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Advice About MoneyRead on for advice about money,money management, budgeting and tips on how to save more of your money. We are dependent upon God for even our sense of worth as individuals. Our uniqueness and dignity is rooted in our creation in the image of God. Our value is not tied to wealth, status, accomplishments, or position. It is a gift. Obviously, this wonderful truth flies in the face of the modern technology to define people by what they produce or what they have done.
~Richard Foster, Freedom of Simplicity
Life on earth is relatively short. Some live their lives without pleasure, constantly saving every penny for a future they may not ever see. Others live only for the moment, never saving anything for a future that may be longer than they imagine. True wisdom is finding that balance that will allow both present satisfaction and the possibility at least of a secure future. And while we invest in ourselves and our needs, we have the privilege and the responsibility to give to, and to invest in, those who need us.
Lack of money and out of control debt create tremendous personal stress, erode relationships at every level and contribute to high divorce rates. Businesses collapse due to poor money management and entire societies collapse due to poor distribution of all kinds of resources. The average family in the U.S. is only one month away from financial disaster. These families often own several cars, live in houses they cannot afford and carry $10,000.00 or more in credit card debt.
Of one thing we can be certain: our wants will always exceed both our needs and our funds. If our own egocentric greed does not ensure that, then advertising will. If we allow our wants to determine our buying patterns, the result will be chaos—and considerable debt. ~Richard Foster, Freedom of Simplicity The following five strategies may seem simple or even simplistic, but they work! Strategy 1 - AwarenessThe first step to financial health is awareness. Where does your money come from? What are you spending it on? How much, if any, do you save?Financial stress and worry often lead to avoidance. As strange as it may seem, in our society at least, many people deal with lack of money by spending more. We are addicted to “things” and feed that addiction with easy credit. Have the courage to face the reality of your financial situation. Courage will stimulate the clear, focused thinking you need to begin to manage, and use wisely, the money and other resources that you have. Strategy 2 - A Balanced View of MoneyMoney is not "the root of all evil." What that Bible verse actually says is that “the LOVE of money is the root of all evil.” (1 Timothy 6:10 KJV) Neither is money the ultimate source of happiness.Money is a resource that can be squandered or used as provision and blessing---for you and for others.
It's important at times to see and think outside the criteria our own culture sets and develop a more global perspective on wealth---and our position in the world. Take a look at this short video titled
The Miniature Earth.
Strategy 3 – Make A PlanAnyone can learn to handle money more effectively. It starts with spending less than you make. Ignoring this simple truth plunges many people deeply into debt.Here's a corrective strategy that can immediately begin to reduce your financial stress: Cut back spending by 20 to 25%. Take a careful look at your life, and you'll find this is possible. Pack a lunch, stop eating out, get a video instead of going out to a movie, repair things rather than replacing them. Live more simply! It's essential that you track your cash flow, and take control of your spending. Create a budget and stick to it! If you're living on your credit cards, something has to change. You're racing down a dead-end street, and might need some professional help. Some people end up creating money-challenged lifestyles because they refuse to be responsible for how they handle their money. This can be corrected by simply changing how they manage their relationship with their money.
Margaert says: I've been helping people just like you focus upon God's Word to substantially increase their finances. When I first learned about God's financial plan I began using the principles right away. It took a little time at first to get out of debt, but I soon learned that with some practical thinking and the power of God's Word, the process of growing our finances and getting out of debt can happen sooner than later if we put forth the faith effort.
A budget is nothing more than making the decision where our money goes. Without a budget we forfeit the ability to make that decision. A budget merely controls how much goes where. It keeps us honest with ourselves. ~Richard Foster, Freedom of Simplicity Strategy 4 - SaveMost financial experts recommend that you "pay yourself first" by saving a minimum of 10% of your income. But the amount you save is not as important as developing the habit of saving! Even if you can only save 1% of your earnings, just do it! And once you commit to your savings strategy, stick to it every payday.
My favorite saving plan is through ING DIRECT. I have my ING account linked to my bank account (the web site walks you through it and it is very easy). I chose an amount that works for me to save and that amount is automatically transferred on the same day every week. You can set up your account to transfer to savings weekly or monthly--whatever works best for you. If I need some of my money, I can transfer any amount back to my bank account. There is no fee for the transfers and, while the money is in the ING account, it earns 4.5%.
Open a savings account in under five minutes with no fees, no minimums and FDIC insurance
They don’t advertise themselves as a great budgeting tool, but the way they are set up makes it so easy. Here is what to do: Open multiple savings accounts: Most other banks discouraged this, however at ING, once you have opened up your first account, any additional accounts can be opened with about three mouse clicks. Each account that you open can be named as something you are budgeting or saving for. Some examples might be:
Open an ING Checking Account ING checking accounts have some unique features:
There is great pleasure in simplifying financial matters.If you have ever used the envelope system for budgeting, you should be able to notice the advantages of this system.
Strategy 5 - InvestWhile you are building up your savings, commit some time to learning about investing. Many community colleges have courses on stocks, real estate, commercial property, starting a small business, and even investing in coins or collectibles.For the average person, investing can be a mystery. Terms like price to earnings ratio, market cap, and return on equity, can be a bit confusing to say the least but, in reality, are about as simple to understand as basic arithmetic. The first step to building your portfolio is to open a brokerage account. These accounts allow you to purchase stocks, bonds, mutual funds, and other investments by paying professionals to buy or sell the items you tell them to. There are many online sources of investment information. You can scroll through the sites and learn about investing whether you sign up or not. ING DIRECT Securities, Inc is a registered broker/dealer and a NASD member that's an affiliate of ING Direct.
When opening a new account, the minimum investment can vary, usually ranging from $500-$1,000 (and even lower for IRA's and other retirement and education accounts). Most offer the option of either having an application form sent to you, or allow you to fill them out online, print them, and mail them in with a check. The process is easy and can be done fairly quickly at almost all financial institutions.
Teaching Children About MoneyPlanet Orange is the ING DIRECT key to a sound financial future for kids. This friendly web site provides a simple and fun way for kids to learn about the importance of saving. With help from Planet Orange, you will be able to tackle topics that range from the value of money, to setting a budget, understanding credit, and building savings goals for the future. An interactive map, and the help of “tour guides”, Amy and Cedric, will soon have you and your children on your way to Moneyland, South Spending, the Republic of Savings, and Investor Islands.
and finally...The last "strategy" is that of our responsibility to others. I will devote another page on this site to why we must, and how we can, invest in ways that will make a lasting difference in the lives of others.God’s blessing is not for personal aggrandizement, but to benefit and bless all the peoples of the world. The theology of wealth says, “I give so that I can get.” Christian simplicity says, I get so that I can give.” The difference is profound.
~Richard Foster, Freedom of Simplicity
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