Proverbs 10 makes clear the wisdom of saving money, "A slack hand causes poverty, but the hand of the diligent makes rich. He who gathers in summer is a prudent son." Saving in general is certainly prudent, but today we want to talk about a special category of saving that you may want to consider. It could give you an extra measure of peace as you face life’s financial challenges. Then it’s your calls at 800-525-7000. How do you define an emergency for your emergency fund? A real emergency will fall into one of three areas, housing, food and transportation. It must be absolutely necessary, urgent and truly unexpected. Everything else should be part of your regular budget. Living expenses: if you lose your job or have a severe pay cut, unplanned medical expenses, and unexpected home repairs. Most home repairs are predictable. They’re not really unexpected, and for these, you may want to consider setting up a separate category for home repairs, separate from your emergency fund. Most people understand that a home generally appreciates in value, especially these days. But consumer expert Clark Howard points out that in many cases, it’s the land a house is built on that actually appreciates. You can’t really separate a house from the land it sits on, but you might find that the structure itself depreciates as it becomes run down and in need of repairs. That means your house needs constant, expected maintenance to uphold its part of total home value. That’s a strong argument for keeping your home repair fund separate from your true emergency fund. How much should we keep in my home repair category? A good starting point might be one month’s mortgage payment, possibly going up to two months. That would take most of the sting out of completely predictable home repairs and the money will be there in your separate home repair fund. On today’s program we also answer you’re a few of your calls: -Is it wise to get a loan against my car to pay off bills? -What is your opinion on reverse mortgage for a single retired woman? -I have a mutual fund in my IRA. I would like to sell it and get into some Christian backed mutual funds. Advice? -I just sold a business and now have 100K to invest. Where should I begin? -We have paid on our home for 12 years and would like to refinance to lower our interest rate. We are only looking to stay a couple more years. What should we do? -I sold a property and have about 100K. I also have 100K in student loans. Should I wipe out my loans or invest the 100K into real estate? Remember, you can call in to ask your questions 24/7 at (800) 525-7000 or email them to [email protected] Also, visit our website at MoneyWise.org where you can listen to past programs, connect with a MoneyWise Coach, and even download free, helpful resources like the free MoneyWise app. Like and Follow us on Facebook at MoneyWise Media for the very latest discussion! And remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab on our website or in our app.