I am going to start from the beginning and cover all the
basics but no matter what your level of knowledge in finance, I will add little
nuggets of wisdom for all.
Context is defined as this:
When it comes to finances, everyone has their own context drawn from experience and their own personal up bringing. Why is this so important in raising children? Finance is not taught in school. Finance and money are learned in the home from parents. More on this later.
What is the bible saying here? That making money your love, that putting money before God is a sin. True. I believe it is also saying that chasing money can lead you to wonder from your faith and the things that are important in life.
Loving money and Mastering money are two different concepts. Loving money is what this verse is referring to; Mastering money is understanding and not letting money become a problem in your life or the life of your children.
Money doesn’t buy happiness and it won’t make you a better person, but neither does poverty, debt or ignorance of money. Finances are one of the leading causes of divorce in the US. Money is needed for food, housing, clothes, education and expenses.
So let me ask this question, if you had a choice between your children struggling financial or understanding money which would you choose? Now don’t get me wrong, I‘m not talking about spoiling our children or giving children a silver spoon. I am talking about giving your children the knowledge of understanding how to live below their means, save and invest, control debt, make smart purchases and how to create an honest income for themselves and eventually their families.
If your children our under age 10, I will teach you how to make them millionaires by the time they reach their 30’s, they will also learn charity, but more importantly they will learn how to use the money for good causes and ultimately God’s design for their lives.
I think every parent wants this for their children but the problem is how to do it? There are many options available, how do we know which one is right?
Finances are very complex and you never know if someone is trying to sell you something or is giving you poor advice. As a former Financial Planner and currently an active investor, I have seen all kinds of advice and investors. So for the sake of simplicity, I am going to lay out all my knowledge in a series of posts and let you take away what is unique for your situation. I’ve read over 50 books on personal finance and investing and I still haven’t found the definitive authority on the subject. So the best way I have found is to get a wide variety of advice from many sources and take away what works for your personal situation.
Think of these posts as a buffet line, take what you like or what looks good and leave that which doesn’t sound like your area.
I will cover the following areas:
Living Below Your Means
Debt and Credit
Paper Investing: Stocks, Bonds, Mutual Funds and Derivatives
Real Estate Investing
Estate Planning and Wills
Business and Marketing
Tax Planning and Tax Savings
Techniques I Learned From My Wealthy Clients
How to Retire Younger Without The Added Risk
What Investments to Buy and When
And of course how we teach this to our kids and why, has such a dramatically positive effect on them.
Back to context, how you speak and refer to money shapes your children’s view of it. How many of us have heard phrases like “Money won’t buy you happiness” Money doesn’t grow on trees?” and my favorite “Money is not important!”
For the final comment, I always ask people “If money is not important, why do you spend years away from your family, working at a job for money?”
The truth is that money is important but it is certainly not the most important thing. A majority of people I have met grew up with negative experiences of money. They have ideas like money is in short demand; you have to work hard for money, etc.
However, there are also people who believe that money is easy to make and control, money is a tool to fund worthy causes and controlling money will allow you to spend more time on things that really matter like your family, charity or your true passion in life.
Take a few moments and imagine that money is not a factor in your life. You do not have a job, each month you receive $10,000 into your checking account. How would you live your life? What charities and causes would you support? How would you spend your time? Would you volunteer more at your church? Volunteer to be a missionary? Write a book of your life story? Start a new business? Follow a long time dream that you have long forgotten about? Spend each day with your children and grandchildren?
If you humor me for awhile and listen to what I have to say, I will show you how you can make this dream a reality for your children and possibly for yourself as well. The reason I starting learning about money was because I never wanted money to stand in the way of me providing for my family. I never wanted money to be a factor in decisions for my children. I wanted money for my children to be able to participate in activities and experiences that make them a better person and Christian. I wanted my children to see the value of charity and giving. And if someday my children were given an opportunity to attend an Ivy League college, I never wanted my lack of understanding and preparedness to stand in their way.
This process will not only prepare your children, but it will also prepare you and help you in your current financial situation. So if you are interested in Mastering Money, teaching your kids to Master Money, learning the finance techniques of Wall Street and wealthy people and creating a financial legacy for your children along the way, strap in a hang on.
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