Command those who are rich in this present world not to be arrogant nor to put their hope in wealth, which is so uncertain, but to put their hope in God, who richly provides us with everything for our enjoyment. Command them to do good, to be rich in good deeds, and to be generous and willing to share. (1 Tim. 6:17-18)

Wednesday, February 4, 2009

Investment #5 - Invest in financial planning and education

Today, I continue my series "7 Investments that place you in the flow of God's wealth." You can see all of the related blog posts in the series here.

"A fool may make money but it requires a wise man to spend it." - Unknown

"For which of you, intending to build a tower, does not sit down first and count the cost, whether he has enough to finish it." (Luke 14:28)

"By wisdom a house is built, and through understanding it is established; through knowledge its rooms are filled with rare and beautiful treasures." (Proverbs 24:3-4)

The Poor Christian participates in feeling-based spending. He does not have a budget and has a debt-driven lifestyle.

The Rich Christian makes wise spending decisions. He avoids (bad) debt and budgets/plans all spending.

Most wealthy people know how to spend money properly, that's why they are wealthy! Here are 6 simple steps you can take to start acting like the wealthy with your money:
  1. Focus on your balance sheet income and assets.
  2. Establish a family cashflow plan (budget) to control your outgo.
  3. Establish an emergency cash reserve in order to avoid debt.
  4. Search for deals, negotiate, and use the power of cash for purchases.
  5. Avoid debt, especially on depreciating assets such as cars, motorcycles, other "toys," furniture, etc.
  6. Purchase a modest home in the best school district in your area.

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