Faithful Finance: 10 Secrets to Move from Fearful Insecurity to Confident Control

Introduction

FROM FINANCIAL INSECURITY TO CONFIDENT CONTROL

Come to me, all you who are weary and burdened, and I will give you rest.

Matthew 11:28

God has laid it on my heart to help guide you on a path to financial freedom. I want to help move you from fearful insecurity to confident control, as it relates to your personal finances. As a financial advisor for two decades, I have observed that financial issues are one of the greatest stressors for both individuals and married couples. Sadly, trouble with money is one of the top three reasons that couples divorce. Issues with money cross all genders, races, and belief systems, proving that the fears associated with money do not discriminate. Those who don’t have enough money to provide necessities for their family are often consumed with their personal finances. Surprisingly, those who do have plentiful resources are also concerned about their personal finances. You may be surprised to learn that my wealthy clients whom I counsel are often the most fretful people I meet. Those who do not have enough money and those who do have money are both worried about personal financial issues. It’s epidemic.

Thank God there is hope in Christ. Jesus came so you could have access to all of God’s blessings and treasures—all of them. My sincere desire is to share with you how to handle your finances so you can live without fear and anxiety.

Money is a tool to be used wisely, and it can be a blessing to you. Those who are obedient to God’s plan for their finances will be blessed, and will also be able to bless others. However, God’s blessings look different for everyone. Please understand, I’m not preaching a prosperity gospel. I’m not promising that you will be rich beyond your wildest imagination if you believe in Christ, read this book, and follow my advice. However, I do want you to know that you can learn to manage money wisely and live a much more peaceful and fruitful life.

I also want you to know that the God of the Bible is good; the God of the Bible indeed blesses. The God of the Bible is the God who will see us through, regardless of our stressful circumstances. God sometimes blesses our finances, and we raise our hands in thanks. But other times, we experience a lack of resources. Either way, God is always with us. He is watching and waiting for us to trust him, obey him, and learn that in loving him, we have life’s deepest blessing.

Are you ready to go on this journey with me? Not only will we study God’s Word, but we will also discuss practical ways to manage your finances. We’ll discuss how to have discernment when choosing a financial advisor, how to make a monthly budget that actually works for you, how to develop a personal savings plan based on your unique goals, and why learning to give generously will ultimately bless you the most.

I also want to teach you how to reduce your overall debt burden, plan for your children’s college years, insure your life so your loved ones are protected, and leave a legacy through estate planning. Most important, however, I want you to discover the true source of wealth: a personal relationship with Jesus Christ.

CHAPTER 1

Let a Professional Worry about Your Money So You Don’t Have To

SECRET #1: THE FAITHFUL SEEK OUT WISE COUNSEL

Plans fail for lack of counsel,

but with many advisers they succeed.

Proverbs 15:22

I had the privilege of meeting Frank and Diane as clients for the first time in the spring of 2011. They had done an excellent job of managing their personal finances even though they had experienced some very difficult trials in their lives.

Frank worked for a large oil and gas company for thirty-four years, the only client I had who was a lifer at one company. In today’s economy, people often move frequently from one position to another at various companies in order to climb the corporate ladder. Not Frank. He went to work for his employer in 1978 and retired on January 1, 2015. As a result, the majority of his net worth was tied up in his 401(k) plan, company pension, and corporate stock. Retirement for Frank was a bit scary because his work was a major part of his identity. That’s why he called me three years before he planned to retire. Until that point in his life, his personal financial plan was quite simple: work hard and save as much money as possible. However, he soon realized he needed a professional to coach him through the transition from working full time to retirement. He wanted to have a plan in place, and he certainly did not want to make any hasty decisions.

We held our first meeting at their modest ranch-style home. When I pulled into the driveway, they immediately welcomed me. I soon learned that Frank and Diane had lived in the same home for over twenty years.

After a good bit of time, I asked them, What are your hopes, dreams, and desires for your retirement years? Frank was rather young to be a retiree. I envisioned them volunteering at church, traveling, and spending time with family at their lake house. But Frank and Diane’s demeanor changed when we started to talk about the future. It seemed to me like they were living the American dream. However, the looks in their eyes left no doubt that something was indeed missing from this Norman Rockwell-like picture.

Diane proceeded to tell me their story. We have no children, she said. So there will never be any grandchildren. At age thirteen and age twenty, both of their sons had died suddenly and unexpectedly from previously undetected heart conditions.

By that point in my career, I had counseled many people about how to handle their finances, hearing many personal stories about family dynamics, mismanagement of money, and fear about the future. I honestly thought I had heard it all. However, their story was something I had never heard before, or even imagined. To lose not only one child, but both, was difficult to grasp. How could a good God let this happen to them—twice? Initially, I had no words.

Yet Diane was not bitter. She lived at peace with her circumstances. She didn’t pretend that the subject was not painful. However, she certainly was not depressed, angry, bitter, or withdrawn. I asked her that afternoon, How have you survived the death of each of your sons? I honestly cannot imagine such grief.

She looked at me and said words I will never forget, Emily, my faith is in Jesus Christ. This is not my home. My earthly life is temporary. I’m at peace knowing that both of my boys loved Jesus. As a parent, that is the most important thing in the world. I know we will be together again, so I have made a conscious choice to never become bitter. I want to make sure my boys recognize me when we meet again in heaven for eternity. If I become angry or bitter, they might not recognize me or know who I am when we are reunited. Diane embodies an amazing testimony of grace, poise, and most important, genuine faith to all who meet her.

As I soon learned, God has continued to use Diane’s story to minister to those experiencing great loss and tragedy. This story always makes me think about where I’m headed after this life. Friend, I want us both to spend eternity with our heavenly Father.

Frank also uses their tragedy to bring about good. He teaches a class of young boys at their church, and he often reminds each boy that he is not invincible. He explains that the best gift they can give to their parents is a relationship with Jesus Christ. Through Frank and Diane’s lives, God has brought beauty from ashes.

Why People Worry about the Future

Frank and Diane understand the importance of perspective when it comes to making plans for the future, but not everyone has such a solid foundation. In fact, many worry incessantly about the future. That kind of stress robs them of joy today. Fretting about money causes people to lie awake at night, worried about their future. The most common questions I hear regarding money are:

•How will I afford to send my kids to college?

•When will I have enough money saved to be able to retire?

•What will happen if I have an unforeseen illness or disability?

•Do I have enough life insurance to take care of my loved ones if I die before my children are raised?

•Why do I need a will?

•Who can I trust to give me personal financial planning advice?

Can you relate to any of these questions and concerns? Perhaps one, or many, of these questions drove you to read this book. If so, you’ve already sensed the first secret to faithful finance: you need to seek wise counsel to help you manage your money well.

Most of us learn our first money lessons from our parents. If you were blessed to have wise parents who knew how to manage their money well, you likely soaked in some important lessons, such as the need to spend less than you earn, the importance of hard work and planning, and the benefits of having a realistic household budget. However, please remember that learning to manage money well is a lifelong process. Most important, we all need a biblical foundation to understand the importance of putting our knowledge into action. That’s why this book highlights not only the financial principles we all need, but also the spiritual foundation that will enable us to put that knowledge to work.

So how can you learn about money? I believe that reading Faithful Finance is the perfect first step in your journey. Proverbs 15:22 tells us many advisers are necessary for success. I want to encourage you to be a lifelong learner. Scour websites, listen to radio broadcasts, and subscribe to newspapers or magazines that teach you about money. It doesn’t have to be an overwhelming process. At the end of this book, I will list some recommended resources that you can utilize to educate yourself further on a variety of topics.

Some people enjoy learning about money and embrace the chance to do so. They like being in the driver’s seat and feeling a sense of mastery and control. They truly enjoy receiving advice from wise and successful people around them, from books they read, and from trustworthy websites. At some point, however, most people will benefit from personalized, professional advice tailored to their unique circumstances. That’s where seasoned financial advisors like myself can make a huge difference in your long-term financial success.

As a financial advisor, I don’t just manage money. I manage relationships with people. I see myself as the quarterback of my client’s financial team. My job is to ensure that all of the crucial pieces and advisors are in place for my client’s overall financial well-being.

Since I cannot meet with you in person, first see what you can tackle on your own with the help of this book, but please be open to seeking professional help and advice if appropriate for your unique situation. Accountants, investment advisors, insurance brokers, and estate planning attorneys are just some of the professionals you may need as you seek help to manage your personal finances.

My goal for Faithful Finance is to give an overview of what a successful financial plan looks like in real, everyday life. I want you, my reader friend, to be empowered. I want you to have the knowledge needed to determine which aspects of your financial plan need immediate attention. It may be that your finances just need a minor tune-up and not a complete overhaul. For example, you may simply need assistance in creating a detailed monthly household budget. As you learn more, and put more pieces of your financial plan into place, you will move from fearful insecurity in dealing with your finances to a feeling of confidence and control.

A Comprehensive Financial Plan

I really wish I could sit down with each and every one of you over a cup of coffee to learn about your life. That is my favorite part of my job. I would love to know your hopes, dreams, goals, and fears as it relates to your personal finances. However, it’s just not possible. Since I can’t meet with you in person, I will take you through all of the financial planning topics that I typically discuss with my own clients. A comprehensive financial plan will always include the following topics:

•A realistic monthly budget

•A cash reserve plan for unforeseen emergencies

•A plan to tithe and give purposefully and generously

•A debt management strategy

•Specific personal savings goals

•Affordable insurance to protect your loved ones

•Advice about purchasing a home you can afford

•An investment overview

•A strategic retirement plan

•A college savings analysis for children and/or grandchildren if applicable

•A current estate plan

Each of these topics may affect you and your personal finances at some point during your lifetime. Here is a brief overview of what these terms mean and how they relate to you personally.

Monthly Budgets

A monthly budget is a tool used to track monthly income and expenses. It allows an individual or a married couple to take control of their monthly spending habits. The main goal of a monthly budget is to ensure that you have enough money to pay your bills and expenses each month. It also provides a framework to determine how much money is left over each month to begin a savings plan. For more on budgeting, please refer to chapter two.

Cash Reserves

I always recommend that my clients have cash on hand to cover at least three to six months of living expenses. A cash reserve is an emergency fund. It might consist of money in a checking account, savings account, or money market fund. For more details on building a cash reserve account, please refer to chapter two.

Tithing and Giving

The New Testament talks a lot about the importance and benefits of giving. We are to give joyfully as we are able. Why? Because all of our resources ultimately belong to God. We’re just managers of the assets that he has temporarily given to us. Sometimes that means giving more than ten percent; sometimes that may mean giving less. People often argue about whether the Bible intends for you to give ten percent of your gross income or ten percent of your net income. Honestly, that’s between you and God. Tithing is supposed to be a form of worship to God and service to the body of Christ. For more on giving, please refer to chapter three.

Debt Management

This is a crucial part of financial planning. Friend, rest assured that not all debt is bad. This may seem like a foreign concept to some people who subscribe to the philosophy that debt is to be avoided at all cost. I disagree. However, you must be very prudent when using debt to improve your overall net worth. Examples of debt that can actually help improve your long-term financial future, and overall net worth, are the following:

•Student loans, which can allow a person to get an education so they can dramatically increase their earning potential over their lifetime. A person’s ability to work and generate an income is their greatest asset.

•Small business loans to start a viable business.

•A mortgage loan to purchase a home, which is an appreciating asset. A home may be one of the largest investments an individual or a couple will make in their lifetime. If you never purchase a home, you will always be enslaved to a landlord as a renter.

Please, please understand that I’m not a proponent of taking on debt that you cannot afford. However, there are certain circumstances when debt is not all bad news. For more information on debt management, please refer to chapter four.

Personal Savings Goals

Goals are extremely important because they give you direction. If you do not have a plan, you will inevitably lose focus. As a result, you won’t make wise decisions with your finances. There is a major difference between savings needs and savings wants. For example,