I have worked in the world of Finance and Investing for almost 20 years.  I have seen wealth gained and wealth lost, fortunes won, and empires crumble.  The one clear truth is that there is nothing certain in the world of finance and economics.  Our worldly success is largely due to timing, effort, and a whole lot of luck.  However, regardless of any outcome, the one thing that holds true to every investor, entrepreneur, or businessman is that they must have H.E.A.R.T. to truly succeed.

First is that you need to realize that (H) He, God, owns it all.  Our sovereign God, it the maker, the provider, and the owner of all we see and touch.  He is the greatest money manager in the world, his portfolio if diverse, and his assets under management are unbelievable.  What we must realize is that we are all here in a temporary human experience.  The old saying is true, “you can’t take it with you”.  A wealthy aristocrat died several years back and his only wish was to be buried with his money . . . his wife of many years, aware of his last request, tearfully wrote him a check and placed it gently next to him in the coffin.  Funny stuff I know, but realize today that the material possessions we have in this world are not ours but God’s.

(E) Every Day is an opportunity to do something of value, to do something good, and to make a difference in God’s kingdom.  We need to take the opportunities that we are blessed with and make the most of them.  We are encouraged to do more than others think is wise, to risk more than others think is safe, and to believe more than others thought possible.  Every day you have that opportunity.

(A) Action is required.  We cannot glorify the kingdom without putting our talents into action.  Idle hands are the devil’s workshop.  If you are not in action then you are at risk of falling into the trap of status quo.  Do not let the grass grow under your feet, be active, be engaged, be alive in your financial picture, do not let yourself be directed, you do the directing.  You cannot accomplish anything if you do not move. So many times we let our life’s glide by us and never get in the game. I encourage you today to take that first small step, do something for someone else that makes a difference in their life, then look in the mirror and do something for that person that will inspire others.

We have all been given certain spiritual gifts and blessings.  Even in the worst of times we should have the ability to (R) remember our blessings.  Remembering the good things in our lives will pull us through the rough waters of economic turmoil, personal strife, and other individual struggles.  Always, always, remember your blessings. By reflecting on who we are, we will better understand our God ordained purpose in life.

(T) Thank Him.  In any relationship, the other needs to be appreciated, in your relationship with God, you need to remember to say thank you.  Be thankful that you have the opportunity to grow, to fail, to invest, to lose, too be a part of a world where you have opportunity to be anything you dream.  Thanks Be to God.

HEART is required in when it comes to money and finance.  You must have heart if you even want to have a chance at true financial success.  Good luck Investor, business owner, financial planner, employee, boss, student, retiree, I am praying for your heart.  Proverbs 3:5 says, “Trust in the Lord with all your Heart and lean not on your own understanding”.  Trust in him when it comes to your finances.  God has a supreme plan for your life.  Money management is just one component of living a life that is designed to Glorify His Kingdom.  But by putting your heart into, taking action, leaning on him for understanding, you have a solid blueprint in which to live your life.

This is a guest post written by Doug Lawson, CEO of The Kingdom Trust Company.  At Kingdom Trust they provide a self-directed investment platform in where you control your investments. www.kingdomtrustco.com

Guest

Is it wrong to feel joy and laugh while watching people get smashed by giant arms, hit with large objects, sprayed with gooey sauces, or thrown through the air? If you answered YES … then I confess … I’m guilty!

One of my family’s favorite TV guilty pleasures is a hit show called WIPEOUT! The show pits average everyday people (definitely not athletes) against one another in a competition for $50,000. To win, you must have the fastest time through a variety of obstacle courses. So what’s the big deal? What makes these courses so challenging? It’s the seemingly endless variety of cleverly hidden traps that will slap, hit, smash, throw, and beat the contestants into exhausted lumps of human flesh.

Surviving A Financial Wipeout

The funniest wipeouts are from the contestants who never pause. Nope, they just run as fast and as hard as they can without ever taking a second to analyze the challenge in front of them. Of course, there’s the flip side of this. There are some people who want to over analyze the course. For these overly cautious few, the show created the whammy bar! That’s right, if you don’t want to move forward then will smash you forward.

Financial wipeouts can really hurt! Heck, given the choice I would choose to participate in the TV show. At least there I have a chance to win and my greatest pain will only be my bruised ego. But when you get hit financially by an unforeseen “whammy bar” it can knock the breath out of you. Moreover, it may cause pains that last for a really long time.

Lessons To Learn From Wipeout Winners

So how can we possibly win when dealing with things we can’t see or even begin imagine? Let’s take some tips from successful WIPEOUT winners.

1. Prepare For The Unexpected

All contestants prior to running the obstacle course must put on a helmet and pads. When dealing with our finances we should do the same. Call it your WIPEOUT money! When the AC goes BANG, your car goes SMASH, or your plumbing makes a SPLASH you’ll be able to take the hit and keep moving forward. Make your own decision on how much money you should keep for this, but I typically recommend at least $1,000.  If your income is below $25,000 annually then I recommend $500.

Editor’s Note: Learn more about emergency funds from Dave Ramsey.

2. Look Before You Leap

Successful contestants quickly assess the obstacles before them, make a decision, and move on it. Before you spend or invest your money you should do the same. Make sure YOU understand anything you spend your money on. Don’t get caught up in the hype of anyone or anything.

3. Don’t Stand In One Place Too Long

Sitting in one spot for too long is a guaranteed way to get hit from behind. Think about the people who check their rearview mirrors, see no one, and stop their cars in the middle of the road. While they may be safe for a moment or two, if they sit there long enough their guaranteed to get SMASHED! The same holds true for those deciding their next financial move. While I strongly recommend studying, don’t let analysis become you’re paralysis! Perfect conditions rarely exist in the financial world. You need to keep moving forward.

The Real Man View

Nobody likes getting the snot knocked out of them. I’m no exception. As a Real Man with Money I do my best to prepare myself and my family for the things I can’t predict.

The best WIPEOUT players are the ones who get knocked down and come up with a smile! Usually these people are little more physically fit and ready for the challenge. They knew coming in to the game they were going to take some hard knocks, but they had the good sense to plan before they played. If you want to come out of a financial wipeout smiling then start preparing now.

What’s your financial preparation plan? How have you handled a financial wipeout? Are your finances physically fit and ready for the challenge?

Photo by Eliya

Chuck Detwiler

Chuck formed RealManMoney.com in 2010 to give Real Men a place to talk about money and finances. Like many other people, he's made plenty of financial mistakes, but has also enjoyed financial success. Chuck started writing as a way to document his own personal journey to Financial Manhood. With his supportive wife JoAnna on board they tackled the financial monsters of debt, budgeting, and spending. Somewhere along the way his efforts turned into something more . . . a passion for personal finance and a desire to help others. You can visit Chuck at RealManMoney.com or find him on Facebook.

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Mortgages. Student loans. Auto loans. Loans, loans, loans! Many Americans have enough debt to where if they make the minimum payments, they could be paying off debt for 30 years or more. Some people pay off debt over a lifetime, never gaining traction until well into retirement. Is this okay? Let’s turn to the Bible for answers. Consider the following verse:

Let no debt remain outstanding, except the continuing debt to love one another, for whoever loves others has fulfilled the law. – Romans 13:8 NIV

Well there you have it! The end! Oh, but wait, some questions might be coming to your mind. For example, how quickly should Christians pay off their debt? Or more precisely, how should Christians prioritize debt reduction? Let’s explore this, shall we?

Investing in Debt Reduction

The first concept I’d like to introduce is the idea of “investing in debt reduction.” What does this mean? It’s simple. Investing is usually associated with putting money you’ve earned into a company or fund of companies that you feel will gain value over time, thus making your contribution more valuable. While this is a worthwhile pursuit, no one can know for sure if a particular fund or company will increase in value over time.

Reducing debt, however, provides you with a return on investment that is surefire. By paying off your mortgage early, you’re saving yourself all that interest you would have paid. There’s no doubt that paying off debt will give you a return on investment, and that return is called your interest rate.

The Higher Stock Market Return

Many will argue that the stock market on average provides a higher rate of return than if you were to pay off your debt. No doubt, if your mutual funds are averaging a 9% return and your mortgage interest rate is at 5%, it makes mathematical sense to invest in mutual funds rather than paying off the house. However, is that 9% return guaranteed? Of course not!

So I suppose the real question is: would you rather take a guaranteed 5% or a probable 9%? This question assesses your feelings about risk. Are you willing to take the higher risk? All of us take risk, it just depends on what level.

Balance Risk with Security

I think it is wise to counterbalance risk with security. Security, should always come first. Building a firm financial foundation should come as top priority. Anytime you’re thinking about taking a risk, think about the consequences if your plan were to fail. Could you accept and be comfortable with those consequences?

So should Christians let debt remain outstanding when they have seemingly better financial goals to accomplish? My argument is that those seemingly better financial goals aren’t always as good as they seem to be. I think Dave Ramsey had it right with his 7 Baby Steps in most situations. Eh?

So what do you think? Do you feel that it is important to attack debt as a priority? How high is debt reduction on your list of goals? Meet us in the comments!

Photo by David Berkowitz

John

John officially launched TheChristianDollar.com on January 1st, 2010 with the intention to provide an excellent financial resource for biblically-minded individuals and families. Influenced heavily by Dave Ramsey, John started researching how he might better handle his money and help others in the process. John enjoys reading, writing, playing with gadgets, and spending time with his wife Courtney.

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I’ve given this a lot of thought lately. What could possibly be the best investment? Where can you put your money to make 5% ROI, 10% ROI, 20% ROI, or greater? Is more even possible? Where are the non-volatile investments that have outrageously high returns?

The goal here is to find the absolutely best investment for our time. What can you inject into your life that will produce unheard of returns? I think I’ve found just that. How you apply this to your life will be up to you, but rest assured, once you figure that part out you will have incredible results.

Commonly Discussed Investments

Dave Ramsey makes the case that one of the best non-volitle investments are mutual funds. Mutual funds have returned 12% annually over the course of time and have proven themselves to be a great investment. But is this the best place to put your money? I think it’s a great place, but not necessarily the best . . . .

I remember investing in single stock companies. Apple Inc (AAPL) was a huge hit for me, resulting in returns way above the 12% return of mutual funds. But soon I realized those kinds of returns were unsustainable, and it was unwise to invest in one company.

Give portions to seven, yes to eight, for you do not know what disaster may come upon the land. -Ecclesiastes 11:2 NIV

Real estate is another area people commonly discuss when looking to invest. While housing has over a long span of time been a fantastic investment, not everyone can afford to buy homes left and right. If you have the money, sure, buy yourself a rental. The problem is that real estate investing would only be wise after one’s own home is paid off, and many people haven’t reached that point.

Uncommon Ways Of Thinking About Investing

Let’s remind ourselves of our goals here. We’re looking for something that . . .

• Isn’t volatile. In other words, we can predict with a high degree of certainty that the investment will consistently produce returns over time.
• Has very high returns. It’s a money-making machine. We’re looking for something that will produce returns far above normal investments.
• Anyone can do. We’re trying to find something that anyone can invest into – not something that is limiting.

The Absolutely Best Investment

Education. Period. It’s the best. And no, don’t assume that’s automatically college – but it could be. Knowledge applied in the marketplace is the best way to get returns on your investment. Think about it . . . in order to invest in mutual funds, real estate, and other areas you must first have a decent income. How are you going to get that income? Work. But not work alone. You need Work + Knowledge.

The College Choice

College can be a great way to gain the knowledge you need in the workplace. But the question is the cost. Too many blindly attend college without considering the price.

Suppose one of you wants to build a tower. Will he not first sit down and estimate the cost to see if he has enough money to complete it? -Luke 14:28 NIV

If you’re going to invest in your college education, make sure you do so without debt. Debt dramatically raises your chances for failure. Instead, sit down and truly consider the cost of college. Shop schools and find the best deal possible!

Before you attend college, ask yourself these questions:

• What is the total cost of the education? Remember to think about tuition, books, housing, etc.
• Will you have to cut back on your work hours? Figure that into the equation.
• What is the likelihood you will be hired soon after college?
• How much money will you be making at the new job? Was it worth the investment?

My friend Peter Anderson over at BibleMoneyMatters.com wrote a must-read article on college as an investment.

Let’s say that you can find a school where you pay $20,000 for your total education, and it results in you finding a job where you make $50,000 per year – that’s an amazing return! But make sure that you see your potential success as probable, not just possible.

The Self-Education Choice

With so many options today for self-education, more people are choosing to make use of these options and avoid costly charges. There are books, blogs (subscribe for free to this one), churches, and so many more possibilities. I’ve found that self-education is a valuable tool in learning about finance and how to appropriately handle money.

Many employers don’t care about your degree. What they care about is if you can produce results. If you can produce results after learning from low cost sources, by all means do so! One great way I educate myself is by listening to audiobooks and podcasts while I’m driving. Find every opportunity you can to consume information. It’ll open doors you never thought existed.

Final Thoughts

Didn’t think education would be the absolutely best investment, did you? Learning is powerful. It’s fuel to get you where you want to be in life. The question is, can you even fathom the ROI of knowledge? I don’t think we’ll ever know. What are your thoughts? How are you investing in your knowledge and experience? Meet us in the comments!

Photo Credit: PocketAces

John

John officially launched TheChristianDollar.com on January 1st, 2010 with the intention to provide an excellent financial resource for biblically-minded individuals and families. Influenced heavily by Dave Ramsey, John started researching how he might better handle his money and help others in the process. John enjoys reading, writing, playing with gadgets, and spending time with his wife Courtney.

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This post was written by Nathan Richardson the founder of ComplexSearch. Nathan enjoys blogging deals and help consumers save money.

One of the basic rules of investing is this: Don’t invest in something that you don’t understand. The violation of this rule is one of the reasons that we ended up with a financial crisis that threw the entire world into economic recession. However, this does not mean that investing is bad. Indeed, you will probably need to invest in order to build up enough wealth to get you through your later years. But before you invest, consider the basics.
Most people invest in cash, bonds and stocks. It is a good idea to have an understanding of the risks associated with each of these financial products.

Cash

Most people do not think of cash as an investment. Many financial planners and investment professionals simple speak of “cash products.” However, cash does provide a return. It is usually a rather small return, but your money is working for you then it is in cash products nonetheless. You can put your cash in a high yield savings account or build a CD ladder to help boost the returns you get from cash.
The main reason that cash offers such low returns is due to its safety. It is practically impossible (although actually possible in theory) to lose money when you are dealing with cash. The main way that people lose money with cash is through inflation. If you are only earning 2% annually on your cash, but inflation is at a 3% annual rate, you are really losing money, since your purchasing power is eroded. However, in terms of losing your dollars, it is not very likely – especially since many cash products are FDIC insured, guaranteeing that you get your principal back (up to $250,000 an account), even if the bank fails.

Bonds

Generally, bonds are considered riskier than cash. They are not FDIC insured, and there is a real chance that you will lose some of your principal. Bonds, at the most basic level, represent a loan to some organization. When you invest in bonds, you are providing capital to a government organization or company. In return, that entity pays you regular interest, and then returns the principal to you when the bond matures. The main risk is default on the repayment of the loan. You still have the interest that has been paid up to that point, but you could lose out on principal you fronted to the organization.
As with most investments, the riskier something is, the higher its potential returns. A U.S. government bond offers a very low risk of default, and so the interest paid is lower. Emerging market governments, though, offer a higher chance of default, so when you invest in those bonds, the interest you are paid is greater. Companies range in chance of default from small to great, and if you are willing to take a chance, there are bond investments that can help you beat inflation and end up with a tidy little return. There are agencies that rate governments and companies so that you can get an idea of the risk of default (although these ratings agencies may not be wholly accurate).

Stocks

While a bond represents a transaction similar to a loan, a stock share represents ownership in a company. When you purchase stock shares, you are purchasing a small bit of the company. As a result, when the company does well, so do you. Stocks are bought and sold on exchanges, and when a company’s stock is in demand, its share price rises to reflect its desirability. On the flip side, though, when a company is perceived as being in trouble, its price drops. If you sell a stock when its price is lower than when you bought it, you lose money.
Because stock prices are driven largely by perception, they can be volatile. Something that is doing well one day may do terribly the next. Investing in individual stocks – especially those from new companies – can be quite risky. As a result, you could see better returns than what is seen with cash and bonds. However, with that increased earning potential is a chance for bigger losses.

Guest

Now comes the fun part. You get to build wealth and give! If you’re not accustomed to building wealth, this article will give you some practical areas where you can invest and some great ideas for giving stuff away!

Dave Ramsey’s 7 Baby Steps

• Step 1: Save up $1,000 to start your emergency fund.
• Step 2: Pay off all non-mortgage debt using the debt snowball.
• Step 3: Save up 3 to 6 months of expenses to complete your emergency fund.
• Step 4: Invest 15% of household income into Roth IRAs and pre-tax retirement accounts.
• Step 5: Work on college funding for children.
• Step 6: Pay off your mortgage early.
• Step 7: Build wealth and give!

Congratulations!

If you’re on Baby Step 7, you’ve come a long way! At this point, you should have paid off all your debt (house and all), built a solid emergency fund, are contributing 15% of your income into retirement, and are planning for your child’s college education. Wow! You’re REALLY come a long way!

But now what? You’re raking in the dough and don’t know what to do with it! According to Dave, money is good for three things . . . .

After years of studying, teaching, and even preaching on this subject across America, I can find only three good uses for money. Money is good for FUN. Money is good to INVEST. And money is good to GIVE. Most anything else you find to do with it doesn’t represent good mental and spiritual health on your part. – The Total Money Makeover

Have Fun Like No One Else

Dave makes it clear that now is the time to have some fun. You’ve done an excellent job at building your financial health! Why feel guilty for spending money?

Having fun can be difficult for some people who have spent so many years trying to save as much money as possible. Dave reminds us that once we are wealthy, going on cruises and buying expensive clothing really don’t affect our cash position that much. Indeed, we should use money for fun. You’ve lived like no one else so that now you can LIVE LIKE NO ONE ELSE!

Invest Like No One Else

To grow and maintain wealth, it is important to keep on investing BEYOND your retirement investments. Surround yourself with knowledgable people to ensure your success.

Dave invests in two main categories:

• The Stock Market: Dave asserts that you can make 12% annual return on your investments if you diversify within mutual funds. See Baby Step 4 for a template of how to invest properly.
• Real Estate: Dave also buys rental properties with cash (never mortgaging). He looks for killer deals and has a lot of faith in the necessity of shelter in the market.

Beware of risky single stock investments. Volatility is your enemy in this game. Instead, seek out sound and steady investments. The reward is almost sure-fire in the end.

Give Like No One Else

Dave tells a great story of a secret santa who gave away money in an extraordinary way:

USA Today has followed a guy who calls himself Secret Santa at Christmas for several years. Secret Santa walks the streets around Chritmastime and gives away $100 bills. Nothing required, nothing expected. Sometimes he gives to people in need, and other times he just gives. Every year he gives away around $25,000 in $100 bills. He started this tradition years ago in his hometown of Kansas City and has moved out across America. He gave in New York after 9/11 and in the Virginia/Washington, D.C., area after the sniper attacks. He just walks around and hands people $100 bills. He gets some fabulous reactions and hears some wonderful stories. – The Total Money Makeover

Isn’t that inspiring? There are so many ways to give, you can be really creative about it! Try giving your waitperson a $100 bill at the restaurant. Help out a friend in need with a generous, anonymous gift. There is something so innately good about giving, it’s sure to be worth your hard work to achieve financial freedom.

Only The Beginning

I’m convinced that after we all move through the Baby Steps, we’ll only have just begun our journey. There is so much to do and accomplish for this hurting world. Money is one factor in this journey. Let’s trust in God throughout the process, and we’ll reach our destination.

How have Dave’s 7 Baby Steps helped you? Where are you at in your journey?

Previous In Series: Dave Ramsey’s 7 Baby Steps: Step 6 – Pay Off Your Mortgage Early

John

John officially launched TheChristianDollar.com on January 1st, 2010 with the intention to provide an excellent financial resource for biblically-minded individuals and families. Influenced heavily by Dave Ramsey, John started researching how he might better handle his money and help others in the process. John enjoys reading, writing, playing with gadgets, and spending time with his wife Courtney.

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If you’re the average Total Money Makeover participant, by the time you get to Baby Step 4, you’re two or more years into this journey. Well done! You’ve destroyed your debt, built a solid emergency fund, and are now ready to invest in retirement! Bravo! There are many considerations you should take when getting into investments, so let’s tread carefully here. Again, here are the 7 Baby Steps:

Dave Ramsey’s 7 Baby Steps

• Step 1: Save up $1,000 to start your emergency fund.
• Step 2: Pay off all non-mortgage debt using the debt snowball.
• Step 3: Save up 3 to 6 months of expenses to complete your emergency fund.
• Step 4: Invest 15% of household income into Roth IRAs and pre-tax retirement accounts.
• Step 5: Work on college funding for children.
• Step 6: Pay off your mortgage early.
• Step 7: Build wealth and give!

Aren’t investments risky? Shouldn’t I just save my money?

Some people might be questioning why they should invest in mutual funds. From The Total Money Makeover:

Ibbotson Research says that 97 percent of the five-year periods and 100 percent of the ten-year periods in the stock market’s history have made money.

This is nearly a surefire way to make a return on your money. You can make serious progress in investments. Don’t let the current financial climate get in your way. If times are rough, it is especially opportune to invest!

What’s so magic about 15%?

Dave recommends investing 15% of your household income into good, growth-stock mutual funds that have a 5 to 10 year track record making 12% ROI annually or more. You’ll read in Dave’s book The Total Money Makeover that this percentage is based on many years of working with people on their retirement. 15% of your household income into retirement produces great returns while allowing you to save additional income for the next baby steps (paying off your mortgage and building wealth).

Let’s take a look at the typical scenario:

• Bob invests from age 30 to age 60.
• Bob contributes 15% of his household income into retirement.
• Bob’s annual income is $50,000.
• Bob makes an average annual return of 12% on his money.

Given these factors, Bob would have a little over $2,200,000 upon his retirement at age 60. Not bad! I’m convinced that Bob can do even better if he chooses winning mutual funds, which can be done if he takes the time to research his investments well.

How to diversify amongst mutual funds, that is the question!

Dave breaks up investing your 15% into four major categories of mutual funds amongst which you should contribute equally. They are as follows:

• 25% to Growth and Income (Large Cap or Blue Chip funds)
• 25% to Growth (Mid Cap or Equity funds; an S&P Index fund would also qualify)
• 25% to International (Foreign or Overseas funds)
• 25% to Aggressive Growth (Small Cap or Emerging Market funds)

What are some retirement account options?

You’ve probably heard of Roth IRAs and 401(k)s. But how much of your of your 15% contribution should you put into each? Is one type of retirement account better than another?

Dave recommends a prioritized investment approach – investing your 15% until it runs out down the following accounts:

1. 401(k): If your company has a 401(k) and will match up to a certain percentage, take the match! You can’t beat free money! Let’s say your company matches 3%. Invest 3 percentages of your 15% and move on to the next prioritized account below.
2. Roth IRA: The Roth IRA will allow you to grow your money tax-free since you will have already paid taxes up front. This is a huge advantage. Invest the remainder of your money into Roth IRA’s up to the maximum contribution limit (for example: $5,000 per year). If you still haven’t reached your 15% contribution amount, proceed to the next prioritized account below.
3. 401(k)s, 403(b)s, 457s, or SEPPs (for the self-employed): Take the remaining amount you have and invest back into these types of accounts.

True Retirement: Financial Security

Dave usually makes the point that if you’re looking forward to retirement so you can quit work, you need to find another job! Work should be a life-long endeavor. You can always work and find enjoyment in what you do! Instead of seeking relief from work, seek financial security!

Now that you’re investing 15% of your household income into retirement accounts, it’s time to continue to do so and start thinking about the kids and their college! Join us next time for how you can put your kids through college if you start saving now!

Next In Series: Dave Ramsey’s 7 Baby Steps: Step 5 – Work on College Funding for Children

Previous In Series: Dave Ramsey’s 7 Baby Steps: Step 3 – Save Up 3 to 6 Months of Expenses to Complete Your Emergency Fund

John

John officially launched TheChristianDollar.com on January 1st, 2010 with the intention to provide an excellent financial resource for biblically-minded individuals and families. Influenced heavily by Dave Ramsey, John started researching how he might better handle his money and help others in the process. John enjoys reading, writing, playing with gadgets, and spending time with his wife Courtney.

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I have been wrestling with this question for a few weeks now, and can see validity to both points of view. On one hand, if you tithe BEFORE investing, the church will have money right away. On the other hand, if you tithe AFTER investing, the church will have more money (if done right) but it will take longer to give.

I’m staying vague here because I want to hear from YOU. What do you think? Should people tithe before or after investing? I’ll meet you in the comments if you want to join me!

John

John officially launched TheChristianDollar.com on January 1st, 2010 with the intention to provide an excellent financial resource for biblically-minded individuals and families. Influenced heavily by Dave Ramsey, John started researching how he might better handle his money and help others in the process. John enjoys reading, writing, playing with gadgets, and spending time with his wife Courtney.

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Building a financial foundation is a lot like building your own custom vehicle – you have to have the right components. Everything must be working together in unison to get you where you want to go. Each part is important. Each part is essential. The only trouble is where to begin.

I’m going to attempt to list some of the most crucial components for you. All you have to do is rearrange them in the order that best fits your current situation.

A Few Core Components of your Financial Vehicle:

Click one below to learn more:

• Emergency Fund
• Monthly Budget
• Widespread Insurance
• Strong Income
• Debt Elimination
• Sound Investments
• Unconditional Contentment
• Joyful Giving
• Transparent Communication

These are only a few of the core components you need, but they are some of the most important. Some components will be more important during certain times than others. If you have a baby on the way, build up that emergency fund! Got a fat car payment? Discover more money by paying it off!

Throughout the years, you’ll be able to fine-tune your vehicle to travel faster than you ever imagined. Keep these areas ever-healthy, and you’ll avoid the wrecks that can lead to you financial ruin. Start your journey by reading a few classics from The Christian Dollar above.

John

John officially launched TheChristianDollar.com on January 1st, 2010 with the intention to provide an excellent financial resource for biblically-minded individuals and families. Influenced heavily by Dave Ramsey, John started researching how he might better handle his money and help others in the process. John enjoys reading, writing, playing with gadgets, and spending time with his wife Courtney.

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Investing can quickly turn into gambling if we monitor it too closely. Emotions can get the best of us when we are trying to time the market. I’ve experienced this and have lost thousands due to fear and exhilaration.

Benjamin Graham, described as the father of value investing, once said:

“Individuals who cannot master their emotions are ill-suited to profit from the investment process.”

Indeed, there was a time in my life where I was ill-suited and didn’t realize that my emotions were lowing my ROI. If a stock was skyrocketing, I would BUY BUY BUY! If it was plummeting, I would SELL SELL SELL! In other words, I was buying when the market was high and selling when the market was low. BAD IDEA.

Because I now realize that I can’t trust my emotions when it comes to investments, I require a system to keep me in check. When we begin investing again (many years from now), we’ll do it with a plan and long-term mentality.

Emotions can be damaging to your portfolio. Tuck Graham’s words into the back of your mind, and don’t forget that handling stocks aggressively can be the end to a great retirement.

John

John officially launched TheChristianDollar.com on January 1st, 2010 with the intention to provide an excellent financial resource for biblically-minded individuals and families. Influenced heavily by Dave Ramsey, John started researching how he might better handle his money and help others in the process. John enjoys reading, writing, playing with gadgets, and spending time with his wife Courtney.

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