Today I’ve been thinking about financial planning. Well, every day I think about it, but for some reason I thought I should share some thoughts with you – the readers. My question is this: do financial plans work? If so, which ones are better than others? What financial plan do you have?
As many of you know, right now we’re on Dave Ramsey’s Total Money Makeover plan. It’s been going well! So far, we’ve:
- Paid off all of our non-mortgage debt.
- Built an emergency fund of six months worth of expenses.
- Started saving toward a college education.
If you know Dave’s plan, you recognize that we got through the first three baby steps and are taking a detour to make sure we don’t go into student loan debt.
Yes, we’re paying cash for college. No student loans! We are able to do so because of the circumstances of our income and how low we keep our expenses. In addition, any monetary gifts we receive, we put toward our financial plan.
Will Our Plan Work?
I’ve given a lot of thought toward if our plan will work. Sure, Dave’s plan has worked for countless people, but will our slightly modified plan work? Maybe Dave would endorse our excursion away from his “baby steps” to ensure we didn’t go into student loan debt. But can Dave’s plan – or any plan for that matter – really work under a wide variety of circumstances?
I think it can, but only if God allows it.
And that’s the point. I believe that for Christians, personal finance is managing God’s money how God would want it handled. It’s not our money, it’s God’s. We’re not to boast about our future plans. If it’s the Lord’s will, then we might accomplish the plans we have designed.
Now listen, you who say, “Today or tomorrow we will go to this or that city, spend a year there, carry on business and make money.” Why, you do not even know what will happen tomorrow. What is your life? You are a mist that appears for a little while and then vanishes. Instead, you ought to say, “If it is the Lord’s will, we will live and do this or that.” - James 4:13-15
Will our plan work? Maybe. Only if it is the Lord’s will.
What is the Lord’s Will?
That’s the question of the hour. It’s difficult to know the will of the Lord, but I suspect it comes from a lot of prayer and Biblical research.
We can certainly find various principles in the Bible. For example, we know that the “borrower is slave to the lender.” (Proverbs 22:7) There are many other principles that you can find within the Bible, and they should become part of your planning.
Using these approaches, we can find some clues as to what the Lord wills for our lives. Now, we do have freewill, and we can choose some of the specifics of our financial plan, but we should use the template that God gives us.
Which Financial Plans Actually Work?
I think you can see where we’re going with this. We shouldn’t solely look towards the plans of people. Instead, we should look at these sources:
- The Lord’s principles as outlined in the Bible.
- The plans that have worked for God’s people.
- Prayer.
There are so many financial plans you can choose from. Some are more aggressive on debt reduction than other plans, some are focused on investing. Others tell you to save money, and still others will push you to dramatically change your lifestyle. Whatever plan you choose, make sure that it aligns with Biblical principles.
I’m convinced that the plans that actually work claim to:
- Take a long time to complete. Anything that promises you overnight success is really too good to be true.
- Have a step by step approach that allows you focused intensity on one goal at a time. I’ve experienced what focused intensity can do in your financial world – it works wonders. Having one goal to work on at a time allows you to get excited about your goal and put all your energy into it.
- Require a big picture perspective. Some financial plans are so narrow in their scope that they only focus on debt reduction without teaching budgeting. Or they focus on saving up for emergencies without allowing for investing. You’re going to need to find one that has a balanced approach.
Perhaps someday I’ll list several famous financial plans and compare them for you. Would that be helpful?
Meet us in the comments and let us know what you think. What financial plans work best for you? What have you accomplished so far while on your financial plan?
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! John wrote two articles for the book: "Budgeting for Groceries" and "How Grocery Stores Work."
