Faith Based Investing

Money without purpose is just money

Money with a purpose can be used to change the world. It feeds the poor, builds shelters, and changes lives and souls for the kingdom of God. Money with a godly purpose can be revolutionary. If you desire money solely for material things, you will never be content. Many of the happiest and most successful people in the world have found their purpose in life. They know exactly what money can do to help their families and help others. If you had more money what would you do with it? Who would you help? What would your days, weeks, and months look like?

When you live out your life’s purpose, live with passion, it will lead to a prosperous life!  This was proven by Srully Blotnick.  In 1960, he began a study of 1,500 people representing a cross section of middle-class America. Throughout the twenty-year study, they lost almost a third of participants due to deaths, moves, or other factors. Of the 1,057 that remained, 83 had become millionaires. When Mr. Blotnick’s team interviewed participants at the beginning of the study, the most widely shared impression they found was that “great wealth can come to you only as a result of doing things you don’t want to do.” They also noted that from the start, most participants assumed that chance would play a decisive role in determining who became wealthy.
They found that the 83 successful people shared five characteristics: they were persistent, they were patient, they were willing to handle both the “nobler and the pettier” aspects of their job, they had an increasingly noncompetitive attitude towards the people with whom they worked, and their investment activities—aside from their main career—consumed a minimum of their time and attention.
Blotnick admitted, “We originally expected the people in our sample to become wealthy by taking the money they earned at work and investing it wisely, in such things as stocks, bonds, and real estate . . . we thought there’d be no way for [them] to become rich unless they used their surplus income to generate more income . . . It didn’t work out that way. . . . More often than not they made little or no money investing.”

In short, what the study unveiled was that the main source of wealth for the successful participants was that they found something they loved to do and they did it well. “In case after case,” wrote Blotnick, “they did increasingly well occupationally, while their pursuit of investment profits proved to be largely a waste of time. In the long run, it was their work which made them rich.” Blotnick concluded that investing in yourself, what you do, and with whom you do it are the most important determining factors of wealth.

Source: Getting Rich Your Own Way, Srully Blotnick (Jove, 1982).

How will you use your wealth?

Unless you can envision how you will use money to better the lives of others, no amount of money will fill you up. It is only Christ’s love that fills the void in your life. As you grow closer to Him, He will help you find your purpose—your unique calling.

Matt Bell is a friend of mine. In his book, Money, Purpose, Joy, Matt shares his story. You can read about Matt at www.mattaboutmoney.com. Early in his life Matt thought he had found his purpose. Out of the blue he inherited $60,000 from an uncle. He knew he wanted to do something noble with the money and decided to start a business.

He looked at what he was passionate about and ended up developing a golf newsletter. He played some of the best courses in the world and wrote about them. The only problem was he had a very limited subscriber base and wasn’t making any money. This continued for years until Matt had not only burned through his inheritance, he’d racked up $20,000 in credit card debt.

With this experience under his belt, Matt sought to study how money works and how to develop financial purpose. Matt recalls, ―A person who can turn a $60,000 blessing into a $20,000 debt has a lot to learn about money. This fueled me to want to learn about wise ways to use money for a better purpose. With his newfound learning, Matt worked his way into the corporate world and quickly made his way up the ladder. A high-paying corporate job was not his purpose, however; he knew he wanted to be able to write and speak full-time.

What are you doing to live out the magic formula?  I’d love to hear you share your story! Comment below.

Is your financial house built on rock or sand?

I have been advising and counseling others on how to build true wealth for the past fifteen years. I have seen my personal share of ups and downs and witnessed thousands of others. The 2008-2009 financial crises was sure a wake-up call for many investors as they watched the financial system they trusted for their future collapse in a few short months.

It got me thinking about how many people, Christians included, built and continue to build their financial houses on sand. I am reminded of Matthew 7:24-26:

“Therefore everyone who hears these words of mine and puts them into practice is like a wise man who built his house on the rock. The rain came down, the streams rose, and the winds blew and beat against that house; yet it did not fall, because it had its foundation on the rock. But everyone who hears these words of mine and does not put them into practice is like a foolish man who built his house on sand.”

Five steps to help you build a solid foundation

Early this year I set out on a journey to see who thrived in 2009 and who barely survived. I conducted nearly 600 interviews to determine if there was a solid difference between those who did well in difficult times and those who fell apart. The numbers were alarming! Only 5% thrived and moved forward financially during the difficult times in 2009 while 95% of those I interviewed took major setbacks and fell deeper into debt or lost major ground.

Of the 5% who thrived, there were some major common threads:

• They identified what they valued most in life. They had spent time finding what they loved to do and how to get paid generously for it.
• They discovered their meaningful purpose in life. They concentrated on using their key strengths and abilities to add value to the world and bless others.
• They designed their compelling vision for their future. Most had three, five, and ten year goals almost memorized! They knew where they were heading and had a good idea on how they were going to get there.
• They had a real personal mission statement. Though many of them did not call it a “mission statement”, they lived their life like they were on a mission. Their financial and business lives had clarity and purpose; they created a sense of urgency, and were persistent in their attempts to succeed. If your personal goals and dreams have deep meaning to you then you are far more likely to succeed financially.
• They not only set goals, they created an action plan. This helped them implement their mission, live their values, and work toward achieving their vision. They hired a good team of advisors and had great council and accountability to set their paths straight.

Because of my key learning and my desire to help others see how they can thrive and not just survive, I just finished an eBook called “Thrive in Your Life – Creating the life you were meant to live”. It describes the Five to Thrive Principles I uncovered as I interviewed those who were succeeding financially.

Thrive Principle One: Become a passionate income earner

Of those who become wealthy, very few become wealthy from the stock market itself. By far, the number one way to becoming wealthy is through finding a way to get paid doing something you absolutely love.

Thrive Principle Two: Become a generous giver

Many fail to give back to our society because they insist they have the lack of two precious resources – time and money. However, those who are most successful often give more than 10% of their income away and spend countless hours volunteering and sharing their time and talents to bless others.

Thrive Principle Three: Become a wise investor

Investing does not just mean haphazardly investing in a mutual fund. Most investors hand over their hard earned dollars to let someone else handle their investments. This can often be the worst thing you can do. Those who are successful invest rather than gamble. Warren Buffet, for example, does not invest a dime in anything unless he is quite certain it will go up in value. That is investing. Gambling, on the other hand, is committing money to a stock, a mutual fund, or something else without a clue as to whether it will go up or down. Too many people gamble rather than invest.

Thrive Principle Four: Become a cautious debtor

If 2008-2009 didn’t teach us anything, debt can be a huge deterrent from gaining wealth. There are good, bad, and ugly uses of debt. Far too many American use debt foolishly and it keeps them enslaved rather than reaching the desired destination – financial freedom!

Thrive Principle Five: become a prudent spender

Those who succeed financially evaluate each spending decision from a variety of angles. They look at price, value, durability, and how it lines up with their life purpose. Just because you have more money doesn’t mean you can or should spend more, especially if your spending doesn’t line up with you life’s values. Those who are successful, despite having wealth, still carefully analyze. Want to the results of being wealthy and missing this principle? How many lottery winners, sports stars, actors and actresses, and other celebrities go bankrupt after earning millions of dollars?

READ THE EBOOK

A good coach can bring light to your situation

After 6 years, Tiger Woods recently made a major change.  Before you start with the infidelity jokes, I’m talking about major changes in his career – professional golf.    Tiger got to the top of his golf game with a little help from his coach.  However after six years of coaching, Tiger called it quits.

Why is Tiger Woods parting ways with his golf coach?  The reality is Tiger needed to make a move.  When something isn’t working, it is really frustrating – for everyone involved!

I talk with hundreds of people each month via the telephone, email, and in person. Money always seems to be a hot topic!  With the stock market back on a roller coaster course – people are more dazed and confused!  Many coaches, financial advisors, and stock brokers are asset gatherers not asset managers.  They have a vested interest to keep you invested in the markets even when it may not be the best choice for you.   Is your coach part of your team or do they have a hidden agenda?  Why not find an advisor who help bring light to your situation?

It may be time for you to change coaches too

Just like Tiger, it may be time for you to change coaches. The sharp ups and downs recently in the markets are a shocking reminder of what we saw in 2008 and 2009.  Don’t go back down that path! If you have found that you are not where you need to be financially or not getting the help you desire, it may be time for a coaching change! Take control of your future today.  Email me at jay@jayperoni.com for a FREE 30 minute evaluation of your financial situation!

With over 15 years of experience, I can look at your:

• Investment strategies
• Retirement plans
• Business ideas and ways to grow business
• Estate and legacy plans
• Tax efficiency (or lack thereof)
• Savings and spending
• Debt management
• And how all these tie together with your faith and values

True priorities

The top indicators I have found that reveal a person’s priorities are the spending of two God-given resources: time and money. You can get a fairly accurate picture of what a person deems as important in life by looking at his or her planning calendar and checkbook. Money can be used for good purposes such as providing for one’s family, preventing poverty, and relief help following disasters such as Hurricane Katrina. On the other hand, however, money can provide no satisfaction for our spiritual needs; it cannot purchase peace, love, or righteousness. It does not last, but slips through our fingers.

When you set your eyes solely on wealth, you are more likely to lose it. Money can be dangerous when you become materialistic, greedy, and self-sufficient to the point where God has no place in your world.

Serve God, not money
If we allow anything that we desire or possess to rival our love for God, it will turn our hearts away from Him. Jesus’ contrast between earthly and heavenly treasures and masters is too sharp to allow compromise: ―No servant can serve two masters. Either he will hate the one and love the other, or he will be devoted to the one and despise the other. You cannot serve both God and Money (Luke 16:13 NIV).

Haddon Robinson puts the issue in these terms: ―Either we serve God and use money or we serve money and use God. Yet, few Christians deliberately dedicate their lives to materialism. Wealth is deceitful, Jesus told us, and its bondage is subtle.   What are you thoughts?

Are you controlling money or is it controlling you?

Why do so many people struggle with money?  Why is it so difficult to get ahead in a time of such prosperity?  Why do the rich keep getting richer while the poor and middle class seem to continually struggle?

You see every day you make money choices that affect all areas of your life. Try going a full 24 hours without doing something that involves spending, receiving, giving, or investing money.  The truth remains so many people today, even with the 2008-9 economic collapse spend more than they make.  They live paycheck to paycheck and could be one missed payment from financial disaster.  This could be you.

Whether your finances are in dire straight or you just want a little fine tune up, I want to fatten your wallet so you can improve the quality of your life and have the time and money to help others. In order to do this, you need to win the battle.  What do I mean by battle?  This is the battle for your money. Retail stores, mortgage companies, credit card companies, auto loan companies, insurance companies, and investment firms (to name a few) are in the battle for every single one of your dollars. Overspend and they will take every dollar you earn and more…

You’ve sunk my battleship

In the game of Battleship, the object of the game is to sink your opponent’s entire fleet without him sinking your fleet first.  It is the same with the money game.  You either sink or swim.  With there being no shortage of companies fighting to win your money, only the warrior prepared for battle can win at the money game.  The credit card companies, banks, mortgage companies, insurance companies, and others all have one task at hand to win as much of your money as possible for as long as possible.  Read that line again “to win as much of your money as possible for as long as possible”.  They offer 0% financing, buy now pay later, extended payment terms, basically anything possible to get you to spend as much as you can and pay it back as slow as possible. My task is to give you the weapons and game strategies you need so the opponent doesn’t sink your battleship.

Let us not forget either, the other enemy: advertisers.  They want to create dissatisfaction in your life.  They solely aim to get you to upgrade, switch, and change, try their product, and capture your business for as long as humanly possible.  The average American is bombarded with thousands of advertisements every single day.  From billboards, Newspaper, magazine, TV and radio advertisements, online banners, email solicitations, the list goes on…  They all have one focus: capture your attention, create or solidify your perceived needs, and get you to pony up your hard-earned money.

Never show up to a gunfight with a knife

There’s an old saying, “Never show up to a gunfight with a knife.”  Your financial goals will require time and discipline.  There is no shortcut to success.  Getting in financial shape is a fight.  Gaining financial freedom is a battle.  While a fight may only be 12-15 rounds, it will be based on your desire to win.  You can get in better financial standing in as little as 12-15 months, but you should focus more on the long-term battle at hand: obtaining financial freedom.  This battle is a “must win” that will last years.  Of course your financial goal and current financial position will determine whether you are facing a fight or a battle.

Take a look at your current financial situation.  Is your outflow exceeding your inflow?  Do you have more assets (things you own) or more liabilities (things you owe)? How large the gap is between the two?  This will give you some indication as to whether you need boxing gloves or a machine gun.

If you are going to battle, would you march off without a battle plan?  How many wars have been won without a plan?  Unfortunately, many fly by the seat of their pants when it comes to financial planning.  They are more reactive than proactive.  It’s hard to gain position when you are constantly fighting an uphill battle.  The most important thing is to have a plan.  You must be prepared.  Part of that planning is recognizing or predicting in advance the obstacles and challenges you are very likely to face along the way.  Then create a strategy to offset the potential obstacles.  Though you will never alleviate or predict every challenge, you will however, be better prepared for unexpected bumps along the way. Start the fight today so you can fatten your wallet!

Something  Money Can’t Buy

In a world full of BMWs, Armani, gated communities, Coach purses, and Starbucks Coffees, image is as much a currency as the dollars that purchase them.  We can pretend to be wealthy and live the game of credit shuffling until the debt snowball knocks us out or we can regain control and live life like we are suppose to.   Like a house of cards, even if you can afford the lifestyle, is it worth it?  All the money in the world cannot bring you closer to God.    I see Christians spinning out of control just as much as those who claim no savior.  Why? In a society that sells image, we all have difficulty not playing by the rules.

The day to day temptations to have a nicer car, to have a bigger house, to have better things.. more, more, more.  It is never enough.  We are called to be humble and to humble ourselves before the Lord.  I’m not saying these things in themselves are bad.  It is the attitude that often goes along with it.   I have a BMW and you don’t so I’m better than you.  Or I make $500,000 a year, what do you make?  The way we live our lives is a direct open reflection of our relationship with our Creator.  Is it built on solid ground or is it shallow like a worldly image?  Look to the Lord and keep your eyes focused on Him.  We are called to be humble servants of the Lord.  Creating an image is not very important in the big scheme of things.  God has a much greater purpose. 

“My people who are called by My name humble themselves and pray, and seek My face and turn from their wicked ways, and I will hear from heaven, will forgive their sin, and will heal their land.” 2Chronicles 7:14.

Questions: 

How do you personally struggle with a balance between a worldly life and a godly life?

What are some areas of life that trip you up (houses, cars, jewelry)?

What can you begin to do differently to focus less on image and more on God?

 Also check out this article at ChristianPF.com:

 “Why spending mony wisely is a life skill”

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?