5 Transcendent Money Principles

by Michael Perez

Recently, I had the good fortune of attending the Kingdom Advisors annual conference in Orlando. It was one of the most uplifting conferences that I have attended during my 23 years as a Financial Professional. One of the reasons I attended was because I’m currently in the process of getting certified as a Qualified Kingdom Advisor.

Although I had the opportunity to hear a plethora of great speakers, it was a comment by Ron Blue, the founder of Kingdom Advisors that got my attention. He was talking about the 5 money management principles that transcend everything. They are as follows:

1. Spend less than you earn – When you don’t live within your means, typically your only choice is to use a debt instrument to fund the shortfall. This isn’t a good strategy! Although, many will tell you to create a budget, I don’t particularly care for that word. It sounds like the word “diet”, which feels restrictive. Why not use the phrase “spending plan”. Since you know you are going to spend your money, come up with a plan to spend it within your means.

2. Avoid the use of debt – There is nothing worse than owing a bunch of people a bunch of money. Although some debt isn’t necessarily bad (like a mortgage for your home), consumptive or credit card debt to fund your lifestyle because you spend more than you earn is definitely not the way to go. Can you imagine what your life would look and feel like if you didn’t owe anything to anybody? It would probably be amazing!

3. Build liquidity (save) – Your spending plan should always incorporate some level of systematic savings. Since I live the 80-10-10 plan, I make sure at least 10% comes right off the top of my income to invest for my future goals. I’ve found over the years that putting savings on autopilot is the best way for most people.

4. Set long-term goals – How do you know where you are going, if you don’t set any goals? Everyone must set goals in order achieve their personal vision. Many people are familiar with the SMART test, which means a goal isn’t a goal unless it meets this test. S=Specific, M=Measurable, A=Attainable, R=Results-Oriented and T=Time-Tested. What are your goals and do they meet the SMART test?

5. Give generously – Most of us have probably heard the old adage that “It is better to give than receive”. I don’t know about you, but the feelings I get whenever I give are some of the most incredible feelings I experience in life. My 80-10-10 plan ensures that at least 10% comes right off the top of my income to give back. Wouldn’t it be awesome if you could live on a smaller percentage and give away a bigger percentage? You could really impact the world!

I truly believe these 5 principles apply to all of us and are timeless. Over the last 5-10 years I have made a serious attempt to incorporate these principles into my own life. They have had an incredible impact on my life. If you are not already doing so, I would encourage you to move down the path of living by these principles. They will change your life!


Mike is the CEO/Managing Partner of The Schumacher Group, a Financial Consulting firm based out of Columbus, Ohio.  He is also a member of Kingdom Advisors, a National organization that helps Christian Financial Professionals integrate biblical principles into their practices and client counsel.

You can find out  more about Mike and his work at: www.schumacheradvisorygroup.com.

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