5 Money Goals

Hello Beautiful!

I find that no matter what people say they want their money to do for them, it will fall within the 5 Money Goals: Security, Freedom, Lifestyle, Generosity, and Legacy.

Money Goal #1 – Security

Let’s start with security, it is your fundamental money goal.  Some of our basic needs are to have food, clothing, and shelter, and I would like to add decent healthcare to the list.  We also don’t want to struggle, or just live a life of existence and survival.  We want to have more than enough to take care of ourselves, and our families. We want to thrive!

Financial Security starts with getting control of your money, by having a sound money management plan.  A budget is an excellent place to start.  You need to know how much money you have coming in, and where your money is going.  There are many ways to create and manage your budget today; there are a variety of APPs and software programs available.  Choose a system that is user friendly, easy for you to manage, and one that you will stick with.

Next, is savings.  Okay so I hate the terms “rainy day fund” and “emergency fund” so I like to use the term “cash reserve,” but you can feel free to call it whatever you like, as long as you’re saving.  Ultimately you want to have several months of your expenses in your cash reserve, but don’t panic! Start where you are.  Build your cash reserve in steps: 1. $500 2. $1000 3. $2500 and keep going until you have a nice reserve saved.

Create a debt reduction/elimination plan.  There are two common methods you can use: the snowball method where you start with paying the debt with the smallest amount first.  The other is the avalanche method where you start with the account/debt with the highest interest rate first.  Whichever method you choose, stay focused and faithful to your plan.

Lastly, protect your family and assets with the proper insurance, and estate planning documents.

Money Goal #2 – Freedom

What is financial freedom?  Good question.  I define it as the ability to live life on your own terms, and having the time and resources to do what’s important to you.  Now how that looks, may be different for each of us.  Financial freedom is putting enough money to work for you, so that you’re not working so hard for it.  So how do we achieve that?  By investing and ownership – building wealth. This money goal seems all too elusive to many, but it doesn’t have to be.  Always take advantage of your company’s retirement program.  You can start investing in small ways on your own; be sure to do your due diligence, and learn as much as you can before you get started.  Additionally, seek professional help from a financial adviser/planner to help you with your overall investment strategy and plan if you don’t have the knowledge and skills.  Work on this money goal.

Money Goal #3 – Lifestyle

I had a friend who would always say, “how you livin’?”  It was a greeting, but it can also be asked of our lifestyle as well.  Money allows us to create a certain lifestyle, and that lifestyle is defined by how much money we can allocate to it.  Our lifestyle is how our money shows up in the world.  How much money you have will determine the neighborhood you can live in, where you can shop, the education you can provide your children, the experiences you and your family can or cannot have.  Now I’m not advocating for or against a material lifestyle, but I am advocating having the ability to choose; and the truth is, money gives you more choices.  I like to say, “money gives us access.”  So how do you want to live? What quality of life do you want to have?  And I’m speaking from a “lifestyle” perspective.  This is where we enjoy the fruits of our labor.  And we don’t have to be shy about it, we all want to live a nice quality of life – however that may look for you.  This is the money goal we live out every day.

Money Goal #4 – Generosity

I think this is one of the most important money goals, and important in our wealth building plan.  “To whom much is given, much is required (Lk. 12:48).”  True wealth is not only defined by the how much money we make, but how much of a difference we make.  True wealth is being able to be a blessing to others.  And wait! Before you say you don’t have enough, you do.  You don’t have to be rich to give, or help someone.  Just like with anything, start small if you have to.  You can share your talents and skills, your resources that you have access to, you can give of yourself and your time, and of course, you can share your money.  I think what’s most important is to give from your heart, and show the love of God.

Money Goal #5 – Legacy

I know for many, this money goal is so far down the road that you may not think about it, or you may think you have time, or there is so much going on that it’s not a priority.  I get it.  One of the best things you can do for your children, grandkids, and future generations is to leave a legacy of faith and financial literacy – knowledge.  Help them to learn and understand how money works, and what it means to be a good steward over their money.  And one way to do that is to live by example.  As you work to build your wealth, build enough to leave and give your children or grandchildren a head start, so they don’t have to start at the beginning. Paraphrased – “it is good to leave an inheritance for your children’s children (Prov. 13:22).”  If nothing else, leave a legacy of love.

My challenge to you is to create a list of everything that you want your money to do, or what you want to do with your money, however you want to say it, but after you create your list, you will be able to put each one into one of the 5 Money Goals.

So, what do you want your money to do for you?

Your sister,

Kim