A Path to Financial Freedom
This week, we celebrate Independence Day! As we give thanks for our freedom as a nation, we also want to take a moment to highlight another type of freedom – financial freedom. At Blue Trust, we value financial planning and believe it is the first step in a journey to financial freedom. We’ve prepared this simple checklist to help you see where you are now and how you can gain more motivation to pursue and achieve your desired outcomes.
Ask Yourself the Following Questions:
- Am I spending less than I earn and following a disciplined budget that fits my lifestyle?
- Have I avoided the dangers of taking on consumer debt?
- Have I diversified my investments?
- Do I have a long-term, written plan that details my financial goals?
- Do I have a plan for incorporating generosity into my budget and investing strategies?
If you answered ‘yes’ to each of these, then you’re on track. Keep it up! If you answered ‘no’ to any of these questions, then there are some important principles to consider as you journey down the path to financial freedom. The Bible provides the following insights on money management that work regardless of the current economic climate.
Follow a Budget That Allows You to Spend Less Than You Earn
Spending less than you earn is a critical discipline that gives you options, but it must be exercised on a consistent basis. We cannot save, give, pay off debt, or reach our financial goals without living within our income. If we are spending more than we make, then unfortunately nothing else in our financial lives can work. If you want to learn more about this topic, Your Money Made Simple by Russ Crosson is available here. Proverbs 27:23
Reduce and Avoid Consumer Debt
Taking on debt (such as credit card debt, student loans, and car loans) affects our future. When we incur debt, we presume on the future and enslave some of our future income to pay for our current spending. We have an obligation to repay the lender first before any other use of our money, which limits our options for giving, saving, and spending. It is important to always work towards paying off your current debt and not take on any new consumer debt. See chapter 5 in Your Money Made Simple to learn more about how to reduce your debt. Proverbs 22:7
Seek Diversification
Our investment team positions portfolios to increase the probability that clients will successfully achieve the intended use of their assets. We counsel clients on how to set aside money needed in the near term into short-term, more stable investments that are less affected by market volatility. Longer-term investments are positioned for growth. Although they may be impacted by volatility, these investments have time to recover since the funds are not needed for some time. Ecclesiastes 11:1-2
Develop a Plan With Your Advisor That Aligns With Your Time-Based Cash Needs
Our investment process at Blue Trust includes a systematic, principles-based approach that allows you to look at the purpose for your wealth and when you need it. Matching investments to your needs—how much money is needed and when—is one key to achieving your financial goals. Proverbs 28:20-22
Pursue Generosity
At Blue Trust, we believe everyone is called to live a generous life. We help our clients determine “How much is enough?” so they can hold their resources with an open hand. Even in the midst of economic turbulence, giving is a tangible expression of faith that can help those in need and support God’s work in our communities and around the world. As God has blessed us, we honor Him and love others by allowing His resources to flow through us for His purposes. Luke 6:38
At Blue Trust, we seek to provide clients with financial strategies based on biblical wisdom to help them on their financial journey. For more information, or to speak with a Blue Trust advisor, please call 800.987.2987 or email info@bluetrust.com.