financial maturity

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One of the most quoted verses in the bible is “money is the root of all evil.”

Except… it doesn’t say that.

What it actually says in 1Timothy 6:10 is, “The love of money is a root of all sorts of evil...” Did you catch the difference? It isn’t money that’s the problem. Money is neutral, neither inherently good or bad.

No, the problem comes in when someone starts to love money. Or what they think money can buy them.

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Do you have a wish list?

If not, I suggest you get one and keep it up to date.

We are living in an age where thrift is valued little, where gratification is rarely delayed and where consumers are bombarded with messages of why we need everything now. For this reason, I am often telling folks to slow down, get their financial lives in order and then think before they spend. It’s about being intentional and balanced.

In days gone by, they called this “thrift.”

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Is money a very volatile subject in your home? Whenever the topic comes up, do you often feel yourself getting mad?

If so, you may be reacting to your conflict rather than responding to it.

 

Reacting is reflex. Put your hand on the hot stove and you’ll get a pretty instantaneous reaction – you’ll pull your hand away. It isn’t a thoughtful or contemplative action – it’s totally reflex, because your mind and body have been trained that hot stoves are bad 100% of the time. So pull back…now!

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Are you an optimist or a pessimist?

 

You remember what Garrison Keillor used to say about the children of Lake Wobegon, who are “all above average.” Sociologists have tagged this “illusory superiority,” or the tendency we all have to overestimate our positive qualities. CBS News reported on a classic 1977 study in which 94 percent of professors rated themselves above average relative to their peers.

So, most people view themselves as positive, optimistic, capable people. If this is how you see yourself, you are…average (sorry).

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Fear is a funny thing – it often tricks us into exchanging one perceived problem for a much larger one.

I don’t know too many folks who break into a cold sweat when they get into a car to drive a few hours. But let that same person board an airplane, and they are much more likely to experience a heightened sense of fear, even dread.

 

The National Safety Council estimates your lifetime odds of dying in a car accident at about 1 in 100. For air travel, the lifetime odds are about 1 in 200,000.

Path to Money Maturity

Jun 27, 2018
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I could summarize a question (often asked in the form of a complaint) that I get over and over again – how do I instill money maturity in my children?

Based on what I’ve seen so far, the only perfect kids are grandkids. And I’m pretty sure no one has come up with a failsafe plan for how to raise those.

But I do believe if you at least know what you want, you know where to focus your efforts. So here’s my two cents on the path to maturity in life. And the ripple effect of this maturity will not only be felt financially, but also in every other area of life.

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In order for priorities to be profitable, they must first be planned and then be practiced.

John Maxwell writes, “There are two things that are most difficult to get people to do: to think and to do things in order of importance.” Maxwell says this is the difference between a pro and an amateur.

So, step one is the thinking part – you’ve got to put together an actionable plan that gets you where you want to go as efficiently as possible. Here are the priority areas (as I see them) for any well-rounded financial plan.