Stewardship & Finance

Stewardship & Finance – Discipline

Risk Management

An important financial discipline is to assess risk.  You can eliminate all risk by not engaging in the risk. Example:  If I don’t own a home, I do not have to insure it. But if I do own a home, I can transfer the risk to an insurance company and share the risk with others. I can reduce the risk by agreeing to pay a deductible which represents the risk I am willing to bear and have an insurance company assume the rest of the risk. I can also assume the risk entirely. Proper risk evaluation and analysis will help me steward God’s resources better.

There are a number of risks that people evaluate and assess. These include car insurance, homeowners insurance, health care coverage, dental insurance, life insurance, long term care insurance, disability income insurance, and purchase repair warranties. Too much expenditure in this area will rob someone of the resources necessary for income needed when they are unable to work or care for themselves. Too little coverage exposes you and your family to financial risk. Periodic review will eliminate unnecessary coverage and will reveal new exposure to risk.

Learn more about about this topic with several of our eBooks, designed to get you the information you need to know as quickly as possible:

Extended Healthcare Management

Healthcare management is an important aspect of stewardship because of the impact poor health can have on our finances.  The health care expenses can be in the form of prescriptions, nursing care, medical equipment and various disabilities that wreak havoc on personal finances.  These costs are so great that 50% of the population is impoverished when they die.  When we acknowledge our bodies as the temple that houses the Holy Spirit, we might begin to take better care of our bodies. (see health and wellness)

• Long Term Care Book
• Estate Planning Book
• Government Programs: are you eligible for help?
• Obamacare Affordable Care Act
• Love Legacy

Estate Planning 

Another important stage of discipline is estate planning.  If you have a family that is dependent on your assets, your income or you simply want to assure yourself of the importance of leaving a legacy, it is necessary to take the time to put your affairs in order.  Jacob did so as he took time to leave a blessing to each of his children.   Because of the complexity of this world, it is even more important to put our affairs in order.

• Estate Planning Book
• Reverse Mortgages
• Love Legacy

Debt Management and Budgeting

Because credit is so easy to obtain, most people never figure the true cost of having something immediately verses delayed gratification.  Understanding the whole process of how debt works, how banks engage in usury (overcharging interest rates), and how the determination of credit scores actually work are integral parts of stewardship.  The credit score, of course, determines the interest rate you will pay.  Proper debt management, that includes delaying purchases, is an essential component to good stewardship.

The importance of budgeting, which is simply the process of writing down everything you buy, will help you reduce your expenses, particularly if you enter into the process early in your work life.  Buying a coffee each morning for $2 doesn’t seem like a lot of money, but if you have to drive an extra 6 miles to the place you get coffee, at the current cost of driving a vehicle, you could easily be spending $5 a day times 250 days a year which totals over $100 / month.  Is that how you want to spend money?   The disciplines begin to reveal your bad habits and with that knowledge you begin to make changes in your life. We have several books that can help with this topic:

• Budgeting Made Easy
• Debt Reduction
• Steps to Prosperity
• Steps to keep your home; successful mortgage rescue