1) Giving is Living
Malachi 3:10 Bring the whole tithe into the storehouse, that there may be food in my house. Test me in this,” says the LORD Almighty, “and see if I will not throw open the floodgates of heaven and pour out so much blessing that there will not be room enough to store it.
Now giving is not typically where financial planners start conversations, but my clients and target clients are primarily Bible believing Christians. In my own life, I’ve seen firsthand the above verse come to life! And, because I’ve experienced the truth of this verse, I want all of my clients and potential clients to experience this truth. As a church goer and someone who tries to stay adept to financial trends in churches, the article below shows that 25% of church goers give regularly and a much smaller number actually tithe (give 10%). In my own practice, I can corroborate this story as I see client’s budgets and tax returns. I’m often asked “What account should I invest more money in right now?” My answer to some clients is “your eternal account”. I believe so strongly in the promise above that I want every person possible to experience the blessings that come from it. In addition to working with Christian clients, I have the opportunity to work with clients who don’t have a particular faith belief. Would you believe I see some of these clients, without faith, adhering to a tithing principle through organizations like the Red Cross or Salvation Army? When I ask them why they do it, their answers are “because it makes me feel good”, “I don’t need all this money”, “I’d rather help those who need it, than be a Scrooge”. Now, that’s amazing. We could all take a cue from some of our secular friends in this regard! I’ve never regretted my decisions to up my giving and you won’t either.
2) Pay Off Debt
Proverbs 22:7 The rich rule over the poor, and the borrower is slave to the lender.
The second item on your financial agenda for 2018 should be to devise a plan to eliminate your debt. Yes, I know you can leverage your debt and utilize debt in such a way as to capitalize on potential investment opportunities. Yes, I know that major corporations borrow money, so they can create future opportunities. However, there are dangers to implementing this financial strategy as part of your regular financial planning. Number one is that you aren’t a major financial corporation like Coca Cola or Microsoft. Companies like this who borrow money to finance opportunities generally have ample sums of cash to cover their debt positions should something go awry. A business might measure their debt exposure by comparing their cash flow to debt ratio or their debt to asset ratio. What are your ratios? Do you have too much debt exposure? In a time of a potentially maturing market expansion, a Fed ready to steady the increase of interest rates, & a historic extended period of low interest rates, how much more do you think your debt is going to cost you in this next market cycle? Something else to consider… What are the trends of these financial corporations? Do you see smart companies taking on more debt right now or creating a better balance sheet?
3) Update Your Risk Assessment & Reallocate Your Portfolio Accordingly
Ecclesiastes 5:13-14 13 I have seen a grievous evil under the sun: wealth hoarded to the harm of its owners, 14 or wealth lost through some misfortune, so that when they have children there is nothing left for them to inherit.
The part of this verse I want to focus on is misfortune. What misfortunes could lie ahead for you if you don’t know what kind of risk you’re assuming in your portfolio? One of the greatest misfortunes I witnessed was during the market crash of 2000-2002. I only caught the tail end of this crash as a financial advisor, but I will never forget the people I met who lost their entire life savings because they invested all of their money in Ford or GM. At the time, I was an advisor in the Motor City. The hurt and devastation these folks experienced was unforgettable and unnecessary. If only they had someone who could have advised them before the crash…. I saw the same for clients who were heavily invested in technologies and the same for clients who only had Large Cap stocks. What is your allocation? How much risk exposure do you have right now?
Below is a quick link to determine how much risk you are assuming. I’d be glad to talk it over with you.
4) Create A Plan
Proverbs 21:5 The plans of the diligent lead surely to abundance, but everyone who is hasty comes only to poverty.
The verse above speaks for itself. You have to have a plan! Everyone’s plan looks a bit different. Maybe you need a tax plan or an estate plan. Whether it’s a financial plan or an investment plan, creating a document that gives you a roadmap to your destination will help ensure you arrive utilizing the most efficient route possible. I won’t beat this point to death. I have a free goal plan you can test out by clicking here https://connect.emaplan.com/ai.
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