As a Private Wealth Advisor and Certified Kingdom Advisor (CKA®), I have learned much about living at the intersection of faith and finance over the years. One of the things I have learned is what we call the “4 Hs of Financial Wisdom”, which I use when interacting with clients. The 4 Hs have worked in my journey, and I’m confident they can work in yours, too. They are simple, repeatable, and always relevant.
The first H I talked about was HEART, and the second H was about HEALTH. Once your heart and your spending decisions are in the right place, the next H to integrating your faith into your finances is related to your current financial habits. The 5 HABITS I talk about with clients are important, because as I like to say, “Your habits will decide your future!” So, let’s dive into the habits…
1. Spend less than you earn -> Your financial success depends on this habit, which is why having control of the 5 uses of money is so important. You must have a system for measuring and managing your spending. As the saying goes, “What gets measured, gets managed”. Also, if we truly are stewards of what we have been blessed with, then it is imperative that we do a great job of managing it.
2. Avoid the use of debt -> Why? Because debt always mortgages the future. It says in the book of Proverbs, “ The rich rule over the poor, and the borrower is slave to the lender.” Now, to be clear, there is a difference between good debt and bad debt.
· What is bad debt? First, you need to be aware that you are marketed to like never before. The marketers make you feel like if you don’t have it or you are not doing it, that somehow you don’t measure up. As the saying goes, “You don’t ever want to be in a situation where you spend money you don’t have to buy things you don’t need to impress people you don’t like.” The worst debt is credit card debt. You don’t want to use credit card debt, because when you do, you are spending more than you earn. Credit card companies, for the most part, are not your friends. They want you to rack up the debt, make minimum payments and pay a crazy interest rate on top of that, which is not a great solution for anyone.
· Good debt on the other hand is where the economic benefits outweigh the borrowing costs. This include getting a mortgage on a house, financing a child’s education, or investing in a business.
3. Set long-term goals -> Your dreams should be a reflection of what you believe you were called to do. Think of a time when you set out to accomplish something and you achieved it? How did you feel? There are 5 hallmarks to setting goals from a faith perspective…
1. PRAY -> What do you believe you were called to do?
2. WRITE -> Write your goal down. There is something powerful in writing things down because it increases your chances of success.
3. MEASURE -> Remember as I said earlier, “What gets measured, gets managed”. How are you going to measure what it is that you want to accomplish?
4. SHARE -> Tell someone else what you are going to do. There is something powerful about sharing with others what you are going to do because it increases your chances of success.
5. ACT -> In the book of Ecclesiastes King Solomon said, “If you wait for perfect conditions, you will never get anything done”. So many of us are stuck at the starting line because we won’t get started until everything is just so. As Nike says, “just do it”.
· As you navigate the 5 hallmarks, consider the following:
o If you aim at nothing, you will hit it every single time.
o Write what you are going to do in sand, not concrete. Adream is a direction, not a destination.
o Work your activities, pray for what you want to accomplish. You only have control over the activities you will engage in to give you the greatest possible chance of your dreams coming true.
4. Give Generously -> Giving breaks the power of money! Think about a time when you were part of an exchange of generosity. How did it make you feel? It has been said that it is better to give than to receive. How much should you give? The answer is “I don’t know”. In the book of 2 Corinthians it says, “You must each make up your own mind as to how much you should give. Don’t give reluctantly or in response to pressure but give cheerfully”.
5. Plan for financial margin -> It is inevitable that the unexpected will occur. In the book of Proverbs it says, “Go to the ant, you sluggard; consider its ways and be wise! It has no commander, no overseer or ruler, yet it stores its provisions in summer and gathers its food at harvest.” So, what are you doing to plan for the unexpected in your life?
So, what are your current habits when it comes to living at the intersection of faith & finance? Are they in alignment with what you were put here to do and are they moving you in the direction of your dreams?
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