Whether you want to weather a future financial storm, prepare for retirement, pay for your child’s college, or just manage your money more effectively, there are some principles that will lead you to success. Instead of being impatient, keeping up with Joneses, or falling for the slick advertisement cajoling you to shift a “want” into a “need,” how can you best secure your families financial future?

The Millionaire Next Door reported the study and research of self-made millionaires and “three words that describe the most affluent. Frugal, frugal, frugal. Being frugal is the cornerstone of wealth building.” The authors, Stanley and Danko, also discovered the following facts about self-made millionaires:

• They live below their means.
• They drive cars older than three years old.
• They wear inexpensive suits.
• They know what they spend on household items.
• The majority of them operate on a budget.
• They avoid luxury items and don’t own a home beyond their means.

Preparing for your financial future might mean making some radical changes. If you have been living with a debt mindset, living beyond your means, and saving little, you might need more than a tune-up. You need to be prepared, especially if the economy worsens or bubbles burst. Some of the preparation might need to start with some mental or attitudinal changes. You might very well need a lifestyle change. The recipe differs for every family, but there are some basics that are tried and true.

MINDSET/LIFESTYLE
1) Place your priorities in eternal things—relationships and people’s lives. Do not put your hope in wealth, but put your hope in God.
2) If you are reading this book, most of the world would jump at the opportunity to trade places with you. Have a grateful mindset.
3) Be content with what you have (Heb. 13:5; Phil. 4:11–12).
4) Be in unity with your spouse.
5) Live as though nothing is yours but it is all God’s, as if you are just His steward.
6) Control what you can control. Do not worry or be overanxious. (Read Matthew 6:25–34 and Philippians 4:6–8. Believe the promises there, and meditate on them regularly.)
7) Live a lifestyle of giving—give generously and give cheerfully. It is the only guaranteed return you have!

INVESTING / SAVING
8) Think long term with your investments and goals. Do not make changes like the blowing of the wind or react based on emotions. Your spouse will provide good balance and objectivity.
9) Don’t look for insider secrets and get-rich-quick schemes. Be careful of stock tips from friends/family.
10) Diversify to spread out your risk. Understand your risk/reward trade-offs (Ecclesiastes 11:2).
11) Diversify widely: by asset class, by category, by investment style, by investment location, by geography, by manager, and over different time periods.
12) Use dollar cost averaging through your entire life.
13) Review and rebalance your portfolio annually.
14) Seek wisdom from many people, including your spouse, and pray for God’s wisdom (James 1:5).
15) Continue to invest and save despite challenges, difficulties, and downturns.
16) Do not borrow to invest. Invest after your monthly bills and debts are paid.
17) Let your money grow little by little (Proverbs 13:11).
18) Start investing young or start investing now!
19) Retirement: With the many areas of risk that are upon us, you might need to work longer.

MONEY MANAGEMENT / SPENDING
20) Have a budget. Spend less than you earn. Separate your needs from your wants.
21) Minimize the use of debt/credit. Pay with cash or a debit card.
22) Plan for downturns. Have an emergency fund.
23) Balance your investments with giving; do not hoard. When in doubt, give!
24) Have your goals in writing, and review them regularly.
25) Pay off all of your high-interest debt first. Use the debt snowball plan.
26) Buy low-mileage used cars; do not get suckered into the depreciation hole.
27) Don’t buy more home than you can comfortably afford on one income.
28) Read; educate yourself.
29) Use the Save-to-Spend Tool for unforeseen expenses.
30) Use the Big-Ticket Tool for major expenditures.

Read Deuteronomy 8:18; Haggai 2:8; Matthew 25:21; Luke 16:1–13; 1 Corinthians 4:1–2;
and 1 Timothy 6:17–18.

God is in control.  We are just stewards of his possessions.  Let us each be found faithful.

Many tools to help you are available in A Lasting Legacy.