March 21, 2009
Financial advisors encourage you to be miserly and have the smallest possible impact on the world. This is the same financial advice given in most churches, either because that advice is coming from lay people or from church members who are practicing “traditional financial planning.” And for a lot of folks it’s not horrible advice, because most Americans, and most Christians for that matter, have a terrible spending problem. So the advice is to scrimp and save.
What has your money done for you lately?
Now, saving is important. And not wasting your money frivolously is important. But if that’s where most of your focus goes, you can’t focus on being more productive. If such frivolous spending is a problem, then it needs to be addressed (and sometimes we spend considerable time with clients on this), but once there’s a reasonable amount of discipline here, there is far more that can be accomplished by focusing on producing more with what we have.
So where financial advisors encourage hoarding, Kingdom Calling focuses on cash flow, so your assets can actually send you money instead of giving you only paper gains. Think about it: you can’t eat a paper gain, but you can definitely be hurt by a paper loss. Read the rest of this entry »
March 17, 2009
Kingdom Calling cannot and does not try to predict the future.
Trying to predict the financial future can be misleading
If you’re working with a financial advisor that does, it’s probably time for you to question your direction.
Instead, Kingdom Calling tries to plan for every contingency while focusing on maximizing the efficiency of your plan. By doing so, we are able, in most cases, to grow your wealth far beyond what any financial advisor considers possible.
Kingdom Calling focuses on Cash Flow and Velocity, as opposed to Hoarding. In doing so, we employ the same effective growth strategy employed by the wealthy and most successful financial firms (those who practice sound principles), while simultaneously staying true to the word of God.
Financial planning is really quite simple: plug-in an assumed rate of return, inflation percentage, number of years until your retirement or goal, and an assumed amount of money you will “need” at that time. Then leather-bind the 200 page plan so it looks weighty, important and worth the price.
The problem with this method? Read the rest of this entry »
March 13, 2009
The tithe can also help us understand a couple of financial principles. We’ll cover these in more concrete ways later, but tithing utilizes both leverage and velocity.
When we tithe, the velocity of our money creates an impact greater than we can imagine
We’ve already spoken about the fact that when we tithe, we are giving something that is not ours to help someone else and in return receiving future benefit. This is the concept of leverage.
Velocity involves the movement of money through a system that actually increases the amount and affect of money simply through the movement. This is measured in national economies and corporations, but too often ignored in personal finance – as we’ll see later. Read the rest of this entry »
January 5, 2009
Riddle me these four questions, if you will:
- Do financial institutions want all of your money, or only some of it?
- Do they want more of the money you make in the future?
- Do they want to give it back a long time from now, or soon?
- Do they want to give it back all at once, or over time?
Are you surprised you know how to run a bank? You shouldn’t be. Read the rest of this entry »