Financial Freedom Series: The 10-20-70 Principle (Part 3)

Welcome back to our Financial Freedom Series, where we’re looking into God’s Blueprint for Building Wealth and Managing Your Money Well!

We dive into biblical principles and cutting-edge money management wisdom to help you…

• Honor God with your money
• Build wealth
• Shrink your debt
• And build toward financial freedom

“But remember the LORD your God, for it is he who gives you the ability to produce  wealth.” (Deuteronomy 8:18) 

“Good planning and hard work lead to prosperity, but hasty shortcuts lead to poverty.” (Proverbs 21:5) 

“I will guide you along the best pathway for your life. I will advise you and watch over you.” (Psalm 32:8) 

“The wise man saves for the future, but the foolish man spends whatever he gets.”  (Proverbs 21:20) 

“The rich rules over the poor, and the borrower is the slave of the lender.” (Proverbs  22:7) 

“But blessed are those who trust in the Lord and have made the Lord their hope and confidence. They are like trees planted along a riverbank, with roots that reach deep into the water. Such trees are not bothered by the heat or worried by long months of drought. Their leaves stay green, and they never stop producing fruit.” (Jeremiah 17:7-8) 

“Hope deferred makes the heart sick, but a dream fulfilled is a tree of life.” (Proverbs 13:12) 

It is your time to dare to dream. 
It is time to reset your goals. 
It is time to rekindle your passion. 
It is time to aim high. 
It is time to attempt great things with God. 
It is time to live on purpose. 
It is time to reignite your vision. 
It is time to be fruitful. 
It is time to get positioned for God to 
catapult you into your destiny. 

Your best days are ahead of you.

Today, I want to encourage you to MANAGE YOUR MONEY LIKE A PRO. 

To manage your money like a pro, you need to…

• Wipe out your debt
• Dare to dream and have goals and a vision for the future
• Get your priorities in order
• Create a financial plan that you can stick to in order to build toward financial freedom

If you want to manage your money well, you need to know where your hard-earned money is going. A good starting point is to create a budget.

“Good planning and hard work lead to prosperity, but hasty shortcuts lead to poverty.” (Proverbs 21:5)

The 10:20:70 Principle in a Nutshell…

Managing your money like a PRO consists of three simple steps…

Last week, we looked at the 10% component of the 10-20-70 PRINCIPLE, and we encouraged you to put God first and give him your best.

The 20% Component

Today, I want to drill down into the 20% component of the 10-20-70 principle…

I want to encourage you to develop a habit of saving and investing before you spend your income. 

Many think that saving and investing is the same thing, but this is not true.

SAVINGS are for the short term, where you have funds available for needs and opportunities that may arise. 

INVESTING is to grow your funds and build up a wealth portfolio over the longer term. 

If you save and invest before you spend your money, you will always build up wealth.

After saving and investing 20% of your income, you can literally spend everything left over, turning your income into assets.

On the flip side, if you spend first, you will find it nearly impossible to accumulate any savings, as there will always be another cash flow thief who will steal your money.

Savings

I want to encourage you to build up a reserve fund to cover your short-term needs and to ensure you have money available if a storm hits.

Just like a car has a reserve tank to ensure it can get to the fuel station if it runs low on fuel, you need savings for when life happens. 

Please do yourself a favor and build up your savings. Keep some cash liquid so that you can access funds if you face an emergency or desperate need. 

Available cash flow will also allow you to take up opportunities that may arise from time to time. 

Investments

It is vital that you invest part of your income in growth investments that can benefit from compounding and generate explosive growth over time.

Growth investments may be volatile over the shorter term but will give you the ability to generate wealth over the longer term.

God’s word is clear: the fool spends whatever he gets, but the wise person saves and invests for the future.

Are you managing your money wisely?

It is vital to get your financial priorities in the right order. 

Put God first. Save before you spend and live on the rest.

By sticking to a 10-20-70 PRINCIPLE…

• You will be honoring God
• You will build up a cash reserve
• Over time, you will build up a Wealth Portfolio to help you attain financial freedom

I encourage you to MANAGE YOUR MONEY LIKE A PRO.

Next week, we will unpack a few Investment Principles that come straight from the Word of God and that you can apply to help you grow your money by using God’s wisdom.