Four cornerstones of successful money management will never change throughout your life. Whether you are single or married, it is necessary for you to continually reapply these cornerstones to your financial situation.

Cornerstone #1: Biblical Basis

The Bible has much to say about money management as well as everything to say about life and how to live it. A proper understanding of Biblical truths applied to your unique financial situation is ongoing and essential to ultimate financial success.

Cornerstone #2: Financial Principles

Successful financial principles will always be rooted in Biblical truth. Financial principles will always transcend financial situations. A principle understood and applied will work regardless of where you are financially or what you are experiencing. Successful money management will require the continuous application of well-proven financial principles throughout your life.

Sound financial principles include having a long-term perspective; staying diversified, no matter what part of the market is rising at the moment; and avoiding market timing as no one can consistently predict the exact best time to get in the market and to leave.

Cornerstone #3: Skills

A skill is different from a principle in that a skill is much like a tool. It is learned by consistent and repetitive practice and is used only when required. Successful money management will require the development of a few basic skills that are available to be used when needed.

Cornerstone #4: Financial Planning

Financial planning is a process rather than a one-time event. The continuous application of a five-step financial planning process (below) to your unique financial situation will ensure that you are continually on track to avoid problems and make effective financial decisions.


Five Financial Planning Steps

1. Determine your current financial situation.
   
   
2. Set quantitative and measurable time frame goals.
   
   
3. Make decisions to accomplish your goals.
   
   
4. Control and monitor your cash flow plan to insure goals are being accomplished.
   
   
5. Invest the excess cash beyond your set margin (which covers planned purchases and emergency funds).