Posts by Joseph Sangl

I am going to attempt to put together my definition of financial peace. If you have other thoughts, please send them to me or comment on them below.

Financial Peace
– n. a condition where one does not have to continuously worry about their ability to meet their financial obligations; they have financial peace
– adj. a position where one is financially set; that couple has a financial peace mindset
– n. a financial position that allows one to pursue doing exactly what they were made to do regardless of its income potential; because he has financial peace, he is able to pursue his dream of being a major league baseball player even though he never even played high school or college baseball

How did I do?

A friend was so excited to tell me today that they received their real estate property tax bill and it was $100 less than they had saved up for it! There was not one hint of sadness that the bill was large (it is a fact of life). There was just jubilation that they had $100 extra beyond what was needed to cover the bill.

That is a true sign that your financial plan is working!!! I remember the times when the non-monthly bills would roll around. Bills like my auto insurance which I paid quarterly. It was a punishing time to come up with the funds to pay that bill. I remember it well. I do not like the feelings I have when I remember those times. It was not fun. It was certainly not a time for jubilation.

If you are able to have the entire amount of each non-monthly bill saved up by the time the bill actually comes due … yeah … I would say that means you have a financial plan that is working big time! Congratulations!

For those of you who have the less ideal feelings when thinking about those non-monthly big financial setbacks, I challenge you to do this. In your monthly budget (you do have a monthly budget, right?), take the bill amount and divide it by the number of months you have remaining before the bill comes due.

For example, if you have a $400 insurance bill coming due in 5 months, you would divide $400 by 5. This means that you need to save $80 this month and for the next 4 additional months to have the $400 in 5 months. This will really help relieve your financial plan from the “big” hits as it will level out your expenses over each month.

When will you have enough? Is it when you finally own your home? How about when you finally get to purchase that awesome boat? What about a vacation home? What about when you own your own business? What about when you own a farm? Is it when you hit $1,000,000 in the investment account? What about $10,000,000? What about $100,000,000? What about $1,000,000,000?

It is said that John D. Rockefeller, billionaire oilman of the early 20th century, was asked how much money was enough? His response? “Just one more dollar.” WOW!

If you make money the object of your full attention, you will never be satisfied. Money at its very best enables you to help the less fortunate and accomplish great things for others. Money at is very worst leads to brutal deadly conflict.

Choose today to view your money as a resource. You have been hired as its manager? If you are the manager of your money, would you fire you? Make the choice to help others. Make the choice to wisely consider the opportunity cost of using your money. Make the choice to be a manager of resources. Do not allow your life to be driven for “just one more dollar.”

How much is enough for me? I have clothes, food, shelter, and transportation which puts me in the top 1% of the world’s population. I guess that means that $6.90 is enough for me.

Do you ever wonder why I write so much about becoming financially free?

I want to become financially free because I believe that I am a better person when I am not living paycheck to paycheck. I believe that I am a better husband when I am not worried about where the money is coming from to pay a past due bill. I believe that I am a better father when I am not juggling payments from week to week to prevent a check from bouncing. I believe that I am a better employee when I do not have to struggle to make it to the next paycheck. I believe that I am a better employee when I do not have to hold four jobs just to make ends meet. I believe that I am better able to accomplish God’s specific plan for my life when I am not bound by debt. I believe that I honor God when I practice good stewardship with the resources He has given me to manage. It clearly states in Proverbs 22:7 that the “borrower is servant to the lender”. When you are a servant, it changes who you are!

I believe that I am better able to give to worthy causes when I am financially fit. I believe that I am better able to focus on accomplishing my life’s work when I can focus on the task at hand without worrying about a check being able to clear. I believe that I free up more time when I can pay all of my monthly bills at one time. More time equals better opportunities to be a better spouse, father, and leader.

I truly believe that being financially free is not about money. My financial situation is an outcome based on a set of inputs. If I am financially free, it means that I am effectively managing the resources within my control. If I am not financially free, it means that I am not effectively managing the resources within my control.

I want to accomplish my life’s passion statement – “To help others accomplish far more than they ever thought possible!” – To do this, I must be financially free. If I am not financially free, I will not be able to focus on helping others. Yes, it has meant sacrificing personal wants. Yes, it has meant delaying pleasure.

But it is not about me! It is about achieving what I was put on this earth to do!

If you have a detailed financial plan (a monthly zero-based budget) and you receive unexpected money, you will know exactly where that money can be put to good use. If you do not have a plan, there is a good chance that the money will leave you quickly.

Marketers understand our ability to impulse purchase when we receive unexpected money. To ensure that an unexpectedly large tax return is not used elsewhere, car dealerships will do your taxes for you if you use the tax refund as your down payment. Lottery winners are approached by many who have a “great deal” for them. Those who receive an inheritance are suddenly offered “opportunities” that did not previously exist. If a large company gives out bonuses every Christmas, the employees are all marketed to by the local stores and businesses to get them to spend the bonus at their store.

I believe that if we receive an unexpected money and there is no plan, then it is not going to be a financial help to us. It will only allow us to acquire more junk that we will later sell at a yard sale or give away to Goodwill. If we do have a plan (a monthly zero-based budget), we will improve our chances at gaining financial freedom.

Do you ever receive unexpected money? Do you have a plan?