We have discussed a variety of topics these last several weeks.\u00a0 Most of them have been designed to get us to the place where we can have some \u201cfree cash flow\u201d.\u00a0 There are really only two sides of that equation:\u00a0 Income & Expense.\u00a0 We have spent the majority of time on the Expense side of the ledger; though we have realized that sometimes the need is on the income side.<\/p>\n
This week we are going to talk about a concept that might feel like a foreign language to some of us.\u00a0 The whole concept of savings.\u00a0 We ultimately want to start a \u201cstairway\u201d of sorts.\u00a0 This week we are going to cover emergency fund, savings, and investing.\u00a0 Next week we will talk about retirement planning.\u00a0 Some people wrestle with this whole area, not just because they can\u2019t control spending, but because they feel it somehow represents a lack of faith.\u00a0 Consider these scriptures:<\/p>\n
\u201cGo to the ant, you sluggard; consider its way and be wise!\u00a0 It has no commander, no overseer or ruler, yet it stores its provisions in summer and gathers its food at harvest\u201d(Proverbs 6:6-8)<\/em><\/p>\n \u201cIn the house of the wise are stores of choice food and oil, but a foolish man devours all he has\u201d(Proverbs 21:20)<\/em><\/p>\n Ron Blue suggests that there are really two seasons in the life of a person from a financial perspective.\u00a0 There is the accumulation stage and the preservation stage.\u00a0 Accumulation is when we are wanting to gear up for financial independence, and preservation is when we want to maintain our standards.\u00a0 He then provides a very helpful tool:<\/p>\n Sequential Accumulation Strategy(Ron Blue)<\/strong> Austin Pryor uses a similar, but somewhat different sequence.\u00a0 For the rest of our time tonight, I am going to be referring to his sequence.\u00a0 He uses a four level description:<\/p>\n Level One:\u00a0 Getting Debt Free Pryor believes that working on level one and level two is prudent.\u00a0 In particular, an emergency fund enables you to avoid future debt that might come with an unexpected loss in income.\u00a0 He suggests 3-6 months, with a minimum of $10,000 if you are married.<\/p>\n Making the sacrifices necessary to complete level One(getting debt-free) and level Two(saving for future needs) is not a lot of fun-but necessary to build a secure savings plan.<\/p>\n Emergency Fund should be put in a very safe place; preferably earning money market rates, but not nearly as accessible as your checking account!\u00a0 Consider Credit Unions, or if you bank with an institution..become a preferred customer!\u00a0 Make them earn your business!<\/p>\n Long Term Needs:\u00a0 Appliances, Automobile, College.\u00a0 Have a regular plan.<\/p>\n Mutual funds:\u00a0 Pool of money formed when thousands of investors team up to diversify and get competitive advantages.\u00a0 Every fund has an investment objective.\u00a0 That objective, along with past performance, the risk of the investment type, along with your personal objective is the grid that helps you determine whether or not to invest with them.<\/p>\n Typical Objectives:\u00a0 Fixed Income, Corporate Bond, Equity Income, Growth & Income, Growth, Aggressive Growth, Worldwide, Specific Regions.<\/p>\n In general, you want to stay with \u201cno-load\u201d(no initial sales fee) funds; looking for funds that have low expense charges(typically around 1%).\u00a0 You can get USA today, Wall Street Journal, MONEY or other magazines that review and preview mutual funds as aids.\u00a0 You may also want to consider mutual fund brokerage services offered by people like Charles Schwab or Fidelity.<\/p>\n Consider dollar cost averaging into mutual funds.\u00a0 Recognize that there are risks to EVERY form of investing.\u00a0 Each step you take away from US insured means an increase in risk!<\/p>\n \u201cA faithful man will abound with blessings, but he who hastens to be rich will not go unpunished\u201d(Provers 28:20)<\/em><\/p>\n \u201cDishonest money dwindles away, but he who gathers money little by little makes it grow\u201d(Proverbs 13:11)<\/em><\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" We have discussed a variety of topics these last several weeks.\u00a0 Most of them have been designed to get us to the place where we can have some \u201cfree cash flow\u201d.\u00a0 There are really only two sides of that equation:\u00a0 Income & Expense.\u00a0 We have spent the majority of time on the Expense side of […]<\/p>\n","protected":false},"author":2,"featured_media":3117,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_editorskit_title_hidden":false,"_editorskit_reading_time":0,"_editorskit_is_block_options_detached":false,"_editorskit_block_options_position":"{}","om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[102],"tags":[112],"featured_image_urls":{"full":["https:\/\/drjohnjackson.com\/wp-content\/uploads\/2023\/02\/Managing-the-Money-Monster-John-Jackson-Communications.jpeg",1000,667,false],"thumbnail":["https:\/\/drjohnjackson.com\/wp-content\/uploads\/2023\/02\/Managing-the-Money-Monster-John-Jackson-Communications-150x150.jpeg",150,150,true],"medium":["https:\/\/drjohnjackson.com\/wp-content\/uploads\/2023\/02\/Managing-the-Money-Monster-John-Jackson-Communications-300x200.jpeg",300,200,true],"medium_large":["https:\/\/drjohnjackson.com\/wp-content\/uploads\/2023\/02\/Managing-the-Money-Monster-John-Jackson-Communications-768x512.jpeg",768,512,true],"large":["https:\/\/drjohnjackson.com\/wp-content\/uploads\/2023\/02\/Managing-the-Money-Monster-John-Jackson-Communications.jpeg",1000,667,false],"1536x1536":["https:\/\/drjohnjackson.com\/wp-content\/uploads\/2023\/02\/Managing-the-Money-Monster-John-Jackson-Communications.jpeg",1000,667,false],"2048x2048":["https:\/\/drjohnjackson.com\/wp-content\/uploads\/2023\/02\/Managing-the-Money-Monster-John-Jackson-Communications.jpeg",1000,667,false],"woocommerce_thumbnail":["https:\/\/drjohnjackson.com\/wp-content\/uploads\/2023\/02\/Managing-the-Money-Monster-John-Jackson-Communications-740x667.jpeg",740,667,true],"woocommerce_single":["https:\/\/drjohnjackson.com\/wp-content\/uploads\/2023\/02\/Managing-the-Money-Monster-John-Jackson-Communications-940x627.jpeg",940,627,true],"woocommerce_gallery_thumbnail":["https:\/\/drjohnjackson.com\/wp-content\/uploads\/2023\/02\/Managing-the-Money-Monster-John-Jackson-Communications-100x100.jpeg",100,100,true],"yarpp-thumbnail":["https:\/\/drjohnjackson.com\/wp-content\/uploads\/2023\/02\/Managing-the-Money-Monster-John-Jackson-Communications.jpeg",120,80,false],"trx_addons-thumb-huge":["https:\/\/drjohnjackson.com\/wp-content\/uploads\/2023\/02\/Managing-the-Money-Monster-John-Jackson-Communications.jpeg",987,658,false],"trx_addons-thumb-big":["https:\/\/drjohnjackson.com\/wp-content\/uploads\/2023\/02\/Managing-the-Money-Monster-John-Jackson-Communications.jpeg",649,433,false],"trx_addons-thumb-medium":["https:\/\/drjohnjackson.com\/wp-content\/uploads\/2023\/02\/Managing-the-Money-Monster-John-Jackson-Communications.jpeg",312,208,false],"trx_addons-thumb-small":["https:\/\/drjohnjackson.com\/wp-content\/uploads\/2023\/02\/Managing-the-Money-Monster-John-Jackson-Communications-270x152.jpeg",270,152,true],"trx_addons-thumb-portrait":["https:\/\/drjohnjackson.com\/wp-content\/uploads\/2023\/02\/Managing-the-Money-Monster-John-Jackson-Communications-370x493.jpeg",370,493,true],"trx_addons-thumb-avatar":["https:\/\/drjohnjackson.com\/wp-content\/uploads\/2023\/02\/Managing-the-Money-Monster-John-Jackson-Communications-370x370.jpeg",370,370,true],"trx_addons-thumb-tiny":["https:\/\/drjohnjackson.com\/wp-content\/uploads\/2023\/02\/Managing-the-Money-Monster-John-Jackson-Communications.jpeg",75,50,false],"trx_addons-thumb-masonry-big":["https:\/\/drjohnjackson.com\/wp-content\/uploads\/2023\/02\/Managing-the-Money-Monster-John-Jackson-Communications.jpeg",770,514,false],"trx_addons-thumb-masonry":["https:\/\/drjohnjackson.com\/wp-content\/uploads\/2023\/02\/Managing-the-Money-Monster-John-Jackson-Communications.jpeg",370,247,false]},"post_excerpt_stackable":" We have discussed a variety of topics these last several weeks.\u00a0 Most of them have been designed to get us to the place where we can have some \u201cfree cash flow\u201d.\u00a0 There are really only two sides of that equation:\u00a0 Income & Expense.\u00a0 We have spent the majority of time on the Expense side of the ledger; though we have realized that sometimes the need is on the income side. This week we are going to talk about a concept that might feel like a foreign language to some of us.\u00a0 The whole concept of savings.\u00a0 We ultimately want to…<\/p>\n","category_list":"Get Equipped<\/a>","author_info":{"name":"Dr. John Jackson","url":"https:\/\/drjohnjackson.com\/author\/drjohnjackson\/"},"comments_num":"0 comments","jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/drjohnjackson.com\/wp-content\/uploads\/2023\/02\/Managing-the-Money-Monster-John-Jackson-Communications.jpeg","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/drjohnjackson.com\/wp-json\/wp\/v2\/posts\/2914"}],"collection":[{"href":"https:\/\/drjohnjackson.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/drjohnjackson.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/drjohnjackson.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/drjohnjackson.com\/wp-json\/wp\/v2\/comments?post=2914"}],"version-history":[{"count":1,"href":"https:\/\/drjohnjackson.com\/wp-json\/wp\/v2\/posts\/2914\/revisions"}],"predecessor-version":[{"id":2915,"href":"https:\/\/drjohnjackson.com\/wp-json\/wp\/v2\/posts\/2914\/revisions\/2915"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/drjohnjackson.com\/wp-json\/wp\/v2\/media\/3117"}],"wp:attachment":[{"href":"https:\/\/drjohnjackson.com\/wp-json\/wp\/v2\/media?parent=2914"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/drjohnjackson.com\/wp-json\/wp\/v2\/categories?post=2914"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/drjohnjackson.com\/wp-json\/wp\/v2\/tags?post=2914"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\n(Must have a positive cash flow margin!!!)<\/strong><\/p>\n\n
\nLevel Two:\u00a0 Saving for Future Needs
\nLevel Three:\u00a0 Investing your Surplus
\nLevel Four:\u00a0 Diversifying for Safety<\/p>\n