Financial Freedom Series: The Wall Phase
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
“Good planning and hard work lead to prosperity, but hasty shortcuts lead to poverty.” (Proverbs 21:5)
Are Your Priorities Messed Up? Are You Managing Your Money the Wrong Way Around?
I want to encourage you to prioritize your life and financial priorities properly.
Over the last two weeks, we looked at IMPORTANT PRIORITIES IN BUILDING TOWARD FINANCIAL FREEDOM.
Do you know what a priority is?
According to the dictionary, a PRIORITY is “a thing that is regarded as more important than another.”
If you are building a home, you cannot start with the roof.
You need to start with a solid foundation. Then, you need to construct the floor before you build the walls with doors and windows. Finally, you can put on the roof.
If you do not start with a solid foundation and then build up, you will be left with a dilapidated, dangerous, and disjointed home.
From a financial planning perspective, there is also an order of priorities. These priorities flow into each other, and today, I want to take a brief look at the 4 IMPORTANT PRIORITIES IN BUILDING TOWARDS FINANCIAL FREEDOM.
Last week, we looked at the importance of building on a solid foundation…
Level One: FOUNDATION PHASE:
- Start with building your life and financial foundation on God.
Look at what Jesus says about building your life on a solid foundation of God…
Jesus said, “Therefore everyone who hears these words of mine and puts them into practice is like a wise man who built his house on the rock. The rain came down, the streams rose, and the winds blew and beat against that house, yet it did not fall because it had its foundation on the rock. But everyone who hears these words of mine and does not put them into practice is like a foolish man who built his house on sand. The rain came down, the streams rose, and the winds blew and beat against that house, and it fell with a great crash.” (Matthew 7:24-27)
Live with Jesus at the center…
Jesus said, “But seek first his kingdom and his righteousness, and all these things will be given to you as well.” (Matthew 6:33)
Get your priorities in the right order.
Is God first in your life?
Level Two: FLOOR PHASE:
Before spending money, you must ensure you earn enough to cover your basic needs.
Before buying luxury items, you must ensure that your essentials are covered.
You must ensure you can provide for your family during the floor phase.
Your budget is, therefore, an important starting point.
Do you have a budget?
It would be best if you lived within your means.
To do so, you may need to cut wasteful expenditures and eliminate debt.
You also need to ensure that you live on less than you earn.
It would be best to fully cover your basic needs before pursuing your dreams and the nice-to-haves.
“Anyone who does not provide for their relatives, and especially for their own household, has denied the faith and is worse than an unbeliever.” (1 Timothy 5:8)
Please consider your family’s needs before recklessly spending money on other things.
Be diligent. Be wise.
“The wise are cautious and avoid danger. Fools just plunge ahead with reckless confidence.” (Proverbs 14:15)
Once you have BUILD A SOLID FOUNDATION ON GOD (FOUNDATION PHASE) and have COVERED YOUR BASIC NEEDS (FLOOR PHASE), you can move on to the next level, the WALL PHASE.
Today, we are going to drill into…
Level Three: WALL PHASE:
The Wall phase is essential, but many neglect it.
Building the wall on a solid foundation and floor provides security and protection for your family and yourself.
The windows fit into the wall. This brings vision.
The doors also fit into the walls. This creates doorways of opportunity.
From a financial perspective, you need to provide suitable protection.
If you do not take care of this phase, you could end up losing what you have or not being able to provide and protect your family in the event of a calamity or crisis.
In the Wall phase, you must provide security and protection…
- Build up a cash reserve to fund unforeseen needs and emergencies.
It is important to set funds aside to cover unexpected expenses and ensure you have cash flow available should you face a storm, experience a financial drought, or lose your job.
“Take a lesson from the ants, you lazybones. Learn from their ways and become wise! Though they have no prince or governor or ruler to make them work, they labor hard all summer, gathering food for the winter.” (Proverbs 6:6-8)
- You must also have suitable assurance and healthcare protection for your family and yourself.
Life can be unpredictable.
What happens if you die?
- Will your debts be settled?
- Will your family be provided for?
- Do you have a will in place?
- Do you have life cover to settle your debt and provide for your loved ones?
What happens if you are sick or disabled?
- Will your income dry up? If so, what happens to your bills and family?
- Will your medical costs be covered?
- Do you have disability coverage?
- What about income protection?
- Do you have medical aid?
- What about gap cover?
You can usually counter financial risk by making use of assurance.
You can protect your loved ones and yourself with sufficient life, disability, income, and healthcare coverage.
By taking out specific cover to meet your needs, you can at least know that you and your loved ones are protected financially in the event of death, if you are not able to work due to disability, or if you are hospitalized.
“Anyone who does not provide for their relatives, and especially for their own household, has denied the faith and is worse than an unbeliever.” (1 Timothy 5:8)
You can take out cover to settle debts, provide income protection, and provide cash lump sums to cover specific needs in the event of death, disability, or sickness.
I suggest you sit down with a financial adviser to calculate your needs. A financial adviser can prepare a life planning and estate planning analysis. By reviewing your needs and objectives and providing a suitable solution and cover, a financial advisor can help you implement a plan in line with your affordability to ensure you and your family are protected in the event of an unforeseen event.
- It is also vital that you have insurance in place
You can insure your home, car, and valuables. This will ensure that your assets are protected from theft or accident.
“The prudent see danger and take refuge, but the simple keep going and pay the penalty.” (Proverbs 27:12)
You can protect your assets by having sufficient short-term insurance in place.
In the Wall phase, you must provide for your future…
- It is also vital to save towards retirement.
If you do not save towards retirement, you will not be able to retire.
The longer you put off saving for your future, the more difficult it becomes to retire.
Many people are not saving enough for their golden years.
I suggest you sit down with a financial adviser who can prepare a retirement forecasting analysis. This will indicate what you are on track to retire on and will also include considering various scenarios to help you plan well for your future. Part of the analysis will be to look at the most suitable and tax-advantageous investment options and funds you can use to help you put the necessary plans in place so that you can one day enjoy your golden years.
- It is also prudent to save towards your children’s education and any other specific savings needs you may have over the short, medium, and longer term.
“He who gathers money little by little makes it grow.” (Proverbs 13:11)
“The wise man saves for the future, but the foolish man spends whatever he gets.” (Proverbs 21:20)
Please get suitable advice on constructing your savings and investment portfolio to meet your objectives.
During the Wall phase, it is vital that you…
- Provide the proper protection
- Have a vision
- Set suitable investments and savings plans that can open doors of opportunity for a brighter tomorrow and help you provide for your financial future
Only once you have addressed your needs under the Foundation, Floor, and Walls phases should you consider moving on to the next level…
Next week, we will examine the ROOF PHASE and help you set up a strategy to go after your dreams.
YOU CAN TURN YOUR FINANCIAL AFFAIRS AROUND. IT STARTS BY GETTING YOUR PRIORITIES IN THE CORRECT ORDER.
“To change your life, you need to change your priorities.” – Mark Twain
