8 Stewardship Tips for a Stronger Financial Future

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1. Personal Finance Begins with Your Goals

If you don't know where you're going, how will you know if you ever arrive? The most important part of personal finance is identifying your goals. While most people think in terms of income (I just want to make more money), you need to think bigger. Your goals should cover all areas of life because most of your goals have dollar signs attached to them.

Want to buy a house? Dollar signs.

Want to send your kids to college? Dollar signs.

Want to retire someday without eating cat food for dinner? Dollar signs.

That's why goals should be SMART: Specific, Measurable, Attainable, Realistic, and Time-bound. Saying, "I want to be rich someday," isn't a goal; that's a dream. Saying, "I want to save $15,000 for a down payment in the next 24 months by setting aside $625 a month," is a goal. See the difference? The more specific your goals are, the easier it is to create a plan to achieve them.

2. Saving for Retirement Should Be Your Top Priority

Here is the irony of work. The first day you start working is the first day you plan for when you don't want to work anymore. Back in the day, retirement was based on the number of years you worked. If you put in a certain number of years and reached a certain age, you could retire and collect your pension. This is what my parents did. Those days are gone, and so are most pensions. According to the Bureau of Labor Statistics, in March 2022, only 7% of private industry non-union employees participated in defined benefit plans, also known as pensions. Trust me when I tell you that number is not going up. Because of this, there is a new rule in planning for retirement: If it is to be, it is up to me.

Retirement used to be based on years; today it is based on dollars. The number of dollars you have saved will dictate the type of retirement you will enjoy. The way retirement works, the only way you can ensure you will have enough money for retirement you must send the money ahead. While you can borrow money to buy a house or car, you cannot borrow money to pay for retirement. The money must be waiting for you, or you won't be able to retire. That's why you must make saving for retirement your top priority, because it will not happen unless you save for it today.

3. Successful Retirement Planning Has Nothing to Do with How Much Money You Make

The secret sauce to retirement is not how much money you make, but how much you save. The best way to secure your retirement future is by following my simple mantra.

Save as much can, as early as you can, for as long as you can.

Starting early can make an enormous difference in how much money you accumulate for retirement. This is because of the two greatest weapons in wealth accumulation: time and compound interest. If you save and do this as early as possible, you are giving your money more time to compound. The way the numbers add up can be significant.

If you save $10,000 per year and you earn a 7% return.

After 10 years, you would have $157,836

After 20 years, you would have $448,652

After 30 years, you would have $1,020,730

After 40 years, you would have $2,146,096

As you can see, the more time you have, the greater the effect of compounding. Whatever amount you are going to start with, just remember to save as much as you can, as early as you can, for as long as you can.

4. Your Behavior Will Determine Your Financial Success More Than Anything Else

One reason many people fail with their personal finances is their behavior. Most financial struggles aren't about math; they're about behavior. You already know the basics: spend less than you earn, avoid debt, save consistently. But knowing and doing are two different things. You don't fail because you can't calculate compound interest. You fail because Amazon had a sale, and suddenly you've got five packages at your door. If you can change your behavior, you can change your financial future.

5. Establish an Emergency Fund

It is just a matter of time before life happens. The car breaks down, the refrigerator stops working, or the glass door on the dryer shatters (which happened to a colleague of mine). These are all unplanned situations that require your immediate attention. Without an emergency fund, you're one crisis away from debt. Start a fund and try to set aside at least three to six months of living expenses. This money is there to cover you when life happens, or the glass door shatters on your dryer.

6. Make Sure You Have the Proper Insurance

When you think about insurance, there is one word that should come to mind—protection.

-Life insurance is about protecting your family financially in the event of your passing.

-Health insurance is about protecting yourself, your family (and your wallet) in the event someone gets sick.

-Auto insurance is protection to repair your vehicle if it is damaged or stolen.

All insurance protects you from something. That's why you must make sure you have the proper insurance. Here are some essential questions you should ask yourself when thinking about insurance.

-Will someone suffer a financial loss if you pass away? If the answer is yes, you need life insurance.

-If you get injured and will be out of work for an extended period, do you have enough money to sustain yourself until you return to work? If the answer is no, then you need disability insurance.

-Are you concerned about someone being injured on your property and suing you? If your answer is yes, then you need umbrella insurance.

Insurance may seem like a hassle, but having the right insurance gives you the right protection, which gives you peace of mind.

7. Understand How Credit Cards Work

There is a lot of talk about debt in our society. With the average American carrying more than $23,000 in non-mortgage debt, you can understand why it is an issue. While debt can be stressful, credit doesn't have to be. Credit cards aren't evil; they're tools. The problem is when we misuse them. When used responsibly and managed correctly, credit can be your friend. The key is making sure you understand how credit cards work.

If you have a credit card with no balance, you actually have a built-in advantage known as a grace period. It's like a little breathing room the bank gives you. You can swipe your card today, and as long as you pay the bill in full by the due date, you won't pay a single penny in interest. Depending on the timing of your purchase, that could give you up to 45 days of interest-free use. Think of it as borrowing money without the lender charging you rent.

But here's where the trap gets sprung. The moment you carry a balance into the next month, the rules change. Suddenly, interest kicks in, not just on the old balance but on every new purchase you make. And worse, you lose your grace period altogether. That $50 dinner you charged starts collecting interest from day one. The banks are counting on you to miss the fine print because this is how they make billions every year.

So remember: credit cards aren't evil, but they are sneaky. Used wisely, they're a tool. Used carelessly, they become a trap. The secret is simple, never carry a balance if you can avoid it. That one choice will save you more money (and headaches) than you realize.

8. Your Financial Plan Should Not Be Static

The thing about life is that it never stays the same. Your income may increase, you may get married, have kids, or start a business, and these milestones require financial adjustments. A solid financial plan evolves as your life changes. What worked for 25-year-old you probably won't work for the 45-year-old you. As a result, you should revisit your financial goals regularly. If your savings priorities have changed or your expenses have shifted, then adjust and recalibrate to ensure your plan matches your current stage of life.

Personal finance isn't about being perfect; it's about being intentional. Start where you are, even if they feel like small steps. Don't forget to celebrate your progress along the way. Remember: save as much as you can, as early as you can, for as long as you can. By building these habits, money will be there as a tool to serve you instead of a master to enslave you.

So, start building your financial future today. One day, maybe you'll be the mentor reminding someone else that while money doesn't come with instructions, it also doesn't have to come with regret.