Top 10 Financial Tips for 2011

Greg Ulmer
2011

As we move into a new year, many people take a fresh look at their finances and set goals. So we’ve put together the Top 10 Financial Tips for 2011 from a Biblical perspective.

1. Know and understand that God owns it all (Psalm 24:1). Trust God and develop financial contentment. Understand that financial contentment does not result from having a particular lifestyle but rather from living within the means of God’s provisions.


2. Cheerfully and regularly give for a Kingdom purpose (2 Corinthians 9:7). Prayerfully determine what you can give as tithes to your church. As you grow in your Christian walk, seek to increase your giving. Giving is commanded in scripture both for the benefit of the recipient and for the benefit of the giver.


3. Seek Godly financial counsel (Proverbs 15:22). Use this counsel to help you develop, prioritize and review your spending plan. Assess where you are now and determine what about you lead to your current financial situation. Develop a spending plan (based upon who you are and where you are) that balances what you have coming in and what you owe on a monthly basis. Follow that plan, review the results and make adjustments as necessary.


4. Serve God with what He has given you (Matthew 25:21).  Be a good steward by using the resources God has blessed you with for the accomplishment of God given goals and objectives. This stewardship is a life-long process of growth in spiritual character that is evident in you viewing your spending decisions as spiritual decisions. For example, having the proper amount of life insurance to provide for family’s needs upon your Earthly death (rather than for investment purposes) is a good stewardship decision.


5. Spend less than you earn (Proverbs 13:11). Trusting God and prayerfully spending less than you earn over a long period of time is the way to financial success. This allows you to see God work in your financial affairs and provides you with testimony.


6. Spend to please God as an act of worship (John 4:24). Where your heart is your money will follow. If we spend time on get rich quick schemes or seek every opportunity to spend frivolously, then what God are we worshipping. For example: Pay appropriate taxes, do not use your tax refund as a source of cash to buy doodads. Proper tax planning allows you to have and use the lump-sum you would receive as a tax refund throughout the year. This would help you avoid the debt caused by being short of cash monthly.


7. Set long-term financial goals (Philippians 3:14). Your financial goals are to be feasible, specific, measurable and prayerfully considered. Invest by following the biblical principles of diversification, professional advice and steady plodding. Build your resources in a way that honors God, respects His priorities and meets or promotes Biblical values and standards (Proverbs 13:11).


8. Build liquidity (Proverbs 6:6-8). Without an emergency fund you are likely to fall pray to the curse of debt which robs you of so much more than a lot of money. Debt denies you the unlimited possibilities God made available for you to serve him and denies you from being a steward of even more resources.


9. Avoid the use of debt (Proverbs 22:7).  Becoming and remaining debt free is a key to being financially free. Borrowing is not a sin, but it may deny God an opportunity to work and reveal Himself in a way personal to you. Borrowing without the ability to pay is a symptom of spiritual issues. Remember, a believer should always pay what he/she owes (Psalm 37:21). Never seek bankruptcy without first receiving Godly counsel.


10. Leave an inheritance (Proverbs 13:22). Train your children and those who hold you as mentor/guide the truths of money management according the underlying biblical principles of trusting God, stewardship, planning and decision making. This is a practical application of the Spiritual inheritance we are to pass on to our children’s children.

We realize that each of these tips could be expanded into an article, class, series or book. If you would like some Godly financial counsel to help you with these or any other financial issue, please contact the Grace Financial Ministry.

Notice: American Income Reduction Imminent

Why Is This Happening

Greg Ulmer
2010

Due to the national economy and globalization you can expect an income reduction. Whether through layoffs or pay freezes or self imposed, a reduction in income is upon us. Corporate America can not raise wages. In fact America has gone broke on high wages. For example, General Motors (GM) is broke and their revenue is over $180 billion a year (ie they take in over $500 million every 30 days). Similar situations are evident throughout the business world including the transportation, finance, equipment maker and real estate industries. But the problems are not limited to business. The average net worth of American citizens is dropping yearly even though foreclosures are slowing. The average savings is just starting to improve, but only because people are afraid. For Americans to “get straight” they would have to have a tremendous wage increase or a tremendous cost decrease. One of the two must happen if we are to thrive again.

Now, just suppose that God loves everyone all over the world equally. And, just suppose that American is not going to be the only country in the world to dominate business, manufacturing, labor, and industry for the next 100 years. Say God is going to let other countries get some wealth too (ie Globalization). In other words, we are not going back to the late 60s and 70s when America made the best cars, did the most manufacturing, and had plenty of jobs available on each and every corner. You could get a job stay there 30-40 years, your wages would go up every year, quality of life kept improving and your company paid for your “comfortable” retirement. Since it is the case that God loves everyone, Americans will not get significant wage increase any time soon.

Realization.
Think about it. We are not going to get a significant wage increase. God has already done that for us. But, we have become a society that is increasingly greedy, coveting what our neighbors have, requiring more and more things to be “comfortable” and hording our riches. These values have resulted in an economy of borrowing and spending. Thus,  turning our backs on the teachings of the Lord. But this just served to reveal ourselves to ourselves rather than how we are to be. We as Christians are to stand up and be the example in this economy. We must not conform to the world (Rom 12:2). God has arranged everything to allow us to shine. But understand, this is going to fight. We must focus on HIS word and successfully manage our finances. Now, is the time. HE is waiting on us. Waiting for his body to move into action and lead the way.

So, the only way America can win is with a cost reduction. This reduction must happen through reducing expenses, taxes and debt. Expenses is a minimal cut because the cost of living is increasing. We can cut taxes, but unless you have a properly structured business or a home based business there is only one other way to reduce taxes. Besides the bailout means taxes must increase at some point. We can have more success cutting debt, which is just interest on top of an expense or bill. Looking ahead 10-15 years, America will be a society that has drastically reduced cost and expenses if it is to survive. With our influence, America will survive and be more Godly.

What do we need to do ?  We need to

1. MASTER OUR FINANCES so we can leave an inheritance to our children’s children.
   This inheritance allows our grandchildren to quickly serve God rather than fretting about money and being a slave to debt (Pro 22:7). They will know to quickly eliminate any debt they must obtain and use their resources to honor the Lord. What better way to show our Love for our family than to pass on financial wisdom along with a head start in building the kingdom of the Lord.
2. TRUST IN GOD for we are HIS children and we need not be troubled (John 14:1).
   We have a protective father who has saved us, guides us and is with us at all times. He loves us even when we forsake HIM. We are free to worship and adore HIM through our thoughts, actions and deeds. So let us honor our father by faithfully trusting HIM so that we may draw closer and closer to his heart and help build his kingdom on earth.
3. USE OUR SHAPE to serve God.
   If your shape guides you to have wealth and tithe and contribute your time to build God’s kingdom, that is a wonderful thing. If your shape guides you to serve the Lord in one of the million other capacities, that is also a wonderful thing. For whatever your shape, you are to also master your income. Your mastery means you can tithe, pay for your lifestyle, build an inheritance for your grandchildren and serve the Lord according to your shape without worrying about finances. If we trust in God and follow the Bible’s teachings the body will function well and we will be a sweet fragrance unto the lord.
4. BUILD AND MAINTAIN AN EMERGENCY FUND equal to at least six months of our expenses.
   We’ll be in a position of power in our financial transactions. We’ll be able to work a debt elimination plan and build investments without expected and unexpected events derailing our plans. Do you have six months of your expenses available or are you currently executing a realistic plan to build it ?

So How do we do this ?

Please see Notice: American Income Reduction Imminent (pt2) ... How to Get Straight

Notice: American Income Reduction Imminent (pt2)

How to Get Straight

Greg Ulmer
2010

How do we do it ?
If you don’t have a fully funded emergency fund, remove 10% of your income from your finances. Setup an automatic draft from your check or banking account to an emergency account. Your emergency fund should be held in an account that isn’t too easy to access (ie. like an account at bank or fund that you don’t have easy check writing, debt/credit card access) but you can get the money within 24 hours of an emergency.

If you don’t tithe fully then add up to 5% of your income to what you are tithing now and add 5% to savings to build your emergency fund. If you currently tithe, then use the 10% of your income to build your emergency fund. As you get bonuses and income increases, be sure to tithe and add to your emergency fund.  And yes, that’s right. This means that get to live off 90% of your income. I know after taxes and expenses (debt) it may not leave much.

Planning will be required and decisions of what is important will need to be made. But consider, if your job told you that on Monday your salary will decrease by 10% or 20% or 50%, what would you do?

So you see, an income reduction is happening. The current and future layoffs, salary reductions and income freezes call for us to quickly decide what is really important and what is not. These situations are when we ask for guidance and insight. It is often the only time we call on the Lord for help.

Surviving this will involve sacrifices and difficult decisions. Recall Luke 21:1-4 and how the widow gave all she had while the wealthy gave from a part of their profits. She gave from her heart. This tells us that we must confidently walk the path the Lord has laid out for us, align our heart with his and keep our eyes on HIM.

Our focus.
Hebrews 13:5-6 tells us, “Keep your lives free from the love of money and be content with what you have, because God has said, ‘Never will I leave you; never will I forsake you.’ So we say with confidence, ‘The Lord is my helper; I will not be afraid. What can man do to me?’ “.

With this in mind there are certain priorities we must focus on to take control of our financial lives:

• Praising God. The reasons are countless.
• Praying to God to receive wisdom and understanding in managing our finances so we can be good stewards of the resources he has given us.
• Praying that we keep in step with the spirit and realize it’s fruit and remaining humble (Gal 5:22-26).
• Being optimistic, because we are children of God. Luke 12:21 tells us our true treasure is built through works on earth and are not to be realized here. Live this out by being positive throughout all situations, being generous with out time and resources, and being a light that guides others to the Good News.
• Executing a financial plan that begins with tithing and establishing a fully funded emergency fund.
• Continuing our financial plan by following a debt elimination system including paying off your mortgage and building an inheritance.
• Discovering and developing our talents. Being who we are suppose to be, operating within our SHAPE.
• Realizing how the freedom of having our financial house in order and maintaining it will allow us to focus on honoring and serving the Lord using our gifts and talents.

We have a tremendous opportunity to grow God’s kingdom. The resources we have in just this part of HIS body are remarkable. We must Get Into SHAPE so that we may grow our talents in the service of the Lord. How wonderful would it be to hear HIM say to you, “Well done good and faithful servant!”.