Setting up a financial plan that incorporates your faith involves four important steps. I will show you how to create a financial plan that adds more meaning to your life, helps you clarify your purpose, and helps you take steps in the right direction. Where there is a will, there is a way. Here are the four steps we will cover:

  1. Set financial goals.
  2. Prioritize your financial goals.
  3. Take a financial inventory.
  4. Set your plan in motion.

Step One: Set Financial Goals

Your goals should be based on needs rather than just wants. You may sometimes allow greedy intentions to get the best of you. When you learn contentment, you often begin to set goals that focus on your greatest needs rather than selfish desires. With financial freedom being a goal of many, setting proper financial goals will help you move in that direction.

Setting goals is a very important part of life in general and of finan­cial planning in particular. Before you actually invest your money, you should spend some time considering and setting your personal financial goals. For example, do you want to retire early? Would you like to start your own business soon? Do you need to pay for your children’s col­lege educations? Would you like to buy or build a new house? Would you like to fund a ministry project or help a worthy cause?

In addi­tion to these, there are several other questions you should consider to develop an appropriate financial plan. First, what is your time horizon for your goals? Second, what is your investment risk tolerance? Third, what are your liquidity needs? Finally, what are the most appropriate investments to help you achieve your goals?

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