One Phrase Financial Advice

The One Phrase A Client Needs To Remember

Excerpt:

Ted Jenkin, of OXYGen Financial says, “You must always pay yourself first.”

George Papadopoulous, a CFP from Michigan chimes in, “Nobody knows.” (We’re sure he wasn’t referring to this blog though.)

LLBH Private Wealth Management’s Jim Pratt-Heaney adds, “Develop a detailed financial blueprint.”

And the USAA’s June Walbert says, “Know how much you’re spending and on what.”

Comment: While none of these reflect a Christian world-view (eg "pay yourself first"), I think all have value. Of the above the fourth (in my view) is the most valuable - "how much you’re spending and on what"

I'll add some of my own (all at least touch on finances):

• "But seek first the kingdom of God and His righteousness, and all these things shall be added to you." (Matthew 6:33)
  
• "Take heed and beware of covetousness, for one’s life does not consist in the abundance of the things he possesses" (Luke 12:15)
  
• "Honor the LORD with your possessions, And with the firstfruits of all your increase;" (Proverbs 3:9)
  
• "For the love of money is a root of all kinds of evil, for which some have strayed from the faith in their greediness, and pierced themselves through with many sorrows" (I Timothy 6:10)
  
• "For men will be lovers of themselves, lovers of money, boasters, proud, blasphemers, disobedient to parents, unthankful, unholy ... (2 Timothy 3:2 (context end times!))
  
• "For a bishop must be blameless, as a steward of God, not self-willed, not quick-tempered, not given to wine, not violent, not greedy for money," (Titus 1:7 (Context ... qualifications for church leadership))
  
• "covetousness ... is idolatry" (Colossians 3:5)
  
• "The ants are a people not strong, Yet they prepare their food in the summer" (Proverbs 30:25)
  
• "Let him who stole steal no longer, but rather let him labor, working with his hands what is good, that he may have something to give him who has need." (Ephesians 4:28)
  
• "whereas you do not know what will happen tomorrow. For what is your life? It is even a vapor that appears for a little time and then vanishes away" (James 4:14)
  
• "But this I say: He who sows sparingly will also reap sparingly, and he who sows bountifully will also reap bountifully. So let each one give as he purposes in his heart, not grudgingly or of necessity; for God loves a cheerful giver." (2 Corinthians 9:6-7)
  
• "Moreover it is required in stewards that one be found faithful." (I Cor 4:2)
  

OK ... enough of the Bible verses for me ... if you have one to add, leave a comment. Other off the cuff financial advice (and frankly I have made so many financial mistakes in life that I could probably write a book about it!)

• The ultimate possession is eternal life in Christ. The ultimate gift is salvation. The ultimate safety is salvation!
  
• Don't buy it unless you need it! (Broken this rule many many times!)
  
• If you buy something, buy quality (something that lasts)
  
• Save every pay period (broken this rule many times)
  
• Give without expecting anything in return (not Quid pro quo giving)
  
• Know where your money goes (We don't have a budget per se, but of late (for the last 10 years or so) we know where we spend it). We used Quicken for many many years. Now we use Yodlee (which is free and web based). I highly recommend this!
  
• If married, share all financial things (joint accounts, joint tenancy, etc)
  
• If married, have regular conversations about money! (Not a preoccupation with it! But set aside time (away from the kids!) to review finances. We do this every Tuesday night. Only takes about 15 min!)
  
• Budget and save for big things: The next car, Christmas next year, etc. (Buying a new car with cash is so much fun. The salesman is completely disarmed!)
  
• Pay off credit cards (if you use them) at the end of every month. (We have done this consistently over our marriage. There have been exceptions - like the sudden death of Kathee's mother that involved a trip to Florida (airfare, hotel, rental car, etc. It's good to have credit for emergencies!)
  
• Have an emergency fund that is liquid (like a savings account). Emergencies happen. Eg transmissions fail (we've done this twice), washing machines die when you don't expect it, etc
  
• If married and have children, have adequate life insurance. Ask yourself the question: if I died today, how would my wife pay the bills over the next 3 years (or more). Term insurance is the best option (in my view).
  
• Have a current will (both husband and wife need one!)
  
• Don't look to the government, your church or your children to provide for you!
  
• Sounds morbid, but plan for the funeral. We haven't bought a pre-paid plan, but we know what we want the funeral to "look like": not cheap but not ostentatious.
  

Anything you might add?