Category: Intentional Voice
Key #3 – Build Liquidity
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.
- Spend less than you make
- Be prudent about debt
- Build liquidity
- Set long-term goals
- Act like a manager, not an owner
- 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!
- 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. - 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.
- 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.
- 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.
- 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!
- 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
Key #4 – Set long-term goals
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.
- Spend less than you make
- Be prudent about debt
- Build liquidity
- Set long-term goals
- Act like a manager, not an owner
- 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
Key #5 – Act like a manager, not an owner
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 #5
Brian Cochran, CKA®, CFP®, Financial Planner
God owns everything. Period. You cannot escape this reality as you read scripture. 1 Corinthians 10:26 makes it very clear for someone like me who may want to find a grey area or opportunity to bend the rules- For the earth is the Lord’s, and all it contains. If God owns everything then every financial decision is a spiritual decision! The bank account under your name, the car in your driveway, that annual bonus check, your home, your pension check…they all belong to God. This reality is so crucial that it deserves a place on the six keys to financial wellness.
- Spend less than you make
- Be prudent about debt
- Build liquidity
- Set long-term goals
- Act like a manager, not an owner
- Give generously
Some believers may feel a sense of burden or guilt as they come to understand God’s ownership of their money. They focus on past mistakes and selfish decisions. I encourage an alternative perspective. As a steward of God’s resources, you are the money manager for a forgiving father with abundant wealth, love, generosity, grace, and a desire for you to grow closer to him in everything you do. Our stewardship role gives us the opportunity to accept what God gives us and use it to mature in our faith. With that in mind, how do we act like a manager?
- First- Seek God’s will with every financial decision you make. We understand his will by reading his word and praying for his guidance. Always ask “What would God have me to do?” James 1:5
- Second- Hold all resources loosely. God may have a different plan for your money than you expect. We must hold everything with an open hand so God can align his resources with his plan. Proverbs 3:5
- Third- Be cautious not to confuse your desires for God’s will. I cannot tell you how many times I have heard a Christian justify an emotional spending, debt, or investment decision as God’s will. Matthew 6:10
- Fourth- Seek wise counsel. Always be willing to bounce financial ideas off a wise brother or sister in Christ who can help you avoid making costly mistakes. Proverbs 15:22
Nobody is a perfect manager, and even the most mature Christians constantly struggle with ownership. Do not be discouraged by mistakes. Learn from your them and consistently ask for God’s forgiveness and wisdom. You are closer to his will when you feel a sense of joy, contentment and peace. Greed, fear, and a scarcity mentality are signs you need to re-align your actions with his word.
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 #4
Intentional Voice: Key #6
Key #6 – Give generously
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 #6
Brian Cochran, CKA®, CFP®, Financial Planner
We are made in God’s image, and God is generous. Therefore, we are meant to be givers and should not be surprised with the joy that comes with generosity. Joyfully and sacrificially giving fights the power of greed, reminds us of the needs of others, and encourages a healthy relationship with money. For these reasons (and so much more!) giving generously is one of the six keys to financial success.
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- Spend less than you make
- Be prudent about debt
- Build liquidity
- Set long-term goals
- Act like a manager, not an owner
- Give generously
Paul provides the guideline for giving in a way that honors God in 2 Corinthians. Each of you should give what you have decided in your heart to give, not reluctantly or under compulsion, for God loves a cheerful giver. Do you share your resources with those in need? I have advised hundreds of families on their personal finances. Many give. A small minority give God’s way.
Who should give? Each of you should give…
Generosity is not reserved for those who have their finances all figured out. I often hear “I’ll give when I make more money” or “when I pay off my debts” or “after the kids are done with college.” Paul does not say giving is only for the rich or debt-free!
How much should we give? …what you have decided in your heart to give
Paul didn’t say to give 10% or any other pre-determined amount. Giving is a HEART issue, not a rule.
What attitude should we have when we give?…God loves a cheerful giver.
We are to give with a smile and a sense of gratitude.
I use Paul’s guidelines to define generosity as compared to giving. Anything you share is a gift, but you are generous when you give cheerfully, from the heart, and without compulsion. I know I have made gifts without being generous. How are you giving?
More Keys to Financial Wellness: