Build your own financial plan

 

No doubt you’ve heard people say “People don’t plan to fail, they fail to plan”. True words.

There are two key passages that should guide you in putting together your financial plans:

Where there is no vision, the people perish: but he that keepeth the law, happy is he.

Proverbs 29:18

He also gave him the plan for the chariot, that is, the cherubim of gold that spread their wings and overshadow the ark of the covenant of the Lord.¹⁹ “All this,” David said, “I have in writing as a result of the Lord’s hand on me, and he enabled me to understand all the details of the plan.”

1 Chronicles 28:18-19 (NIV)

Let’s unpack this:

1) Get a Vision for your Finances

In the business world, companies set both a Vision and a Mission. The Mission is why the business exists, and what it does, and the Vision is what it will look like when the business achieves its your Mission. The same principle applies to your personal finances.   Your mission will cover many of your short-term and long-term goals, and you Vision will be the kingdom purposes that it achieves.

Think big picture: What are the eternal purposes for your Wealth? What do you believe God wants for your life? What is your assignment? Purpose?

Beneath your vision will be goals, both short-term and long-term, from saving for a home, paying for kids education, to funding retirement.

2) Put your Plan in Writing

The second passage points out the need to make a plan in writing with the help of the Lord’s hand. Today we have the Holy Spirit as our guide. Seek his guidance for the plan and put it in writing.

A financial plan will be broken into various sections to make sure you cover all the key areas of your personal finances.

What should your plan include?

• Your Vision
  1. What is the Kingdom Purpose for your wealth?
• Goals
  1. Short-term (1 – 3 years)
  2. Medium-term (3 – 10 years)
  3. Long-term (10+ years)
• Budget
  1. What is your surplus?
  2. Does your budget honor God?
• Insurance
  1. Assess your needs
  2. Seek appropriate policies
  3. Is your family protected?
• Estate Planning
  1. Wills
  2. Powers of Attorney
  3. Who are you leaving God’s money too?
• Long-Term Goals
  1. Target Capital
  2. Kingdom Goals
• Investment