Why the most boring money habit might be the most useful one you ever build
A new year always brings hope. Fresh plans, good intentions, and a quiet promise that this year will be different.
Then real life arrives.
It often comes in threes. The washing machine floods the laundry. The car fails its WOF and needs new tyres. The kids suddenly need new uniforms or a laptop. These might not be dramatic (or they might be). They sure will be inconvenient, expensive, and badly timed.
When we’re prepared, we handle these moments calmly. When we’re not, stress rises quickly. We start juggling bills, questioning our decisions, and wondering if we’ll ever truly get ahead.
So how do we plan for a steadier 2026, one where savings grow quietly instead of swinging between boom and bust?
The answer isn’t exciting. It’s not clever. And it doesn’t come with a shiny app.
It’s the humble emergency fund.
The boring habit that buys peace of mind
An emergency fund is money set aside for life’s interruptions. Not holidays. Not Christmas. Just money waiting patiently for the unexpected.
Why does this matter? Stress leads to poor decisions. When we’re anxious, we borrow, delay, or react. A cash buffer gives us space to think clearly and avoid turning a short-term problem into long-term debt.
From a faith perspective, it’s an act of wisdom. Genesis 41 (where Joseph interprets Paroah’s dream about impending famine, and is put in charge of planning and preparation for it) reminds us that the wise prepare ahead. An emergency fund isn’t about fear, it’s about good planning and peace of mind.
How much do I really need?
You’ll often hear advice to save three to six months-worth of expenses. While useful, that goal can feel overwhelming and stop people from starting at all.
Instead, think smaller and more practical.
The purpose of an emergency fund isn’t perfection, it’s stress relief.
Ask yourself:
- What would really disrupt us if it needed to be fixed or replaced this year?
- What expense would normally go on a credit card?
It might be tyres, a phone, or a major appliance. Add those up, divide the total by 12, and start saving that amount each month into a separate savings account. Our brains respond better to small, achievable wins than big, distant targets. Once the habit is in place, momentum builds.
Can’t I just add to my mortgage in an emergency?
If you do have a mortgage, it’s not wise to think of it as a potential emergency fund, and your lender may not allow you to extend your mortgage debt to cover non-house expenses. It’s also not wise to fall behind in your mortgage payments if that can be at all avoided.
Without saved-up cash available, a $5,000 repair may end up on a credit card or be added to long-term debt like a personal loan. A short-term problem quietly becomes a 3-, 5-, or 25-year cost, with much interest added!
An emergency fund gives you options and keeps today’s inconvenience from stealing tomorrow’s freedom.
What about accessing my Christian KiwiSaver Scheme?
Your Christian KiwiSaver Scheme and other financial markets investments are designed for the long term, and they rise and fall with the market.
When it comes time to access your Christian KiwiSaver Scheme, having a modest cash reserve in a separate account can provide you with some shorter-term stability. It lets your long-term investments do their job while giving you confidence and control when something unexpected happens.
Prepared, not anxious
Emergency funds are boring, no doubt about it. They require some sacrifices now with no immediate reward.
But the day you’re waiting for a tow truck or facing an unexpected bill is the day you’ll quietly give thanks for that “boring” decision.
Emergency funds are living funds as you add to them and drawdown on them. They go up and down and are never finished. Start this month with whatever you can spare. Increase it slightly every six months or annually, if you can. Then step back, have faith, and watch it grow.
For something so unexciting, it produces something powerful: peace of mind.
The article above is for educational purposes only and is not financial advice. Please seek advice from a qualified financial adviser when making important decisions about your financial situation.
The New Zealand Anglican Church Pension Board trading as Anglican Financial Care is the manager and issuer of Christian KiwiSaver Scheme, The Retire Fund and The New Zealand Anglican Church Pension Fund. Product Disclosure Statements and Fund Updates are available here: https://angfincare.nz/news-and-knowhow/forms-and-documents/