On Sept. 24, 2009, the 2009 National Consumer Survey on Personal Finance was released by the Certified Financial Planner Board of Standards. This survey found that 64 percent of respondents do not have a written financial plan in place.
Valerie RumboughThis fact is disturbing, especially in light of the economic crisis we have all experienced over the last year. The old saying goes, “to fail to plan is to plan to fail,” and it certainly holds true in this case. A financial plan is not just for the rich and famous. It is for everyone. We even find good planning taught in the Bible. Proverbs 6:6-8 states, “Go to the ant, O sluggard, observe her ways and be wise, which, having no chief, officer or ruler, prepares her food in the summer, and gathers her provision in the harvest.” How, then, do we practice good planning?
First, make sure you have a budget that you can live with, one that allows you to make a little more than you spend, and save the rest. If you are in debt, incorporate a plan within your budget to pay it off. Check this periodically to be sure that the amount you owe to your creditors is actually shrinking instead of growing. Next, make sure you are saving adequately for retirement. Determine the amount you will need to live on, and check your progress from time to time to make sure you are still on target. Last but not least, plan for your estate disposition.
Make sure you have a will and that it is updated. Make sure that you have adequate records of all your assets and liabilities in a central location and tell your personal representative where they can find them. Above all, plan to give back to your Lord, both now and through your estate plan.
Need help? Contact your CPA or other financial planner, or search the Internet for free financial calculators if you want to try this yourself. Remember, God has entrusted us with his resources, and one day we will give an account of what we did with them.
Rumbough, CPA, CFP, is chief operations officer with the Baptist Foundation of South Carolina. Contact her at 800-723-7242. In accordance with IRS Circular 230, any U.S. federal tax advice contained in this communication is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.