how do you achieve success with your finances? I have found it takes vision,
discipline and faith to become successful. I am including 10 steps that, if you
follow, will help you achieve the results you desire…
1. Ownership
Come to a understanding that God has
created everything in this world and you must look to him as the source for all
your needs. Learning to submit to his authority in the area of money allows you
to live a life of peace within your heart and mind as he lovingly will provide
everything you need.
2. Stewardship
Accept your role as a
manager or steward since it is your responsibility to submit to The Owner as you
will be held accountable for your efforts. With time you will learn he wants you
to become a conduit so he can utilize all of his resources through your
faithfulness.
3. Tithe/Save/Spend
The simple principle of
tithing 10% first, saving 10% second and living within the remaining 80% should
be the starting line. As you begin to accept and implement the concept, I
encourage you to increase the tithe and savings as your faith, knowledge and
self-control increases.
4. Earning Capacity
Everyone has the
ability to earn money so let’s imagine that you are a money machine that you
will deposit money into on a weekly basis. During the remainder of your life you
will earn money for the services you provide.
The average adult will earn
over one million dollars in their lifetime so you must understand that the
management of your money is as important as your earning capacity.
5.
Interest
Learn the principle of simple and compound interest. Invest the
money you save so it can begin producing a harvest for you. The more your money
makes the less you have to deposit into your money machine.
6.
Debt
Minimize or eliminate your debt as you are depositing into someone
else’s money machine. Remember when you have debt you are controlled by the bank
or mortgage company and it is their rules that will be applied in uncontrollable
situations.
7. Financial Plan
It is imperative to have a
written plan with goals, objectives and a budget. The average investor does not
and they will not attain what they have not defined. Review the plan at least
annually so you can adjust it as your goals and situation will dictate the
need.
8. Understanding Risk
Every investment has risk and you
must define all your choices into one of three categories minimum, moderate, or
aggressive. Utilizing an investor profile will allow you to establish a baseline
risk tolerance in which to compare your investment options.
9.
Cost
Every investment choice has fees and cost to manage the investment.
Management, trading, acquisition, brokerage and governmental fees are the major
ones to decipher. It is your responsibility to completely understand and have
disclosed to you all fees as they will erode the return on the
investment.
10. Diversification
Another way to avoid risk is
have your investments diversified. Remember Grandpa always said, ‘don’t have all
your eggs in one basket’ and that is what diversity means. If you have money in
the stock market I would suggest utilizing a index strategy that buys one of
every type of investment in its market place and provides you the diversity with
low cost and better profit.
Final Word: The Bible gives us
numerous scriptures on money, as God knew the struggles we would have with our
finances. The one that gives me comfort shares his promise,”I love those who
love me, and those who seek me find me. With me are riches and honor, enduring
wealth and prosperity” (Proverbs 8:17-18).
May God bless you in your
journey.
[written by Guy Hatcher]
