People realize the importance of financial planning as they grow wiser. Many people start financial planning at an early age or when they start earning, and their financial plan includes preparing for retirement.
The Bible has a lot to say about managing money and making wise investments. However, experts argue that financial planning is relatively new. If you want to learn about what it means to be a financial planning Christian and its concepts, here are a few biblical financial concepts that you might have read or heard about.
Spend Less Than What You Earn
The Bible warns people about financial foolishness. The biblical economic concept focuses on spending less than you earn. The idea is to save what you can, no matter how much you earn.
Establish an Emergency Fund
Biblical financial verses mention that precious items and oil are found in a wise man’s dwelling while a foolish man devours all his wealth. The biblical teachings mention that you should save resources to use them during lean times. Christian financial experts agree that it is wise to set some money aside as an emergency fund.
Diversify
Biblical financial concepts focus on the diversification of your investments. Financial experts state that if you rely 100% on one income source, you become more vulnerable, whereas having multiple income streams will reduce your dependence on any stream.
Some of the recommended asset classes are:
- Real Estate Investment Trusts
- Commodities
- Large US Stocks
- Small US Stocks
- Non-US Stocks
- Cash
- Intermediate Bonds
Financial planning is not easy, and living by biblical values is not an easy task. Hence, you should take the help of financial planning Christian experts. These are some Christian financial planning concepts that you should follow when making investments or managing your finances.
What are the benefits of consulting Christian financial planners?
Here are some of the advantages of working with them.
- Deep Understanding of Biblical Values
One of the advantages of hiring Christian financial planners is that they share the same biblical values as you do. Many financial advisors do not support their client’s decision to become more generous. However, a Christian financial advisor can help you serve God with your money by balancing investments and savings with giving.
- Planning Beyond Money
A Christian financial advisor is different from regular financial advisors who are only concerned about your balance sheet. An excellent Christian advisor will try to know your life’s goals and help you to view your finances in light of eternity. They will find different ways to help you practice good stewardship of the resources provided by God.
- Put Wise Planning First
In traditional financial planning, the advisor is fixated on the performance of your investments. On the other hand, the Christian financial advisor will make a solid plan for your assets to provide financial security to your future generations while honoring Christ through unbiased and holistic advice about investments and savings.
- Ensure the Investments Are Compatible With Your Convictions
Faith-driven people avoid making sinful investments. They do not support immoral practices. Your advisor will recommend investing in companies that follow biblical ethics and care for their employees, environment, and community.
Hiring a Christian financial planner will help you invest money to the glory of God. The advisor will ensure your financial life is aligned with biblical principles.