Finance
Beginning Again Financially
CBN.com – What's the first step to becoming a successful long-term investor? Making a decision to pay off credit cards, car loans, and other short-term debts.
It may seem strange that getting debt-free is the first step toward a sound investing strategy, but it is simply unwise to take on the risks that come with investing unless you have staying power. That means you don't want to be in a position where circumstances unrelated to your investment strategy force you to sell your holdings and use the money elsewhere, such as for interest and debt payments.
Also, for Christians, debts are moral as well as legal obligations and they must be honorably met no matter the circumstances.
Beginning again
I once heard a sermon in which the pastor read a poem titled "The Land of Beginning Again." He then presented the claims of Jesus Christ, explaining that Jesus is the King in the Land of Beginning Again. Each of us has experienced his share of errors, failures, and missed opportunities. We all have things that we would do differently if given a second chance. What wonderful news to know that, in Christ, the slate is wiped clean and we do have the opportunity of beginning again.
In a similar fashion, many who have become weighed down by debt wish they could get free. They now know that the satisfaction that comes with spending is brief indeed compared to the pressure of making monthly payments that sometimes go on for years. For many, it seems hopeless. Maybe you feel that way yourself.
If so, take heart! You can make great strides in 2011. It will require planning, discipline, sacrifice, and singleness of purpose, but there are excellent books on the market that can help:
Dave Ramsey has made a big splash helping listeners to his radio program get debt-free. Two of his books worth a look are The Total Money Makeover and The Financial Peace Planner.
Mary Hunt, through her newsletter and books, has become the queen of frugal living. Her advice is practical and witty. That's why we use her articles regularly at SoundMindInvesting.com. Check out Mary Hunt's Debt-Proof Living and The Cheapskate Monthly Money Makeover.
Taming the Money Monster by Ron Blue, and Free and Clear by Howard Dayton are classics that offer a scriptural way back from financial crisis.
Setting specific goals
A friend of mine likes to say that the most powerful force in the universe (humanly speaking, of course) is singleness of purpose. No matter how determined, disciplined, or talented, individuals or groups will never realize their potential for growth and accomplishment without singleness of purpose. Their time, money, and energies must be focused on common goals.
Without singleness of purpose and specific goals, we can become like the person described in Scripture as double-minded. "That man should not think he will receive anything from the Lord; he is a double-minded man, unstable in all he does" (James 1:7-8).
So let me encourage you to engage in a meaningful goal-setting exercise as you enter the New Year. Here are suggestions for effective goal-setting in any area of life; adapt them to your financial situation.
• Set goals consistent with God's Word. Many successful people have accomplished much, yet remain unhappy. Having singleness of purpose toward the wrong goals leads to wrong results. Examine your motivations, as well as your actions, in the light of God's wisdom.
• Ask God for His guidance. This is not the same as having scripturally sound goals. This has more to do with having the wisdom needed to set the right personal priorities. God promises to guide us if we're willing to submit to Him. It's not: "Show me Your will, Lord, so I can decide if I'm willing." Rather, it's: "Before You even reveal Your will to me, Lord, the answer is yes."
• If married, set your goals together. If two have become "one flesh," how critical that they have a singleness of purpose in their commitment toward common goals. Few areas will so quickly affect a couple's relationship as a financial plan that limits their spending freedom because it brings mutually conflicting goals into the open. If you can't reach a meeting of the minds on what your priorities should be, perhaps the marriage relationship itself needs some work.
• Put your goals in writing, signing your name and date. This helps cement in your thinking that you really have made a firm commitment of your will to achieving your goals. It is also helpful to have your goals posted where you will see them daily as additional motivation to stay the course when the inevitable temptations to compromise arise.
Sound Mind Investing exists to help individuals understand and apply biblically-based principles for making spending and investing decisions in order that their future financial security would be strengthened, and their giving to worldwide missionary efforts for the cause of Christ would accelerate. In other words, we want to help you have more so that you can give more.
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