Faith Based Investing

Financially freedom comes with a price tag. It’s cost? It takes discipline, focus, prudent planning, patience, time, and of course, wise counsel. However, it’s the mistakes people make that often prevent or delay financial freedom.

Mistake #1: Putting off financial planning.

Don’t do this: This may be the biggest mistake of all. Procrastination does not help you save for retirement, and it will not help you reduce your taxes or transfer money to your heirs. Delaying necessary financial planning can be perilous. Some avoid planning out of fear – they simply don’t know where to begin. Don’t let this stop you.

Instead do this: Decide today to do something about your financial future. Seek a qualified financial planner

Mistake #2: Putting all your eggs in one basket.

Don’t do this: Too many people invest everything in just one place.

Instead do this: Try spreading your assets across multiple investments and you’ll help to insulate them against the effects of economic ups and downs.

Mistake #3: Buying more home than you can afford.

Don’t do this: Interest-only loans, option adjustable-rate mortgages (option ARMs) and lease purchases still tantalize couples and families with small nest eggs, modest salaries and credit blemishes into taking on much more liability than they can bear. The result is often foreclosure.

Instead do this: Speak to a professional to make sure the amount of home you purchase makes sense for you.

Mistake # 4: Making impulsive or emotional money decisions.

Don’t do this: A decision that feels good (or exciting) may not be appropriate for you financially. Avoid spur-of-the-moment financial choices, and the influences that may trigger them.

Instead do this: The next time you’re about to make a snap decision, stop and think. Will you lose the opportunity if you take a while to consider your next move? Consider and compare whenever possible.

Mistake #5: Living above your means.

Don’t do this: Be seduced by big-debt, big-ticket luxury items … sometimes all the way into bankruptcy.

Instead do this: Make wise decisions about money, take the time to consider big purchases, and be mindful of what effect they’ll have on finances down the road.

Mistake # 6: Avoiding all risk.

Don’t do this: Caution is good, but being extremely risk-averse (for example, refraining from investment and just putting your money in an FDIC-insured bank account) may cost you in terms of the growth of your retirement savings and assets.

Instead do this: If you’re holding back because you’re unsure, speak with a financial advisor. Chances are you need some growth to reach your goals.

Mistake #7: Too much exposure to your company stock

Don’t do this: In 401ks, many levitate toward the familiar option: company stock. Sometimes the match or incentive stock is paid in company stock. Whatever the reason, the freefall of many technology stocks, as well as the stock of some blue chips, is a painful reminder of the risk of putting your retirement future entirely in the hands of employer stock. Enron, WorldCom, Lucent, the list goes on…

Instead do this: Consider the numerous strategies available for diversifying your portfolio beyond your company stock. Look at other vehicles outside your retirement plans such as using exchange funds or individual stocks. When you get the opportunity, sell off some of the company stock you own (when price is optimal and time restriction, if any are gone) and invest in other areas. SEC rules make it easier for you to divest company stock.

Mistake # 8: Depending on your business for retirement

Don’t do this: It’s common for many small business owners to depend on the eventual sale or family succession of their business to fund their retirement. This carries the same risk as overloading on company stock.

Instead do this: Set up a company retirement plan where you can invest in outside assets. Try to diversify your investments outside your industry.

When it comes to the area of saving, many confuse the act of planning with the act of hoarding. There are both proper and appropriate ways to save and invest portions of our money. However there is a danger of investing to create financial freedom apart from God. Where is the line? It will come down to your heart and where your motives lie.

Your motives must still involve God and His direction for your life. Taking matters into your own hands and relying on wealth alone will open yourself to an ungodly lifestyle. I have met many strong followers of Christ who believe investing and saving show a lack of faith in God. It reminds me of the story:

A man died and went to heaven and when he got to heaven he questioned why God allowed him to die. Earlier in the day the man had turned on the weather channel and saw that heavy rains and flooding were coming and everyone should evacuate. The man, being faithful, said, “God will help me” so he did nothing. The waters came in like a fury. The flood waters began to rise and he was forced to the second floor of the house. He saw a boat go by and the two men inside the boat asked if he needed help. He refused saying that “the Lord will help me”. So they went on their way. The waters continued to rise so he was forced onto the roof of the house. Suddenly a helicopter came by and asked if he wanted a lift. Again, he refused saying “the Lord will help me” and off the helicopter went. The man died in the flood and questioned why God would allow a man with such strong faith to die. Who do you think sent the message, the boat, and the helicopter?

There is a strong need for faith but we need to balance this with our God-given common sense. It is a responsibility for us to provide for our family’s future. 1Timothy 5:8 always comes to my mind: “Everyone should provide for his own relatives. Most of all, everyone should take care of his own family. If he doesn’t, he has left the faith. He is worse than someone who doesn’t believe”. Pretty strong words! We should have faith but also the desire to find ways to provide for our families.

I just wanted to take a moment and wish you a Happy Father’s Day!

Mario Cuomo once noted …

“I talk and talk and talk,
and I haven’t taught people in 50 years
what my father taught by example in one week.”

Being a father is more than merely “having” a child. It’s an important job that lasts 24 hours a day for the rest of your life, and those who are equal to the task are to be commended.

Enjoy your day! You’ve earned it!

Great video on the story of Father’s day:

How do you find more money to invest? For most people there are two solutions: you either grow your income or reduce your expenses. Aside from inheriting or coming into additional money or selling something, there really is no other way. One thing to keep in mind is that your income can grow only to the extent that you do. If you are not constantly improving yourself and your skills, you will find it difficult to increase your income.

Think big! You will be paid in direct proportion to the value you deliver to your company. Focus on opportunities and go beyond your job description. Making a higher income is often correlated to the level of commitment you have toward your job. If you love what you do, it is easier to be successful. If you have others around you who are successful, learn from them. Partner and mentor with someone wealthier and more successful than you. Leaders earn a heck of a lot more than followers.

You are bigger than your problems. Grow yourself above your problems. Grow beyond your internal ceiling. Get paid based on re­sults. Earn what you’re worth. Focus more on your net worth than your income. Even if you are not earning much now, manage money well. Until you show you can handle what you’ve got, you won’t get any more. Develop good money-management habits and save money to invest. Good money-management skills are more important than the amount of money you have.

There are people who always seem to live crisis to crisis. They tend to also live paycheck to paycheck. Do you see where I am going with this? They end up digging themselves a pretty deep hole. They find a way out, and then boom!–they are back in the hole. Crisis after crisis tends to drain all they’ve saved or, worse, max out the credit cards. Like a rat trapped on a wheel, the cycle continues. A new perspective and a new set of rules are required to break the cycle.

READ MORE HERE

Do you ever question why some people seem to be like magnets attracting wealth? Wherever they go, wealth follows. Sometime this is called the Midas touch: everything they touch turns to gold. They buy a house and sell it at the right time. They buy a stock at just the right time and get out before it tanks. How do they seem to get it right every time? On the other hand, why do some people seem to have the worst luck in the world and never get ahead, they settle for mediocrity or even worse – poverty?

Gaining wealth has very little to do with your education, socio-economic status, amount of talent, or the environment where you grew up or your current environment. It also has very little to do with your IQ, physical gifts, or where you live. These factors combined can add or subtract to your potential. However the biggest obstacle is you. Yes you! Don’t stop reading, I’m talking to YOU!

We all have an internal thermometer set at 98 degrees. You can go no higher, no lower. With your wealth potential, where is your thermometer set? Have you imposed a limit on yourself? Many create self-imposed glass ceilings. These are obstacles that limit your potential. So many people can never seem to break through these obstacles, no matter how hard they try. This may be the case with you.

If you look real close, you’ll see the glass is really paper thin and it can be crushed if you really try. Most of us set goals and have expectations that are reasonable, even achievable. It is when we dare to dream big, to think big, and to think the unimaginable, that anything is possible. Stop wasting time and go break some glass (figuratively speaking)!

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Does Money Define You?

“I always wanted to be somebody, but I should have been more specific.” – Lily Tomlin

Many people believe bank accounts, investments, material possessions, income, or employment, define self-worth. These points of view are not only short-sided but a huge trap. Money can corrupt anyone that is willing to fall in love. You either possess money or it possesses you. When we become trapped by money, often we discriminate. How often are privileges and importance placed on human beings based on their income, net worth, profession and other worldly measures?

The pressures of the world can eat away at one’s soul. If you define success and worth based solely on earthy measures, you can never find peace. I saw a bumper sticker yesterday I see all the time that couldn’t say it any better:

“No God, no peace, Know God, Know Peace”

You probably have seen this bumper sticker before. It may be an old cliché, but really ponder it, let it sink in. Do things of this earth really make you any happier? Do riches make you happy? There is always someone with more money, better looking, more intelligent, and has more than you. How can you compete in a world with endless supply? Bad news! Even when you get to the top, chances are, you still are not happy. A recent poll of the richest 400 people in the world showed that nearly 40% of them were unhappy. Self worth is truly found in God, alone. Don’t let money or status define you.

To Create Goals?

“In his heart a man plans his course, but the LORD determines his steps.” – Proverbs 16:9

“A dream is just a dream. A goal is a dream with a deadline and a plan” – Harvey Mackay

Why do only 3% of Americans have written goals? Am, I missing something here? Is it our fear of failure? Maybe it is the time needed to make and write down goals? Is it possibly the lack of knowledge or a foundation on where to begin?

Whatever the reason, without clearly written, defined goals, it is difficult to achieve success. We cannot dwell on the past, look merely at where we are today, or accomplish goals our own. There is a great need to get over the past, look to the future, and involve your loved ones in your goal setting. Most importantly, though, your goals should incorporate your faith.

Goals have a major purpose for our lives. They help us to define our passion and direction. They help us solidify our thoughts and actions. They also give us motivation and the drive to accomplish what we set out to do. Most importantly they can define what God’s will is for our lives.

Now in order to begin to set goals, you should start with prayer. Read and study God’s Word and apply this toward your goals. It is critical to begin writing out your impressions and desires and where God is leading you. A journal or notebook can be a great place to channel your vision. Your goals need to be measurable, have at least a 50/50 chance of success, must be compatible with your faith and values, and must be specific enough to track. Sometimes, you need to walk before you can run. Start small if you have to, just move. A small step forward toward achieving your goals will help you work toward more progress.

Guidelines to keep you on track
As you begin to develop goals and create new ones, here are some helpful guidelines to keep you on track:

1. Ensure your goals are working toward something that is important to you, something that has meaning and purpose. Don’t just make a goal for the sake of making one or write something that just sounds good.

2. New goals can not contradict your other goals unless there has been some sort of change in your vision or philosophy or previous goals sent you down a wrong track. Your goals should have harmony with one another and not pull you in various competiting directions. Do your goals contradict God’s Word?

3. Look to develop goals in at least six areas of your life:
- Family and Home
- Financial and Career
- Spiritual and Ethical
- Physical and Health
- Social and Cultural
- Mental and Educational

Setting goals in each area of life will ensure a more balanced life as you begin to examine and change the fundamentals of everyday living. Setting goals in each area of life also makes sure all areas of your life are working together, toward the same types of goals

4. Write your goal out in complete detail. Make sure each goal is quantifiable and measurable.

5. Aim High.

6. Have your goals in a place you can view daily.

7. Track, measure, and adjust as neccessary.

Writing down your goals creates the roadmap to your success. Although just the act of writing them down can set the process in motion, it is also extremely important to review your goals frequently. Remember, the more focused you are on your goals the more likely you are to accomplish them.

Sometimes we realize we have to revise a goal as circumstances and other goals change. If you need to change a goal do not consider it a failure. Sometimes, we must sit back, adjust our course, and change directions.