225 – Ten Traits of an Orderly Financial Household

Click below to listen to Episode 225 – Ten Traits of an Orderly Financial Household

Subscribe: Apple Podcasts | Spotify | Amazon Music | RSS | More

Ten Traits of an Orderly Financial Household

Instead of getting overwhelmed, hire a fee-based, fiduciary-driven financial advisor and planner to help get your financial household in order!

More episodes >>

Do you ever feel like your household isn’t in order, especially when it comes to your finances? This is something many people struggle with, and why it’s important to have a trusted financial advisor by your side to walk you through the steps of getting your finances in proper order. Bob and Matthew discuss 10 of the areas that they see people struggling with the most when it comes to organizing finances.

From choosing the proper insurance for your house and health to having an up-to-date estate plan, there are several important areas of discussion in today’s episode. If you are looking for help with putting your financial household in order, our fee-based, fiduciary-driven financial advisors and planners are here to help.

Mentioned In This Episode

Shawn (00:00):
Are you struggling to bring order to your family’s finances? Many households miss key elements that create true financial peace. In this video, we’ll uncover 10 biblical traits of an orderly financial household – from emergency funds to estate planning. These principles will help you honor God with every dollar. Let’s get some perspective.

Matthew (00:27):
Hi. Welcome to our program today, Christian Financial Perspectives. My name is Matthew Barovecchio and I’m here with Bob Barber. And we’re going to talk about the 10 traits of an orderly financial household. Bob, tell us more about how you came up with this topic.

Bob (00:44):
It’s years, years and years of experience, Matthew, and seeing what is the ingredients that make a financial household successful. And this is pretty easy for me. I mean, I came up with these 10 in probably 15 minutes, that quick because I just see these traits in orderly financial households over and over.

Matthew (01:14):
I love the word orderly in the title. Our God that we serve is a God of order.

Bob (01:19):
That’s right.

Matthew (01:20):
He is not a God of chaos. And so I think right off the bat, it’s an encouragement for me and should be an encouragement for everyone here, that this is all rooted in the God that we serve. So it’s exciting.

Bob (01:31):
And speaking of that, we always want to focus on biblical principles here because this is Christian Financial Perspectives and we are different. We’re a different financial program, not based on a secular worldview, but a biblical one. And that’s why this first one is so important.

Matthew (01:49):
Perfect segue.

Bob (01:50):
Yeah, go ahead. I’ll let you go into this first one.

Matthew (01:53):
No, it’s great. Yeah. So right off the bat, number one trait, a focus on giving tithes and offerings.

Bob (02:00):
Yes, exactly. Malachi 3:10 says, “ring the whole tithe into the storehouse and see if there’s not enough room for it,” that you won’t have enough room for it. “And I will throw open the heavens and blessings so much that you won’t have enough room for it.” And I’ll protect you as well in this scripture.

Matthew (02:20):
Amen.

Bob (02:20):
I’m kind of quoting it off the top of my head right now because it’s not in front of me, but it’s just bring the whole tithe into the storehouse and see if there’s not room enough for it that you will not have enough room to maintain it all. And I’ve also noticed when people tithe, it’s the craziest things like your car doesn’t break down as much. You don’t have the air conditioning breaking down in your home as much. It’s just the weirdest thing actually. And it’s the one place in the Bible where God says, “You can test me.” Yes. We should never test God. But in this, God says, test me in this, in that scripture, there’s another one in Proverbs 3:9. It says, “Bring the first fruits of what you’re producing and see if your barns,” because they were using barns back then, “Would not be overflowing with so much abundance, you won’t have enough room for it.” So these really play into an orderly financial household, because everything comes behind this when you first do this.

Matthew (03:24):
Precisely. Tithe is biblical, but God also wants our heart. He’s worried about our heart. Right? He loves a cheerful giver.

Bob (03:33):
That’s what it says over in the New Testament. God loves a cheer giver.

Matthew (03:37):
Amen. So there are times in one’s financial journey where giving to the degree that one feels the Lord is directing them to or guiding them to is an act of faith.

Bob (03:51):
Yeah, it is.

Matthew (03:52):
But Hebrews 11:6 tells us that, “Without faith, it’s impossible to please him.”

Bob (04:01):
And we should not have a spirit of fear, which is I think that’s in 1Timothy 6:7.

Matthew (04:06):
I think somewhere in there.

Bob (04:08):
That God does not give us a spirit of fear but of sound mind. So by not tithing, does that revolve around fear that God’s not going to provide the rest?

Matthew (04:20):
Yep. Giving breaks the power of money.

Bob (04:22):
It does.

Matthew (04:23):
And it puts mammon and a lot of what we revolve the American culture around in its place and elevates the Lord, right?

Bob (04:32):
Takes away the idols. Because mammon is an idol. Money is an idol. Remember they built the golden calf as an idol while Moses was up there getting the 10 commandments, they go build a golden calf – made out of gold, made with human hands, the same thing. So it is the good starting point.

Matthew (04:51):
Yeah. Amen. Amen. All right. Let’s move on to number two. We could probably spend another 30 minutes on that one.

Bob (04:55):
We could.

Matthew (04:55):
All right. Number two, having a sufficient emergency fund for your situation.

Bob (05:01):
I’ve seen this play out so much. When my wife got cancer, gosh, it’s been eight years ago now, I can’t believe, which is, praise God, she’s still here. She’s doing great. And still cancer free. Having that emergency fund, it saved us, Matthew. I mean, we had at that point, six to nine months in money market, CDs, cash, and I’d been listening to Larry Burkett, anybody that’s listening, that’s an old name. That’s who Dave Ramsey learned everything, learned so much from, and he’ll say that he’ll give a lot of that credit to Larry Burkett. But that emergency reserves…

Matthew (05:40):
It’s important.

Bob (05:41):
It is. And I mean, when I’ve had to buy a new car or I’ve had to… air conditioning breaks down, that’s expensive nowadays. Having that emergency fund there, or you lose a job, there’s all these different things.

Matthew (05:56):
So everyone’s situation is different. So it’s really important to tailor one’s emergency fund around their specific needs.

Bob (06:04):
That’s right.

Matthew (06:06):
I tend to stratify this into two areas. So number one, protecting against income shocks. Income shocks.

Bob (06:15):
Which would be losing your job.

Matthew (06:16):
So these are for the individuals who are working, and if I lose my job and I need…

Bob (06:21):
Or you get a disability…

Matthew (06:21):
Or something, correct, and I need to bridge the gap between job A and job B for a period of time, I have something there and available to meet expenses. This is where the whole idea of having three to six or maybe nine months of expenses set aside comes from. For many people though, they’re retired. So this idea of income shocks really isn’t applicable. So then the other thing that an emergency fund should be focused on is protecting against expense shocks.

(06:49):
And this is for everybody. So I often have people think about it this way, look around your home, think about the things that you own. What’s the most expensive thing that could break that if it broke, you needed to replace it or repair it pretty quickly. A medical emergency is another thing that would fall into that category. And of course, that’s different for everyone’s, dependent upon the coverage that they have, but that’s just a very quick and simple way to think about the income shocks and expense shocks and how much objectively one should have in their emergency fund.

Bob (07:27):
Just a few days ago, we had a big storm here, and there was a lot of hail. And I can think about how many roofs might’ve been damaged from that. As I was hearing this coming down, I was thinking, oh my goodness. And the deductibles pretty high now because there’s been so much hell damage to roofs around here.

Matthew (07:40):
Yeah. Goodness.

Bob (07:41):
Yeah. So boy, you better be ready for that. That’s a big expense. Or like you say, the AC breaking down can be, Hey, I want to share the scripture before we go to number three.

Matthew (07:50):
Please. Oh yeah, sorry.

Bob (07:52):
Behind the reserves is look at Proverbs 30:25 and it looks at, “Ants are creatures of little strength, yet they store up their food in the summertime.” The summertime is when they’re harvesting and they store that up. Yeah. Number three.

Matthew (08:05):
Number three. A reasonable budget where monthly expenses are tracked.

Bob (08:09):
This is easier than ever today with all the software programs that can link up and even some banks even have within their apps now. You can do budgeting, but yeah, you want to make sure you’re accurate too, right?

Matthew (08:24):
Oh, absolutely. So you’ve done programs before on budgeting without counting?

Bob (08:30):
Oh yeah. That’s the approach that Rachael and I use. And the budgeting without counting the numbers is probably one of the easiest ways for most people, because most people are not, they don’t like that extreme details, what I’ve noticed. But by learning to live on the same amount each month, it just becomes a mindset after a while.

Matthew (08:52):
So setting the budget is one thing. Tracking it is another. So just one thing that’s worked well for Anne and I, my wife, is we have a vast majority of our monthly budget just set on autopilot. It just automatically comes out. We don’t have to think about it, no intervention. But when you go to the grocery store or you do something extra.

Bob (09:12):
Or you buy eggs nowadays. The eggs went up double the price, but that kind of blows your budget.

Matthew (09:20):
It can. Especially with five children. Absolutely. So we have a text that we have ongoing, going back and forth – this much for home expenses, this much for extra. Extra would be taking the kids out for a donut or whatever. And every two weeks we get a replenishment and we’re constantly texting each other back and forth as we spend. So we know, hey, when one of them hits zero, we’ve got to wait for it to be refilled. And that’s just an example of something where you can use technology but track it easily. The best budget and the best tracking mechanism is going to be the one that works for you, the individual.

Bob (09:58):
That’s true. Tthere’s so many different ways.

Matthew (10:00):
Whatever you going to stick to, that’s going to be the one that’s best.

Bob (10:05):
I’m the old fashioned guy. I still use Quicken, which was probably the first budgeting software that was made, but I know now there’s mint and just so many other, even the right capital who we use can do that for you. Right.

Matthew (10:17):
All right. You want to read this scripture as well?

Bob (10:20):
Yeah, absolutely. “The plans of the diligent lead to profit is surely as haste leads to poverty.” I think this scripture really goes into why budgeting is so important. The word haste and we just do things out of not thinking about it, not using wisdom, that can lead to poverty, because you and I have both seen where people don’t budget and the budget gets out of hand and they’re spending, there’s a problem when you’re spending more than you have coming in, you start to get our government.

Matthew (10:51):
Right, right. Yeah. Not good.

Bob (10:54):
Yeah.

Matthew (10:55):
Alright. Number four, no high interest consumer debt on depreciating assets.

Bob (11:00):
You notice I said on depreciating assets, I’m not against borrowing money, but it does say in Proverbs 22, “Do not be a man who strikes hands in pledge or puts up security for debts because if you lack the means to pay, your very bed will be snatched out from under you.” Now, that’s a pretty tough scripture. Your bed will be snatched out from underneath you. See, if you are borrowing money on depreciating assets, then it’s worth less many times than what you owe. Or an appreciating asset like real estate and a loan to value of 50% loan to value or 60% loan to value. You’re not getting in an upside down position. I’m hearing right now because of vehicles that cost so much right after covid. Remember, all the shortage of vehicles, the majority of people were upside down in their auto loans. And that’s a depreciating asset. And Rachael and I, we don’t owe anything on our automobiles. Now, I know it’s hard today because automobiles cost so much money.

Matthew (12:10):
They can.

Bob (12:10):
But hey, buy a 3-year-old automobile, don’t buy that brand new one.

Matthew (12:13):
Absolutely. Yeah. Yeah. That two to three year, pre-certified, that’s the sweet spot. Yeah, absolutely. Okay. Number five, a diversified portfolio of non-qualified and qualified accounts and added to monthly if you’re still working, especially if you’re getting a match by the employer and you have a retirement plan in place. So this is all around saving.

Bob (12:37):
Every orderly household I’ve seen does this. And yeah, so if you’re saving 500 a month, put 250 in a qualified plan, 250 in a non-qualified plan, because you want, you don’t want everything to be in your 401k or your IRA.

Matthew (12:50):
Correct.

Bob (12:50):
You want this cash reserves, and that can be in a conservative or a moderate type balanced portfolio that’s building up over time.

Matthew (13:02):
So for those of you who have an employer plan, taking advantage of whatever they match, first and foremost, is a big deal, right? Because where else on earth can you get “free” money?

Bob (13:13):
Get 100% return right off the bat?

Matthew (13:15):
Pretty much, right?

Bob (13:16):
Yeah.

Matthew (13:16):
But then from there, it is important to consider the different types of accounts that you can save in because by just like we want to diversify our investment portfolio, we want to diversify the accounts that we are investing in to diversify the tax treatment of the growth of those accounts because it just puts us in a better position to be strategic and optimize withdrawals and retirement.

Bob (13:42):
You say diversify several times. Ecclesiastes 11:2 says, “Give your portions of seven or eight because you do not know what disaster may come upon the land. And that’s why you want to diversify with that.”

Matthew (13:51):
Amen.

Bob (13:51):
Number six, so many people do not have, but an orderly household will, they’ll have a well thought out written estate plan in place, wills and medical power of attorneys, financial power of attorneys for if you’re married and one of you becomes incapacitated. If you’re not married, if you became incapacitated, who’s going to make those decisions for you? So you have to have a trusted person that you can trust to make those decisions for you. And it needs to be in writing and in good documentation. And boy, you see, I’ve met people that don’t have this in place what chaos that causes.

Matthew (14:32):
Yeah, I would agree. It’s a very foundational and important thing, but agreed, surprised by how many individuals we meet with and they don’t have a will, a trust, they don’t have anything in place.

Bob (14:49):
Well, we met just with one yesterday, a very prominent businessman, and they’re talking about doing an estate plan when I’m like, I’m glad you’re talking about it, but I was surprised to find out they didn’t have one yet.

Matthew (15:01):
So while we’re not the individuals to draft up these estate planning documents, that’s what an attorney is for. We definitely can help with a lot of the preparation and upfront dialogue to help our clients determine what their wishes are so that they’re most prepared or best prepared, rather.

Bob (15:19):
We’ll do a whole other program on estate planning. And I’ve taken my example from my personal estate plan and really taught that to a lot of people. Number seven is having your insurance coverages in place and life insurance, health insurance, disability, auto, home, all that. By the way, these commercials that are out there, they make a joke of it. You should never buy insurance based on price. It should be based on coverage, shouldn’t it? I mean, because when it comes time that you need it, you’re going to want the coverage.

Matthew (15:49):
Correct.

Bob (15:51):
But I am amazed at how much it’s pushed to be buying on price.

Matthew (15:56):
Number eight, a focus on saving for higher education, particularly in plans that are geared towards that for children and grandchildren’s future, their educational future.

Bob (16:09):
Yeah. We see that over and over in an orderly household. And this doesn’t necessarily mean a college education as we know today. A trade school is a fantastic option for a child today, and we need so many more electricians and plumbers and welders. The trades are, I think, the future of what we need more than anything.

Matthew (16:30):
I agree. So I think this is really an important one where understanding the passions of the children or grandchildren that you’re saving for and gearing the savings amounts and vehicles towards the education that’s going to be required is really important. We have five children, as you know, and as I mentioned earlier, I’m very confident that at least two of my five children will not go to a college or traditional university, more of a trade school. And that’s just because of what their innate passions and interests are in. And so that’s very different.

Bob (17:14):
That’s okay. And that’s great.

Matthew (17:15):
It’s actually, it’s actually…

Bob (17:17):
But it is drilled into my generation. You’ve got to have that 4 year.

Matthew (17:19):
Mine as well. Mine as well. I mean that’s why millennials with college debt is pretty prominent.

Bob (17:26):
And even many are not even using their degree.

Matthew (17:28):
Unfortunately. Correct. Yeah.

Bob (17:30):
So let’s get to these last two. These last two are as we end up sound, financial principles in an orderly home are modeled by the parents and they’re taught to the children and grandchildren. Rachael and I want to teach our grandchildren, and we’ve already started that by paying them a quarter here or a nickel here for different things that are done and teaching them math as well. I mean, my 6-year-old grandson was already starting to add and subtract triple digits.

Matthew (18:07):
Yeah.

Bob (18:08):
We just sit around and talk about math and he likes it like his grandpa.

Matthew (18:13):
Yeah. My grandparents, Nick and Ann, my parents, Mike and Cindy, they’re the whole reason why I’m sitting here with you, right. Growing up where sound financial principles was a regular topic in the household is where my interest for finance came from.

Bob (18:31):
Getting back to that first one we talked about today with the tithe, I am old fashioned, but I still believe it’s good to put that check into the offering plate, which by the way, many churches don’t do the offering anymore and I think they need to bring it back. That’s just me. Alright, last one. So important.

Matthew (18:48):
Having a financial plan that’s in place that integrates everything that we’ve talked about over the last 18, 19 minutes.

Bob (18:55):
All these areas that we discussed, for the average person, are not top of mind. They’re confusing, they’re difficult. But that’s why looking at hiring a coach, a fee-based financial advisor, not commission-based, because when they’re commission-based, there could be a major conflict of interest because the only way they’re paid is by selling you something. But a fee-based financial advisor, financial planner can come alongside you and help you integrate all of these areas.

Matthew (19:32):
Yep. I hear you say often do what you do best, and delegate the rest. And so we practice that here. But this is a great example of, for someone who is not in the financial planning profession themselves, like hiring a professional to think about all of the holistic components of it is very important.

Bob (19:53):
We hire CPAs to do our taxes. We hire doctors or dentists for healthcare, lawn maintenance companies. I’ve got one now. I just couldn’t get my yard right. We were talking about this last night, doing the fertilization and things like that. So it makes sense to hire a fee-based advisor to help you with your financial health and household, right?

Matthew (20:15):
Yep. And so Christian Financial Advisors, we do just that, right? So we’re fee based, fiduciary driven using biblical principles and the wisdom that the Lord has provided to build financial plans and help people on their stewardship journey. So to learn more about how we can help you, you can give us a phone call at our office, (830) 609-6986 during regular business hours. Or you can visit us www.christianfinancialadvisors.com to learn more about how we approach this to honor God and schedule an appointment. So thanks so much for watching today. God bless y’all. Have a great day.

[DISCLOSURES]

* Investment advisory services offered through Christian Investment Advisors Inc dba Christian Financial Advisors, a registered investment advisor registered with the SEC. Registration as an investment advisor does not imply a certain level of skill or training. Comments from today’s show are for informational purposes only and not to be considered investment advice or recommendations to buy or sell any company that may have been mentioned or discussed. The opinions expressed are solely those of the hosts, Bob Barber and Shawn Peters, and their guests. Bob and Shawn do not provide tax advice and encourage you to seek guidance from a tax professional. While Christian Financial Advisors believes the information to be accurate and reliable, we do not claim or have responsibility for its completeness, accuracy, or reliability.