain both vision and structure. You stop saving out of guilt or fear, and you start saving with clarity and confidence.

You begin to say things like:

• “This is for emergencies.”

• “This is for car repairs.”

• “This is for a down payment.”

• “This is for future generosity.”

With that kind of clarity, you stop asking, “Can I afford this?”
And instead, you begin asking, “What did I plan this money to do?”

This simple mindset shift changes everything.

📖 Verse of the Week
“Good planning and hard work lead to prosperity, but hasty shortcuts lead to poverty.”
— Proverbs 21:5 (NLT)

Saving with purpose is a form of diligence. It’s not just about setting money aside — it’s about planning ahead, staying focused, and being faithful with what you’ve been given.

When you assign direction to your savings, you turn your good intentions into real progress. And that progress — little by little — leads to peace, provision, and the freedom to say yes when it matters most.

Types of Savings (and Why They Matter)

Not all savings are created equal. That’s why giving your savings specific categories — or “buckets” — helps you stay focused, avoid dipping into funds prematurely, and build real financial confidence.

Here are five common types of savings, each with its own purpose and benefit:

1. Emergency Fund
This is your financial safety net — the fund you don’t touch unless life happens. It’s for job loss, unexpected medical bills, car repairs, or a broken furnace — not for vacations or shopping. When emergencies strike, this fund keeps you from going into debt.

• Goal: Start with one to three months of essential expenses. As your stability grows, aim for three to six months.

• Purpose: To provide peace of mind and cover real emergencies without financial panic.

• Tip: Keep it in a separate high-yield savings account so it’s easy to access, but not easy to spend.

2. Sinking Funds
These are your planned non-monthly expenses — the ones that are predictable but can still catch you off guard if you don’t plan for them.

Common examples include:

• Car maintenance or repairs

• Insurance premiums (paid quarterly or annually)

• Back-to-school expenses

• Christmas or birthday gifts

• Medical or dental visits

• Subscriptions and annual renewals

Strategy: Estimate the total cost and divide it by the number of months until it’s due. Save that amount monthly so the money is there when you need it.

Sinking funds turn future “emergencies” into non-events — because you planned ahead.

3. Big Purchase Fund
Use this for the things you want — not emergencies, but larger purchases you’d prefer not to finance with a credit card.

Common examples include:

• New furniture

• A family vacation

• A laptop or phone

• A home renovation

• Purpose: To enjoy the purchase without the stress of debt.

• Tip: Give the fund a fun name to stay motivated — like “Beach Trip 2025” or “Dream Couch.”

This kind of fund builds anticipation, not anxiety.

4. Long-Term Savings and Investments
These are your big-picture goals — the ones that grow slowly and steadily over time.

Examples include:

• Retirement

• College savings for your children

• A future home purchase

• Building wealth for future generations

“Wealth from get-rich-quick schemes quickly disappears; wealth from hard work grows over time.”
— Proverbs 13:11 (NLT)

• Focus: This is where consistency matters more than intensity. Small contributions, made faithfully, add up over the years.

5. Giving Fund
This fund is for spontaneous generosity — to bless someone in need, respond to a cause on your heart, or give privately when God prompts you.

Think of it as an alms fund — a way to set aside money in advance so you’re ready to give when the opportunity arises.

• Purpose: To meet needs, give quietly, and reflect God’s love in practical ways.

• Encouragement: When you save with generosity in mind, you can give freely and joyfully — without guilt or financial strain.

Even a small, consistent contribution can make a big difference. And the best part? You’ll be ready to give the moment God says, “Go.”

Why Your Savings Rate Matters More Than Your Income

When most people think about building wealth, they immediately focus on income or investment returns. But here’s the truth: neither of those factors matters as much as your savings rate.

Why?
Because you can’t control the market — but you can control your spending.
You might not be able to increase your income right away — but you can choose to live on less than you earn.

As Morgan Housel explains, wealth is what you don’t see. It’s what you keep after you’ve spent, not what you earn or show. That means:

• A high income doesn’t guarantee wealth if you spend it all.

• Modest income paired with consistent saving can build substantial wealth over time.

• Investment returns are helpful, but they’re powerless if there’s no money left to invest.

Unlike income or investment returns, frugality and saving are within your control. And your savings rate — the percentage of your income that you keep — is the greatest predictor of your financial success.

You don’t need a six-figure salary to build wealth.
But you do need the discipline to save a meaningful portion of whatever you earn.

That’s the path to true financial peace — not relying on luck, market timing, or a future raise, but learning to control what you can control and steward your income with wisdom and intentionality.

If you want to change your financial future, start by changing how much you save.
That choice is powerful. That choice is yours.

🎯 Weekly Challenge: Assign Purpose to Your Savings

This week, take 30–60 minutes to do the following:

1. List 3–5 things you want to save for.

2. Write down the purpose of each and give it a name.

3. Estimate how much you’ll need and set a monthly goal.

4. Choose a simple way to track your progress — like an app, spreadsheet, or notebook.

5. Open separate accounts or create budget categories to reflect your goals.

You don’t need to save for everything at once. Start with one or two that matter most.

💬 Reflection Questions

1. What’s one area of life that would feel more peaceful if I had savings set aside?

2. Which type of savings do I need to prioritize right now — and why?

3. How can I make saving feel more personal and purposeful?

4. What’s one step I can take this week to organize or rename my savings?

📢 What’s Coming Next

With this letter, we wrap up our three-week savings series.

You now understand:

• What savings is

• How to save on any income

• How to save with intention

Next week, we begin a brand-new topic — How to Build Wealth, God’s Way.
We’ll shift from saving to investing: what it means, why it matters, and how biblical principles apply to growth, risk, and stewardship.

You’ve built a foundation. Now let’s build forward.

Stay faithful. Stay focused. You’re doing this well.

🔁 New here or missed a few? You can read all the previous newsletters right here: financebyfaith.beehiiv.com

Blessings and financial peace to you!