Financial Independence

YOUR GOAL FINANCIAL INDEPENDENCE

Financial independence can be defined as accumulating an amount of invested capital that will produce a stream of guaranteed income to meet your financial needs without your needing to work to earn a salary.
Financial independence is a practical goal that can be achieved if you apply some fundamental and biblical principles of finance and work consistently toward your goal. In a later chapter we will examine several strategies to build your investments as well as preserve and protect yourself and your family against the special financial risks in this new millennium.
The reason the majority of people reach retirement without achieving financial independence is that they have failed to plan properly and to consistently invest the tremendous resources that God has placed in their hands during their working lives. They do not plan to fail; they simply fail to plan for financial success.
Many people have had the experience of trying and failing to develop a workable budget and savings plan.
They cash their paycheck, then pay their bills and living expenses, hoping to tithe to God and save some money out of the surplus that may be left at the end of the month. The problem is, you will never have any cash left at the end of the month to tithe or save. Many believe the solution to their dilemma is to increase their income.
However, unless they change their strategy and habits, they will never escape the financial bondage of living paycheck to paycheck.
For most people, the only practical solution is to change their entire saving strategy. The principle is simple but fundamental: When you cash your paycheck, pay God his tithe first, then pay yourself by depositing 10 percent of your check into your savings account.[GRANT, DOES THIS INCLUDE PUTTING MONEY IN A 401(k) PLAN?] Then pay your outstanding bills and living expenses out of the remaining 80 percent of your funds.
If you are now living hopelessly from paycheck to paycheck, this simple but profound change in your saving and spending strategy will mark the first step on your long but effective road toward financial success.
You may feel that you cannot afford to save 10 percent of your income because you are too deeply in debt. The truth is that you cannot afford to delay beginning your savings plan no matter how deeply you are mired in debt.
The best way to end your financial and spiritual bondage to debt is to take control of your finances by beginning your new savings strategy today. If you cannot commit to save 10 percent of your income today, then begin at 5 percent and gradually increase the percentage.
The key is to begin today.
Will there ever be a better time to begin to take control of your financial destiny?
Promise yourself that you will begin today to follow a plan that will lead you and your family to financial freedom.
Then you will begin to see light at the end of the tunnel as your savings account begins to grow past one thousand dollars to five thousand dollars, and then you can begin to invest.
This small but profound change can start you on the long road to financial freedom.
As you faithfully tithe to God’s work, he will prosper your efforts.
As you see your savings account grow each month, you will unlock your motivation to
financially succeed.
Instead of working just to pay your bills and service your debt, you will begin working for your financial freedom.