Create an Opportunity Fund, Not Just an Emergency Fund
“The plans of the diligent end in profit, but those of the hasty end in loss” (Proverbs 21:5).
Someone has probably told you to make sure you have an emergency fund. You never know when you might need to replace your furnace, when you might lose your job, when you might end up at the ER, when you might … fill in the blank.
It’s true; these things happen, and having accessible money around to pay for them makes for less stress. By all means, have an emergency fund (and work with someone to determine the amount that is appropriate for your situation)! But, I want to propose a second fund that most people should consider: an opportunity fund.
Part of me wants to rename the emergency fund, but the more I think about it, the more I think they should be separate funds. While reframing your mindset to believe that buying a new furnace for your home is an opportunity (better quality, higher home value, etc.), the truth is that if your furnace goes out in the middle of a cold front and you are faced with days in a row that will not reach above 0 degrees, it is an emergency to replace it and to keep your family, including twin infants (I’m speaking from experience), warm.
What Is an Opportunity Fund?
When I say “opportunity fund,” I am talking about money that you intentionally save for opportunities that you might not know about yet.
How do I define opportunity? It can be anything good or appealing that you can take advantage of. I’m not sure about you, but for me, the word “opportunity” usually comes with feelings of excitement. I think of the opportunity to go on a trip, to meet someone I always wanted to connect with, to hear someone speak whom I look up to, or to check something off my bucket list. Service and giving also come to mind: going on a mission trip, giving an impactful gift, or providing a life-changing experience for someone else.
Looking back through this list, you can see that money is one of the ingredients to make any of these opportunities possible. An opportunity fund is a designated spot to begin saving before we know what opportunities God will place in our life.
An Intangible Goal
In my last article, I discussed goal-based saving and investing. The opportunity fund is similar, except your goal isn’t tangible. It could be something along the lines of “not missing opportunities that come my way” or “being prepared for Holy Spirit inspirations.”
The hosts of one of the podcasts I listen to, What God is Not, run a nonprofit called Photina. This Byzantine Religious mother and Byzantine priest raise money to “bring ‘the whole town’ to Jesus through evangelization efforts and service to the poor and needy.” It is an incredible example of an opportunity fund. Mother Natalia used some of the money to send someone a book or flowers “just because” or to support someone who really needed it. She and Father Michael O'Loughlin are intentional about letting God bring the money and letting Him direct it. They want to provide for someone who needs to be told she is loved as much as they want to provide for someone who needs a meal.
The beauty of an opportunity fund is that its use is sporadic and varied. One time, you may use it to send yourself on a trip; the next, you may use it to buy dinner for a family who brought home a new baby; the next, you may use it to order a perfect present for the family member who is usually impossible to shop for. It is money that is available for spur-of-the-moment purchases without digging into another part of your budget. It is a way to serve and love yourself and others.
All that said, your opportunity fund is ideally part of your budget—you should have a set monthly amount you’re adding to it, and you must be diligent about only spending what is in it. While some people are naturally over-generous, it is irresponsible to give without considering the rest of the expenses you are responsible for. This is another great reason for this fund, however: You have money for giving and spending on yourself while providing for yourself and your family responsibly.
Regularly putting money into an opportunity fund might not be the right move for you now, but keep it in mind. Maybe you add to it only when you have a bit left over at the end of the month. Start with that money, and see what happens. Most importantly, be prayerful about it. Ask God how He wants you to use your money and look for the opportunities He gives you. Allow yourself to be generous, allow yourself some treats, and allow your family some extra “just-because” gifts.
Remember all that you have has come from God; be grateful for the blessings He gives you, and say “thank you” when the opportunity fund has just enough in it to make a wish or dream come true.
Erica Mathews is a CERTIFIED FINANCIAL PLANNER™ Professional with Financial Counseling Associates, a small, family owned, independent, financial planning and investment management firm. She is passionate about helping families and individuals build their wealth so they can live out the calls God has placed on their hearts. As a wife, mom of four, and businesswoman, she understands the complexities of family life and helps relieve the burden of financial stress with organization, a plan, and automation so her clients hit their goals. She lives in Colorado with her husband and four kids. They love everything outdoors including gardening, hiking, biking and simply exploring nature. If you would like to reach out to Erica, her email is erica@fca-inc.com.