Sunday, April 26, 2009

How to Make A Wise Financial Decision

Another excellent "Money Life" program from Crown Financial Ministries.

You can make foolish decisions whether you have a lot or a little. I want to encourage every listener to be wise. Here are my insights on making a wise financial decision. It's a seven step process:

  1. Understand the big picture, circumstances, and context before making a decision

  2. Understand the real problem, what’s driving the problem

  3. Understand the consequences of choices, good and bad; it's a false assumption that more is always better, a second income doesn’t always add value to a family

  4. Understand God’s Word, Psalm 1:1 gives an example of a financial advisor in the world encouraging people to concentrate their investment money in one thing they know well, Ecclesiastes 11:2 tells us to diversify

  5. Seek wise counsel, worldly advisors are often wrong but never in doubt; Proverbs 22:4 says be humble, fear God, ask godly people for counsel

  6. Pray and fast, interact with God and ask for His counsel

  7. Make a decision, accept the consequences, don’t worry

I hope you’ve been encouraged to make wise financial decisions!

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