Welcome to the first blog post of Rise Above Finance!
We are here to share tips, stories and reflections of the financial stewardship journey.
Becoming a good steward of your financial wellness is a journey filled with opportunities for growth, responsibility, and impact. It's more than about managing money; it's a conscious choice of handling your financial resources wisely and aligning your financial decisions with your faith and values.
As we embark in the new year, here are 6 practical steps to get started on your path to financial stewardship. At the end of this blog post, you will have a chance to receive a FREE "Financial Health Checklist" for a quick assessment of your finances wellness.
Tip #1 - Formulate A Realistic Budget
Creating and sticking to a budget is a fundamental step toward financial wellness. We all probably have built a budget at some point of life, but is it accurate and reflective of your actual monthly expenses?
If you have followed a fitness plan before, you may have experienced the process of tracking your eating habits and activity level. Similarly, to achieve any life or financial goal, we need to start from an accurate awareness of our current condition.
Start tracking your expenses. Open up your statements - What are your current inflows and outflows each month? Then formulate a realistic budget that reflects your needs and your goals. Are there regular shortfalls that are blocking you from saving up for a certain cause? Or do you have a surplus that is not allocated efficiently?
This is an excellent diagnostic exercise to reconnect your finances to your lifestyle.
Tip #2 - Replenish Your Emergency Fund
Financial stability begins with a solid emergency fund. This fund serves as your financial safety net during unexpected circumstances such as medical emergencies, car repairs, or job loss.
Aim to save at least 3 to 6 months' worth of living expenses in your emergency fund to ensure you're well-prepared for life's uncertainties. Then place the funds into a high interest savings account giving return but flexible enough to pull out whenever needed.
The prudent see dangers and take refuge, but the simple keep going and pay the penalty. – Biblical Wisdom (Proverbs 27:12)
Tip #3 - Create A Contingency (Estate) Plan
Having a back up plan is an integral part of taking care of yourself and your family. How would your family be impacted if you were to get sick, injured or pass away? Are there the proper legal documents and insurance in place in case an emergency occurs?
Start formulating a contingency plan, including insurance, will, power of attorney, and healthcare directives. If you have them already, regularly review if they are applicable to your circumstances and make sure the documents are organized for easy access. This ensures your assets are distributed as per your wishes, and your loved ones are protected in case of unforeseen events.
Tip #4 - Maintain Conversation With Your Spouse & Kids About Money
Financial stewardship begins at home, and one of the most effective ways to cultivate
it with our children is to lead it by example. Maintain open and honest conversations with your spouse about financial goals, values and aspirations. Ensure that your financial decisions are in sync with each other's priorities. This alignment not only reduces conflicts but also strengthens your partnership as parents.
With kids, start early by introducing basic concepts of saving, budgeting, and the value of money. Encourage them to set aside a portion of their allowance or earnings for savings and share the importance of responsible spending.
On February 28th, we are hosting a “Teaching Kids About Money” webinar. Don’t miss out this opportunity to gain practical tips on how to get started in establishing these money conversations with your children!
Register today by clicking on the poster below.
Tip #5 - Increase Your Charitable Giving
Generosity is a hallmark of financial stewardship. Did you know that giving breaks the power of money? At Rise Above Finance, we believe our resources are owned by God. As stewards, we are called to manage God’s resources well so we may channel them for greater impact of the world.
Consider allocating a portion of your resources for charitable giving. Whether it's donating to causes you believe in or volunteering your time and skills, giving back fosters a sense of purpose and makes a positive impact on others.
Each of you should give what you have decided in your heart to give. You shouldn’t give if you don’t want to. You shouldn’t give because you are forced to. God loves a cheerful giver. - Biblical Wisdom (2 Corinthians 9:7)
Tip #6 - Find A Financial Planner
Engaging with a financial planner is as important as finding a family doctor. Financial planning should never be about asset size or buying a certain product. A good financial planner should serve as the financial GP (general practitioner or family doctor), putting together the many pieces of life into a coherent and aligned puzzle. They should help ensure your taxes, contingency plans, benefits and investments are all adherent to your financial goals, allowing efficient and effective implementation of an overall financial plan.
Next Steps
As you diligently follow these 6 practical steps of a good steward, you'll find yourself on a well-paved road toward financial wellness.
We have put together a “Financial Health Checklist”, a tool which you can assess your progress, review your financial goals, and ensure that you're on the right path.
Sign up below to receive the checklist in your email inbox today!
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