Faith Based Investing

“Every moment of our lives we are either growing or dying…” – Robert Cooper

“Without continual growth and progress, such words as improvement, achievement, and success have no meaning.” – Benjamin Franklin

We are either growing or dying spiritually.  There is no status quo!  God calls us to a life of commitment to Him.  Our finances reveal our commitments in life.  Where we spend, invest, and give our money reveals our priorities in life.   As we grow in our faith, we should long to have our finances line up with God’s word.  This means that we need to make a commitment to Him to make changes in our lives.  Over the next year we will look at various ways to combine our faith and finances.  Your journey begins today. 

Make a commitment to God that you will seek to learn His ways.

Psalm 37:4-6 sums it up:

 Delight yourself in the LORD and he will give you the desires of your heart. Commit your way to the LORD; trust in him and he will do this:     He will make your righteousness shine like the dawn, the justice of your cause like the noonday sun.

Judy came to see me frustrated and upset. She was tired of the long hours, unfulfilling work, and lack of passion for what she did.  As a telephone worker for nearly thirty years she had enough.  She couldn’t take it anymore.  When the company offered her a voluntary early retirement package, she thought it was an answer to prayer.  However her lifestyle of living beyond her means had overtaken any chance of accepting this package.

In order to prepare her for a future package and as a requirement to become a client of mine, I made Judy sign a commitment that she would change her habits and open her mind to learn new strategies to improve her financial situation.  She needed to make changes and commitments in order to have any chance of ever retiring.  The commitment was her first step in the right direction.

The definition of insanity is doing the same thing over and over and expecting different results.  If you do not commit to change, you will not learn and get past your mistakes.  Turn to God today and ask for the strength and discipline to seek change.  Make a commitment today and stick with the plan.

In what areas is change needed?

What are your biggest financial obstacles today?

What are some steps you can take to change your situation?

Who’s protecting your blind side?

Recently I saw the move The Blind Side starring Sandra Bullock.  If you haven’t seen it, I highly recommend it.  “The Blind Side” depicts the story of Michael Oher, a homeless African-American youngster from a broken home, taken in by the Touhys, a well-to-do white family who help him fulfill his potential. At the same time, Oher’s presence in the Touhys’ lives leads them to some insightful self-discoveries of their own. Living in his new environment, the teen faces a completely different set of challenges to overcome. As a football player and student, Oher works hard and, with the help of his coaches and adopted family, becomes an All-American offensive left tackle.

The name of the movie derives from the objective of an offensive tackle: protect the blindside of the quarterback!  As defensive linemen pour in and try to attack the quarterback, the tackle’s job is hold-off the linemen until the quarterback can complete his play.   The movie got me thinking about blind sides in life.  Who is protecting your blind sides?   Do you have a financial accountability partner?

One of the biggest reasons men fail morally, ethically, sexually, and financially is due to a lack of accountability. Of all the people that failed in the bible, the majority failed because of the lack of accountability.  The main reason pastors fall from grace is a lack of accountability.  Same goes for many CEOs who have fallen.

It’s also true with successful money management.  Without accountability, it is difficult to handle the ways of this world.  We need to be accountable to God first and having an accountability partner here on earth is critical. And no, it cannot be your spouse.  It is essential to have someone wise, biblically sound, and trustworthy.   So what are you doing to prevent the same types of moral, financial and ethical collapses?  Do you have a strong partner?  Do you have someone protecting your blind sides?

Are you a Kamikaze with your finances?

The Kamikaze were the original suicide bombers.  During World War II, Kamikaze pilots would attempt to intentionally crash their aircrafts into Allied ships.  These aircrafts became human missiles laden with explosives.  Sole mission:  take out as many ships and people as possible.

When it comes to finances, many of us too, are Kamikazes.  We create havoc on our financial lives with poor choices, self defeating activities, and a lack of preparation and planning.  For many, it’s intentional.  Like the Kamikaze pilot, they wither away any chance of success and “take one for the team”.  After all, they say, we become more faithful by being poor. Click here to read more »

Got Direction?

Yogi Berra, once said:

If you don’t know where you are going, you are certain to end up somewhere else”. In a planning sense if you don’t know where you are going, how will you know when you get there?  To have no goals and no points of measure to track progress or lack thereof, you are setting yourself up to fail.   God, Himself, designed for us to have goals that coincide with His Word: “Commit to the Lord whatever you do, and your plans will succeed.

(Proverbs 16:3 NIV)

God gives us the authority and responsibility of setting goals and offers to provide direction to those who are willing to listen. Few, however, set goals.  Those that do are often much more successful than those who do not.  It is not only important to set goals but to review them daily and track progress or make adjustments regularly.  Flying by the seat of your pants, rarely works out well.  Sitting still does not either. Click here to read more »

Do you play the blame game?

Why are people so quick to blame others or circumstances for their problems? Often I see people who are quick to point the finger and it rarely points back at them. Choices are made each day, and these choices have consequences. When the results come in less than favorable, somehow it is easier to push the blame toward someone or something else. This is especially true with finances.

One example: Most Americans used to be able to rely on three income sources for retirement: the company pension, Social Security, and personal savings. As the futures of company pensions and Social Security hang in the balance, the pressure builds for you to save on your own for retirement. If you do not have enough income when you retire, whom will you blame: your employer, the government, or will you accept responsibility? Click here to read more »

“If a person gets his attitude toward money straight, it will help straighten out almost every other area of his life”. – Billy Graham

The way you manage your money has a great deal to do with:

1. Your personal happiness.

It is often said that money does not buy happiness.  However, very rarely will you ever see someone who is in poverty and happy.  Most of us fall somewhere in between.   If you feel you are being a good steward of the resources God has provided you, your level of happiness will increase.  It is more important to analyze how you give, how you spend, how you save, and how you invest your money.   The level of happiness or lack thereof is probably directly linked to how you are managing your money.

2. Your stress level.

Poor money management and poor financial decisions lead to higher stress levels.  Having more money does not reduce your stress levels if you have not taken care of the root problems.   Why do dentists perform root canals?

You could say that the purpose of root canal treatment is to create an end result where the tissues that surround a tooth’s root will maintain a healthy status despite the fact that the tooth’s nerve has undergone degenerative changes.   By fixing the roots of our financial problems, we will eventually conquer and develop solutions to reduce our stress levels

3. The quality of your family life.

As stress levels increase and happiness decreases, Christians often turn to substances or addictive behaviors, just like the secular world.  Sin is present in this world and takes very little searching to find.   Christians often turn to drugs, alcohol, pornography, and affairs to numb the pains.  This substantially affects the quality of family life and rips away a family like a hurricane.  The winds move rapidly and before long what started out innocent turns into full fledge withdrawal, addiction, and in some case suicidal thoughts or actions.

4. The stability of your marriage.

Studies have shown that money is the number one cause of divorce in both Christian and secular relationships.  Money can tear a couple apart.  Aside from the previous mentioned problems, the way each partner handles money can create substantial friction in the marriage.  If one person is a saver and the other is a spender and each spouse is not on the same page, serious issues arise.  It is when things seem like no hope is there and trust has been betrayed that reconciliation seems unimaginable; many turn away from Christ instead of to Him.  It is in these darkest hours that He is waiting for us with arms wide open.   However, our human nature leads us toward divorce.   One thing Karen and I decided to not make divorce an option.  By making this commitment to one another, we know that no matter how bad things get, we have to work together to solve the problems.  We may lose everything in this world, but we still Have God, His love for us, our love for one another, and a hope that there will be a better day tom morrow.  It is when you lose hope, that all else fails.

5. And success in your career.

It is often said, “Find something you love to do and find a way to get paid to do it”.  Well that is great career advice when seeking a profession or starting a business.  Poor money management issues arise can affect your career.  Choices you make, affect your long-term prospects.  If you are suffering financially because of poor money management skills, you become more susceptible to compromise your values, morals, and ethical behaviors.  Did you make a sale only to meet your needs?  Did you purposely withhold information so that you could make an extra dollar?

Rich or Poor: Balance is Critical

Whether you are rich, poor, or somewhere in between, if you do not have a balance between God, happiness, stress management, family life, marriage, and your career, something will suffer.  Even a great juggler will drop a ball once too many balls get thrown in the mix.  Some people can handle the additional pressures but eventually you will reach the breaking point.  Successful money management skills are not a guarantee but are a main ingredient in your purpose here on earth.

How you relate to money truly does affect how you relate to God, your family, your spouse, and those who share space with you on earth.  Things may be temporary here, but you will face eternal consequences (good or bad) for your actions here on earth.  Let us try to make things right here on earth by changing our focus from things of this world to a focus on advancing His Kingdom.  This Kingdom focus will help you put things in perspective, reset and reaffirm your priorities, and claim back your life if that is what is needed.

How do you handle money?

“If a person gets his attitude toward money straight, it will help straighten out almost every other area of his life”. – Billy Graham
The way you manage your money has a great deal to do with:

1. Your personal happiness.

It is often said that money does not buy happiness. However, very rarely will you ever see someone who is in poverty and happy. Most of us fall somewhere in between. If you feel you are being a good steward of the resources God has provided you, your level of happiness will increase. It is more important to analyze how you give, how you spend, how you save, and how you invest your money. The level of happiness or lack thereof is probably directly linked to how you are managing your money.

2. Your stress level.

Poor money management and poor financial decisions lead to higher stress levels. Having more money does not reduce your stress levels if you have not taken care of the root problems. Why do dentists perform root canals?

You could say that the purpose of root canal treatment is to create an end result where the tissues that surround a tooth’s root will maintain a healthy status despite the fact that the tooth’s nerve has undergone degenerative changes. By fixing the roots of our financial problems, we will eventually conquer and develop solutions to reduce our stress levels

3. The quality of your family life.

As stress levels increase and happiness decreases, Christians often turn to substances or addictive behaviors, just like the secular world. Sin is present in this world and takes very little searching to find. Christians often turn to drugs, alcohol, pornography, and affairs to numb the pains. This substantially affects the quality of family life and rips away a family like a hurricane. The winds move rapidly and before long what started out innocent turns into full fledge withdrawal, addiction, and in some case suicidal thoughts or actions.

4. The stability of your marriage.

Studies have shown that money is the number one cause of divorce in both Christian and secular relationships. Money can tear a couple apart. Aside from the previous mentioned problems, the way each partner handles money can create substantial friction in the marriage. If one person is a saver and the other is a spender and each spouse is not on the same page, serious issues arise. It is when things seem like no hope is there and trust has been betrayed that reconciliation seems unimaginable; many turn away from Christ instead of to Him. It is in these darkest hours that He is waiting for us with arms wide open. However, our human nature leads us toward divorce. One thing Karen and I decided to not make divorce an option. By making this commitment to one another, we know that no matter how bad things get, we have to work together to solve the problems. We may lose everything in this world, but we still Have God, His love for us, our love for one another, and a hope that there will be a better day tom morrow. It is when you lose hope, that all else fails.

5. And success in your career.

It is often said, “Find something you love to do and find a way to get paid to do it”. Well that is great career advice when seeking a profession or starting a business. Poor money management issues arise can affect your career. Choices you make, affect your long-term prospects. If you are suffering financially because of poor money management skills, you become more susceptible to compromise your values, morals, and ethical behaviors. Did you make a sale only to meet your needs? Did you purposely withhold information so that you could make an extra dollar?

Rich or Poor: Balance is Critical

Whether you are rich, poor, or somewhere in between, if you do not have a balance between God, happiness, stress management, family life, marriage, and your career, something will suffer. Even a great juggler will drop a ball once too many balls get thrown in the mix. Some people can handle the additional pressures but eventually you will reach the breaking point. Successful money management skills are not a guarantee but are a main ingredient in your purpose here on earth.

How you relate to money truly does affect how you relate to God, your family, your spouse, and those who share space with you on earth. Things may be temporary here, but you will face eternal consequences (good or bad) for your actions here on earth. Let us try to make things right here on earth by changing our focus from things of this world to a focus on advancing His Kingdom. This Kingdom focus will help you put things in perspective, reset and reaffirm your priorities, and claim back your life if that is what is needed.

Band-Aid Please

As Americans we want fast service, fast food, drive thru, express lanes, instant access, faster, faster, faster. Fast and convenient! We no longer want to get out of our cars, no longer want to take time to smell the roses, and no longer want to do anything uncomfortable. It is no difference with our finances. We want quick fixes, get rich over night, forget the hard work, we just want the pay day! If life and finances were only that easy!

If you’re having money problems, you will not solve your troubles until you get to the root of the problem. If you don’t get to the core reason why you’re having problems, more money may solve the problem temporarily. It is like putting a band-aid on a deep, infected, flesh wound. It may stop the bleeding for a moment, but unless you go in and get out the infection and sew it up, the problems will multiply. I hear people say that if I only had a little more, we would be alright. The reality is that no matter how much you give that person, chances are they will still have money problems, although they will be much larger.

You see if you don’t get to the root of the problem and fix it, all money will do is compound the problem. Take lottery winners, the majority end up right back where they were before they won the lottery because they do not know how to handle the responsibility of managing the resources that God has given them.

What Does Money Really Mean To You?
A man prays to God. “God, what is a million years to you?” God replies and says “To me, it’s like a second” “Well, How much is a million dollars to you?” to which God replies “it is like a penny”. Thinking he has outsmarted God, the Man prays for a penny. God says’ “Sure, just wait a second”.

Our perspective of money determines what it means to us. In a day and age where divorce is as trendy as the iphone, it isn’t exactly earth shattering when we learn that most marriages are a result of financial problems. It does not mean that money is always the root problem. It is often merely a symptom of deeper underlying issues that may be unconscious and unspoken.

Money can be a blessing or a curse depending on where you are in your relationship with money. If you are prepared to handle money, more of it will lead to more money. If you are foolish with money now, well more money will make you more foolish. Why do you think so many lottery winners end up bankrupt? Rockstars, athletes, movie stars, and other famous people have learned the hard way that money doesn’t grow on trees and if you have bad habits with money it doesn’t matter how much you make. They were not prepared for the responsibility and made the same mistakes they were currently making only multiplied the mistakes once they had more money.

Learn the essential habits that lead to faith-based wealth

After interviewing hundreds of individuals and couples who possessed strong faith and were wealthy, I uncovered 12 essential habits. I reveal these in The Faith-Based Millionaire (Foreword by Dan Miller). You can download the book for free at www.jayperoni.com

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WORKING OUT A BUDGET WHEN YOU’RE UNEMPLOYED

A worksheet can help you separate needs from wants.

If you’re unemployed or underemployed as a result of this recession, you’ve no doubt given some thought to budgeting. Establishing that budget is the next step.

See where your money goes. You know the amount of your mortgage or rent payment, but do you know how much you’re spending on food, gas, entertainment, or clothing? This is how hard-earned or long-saved money leaks away.

Track every buck. That’s right: for a month or a week, make a note of where every dollar you spend goes. That’s every dollar that leaves your bank account. Specify every expense you can. (Don’t forget to include the fractional cost of your annual expenses per month or per week.)

Where the savings are. You might be relieved to see how much you can save per month if you cut back in five areas or creature comforts – comforts you might be quite comfortable without.

1) Eating out. A morning coffee … a fast-food lunch … a takeout meal or dinner in a restaurant … what does this all add up to? Possibly $20-25 a day, 5-7 days a week. Cutting back on some or all of this could save you hundreds of dollars a month. While these purchases may have been habit when you worked, you can avoid or limit them now.

2) Entertainment. This means movies, concerts, plays, and other social events and amusements. You don’t have to deprive yourself altogether here, but consider how expensive some of these costs (concert and theatre tickets) can be. You might easily save $100 or more per month.

3) Autos. You can find families in this country that own three or four cars. (Three or four SUVs, even.) Gas may be cheaper at the moment, but auto repairs are never cheap. What if you sold a car and cut back to one car? It might require a little rescheduling on the part of your spouse or family, but you could gain some cash and lose some expenses (and possibly some repair bills you would otherwise pay down the road).

4 & 5) Cable and Internet service. Do you really need a high-speed connection? Do you need 68 channels? These are other areas where you can cut back and save big.

A worksheet. Here is a worksheet that can help you keep track of your non-deductible expenses per month. (Some expenses are often deductible, such as charitable contributions, mortgage interest, alimony, and certain health and business expenses – check with your tax advisor to see what you might be able to deduct.)

Auto/Transportation

Gas ____

Service/Repair Costs ____

Bus/train fare ____

Clothing

Clothing purchases ____

Laundry/dry cleaning ____

Daily Living

Babysitting/child care ____

Eating out ____

Groceries ____

Personal supplies ____

Allowances ____

Dues/Subscriptions

Club memberships ____

Newspaper subscription ____

Child sports expenses ____

Education

Music lessons ____

School lunches ____

Tuition ____

Other education expenses ____

Entertainment

CDs/DVDs (buy, rent) ____

Books/magazines ____

Dates ____

Hobby costs ____

Other entertainments ____

Household expenses

Furnishings ____

Appliances ____

Improvements ____

Home maintenance ____

Association dues ____

Other household expenses ____

Insurance

Auto insurance ____

Homeowner insurance ____

Life insurance ____

Rental insurance ____

Other insurance ____

Lawn care

Plant/agricultural expenses ____

Equipment expenses ____

Other lawn care expenses ____

Financial payments

Auto loan ____

Credit card payments ____

Education loans ____

Other loans ____

Bank fees ____

Postage ____

Other financial payments ____

Rent or mortgage payment ____

Utilities

Electricity ____

Gas ____

Internet ____

Heating oil/fuel ____

Telephone ____

Trash collection ____

Water/sewer ____

Other utility costs

Vacation/Travel ____

Do not stop investing. You still need to do that if at all possible. Keep contributing to the accounts poised to compound over time, so that you may use them to fund part of your retirement someday and pursue your long-term financial goals.