Lesson Learned in 2008

2008 has been an incredible year for a number of reasons. The main lesson learned during this year has been the importance of financial stewardship. Stewardship of whatever resources that we have been blessed with.

What does stewardship mean? This year when things became rather uncertain in a very quick period, people who were leveraged with significant debt became stressed. Here are some examples of financial stewardship.

1. Spending less than your income on a monthly basis.
2. Only having debt on an asset like a home not on a car. Understanding an asset is something that grows in value.
3. Not having a loan on a liability. Something that shrinks in value is really a liability. If you pay interest on a loan for something that is shrinking in value it is throwing good money after bad.
4. Paying off the credit card balance every month.
5. Living on 80%.
6. Tithing 10%.
7. Saving 10% for the future.
8. Having an emergency fund, cash equal 3 months income.

Have a Merry Christmas!!!