Often times the vision and plans we have will be altered by medical issues, career changes, market adjustments, and unforeseen family situations.
Once the cap and gown are returned to the closet as memorabilia planning toward college becomes the immediate focus. Navigating new financial waters will soon begin for your new graduate; let’s look at five truths to help your college student make wise financial decisions.
The world’s standards tell us to respect and honor wealth above everything, including God. If managed poorly, money can become our God.
The Mr. Jones’s of today will continue to look to the world’s standards by purchasing and obtaining the “in things” in hopes of filling their need for affirmation. In contrast, the rich man, aware he needed to be fulfilled with something more, approached Jesus asking for eternal life.
A great place to start is to review your current expenses and clarify your future needs. To identify what you will need financially to sustain your current lifestyle after retirement, calculate future expenses by multiplying current expenses by 75%. For some families the reduced cost is based upon the savings recognized by eliminating or reducing such expenses as a mortgage, continued education, work-related commuting costs, and car payments.
I began introducing simple financial principles to them on their 5th birthday by giving each one their own new savings container. It had three openings each labeled appropriately for savings, spending, and tithing. Their beginning allowance was one dollar a week.
Most people want to be healthier and wealthier, but unfortunately, it’s just not that easy. As humans we are creatures of habit. Making permanent changes in our financial behavior is often surprisingly difficult, however NOT impossible to conquer.