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, the second H was about HEALTH, and the third H was about HABITS. Once your heart and spending decisions are in the right place and you’re consistently practicing the 5 timeless habits, then you can focus on the 4th H which is HOPE. And I’m talking about Hope for a great financial future. One of the main ways to have Hope is to create financial margin, which means having extra dollars available for the unexpected in life. Margin helps create Hope.
To measure margin, we use what we call the “margin meter”. This is a visual device that helps you measure your ability to deal with what’s next. The meter starts with Struggling – not able to make ends meet. Obviously, nobody wants to be there. Next is Surviving – living paycheck to paycheck. Unfortunately, too many people still live here. Next is Stable – saving some with an emergency fund. At a minimum, this is where you want to be. Then there is Secure – saving for long-term goals. The last indicator on the meter is Surplus – having more than enough, which is what we believe everyone should aspire to.
Let me ask you this. Where do you think you are on the margin meter currently?
Your level of financial margin relies heavily on the habit of spending less than you earn, and it is a major factor in how your financial goals can be achieved.
Over the last 15 years as I have lived out the 4H’s of financial wisdom, I have been able to create financial margin in my life, which has given me freedom, confidence, and peace of mind.
I want the same margin and Hope for you, so that ultimately you can live your best life!
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