In the next few issues of the newsletter, I want to cover a few of the most important tenets of personal finance management.  These are the cornerstones, if you will, for sound money management.  If we don't use this knowledge, and implement financial behaviors that serve us, then our finances have propensity (last week's word of the week!) to get worse, not better.  In other words, we have to pay attention to this stuff!  That's the first tenet.

Now you might say, 'Well, I think all this financial stuff is boring and I don't have time to devote to it.'  Chances are you make a decent income and might not have too much financial 'pain' in your life, so this issue probably doesn't make it to your top 10 things to take care of today.  We are all busy, that's for sure, and unfortunately it's usually the squeaky wheel that gets the grease. 

If our personal finances are not in the best of shape, but don't necessarily qualify as the squeaky wheel in our lives, then our attention will most likely be focused elsewhere.  That's completely understandable, money should always rank in importance behind our relationship to God, our family, friends, as well as our health.  But, let me be the one to tell you that only two conditions can exist between your money:  In the end, you can master it, or it will master you. 

We want to be masters of our money so that we can tell our money what to do, instead of it telling us what to do.  'My money doesn't tell me what to do', you might be saying.  Well, let me ask you a few questions, and be honest in your answer.  Are you in a position to give as much as you want to give?  Do you have enough money to adequately prepare for your retirement?  How about to take a vacation with your family/friends every once in a blue moon?  Do you have debt other than your mortgage that is robbing you of your monthly cash flow? 

The reason I ask these questions is to get you thinking about what options you have.  Does most of your income go toward paying the monthly payments on your debts (cars, credit cards, school loans, etc) and spending money on things other than giving, and buying appreciating assets? 

If so, then the truth is that you have few options.  I'll give you an example, this is one I hear quite often from my clients.  Let's say you know a couple who has three small children.  They have decided their family would benefit greatly from Mom being able to stay home and care for the kids. However, that's not possible because Mom has to work to help make the family's car/credit card/school loan, and large house payments.  I would argue that this family has few financial options.  If they had no debt, they could more easily manage Mom staying home with the kids because they wouldn't need such a high income to support their debt payments. 

Consider if you had no debt except maybe a reasonable mortgage payment - then the majority of your income could go towards giving, investing for the future, and providing a good standard of living for your family and yourself.  You would have more financial options. 

Let's say that you have always had a dream to start your own business.  You can't stand the job you are doing now and your boss grossly under appreciates you!  You have always dreamed about starting your own business, but you have a huge house payment, two car payments and a bunch of credit card debt.  You couldn't start your own business (or even take a lower paying job you loved) even if you wanted to, because you are tied down to your debt.  As long as you have the debt, you don't have a choice.  I always tell my clients, 'Good cash flow, many options.  Poor cash flow, no options.'

Does that make sense?  It is my mission to teach as many as will listen, how to properly manage their finances so that they can focus on what God created them to do in the first place.  We weren't made to worry about our money, or the lack thereof.  We were created to serve God and others, without the expectation of return.  We were created to use our talents to make this world a better place because were in it.  If we have control of our money, that's one less thing to worry about.

The point of this particular financial behavior characteristic is that we need to take the time to make sure our finances are in order.  This stuff is important.  This stuff matters!  Don't go another day without a financial plan in place.  Be intentional.  Wealthy people know the state of their finances at any given point.  If we want to have more than enough, we need to be diligent and calculated when it comes to our money.  We'll talk about the necessary elements of a financial plan later on in the series.  For now, suffice it to say that if you have consumer debt, no spending plan, no giving program, no savings program, and no plan to change things, it's time to wake up and take care of this issue in your life!

If you are ready and willing to make the necessary changes you need to make, then congratulations!  Your financial future just got a lot brighter.  Soon, we'll begin to cover the behaviors, and steps you need to take, to make your financial future more secure. 

Thanks for reading.

Posted by: Rob DeFoor - My Financial Foundation, LLC

For more information contact: rob@myfinancialfoundation.com

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