Category: Intentional Voice

Americans are living through the most significant generational shift in our nation’s history as boomers age (those born 1946 – 1964) and millennials (born 1981-1995) take over as the dominant generation. Millennials are already the largest generation in the US and the most represented age group in the workforce. They are growing in economic experience and accumulating wealth. In addition to saving from earnings, millennials are beneficiaries of the largest wealth transfer ever, as an estimated $60 trillion will transfer in the coming decades. In short, millennials are tasked with the greatest stewardship responsibility in human history. How do they prepare? Through the acquisition of experience, knowledge, and wisdom.

Experience

Forget the mistake. Remember the Lesson.

Each new generation lacks experience as they begin to accumulate income and assets. The millennials are no different. They know there was a global financial crisis in 2008 but may not have heard of Lehman Brothers, Countrywide, Bear Stearns, or Wachovia. Most did not own real estate or see their home equity disappear during the financial crisis. They were too young to participate in the frantic stock market day trading and speculation that defined the tech bubble. This new generation of investors will make its own financial mistakes and learn the associated lessons. We already see examples in the boom and bust of cryptocurrencies, NFTs, and “meme stocks.” Millennial investors will need to learn their own hard lessons as the generations before them, thereby learning through experience.

Knowledge

“Knowledge has to be improved, challenged and increased constantly, or it vanishes.”

 – Peter Drucker

In addition to learning through experience, we require knowledge to be wise stewards. Knowledge in finance includes understanding rules, regulations, tools, and strategies. Anyone can gain financial knowledge through internet research, reading books, or attending courses. The challenge today is not where or how to obtain information but how to discern what is true and relevant in a sea of endless content.

Wisdom

“Wisdom is the right use of knowledge. To know is not to be wise.” – Charles Spurgeon

Wisdom complements knowledge by applying principles and purpose to the information we gather. When the great Biblical finance teacher, Ron Blue, speaks on knowledge vs. wisdom he holds a copy of the Wall Street Journal as a symbol of knowledge and the Bible as the symbol of wisdom. The combination is powerful. Anyone with worldly knowledge can build wealth. God’s word reminds us that wealth can be a tool for good or sin, depending on how we use it. “What good will it be for someone to gain the whole world, yet forfeit their soul? Or what can anyone give in exchange for their soul?” (Matthew 16:26 NIV). We gain wisdom from the stories and principles of the Bible that remind us of who we serve in our role as stewards and what he wants for us.

What is your role in the great wealth transfer? If you stand to inherit, are you preparing yourself by accruing experience, knowledge, and wisdom? Maybe you are building wealth and intending to leave a legacy. If so, how are you preparing the next generation of stewards? Are you sharing your experiences and knowledge? Are you guiding your heirs to the wisdom of God’s word? We all have a role to play in this process to ensure we honor His will.

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Various studies have found that generosity can lead to a happy and healthier life, but perhaps the best reason to strive to be a generous person is because “God loves a cheerful giver” 

(2 Corinthians 9:7 NIV). Increasing your generosity financially is easier when you have a giving plan based on sound principles. Frequently individuals have a plan for saving, investing, or spending, but it’s rare to find someone with an intentional giving plan. Why is this the case? While many may have the best of intentions they simply fail to integrate giving into their financial plan. Thankfully, a few simple principles can help any individual or family meet their giving goals and move from an attitude of scarcity to a life of generosity. We call these principles the P’s of Giving, which are adopted from Fields of Gold by Andy Stanley.

Priority: For most families, giving is something you do with the leftovers. Generous people make giving a priority. They are willing to give first, save second, and spend the rest. Giving your “first fruits” is not a new concept. God shared this principle with Moses after delivering the Ten Commandments, which makes me think it deserves our attention! Are you giving before or after you spend?

Percentage: Consider measuring your giving by a percentage rather than total dollars. I often meet individuals giving the same amount as they did 20 years ago. Their income has grown, but they increased their standard of living rather than their standard of giving. Not sure how much to give? Consider our 10+1 rule. Strive to donate 10% of your income and 1% of your assets each year. This formula reflects the teaching which says to “Honor the Lord with your wealth and with the firstfruits of all your crops” (Proverbs 3:9 NIV). In this verse, “wealth” represents your assets, and “all your crops” represents your income. What percentage of your income and assets would you like to give?

Progressive: We cannot always meet our giving goals today. However, by progressively increasing our giving percentage, we can get closer over time. A consistent increase in your giving allows you to financially “sneak up” on yourself. Before you know it, you give more than you ever thought possible. I once heard a testimony from a couple who started giving 10% of their income when they married. They grew that percentage over time and now give over 90% of their income while living on less than 10%. How much more will you give next year?

Prompted: Never let your plan get in the way of generosity’s emotional and inspirational components. Leave room in your giving plan for unexpected giving opportunities that touch your heart. These inspired gifts can take many forms. Some individuals and families enjoy giving to friends or strangers in need rather than qualified charities. Jesus and his disciples received support from wealthy women responding to a need they could never have foreseen. Can you imagine what joy these generous women experienced through their giving? Whatever the reason and whatever the amount, leave space to give as you are inspired. What causes have you recently felt prompted to support?

Any time is a great time (but especially at the beginning of a new year) to evaluate your current situation, goals, and giving plan for 2023, using the P’s of Giving as your guide. By developing a giving strategy, you will find new opportunities to experience the joy of generosity.

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Reacting to market changes is not the way to grow your long-term wealth (or live your life)!

If you’re part of the 58% of Americans that own stock according to Gallup Research, then chances are it can be tempting to turn on the news each morning (or check an app) and experience an emotional roller-coaster in response to market changes. Depending on the day you can go from a sense of security to a mindset of worry.

These instincts are very human and understandable, but they’re harmful.

An important thing to understand about the stock market is by the time you see the news, all of the changes and variables affecting stock prices have already been priced into the market. That’s what is meant when saying a market is “forward-looking.”

Stock prices reflect an investor consensus of what’s expected to happen in the near future, not a response to what’s already happened. This is why markets often seem to improve before the news turns positive. Other investors already know the same information that you do, and any changes you make now in response to the market will likely be too slow to have the effect you’re hoping for.

Long-Term Investors Get to Participate Rather than Predict 

It’s important to remember 90% of all investment assets are handled by big institutional investors. These professional investors drive the market prices in large part through their predictions and expectations. They do this full time, have access to powerful computing and analysis tools, and they sometimes still make wrong guesses and lose spectacularly.

But as an individual investor, you don’t need to play this predictive game. You can participate and ride along with long-term rise in markets without taking the same level of risk. In the book of James, we are reminded that our predictions are folly when God is in charge of the outcomes.

Come now, you who say, “Today or tomorrow we will go to this or that city, spend a year there, carry on business, and make a profit.” “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” (James 4:13-14 NIV).

We’ve seen that year-over-year growth for long-term, diversified investments tends to hover very reliably around 10%. This long-term average includes booms and busts, periods of prosperity and the worst recessions. In the short term, markets remain uncertain. But in the long term, viewed over decades, the returns for diversified portfolios are very consistent.

Worry is Optional 

“Can any one of you by worrying add a single hour to your life”

How do you prevent yourself from playing the market timing game and always falling a step behind?

• Remove yourself from worry and stop trying to outguess the market. 
• Replace your predictions with process and patience. This change in mindset helps you release the feeling of control and allows you to view money as a tool…just as God intends. 

If the stress becomes overwhelming, take a market sabbatical. Walk away from the news. Spend some time with your family or doing work in your community or volunteer at your church. Sharing our time and resources with others has a way of grounding us in times of financial stress. Your time and energy will be better spent making a difference than worrying over financial markets and other things outside of your control.

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Plans fail for lack of counsel, but with many advisers they succeed (Proverbs 15:22 NIV).

Our plans are more likely to succeed when we seek wise counsel. Financial plans are no exception. When seeking financial advice, you’ll need to consider your goals and needs. Modern technology has made planning more accessible than ever, but tech-based solutions can only offer so much. So what are you looking for in an advisor, and how do you make that choice?

In general, individuals seek financial advice that checks the following three boxes:

• Comprehensive
• Personalized
• Cheap

It’s possible to receive professional financial advice that fits two of these categories. It’s difficult, if not impossible to find an advisor that can meets all three criteria. Seeking out a long-term relationship with a trusted financial advisor is worth the investment of time and money. Don’t make the common mistake of looking for “cheap.” Instead, consider your values, goals and priorities and the worth that you place on building a long-term, relationship with wise counsel.

Personalized + Cheap Financial Planning

The newest trend in financial advice is automated investment planning. With low fees and small account minimums, these robo-advisor provide a low-barrier-to-entry way for people looking to start investing. These accounts are easy to open and use, and there are some personalization options available to adjust the advice based on risk tolerance and investment timelines.

Although these robo-advisor products offer benefits for certain investors, they are very limited tools. They are fully automated, so you’re interacting with an AI-based chatbot, not a person. Under those conditions, the depth of personalization and customization can only go so far.

The biggest challenge is that automated programs have a narrow focus. They are concerned only with investment portfolios. There are a lot of other aspects to a person’s financial needs, like budgeting, clear goal setting, risk and insurance planning, charitable giving strategy, estate, and tax considerations, and so forth, that just cannot be addressed by an impersonal, automated tool.

That impersonal nature also means there’s no one available to you who has your best interest in mind and can help you avoid mistakes or take advantage of opportunities. For example, during times of market volatility, many individuals are worried about their money and want to sell their investments. Most often, that choice would lead to more significant losses than if they’d weathered the market storm. A trusted professional advisor can look at a person’s individual situation and provide advice, guidance, and reassurance. A computer-based advising program simply cannot do that.

Cheap + Comprehensive Financial Planning Doesn’t Exist

The old adage “you get what you pay for” can quickly be seen in the financial planning world. Truly comprehensive planning cannot be automated. It relies on human relationships, not just between the client and the advisor but between the advisor and other professionals when appropriate (tax advisors, attorneys, Realtors, etc.). The long-term health of your finances are worth the investment.

Personalized + Comprehensive Financial Planning

A trusted professional advisor provides financial planning that is a lot more personal and hands-on. At first glance, they may not look much different from the portfolios offered by a robo-advisor. But investment options are just one small part of a much bigger puzzle. Look for an advisor that wants to build a long-term relationships, which allows them to offer significantly more personalized and comprehensive guidance, because a holistic view of finances can only come from a better understanding of who they serve.

First Steps in Finding Trusted and Wise Counsel in Regards to Your Money 

“Listen to advice and accept discipline, and at the end you will be counted among the wise” (Proverbs 19:2 NIV).

Your financial decisions are about a lot more than money. Money is just a tool. What really matters are your goals, values, priorities, needs of your family and other things that can’t be easily summarized by an algorithm. With so much of your identity reflected in your money decisions, the worldview of your financial advisor matters. One designation you can look for is a Certified Kingdom Advisor®. The CKA® training equips financial advisors to include biblical principles in the advice they give to their clients. As Paul wrote to Timothy, “All scripture is God-breathed  and is useful for teaching, rebuking, for correcting, and training in righteousness” (2 Timothy 3:16 NIV). What an incredible advantage professional financial advisors can have when they lean on scripture rather than rely solely on their knowledge? They will also strive to understand the families they serve and identify where they are on their stewardship journey. With this understanding, they can do their part to connect their clients’ resources to God’s Kingdom purposes.

In addition, look for a fiduciary financial advisor. A fiduciary advisor means they have your best interests at heart, as opposed to an individual that may be able to recommend investments or products that pay them a bigger commission and could cost you more. One of the best ways to know you are working with a fiduciary advisor is to look for a Certified Financial Planner®. The CFP® code of ethics states that all CFPs “must act as a fiduciary, and therefore, act in the best interest of the client.”

Finding professionals with the CKA® and CFP® designations are excellent steps to take on the path the seeking out wise counsel and to help you become the best steward of what God has entrusted to you now and into the future

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Don’t Let Worry Distract You from the Opportunities Around You

You ought to have invested my money with the bankers, and at my coming I should have received what was my own with interest- Matthew 25:27 (The Parable of the Talents) 

The Federal Reserve is on a path to drastically increase interest rates in 2022 and 2023. This pivot in interest rate policy comes after two years of rates at or near 0%, which made it hard to earn a reasonable return on cash reserves.

Higher interest rates mean worse terms for lending, but they can also create opportunities to grow your savings – which is expected as we steward assets for a God of growth and abundance. It’s important to not be distracted by worrying like the man in the Parable of the Talents (Matthew 25:14-30) who said he was afraid and simply buried the money given to him for fear of losing it. Below are three suggestions for where you can put your hard-earned dollars to get the full benefit of these changes.

Put Your Emergency Fund in an Online Savings Account

If you’re not already taking advantage of online savings accounts for your emergency fund or other short-term savings goals, you’re missing out. These virtual banks have the same FDIC insurance protection as the brick-and-mortar banks, but they tend to offer significantly higher yield thanks to their reduced overhead costs.

In the last financial cycle before the pandemic shake-up, we saw online savings accounts offering 2.2-2.4% returns on accounts that might yield a 0.1% interest at a large local or national bank. To put that in practical terms, if you put $10,000 in an online savings account with a 2.4% interest rate, you’d earn $230 in interest accrual that you wouldn’t see if you’d gone with a more traditional in-person bank branch.

These accounts are best for money you need to keep relatively liquid or will need to access within a few years. Emergency savings and vacation funds are excellent options for this type of savings. If you’re looking for a more long-term investment with even greater potential rewards, there are better options available.

Use Certificates of Deposit (CDs) for Short-Term Investments

CDs have traditionally been one of the safest and highest-yield options for savings. For the last few years, their interest rates have been lower than many savings accounts, making them a less-appealing option, but that trend looks like it will change in the near future. We’re anticipating higher interest rates on CDs than we’ve seen for several years (believe it or not, CD rates reached over 10% in the early 1980’s).

What makes a certificate of deposit better than a savings account? The biggest advantage is the locked-in interest rate, which ensures predictable and guaranteed growth over the period of a few years. The longer the term, the better the rates. If you’re saving for a big purchase, like a home down payment or college fund, setting the money aside into a CD for 3-5 years can yield a significant and guaranteed return without any risk. Like other bank accounts, CDs are FDIC insured up to $250,000 (double that for a joint account with two people), and they provide returns without any market risk.

CDs do have some drawbacks, though. The downside to locking in your rates is that the money loses its liquidity for the duration of the savings term. Cashing out a CD early is tricky and results in harsh financial penalties. For that reason, it’s a good idea not to keep all of your eggs in one basket: set aside some personal wealth in a CD for safekeeping but keep a bit aside in a high-interest savings account as well in case of emergency.

Consider Money Market Mutual Funds for Your Retirement Savings

Money market mutual funds (not to be confused with money market accounts, or MMAs) are investments sponsored by an investment fund. They are not savings accounts and don’t come with FDIC insurance on the principal, so they do carry some risk. However, as investments go, they are some of the safest and are poised to become more attractive as interest rates continue to climb.

Like all mutual funds, money market funds operate by pooling money from multiple investors, who each receive shares comparable to their initial investment. That pooled money (the mutual fund) is then invested. In the case of money market funds, the investments are made in cash and cash equivalent securities, otherwise known as cash instruments.

With interest expected to exceed 1% and continue rising, money market mutual funds are poised to grow faster than most savings accounts while posing relatively little risk compared to other types of speculative investments. They’re a favorite vehicle for retirement savings because of this. If you currently have money tucked away in an investment or brokerage account, applying those funds to a money market mutual fund investment could earn you some notable growth.

The Bottom Line: You Can Benefit from Higher Interest Rates

These rate changes fall within predictable patterns, and the Fed has been transparent with its intentions. Based on previous rate increases, it’s likely we’ll see interest continue to rise before stabilizing or falling off again.

The Bible has multiple references to blessing for those who are intentional and productive stewards, and disappointment for those who are not. What investments are best for you will ultimately depend on your financial goals, and specific strategies are best discussed with your financial planner. But it’s important to stay abreast of the changing landscape and wisely manage what God has entrusted to you.

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Discover How to Confront Your Financial Fears and Replace It with Peace of Mind

For this reason, I say to you, do not be worried about your life, as to what you will eat or what you will drink; nor for your body, as to what you will put on. Is not life more than food, and the body more than clothing? Look at the birds of the air, that they do not sow, nor reap nor gather into barns, and yet your heavenly Father feeds them. Are you not worth much more than they?

Matthew 6:25-26

It’s natural to feel nervous about the future of your finances when the market is going through a period of volatility. Interest rate changes, stock price fluctuations, inflation, and other economic factors can all lead to feelings of uncertainty.

What’s important to remember, though, is that the movement of the market does not always affect you. Over time, many fluctuations will stabilize. If you’re making smart choices and diversifying your investments, market challenges do not have to pose a significant threat to your finances.

How you should respond to market volatility ultimately depends on your risk tolerance and timeline. Let’s look at some specific factors to consider and break down some financial planning strategies that make sense in a few different situations.

What Are Your Financial Goals?

It’s impossible to make any real progress without a goal in mind. This is as true of your finances as anything else in life. You need a clear picture of why you are saving this money and what purpose the funds will be applied toward. Are you setting aside an emergency fund? Saving for retirement? Setting up college funds for a child’s education? Preparing a foundation to pass along generational wealth?

Every financial goal should have a dollar amount and a timeline attached to it. How much money do you need to have saved? When will you need access to that money?

For which of you, desiring to build a tower, does not first sit down and count the cost, whether he has enough to complete it? Luke 14:28

Once you have those two pieces of information, you are in a good position to make investment decisions that will leave you in the right place when volatility comes.

How Soon Will You Need Your Money?

The timeline of your financial goals will guide the nature of your investments.

0-2 Years: If you’re setting up an emergency fund or saving toward a smaller purchase you plan to make within the next year or two, your priority is preservation and liquidity. This is not a time to take any risks with your investment. Opt for a high-interest savings account, a certificate of deposit (CD), or a low-risk investment like a money market fund or short-term bond.

3-5 Years: Goals with this timeline might include saving for a down payment on a home or a child’s education fund. The goal is moderate growth, which involves slightly more risk. A diversified portfolio with less than 60% stock and the rest in low-risk options will usually provide the best balance of growth and security.

6+ Years: Longer-term savings such as retirement funds can afford to be a bit more aggressive. Aiming for high growth over a longer period means being able to weather the storm of short-term market volatility. A balanced portfolio with 60% or more in stock is poised to grow best in the long term without risking too much of your principal.

Long Term: An “infinity” portfolio for multigenerational wealth accumulation can afford to be much more aggressive. This is money that will go beyond you and your children and help to serve future generations of your family or contribute toward a charitable legacy. Because liquidity is not an issue with this type of fund, you can afford to be more aggressive. Up to 80% stock is appropriate here. Research suggests that an 80% stock portfolio has nearly the same return as placing 100% in stocks but experiences significantly less risk and volatility.

Regardless of the timeline, a diversified portfolio is an essential part of financial planning. Even the most aggressive investments should follow the principles of diversification by spreading investment dollars across multiple stocks and avoiding speculative investments. Your financial planner can help you create a portfolio that best balances risk and growth to serve your long-term goals.

Different Goals, Different Strategies

When approaching money management, it’s best to think in terms of individual buckets or silos that hold funds for different purposes. You likely have a variety of financial goals, and each of those goals has its own timeline. Maybe you’re saving for a big vacation next year or a vacation home within five years. Perhaps you’re planning a large gift of appreciated securities to a charity in the future and need to grow it first. Segmenting your money allows you to be more intentional about your investments and plan more wisely.

Keep your funds separated and maintain multiple risk portfolios to maximize returns on specific investments while minimizing risk to your overall wealth and future goals.

Eliminate Anxiety with a Long-Term Perspective

Market volatility in the day-to-day has little effect on most long-term investments. A properly diversified portfolio will weather most storms and grow over time regardless of more minor ups and downs. Remember, Satan is the author of fear and anxiety. We can live in victory, regardless of our financial environment, while prayerfully taking steps to be the best stewards of God’s finances (He owns it all!) When you keep a sense of perspective about your goals, you can be confident about the financial planning decisions you make today regardless of market challenges. Keep in mind, you are built in the image of a patient and purposeful Father. I encourage you to recognize Satan’s lies and pray for God’s peace, patience, and wisdom when financial stress is present. Live victoriously and rest in whose you are!

For God has not given us a spirit of fear, but of power and of love and of a sound mind.

2 Timothy 1:7

Read More About Intentional Voice and Financial Freedom

Learn More About John Moore Associates

It’s a privilege for Family Life Radio to partner with other ministries, agencies and businesses across the nation—all of whom share the vision to help others experience hope in the name of Jesus. This month, please meet Brian Cochran and John Moore from John Moore Associates, a respected financial advice company founded on biblical wisdom.

Six keys to your financial wellness

Brian Cochran, CKA®, CFP®, Financial Planner
John Moore, CKA®, CIMA®, Principal

The John Moore Associates team could not be more excited to serve as a business partner with Family Life Radio. For over 21 years, we have helped families become intentional in their financial planning and investment decisions through the application of biblical principles.

Did you know there are over 2,000 verses in God’s Word relating to money and material possessions? From these Scriptures come six key principles that can serve as your foundation for wise stewardship and financial wellness:

1. Spend less than you make
2. Be prudent about debt
3. Build liquidity
4. Set long-term goals
5. Act like a manager, not an owner
6. Give generously

Let’s look at the first principle- Spend less than you make. Living within your means is a simple principle and serves as the foundation for financial success. It is also very easily violated. Our modern culture pushes us to spend all we have and more in the search for meaning, acceptance and happiness. We are bombarded with the message that if we can raise our standard of living just a bit more, we will find joy. The bible teaches us differently. Luke 12:15 is one of many warnings about possessions- “Watch out! Be on guard against all kinds of greed; life does not consist in an abundance of possessions.”

Are you violating this principle? A spending audit may be in order. Many banks provide reports for credit card and bank accounts to help you understand where you are spending. You may consider enrolling in a mobile or desktop application that allows you to aggregate multiple accounts for a more comprehensive view. Many apps include budgeting tools to help you set goals and receive alerts when you violate spending goals. Once you know where the money is going, you can reflect on your spending and look for categories that do not reflect your values. Does your spending reflect your belief that God owns it all, and he cares how you spend it?

Thankfully, God’s grace extends to our stewardship of his assets. We are not expected to be perfect. However, God does care about our heart and perspective about money. Do you seek joy and fulfillment in possessions, or do you feel a sense of gratefulness and contentment? Acknowledging the emotions around spending is an important first step to spending wisely and creating the margin required to be successful with your money.

We look forward to helping you go deeper into God’s principles in the coming months through Family Life Radio.

More Keys to Financial Wellness:

Intentional Voice: Key #2

Intentional Voice: Key #3

Intentional Voice: Key #4

Intentional Voice: Key #5

Intentional Voice: Key #6

It’s a privilege for Family Life Radio to partner with other ministries, agencies and businesses across the nation—all of whom share the vision to help others experience hope in the name of Jesus. This month, please meet Brian Cochran and John Moore from John Moore Associates, a respected financial advice company founded on biblical wisdom.

Six keys to your financial wellness
Key #2

Brian Cochran, CKA®, CFP®, Financial Planner
John Moore, CKA®, CIMA®, Principal

The John Moore Associates team could not be more excited to serve as a business partner with Family Life Radio. For over 21 years, we have helped families become intentional in their financial planning and investment decisions through the application of biblical principles.

Did you know there are over 2,000 verses in God’s Word relating to money and material possessions? From these Scriptures come six key principles that can serve as your foundation for wise stewardship and financial wellness:

1. Spend less than you make
2. Be prudent about debt
3. Build liquidity
4. Set long-term goals
5. Act like a manager, not an owner
6. Give generously

Today we will take a closer look at the second key: Be prudent about debt. God provides two clear principles about debt. First, debt holds us back from future opportunities. Proverbs 22:7—The rich rule over the poor, and the borrower is slave to the lender. Borrowing today holds us back from future opportunities as we are beholden to our debt. Does your debt hold you back from opportunities to give, pursue a new career, or participate in missions?

Second, scripture is clear that we are to repay our debts. Romans 13:8—Owe no one anything, except to love each other. Notice how the message is not to avoid debt completely. Instead, we are instructed to pay back any loans we take on. Unpaid debts hurt everyone involved. The borrower who does not pay his debts is saddled with shame. The lender takes on financial loss.

Ask yourself two questions when considering a new purchase that requires owing money:

1. How confident am I that I can repay this debt?
2. What opportunities am I giving up to pay this debt?

If you are comfortable with the tradeoffs of the new debt, then you can proceed with confidence.

More Keys to Financial Wellness:

Intentional Voice: Key #1

Intentional Voice: Key #3

Intentional Voice: Key #4

Intentional Voice: Key #5

Intentional Voice: Key #6

It’s a privilege for Family Life Radio to partner with other ministries, agencies and businesses across the nation—all of whom share the vision to help others experience hope in the name of Jesus. This month, please meet Brian Cochran and John Moore from John Moore Associates, a respected financial advice company founded on biblical wisdom.

Six keys to your financial wellness
Key #3

Brian Cochran, CKA®, CFP®, Financial Planner
John Moore, CKA®, CIMA®, Principal

The John Moore Associates team could not be more excited to serve as a business partner with Family Life Radio. For over 21 years, we have helped families become intentional in their financial planning and investment decisions through the application of biblical principles.

Did you know there are over 2,000 verses in God’s Word relating to money and material possessions? From these Scriptures come six key principles that can serve as your foundation for wise stewardship and financial wellness.

1. Spend less than you make
2. Be prudent about debt
3. Build liquidity
4. Set long-term goals
5. Act like a manager, not an owner
6. Give generously

We addressed spending and debt in the first and second quarters (links). Today we will take a closer look at the third key: building liquidity.

Life is filled with uncertainty. Holding safe and stable reserves is your best risk-management tool. Unfortunately, many American households rely on debt to cover even the smallest financial emergency. A recent study by Bankrate found that 28% of Americans have no emergency fund at all, and 25% cannot cover three months of expenses with their savings. As financial advisors, we frequently meet couples of all ages who have funds in their 401(k) or in acquired real estate, but do not have sufficient liquid funds to pay for a new roof, a car repair or a surprise medical bill.

Building an emergency reserve is a difficult task that takes many households years to accomplish. That said, it is never too early to get started!

1. Begin by opening a savings account at your local bank. The higher the yield the better, but the primary goals are accessibility and safety. Consider an online bank for higher yields. Resist the urge to invest your emergency reserves in volatile assets such as stocks or cryptocurrency.
   Proverbs 21:5—Steady plodding brings prosperity; hasty speculation brings poverty.
2. Set a goal of having $1,000 in the bank. You would be surprised at how many emergencies you can cover with $1,000 or less.
3. Save a consistent amount of every paycheck. Many employers allow regular payroll to be split between your checking and savings accounts. Take advantage of this feature to automate your savings.
4. Understand that your balance may take “two steps forward, one step back” as you face emergencies along the way. Do not be discouraged. The key is to slowly accumulate your reserves and move away from a reliance on high-interest credit card loans or other forms of debt.
5. Consider using bonuses or tax refunds to boost your savings rate. Fight the temptation to spend these windfalls. You will not regret it when the dishwasher breaks down or the roof starts leaking!
6. Once you reach your $1,000 goal, set a goal of having the equivalent of three months of your expenses. If you have a variable income or a risk of unemployment, consider saving for six months of expenses.

A strong emergency reserve covers short-term risks and allows you the privilege of thinking long-term. We will discuss the importance of looking at long-term goals next time!

More Keys to Financial Wellness:

Intentional Voice: Key #1

Intentional Voice: Key #2

Intentional Voice: Key #4

Intentional Voice: Key #5

Intentional Voice: Key #6

It’s a privilege for Family Life Radio to partner with other ministries, agencies and businesses across the nation—all of whom share the vision to help others experience hope in the name of Jesus. This month, please meet Brian Cochran and John Moore from John Moore Associates, a respected financial advice company founded on biblical wisdom.

Six keys to your financial wellness
Key #4

Brian Cochran, CKA®, CFP®, Financial Planner

Setting goals is helpful in all aspects of life, but it is essential for wise financial decision-making. Without clear objectives, we leave ourselves open to short-term influences of fear, greed and culture. By setting long-term goals, we can thoughtfully and prayerfully seek God’s will. This is why setting long-term goals makes the list of Keys to Financial Wellness.

1. Spend less than you make
2. Be prudent about debt
3. Build liquidity
4. Set long-term goals
5. Act like a manager, not an owner
6. Give generously

You may have experience setting goals related to your career, education, faith, relationships or physical health. As a Financial Planner, I have met people who have set and achieved exceptional goals in all areas of life but never set a goal for their finances. Some people do not take the time to think about money, and others have trouble talking about money with their spouse, while many feel ill-equipped to address the topic. Whatever the reason for not setting financial goals, it is never too late to get started!

As a follower of Christ, your goals should always start with God’s calling for your life. Start with prayer and seeking God’s will. Isaiah 32:8 says, “But the noble make noble plans, and by noble deeds they stand.” What noble causes does God have in mind for HIS wealth under YOUR management? If you are married, be sure to include your partner in the pursuit of God’s plan. Once you know God’s vision for your future, you can begin to develop a goal. I like to use the following formula:

$ Goal = How much + When + Why

The timeline and dollar amount will help you determine how much you need to save each month or year. The “Why” helps determine if the goal fits your values and God’s plan. Here is an example:

I will save $20,000 (how much) by May 2025 (when) so I can serve on a mission trip to Africa in celebration of my son’s graduation (why).

Most families develop financial goals with at least one key component missing. For example, I often meet with people who want to retire. Their goals usually sound something like I want to retire when I’m 62. That is not enough information to consistently make the hard decisions required to meet a daunting financial goal like retirement. We can round out the goal by adding an amount and a purpose. I will save enough to withdraw $80,000 per year starting at age 62 so I can leave my career and spend more time with my grandchildren and volunteering at my church.

I encourage you to set financial goals for all key areas of your finances. Share your goals with an accountability partner. Check on your progress at least twice a year. Not sure how to meet your goals? Consider hiring a professional to set a wise course.

John Moore Associates is not affiliated with Family Life Radio
Any opinions are those of the author and not necessarily those of John Moore Associates or Family Life Radio

More Keys to Financial Wellness:

Intentional Voice: Key #1

Intentional Voice: Key #2

Intentional Voice: Key #3

Intentional Voice: Key #5

Intentional Voice: Key #6