Six Basic Financial Tips

What are your favorite financial tips?

I’m often asked to share some basic financial tips. Here are my top six. First, make giving to the Lord’s work your top financial priority. The Bible calls us to honor the Lord with the first fruits of our wealth. I believe 10% of our gross annual income is just the starting goal. Next, have an Emergency Savings Account. Start with at least $1,000. Build it up to 3-6 months of your income to be prepared for unexpected expenses. It’s more essential than a long-term retirement account. Third, pay off debt. Consumer debt like credit cards, store accounts, or loans from family and friends need to go first. After that, pay off student loans and mortgage. Fourth, have an up-to-date written will. If you don’t have one, the government has one for you – and you won’t like it. This is essential for married couples – especially those with children. Fifth, be sure you have proper insurance coverage.  It’s best to have some level of health, life, and disability insurance. For property, at a minimum protect against catastrophes. Finally, automate a long-term savings plan. If your company offers a matching plan, take advantage of the maximum benefit.

While investing and retirement planning are important, I find many people jump straight to that step and skip over these basics, but covering the basics first will put you in a better position to manage the day-to-day financial challenges. Remember to start with giving. That will help you keep your financial priorities in order.

And if you’re struggling with credit card debt, Christian Credit Counselors are the best. They can create a debt management plan specifically for you. For more information visit online at at crown.org/ccc.