On an eternal scale, no one can escape the negative consequences of failing to live out the following principles and most people never escape the earthly consequences of such failure. Therefore, you should resolve to use wisdom in managing your life and income to get the best out of life and godliness:
1. Recognize that everything you have is the LORD’s. You are only a manager who should look to Him for instructions on how to manage life and money. This requires that you show contentment and self-control when it comes to spending.
2. Honor God by tithing and offering the moment you receive any income. Give to ministries and charitable endeavors that please His heart and help you fulfill your purpose while on earth.
3. Sacrifice short-term opulent purchases when you need to. Choose delayed gratification and long-term well-being by living within your means. Otherwise, when your outgo exceeds your income, your upkeep will be your downfall!
4. Eliminate all debt. Plan and budget to buy houses, cars, and other merchandise with cash and not borrowed money.
5. Do not cosign loans for anyone and avoid all the cousins who crawl out of the woodwork to help you spend your newfound cashflow.
6. Save at least 10% of gross income in liquid accounts as a rainy-day fund to help you make it through job loss and layoff, emergencies, and catastrophes. Establish at least a $10,000 emergency fund and even more when you’re in an industry where pay is uncertain and unequal from month to month.
7. After all debt is paid and the emergency fund established, invest the 10% and more in no load low expense stock index mutual funds (large cap, midcap, small cap, and international) in equal percentages because they have a history of significantly higher growth than fixed income savings and inflation. People that have high income that is unequal and uncertain from month to month and year to year (entertainers, actors, professional athletes, etc.) should invest at least 30% using reputable brokerages like Vanguard, Fidelity, Charles Schwab, etc. Debt freedom and good stewardship will allow another 10% or more of gross annual income to be set aside for investing in more risky ventures after researching them and noting the purveyors are reputable and offering great opportunity for extremely high growth.
8. Diversify your investments using seven or eight trustworthy brokerages and bank. While you should have a multitude of counselors, it is not best to let any one person have power-of-attorney or ability to spend your income and assets; not your agent, attorney, accountant, manager, personal assistant, etc. Generally, it is best that you and your spouse maintain such control and give specific instructions and limited access to your money and accounts when you want any of your helpers to handle specific financial concerns for you.
9. Have an estate planner help you craft a will, trust, durable power of attorney with incapacity clause and other estate plans / guidance for personal representatives that work best for you and your family.
Please pray for this ministry and email me with any questions. May the LORD bless you richly as you follow His plan!
Genesis 1:27, Exodus 19:5, Psalms 50:10, Ecclesiastes 12:1, Ephesians 3:9
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