Personal Finance: Another Perspective

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Personal Finance Another Perspective

• Things Wise Financial Stewards Know

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Abstract

• Some have wondered about the principles or
  things that wise financial stewards know and live
  by that account for their success in their
  families and in their lives. This presentation
  is the result of discussions I have had with over
  3,000 personal finance students that I have
  taught over the past nine years at Brigham Young
  University.

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Objectives

• A. Understand some things that wise financial
  stewards know

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Wise Financial Stewards Know (continued)

• 1. Wise stewards know they are stewards over all
  the things God has blessed them with
• They understand the principles of
• Ownership everything they have is the Lords
• Stewardship they are stewards over all God has
  blessed them with
• Agency the ability to choose is a God-given
  gift, and
• Accountability they will be held accountable for
  all their choices, including their financial
  choices
• Wise stewards recognize that nothing they have is
  their ownit is all Gods, and they act
  accordingly

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Wise Financial Stewards Know (continued)

• 2. Wise stewards have their priorities in order,
  they seek first the kingdom of God and his
  righteousness first.
• They know that that the best things in life are
  free families, relationships, and the gospel of
  Jesus Christ.
• Their first goal in life is not wealth, power, or
  gratification, but eternal life with their
  families
• They pay the Lord first, themselves second, and
  then pay their other bills
• Wise stewards seek the true riches firstthe
  kingdom of God and the gift of eternal life.
  Then they seek the other riches, if they desire
  them

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Wise Financial Stewards Know (continued)

• 3. Wise stewards plan their spiritual and
  financial future early, then live their plan.
• They prayerfully establish their goals, live
  worthy of the Spirit, and with the Spirits help
  achieve their goals
• They prayerfully develop a budget, and follow it
  closely. They live on less than they make
• They avoid debt like the plague
• They build a reserve and save for their goals
• Wise financial stewards seek Gods help in all
  aspects of their lives, including planning and
  achieving goals, developing and living their
  budgets, avoiding debt, and building a reserve

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Wise Financial Stewards Know (continued)

• 4. Wise stewards know it is not what they
  save, but what they become that is most
  important in this life
• They realize it is not what they earn, but what
  they save, that helps them acquire wealth
• But more importantly, they know that its not what
  they save, but what they become, that makes
  them more like their Savior Jesus Christ
• Wise stewards know that money is only a tool, but
  an important one, in helping them to learn
  important lessons and become more like our Savior

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Wise Financial Stewards Know (continued)

• 5. Wise stewards know money cannot buy happiness
• They know money can eliminate a lot of financial
  and other problems in life
• They also know that money can provide security
  for them and their families.
• Wise stewards use money to reduce their financial
  difficulties and to be secure in their families.
  Then they find happiness in the gospel of Jesus
  Christ and their families

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Wise Financial Stewards Know (continued)

• 6. Wise stewards understand the differences
  within and between assets and liabilities
• Assets are things that have value. They are
  either income generating (investments, savings,
  rentals, etc.) or income consuming (cars, toys,
  houses, etc.)
• They know their choice of assets will largely
  determine how they will live their lives
• Liabilities are things they have borrowed for
• Except for an education and a home, liabilities
  should be eliminated
• Wise stewards maximize income generating assets,
  minimize income consuming assets, and eliminate
  liabilities

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Wise Financial Stewards Know (continued)

• 7. Wise stewards understand the differences in
  types of income
• Earned income is income they earn from their job
  or vocation. It is a good type of income
• Passive income is income they earn from their
  investments, generally businesses or real estate.
  They generally need to do work to earn this
  income, but it is less.
• Portfolio income is income they earn from their
  investments. They do not need to do any work to
  earn income from these investments.
• Wise stewards realize that the best income is not
  earned income, but portfolio or passive income

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Wise Financial Stewards Know (continued)

• 8. Wise stewards know they are responsible for
  their financial success
• You were given two great gifts your mind and
  your time. It is up to you to do what you please
  with both. With each dollar bill that enters
  your hand, you and only you have the power to
  determine your destiny. Spend it foolishly, you
  choose to be poor. Spend it on liabilities, you
  join the middle class. Invest it in your mind
  and learn how to acquire assets and you will be
  choosing wealth as your goal and your future.
  The choice is yours and only yours. Every day
  with every dollar, you decided to be rich, poor,
  or middle class. (Robert Kiyosaki and Sharon
  Lechter, Rich Dad Poor Dad, Time Warner Book
  Group, USA, 1998, p. 197)

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Wise Financial Stewards Know (continued)

• 9. Wise stewards know they make a living by what
  they earn, but a life by what they give
• Wise stewards have learned to give more
• For what shall it profit a man, if he shall gain
  the whole world, and lose his soul? (Mark 836)
• Wise stewards know there is more to life than
  money
• Wise stewards follow the example of the greatest
  giver of all time, even their Savior Jesus
  Christ, and then they try to give more

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Wise Financial Stewards Know (continued)

• 10. Wise stewards remember how much they have
  been blessed, know what God wants them to do, and
  work on those things first
• They stay close to the Spirit and do all in their
  power, and then they know they will see Gods
  hand working miracles in their life
• Therefore, dearly beloved brethren, let us
  cheerfully do all things that lie in our power
  and then may we stand still, with the utmost
  assurance, to see the salvation of God, and for
  his arm to be revealed. (DC 12317)
• Wise stewards do all then can and then have faith
  in the Lord and his plan for them

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Wise Financial Stewards Know (continued)

• In conclusion, wise financial stewards remember
  two thoughts, one a quote and one a scripture,
  which are representative of their futures
• From Robert Browning comes the thoughtful words
• The best is yet to be (Rabbi Ben Ezra, in
  Charles W. Eliot, ed., The Harvard Classics, 50
  vols. 190910, 421103).
• And the Lord through the prophet Joseph Smith
  gives the truth of what is ahead
• For verily I say unto you, that great things
  await you. (DC 4562)

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Review of Objectives

• A. Do you understand some things that wise
  financial stewards know?