Introduction:
Financial management is one of the hot topics within most marriages. This is also noted in scripture as something that can be a bit complicated. Paul writes in Ecclesiastes 5:10 that whoever loves money never has enough and is never satisfied with their income. Likewise, Matthew 6:24 tells us that we cannot service two masters, we cannot serve both God and money. Therefore, let us look ahead and seek meeting financial goals, for as Proverbs 13:16 (NLT) states, “Wise people think before they act; fools don’t—and even brag about their foolishness.” Let’s not be fools and look at these wise financial planning steps to think before we act.
Step 1
When a couple sits down to look at financial goals, you must start somewhere. My suggestion would be to always start at the tip of the pyramid and then work your way down. As you see in the graphic, this is section five of the pyramid. There is often a lot less tension and discussion on what the few large items are that need to be achieved. These are often going to be items that are not obtainable for five to seven years, but they are the top of the mountain, the items you want to eventually reach when the lower items are completed. First establishing what the top of the mountain is gives direction and insight on how to then structure the lower tiers. The top of the pyramid may include large items such as a five to seven-year goal of owning a house, paying off the cars, getting a higher-paying job, etc. These are all great starts. Make sure they are not just items, but something you are willing to work towards.
Step 2
Following the placement of the mountain top, we move down to the middle section three. This may seem scattered, but there is a purpose to this. By hopping over the three to five-year section and going to the one to three-year allows us the chance to get some perspective over what we really want to achieve in a more near-future mindset. These may be something more relevant to paying off small credit cards, small personal loans, or even making a larger purchase or house remodel. These are all items that can be achieved with a little bit of planning and some small changes. Once you have the list down for this section, let’s keep going!
Step 3
The next section we want to tackle is the very first box. We will once again skip a section and go straight to the one to sixty-day box. This one is the largest of the pyramid because it often holds the most items. Make sure you are realistic in this one. Only look at items that are not normal bills and expenses here. This would be the ability to divert off of normal payments and make additional progress on other items or to make a purchase from cash already on hand. Just remember that at this level, a yes to any one item will likely mean a no to another. So this is where there needs to be mutual understanding between you and your partner and ensure that you both understand the YES and the NO that comes along with these short-term choices.
Final Steps
Now that the outline has been filled in, let’s go back and fill in segments two and four. These in-between ones were left to last because they now offer the ability to view the planning in a new dimension. I would encourage you to look at what is in one, three, and five and make sure that they belong there now that you are looking at two and four. There may need to be some renavigation of items that now seeing it all on paper make more sense in a lower or higher segment. This is why we left these two to the end. These are the reality checks for the other items.
Nothing crumbles quicker than a hastily laid foundation.
Notes
One thing to note, however, is that this plan should be in “liquid concrete.” This means that there must be a solid amount of strictness as a way of sticking to the plan and making sure that everything that is said “no” to has a dually justified reason, however, it always must stay flexible for when life changes, goals and priorities can change too. Nothing crumbles quicker than a hastily laid foundation. Let these priorities set with patience and let time be the test of their position, but do not be afraid to move an item up or down (or in or out) if need be.
Next-step Activities and Questions
- Sit down with your parent and create the five-tier goals and planning for your future.
- What are areas in which you feel will be the most difficult for you to achieve?
- What will be the areas which will cause the largest stumbling blocks for you and your partner?
