Proverbs 21:5 tells us “Steady plodding brings prosperity; hasty speculation brings poverty.” But if you have a really big financial goal in mind how do you know if you’re plodding enough? Whether you’re saving to buy a house, for your child’s education, or for the day you retire a simple formula can help you determine if you’re on track. Rob talks about that first today then it’s on to listener questions at 800-525-7000.
<ul><li>Sometimes you’ll hear that the journey is half the fun of arriving at your destination, but that’s not the case when we set financial goals, is it? We want to get there as quickly as we can.</li><li>If you think you’re on a five-year savings plan to buy a home and you find that it’ll actually take you seven or eight years, you’d probably step up your efforts. Knowing how much you’re actually saving and how much you’re spending could help you funnel more money into your savings plan and speed up the process.</li><li>And you can find that out by figuring your savings rate that is, the percentage of your income that you’re hanging onto each month versus how much is slipping through your fingers keeping you from reaching your goal.</li><li>The exercise will reveal how much of your income is left over after meeting all of your expenses. It’s the money that could be going into your savings plan and getting you closer to achieving your goal.</li><li>To figure your savings rate you first have to determine your total monthly “take home” pay from all sources. That includes your full time job and any part time or side work that you do. If taxes aren’t automatically withheld, multiply that income by point-eight to get a rough “after tax” figure. Add it all up to get your average monthly take-home pay.</li><li>Now you have to figure the other side of the ledger how much you’re spending each month.</li><li>By looking at your checking account statements for the last few months you’ll get a pretty good idea of where your money’s going.</li><li>Now it’s time for the formula. First, subtract your expenses from the income figure you came up with earlier.</li><li>Next, divide that number by your income. You should get a very small number. Now, you want to take that number and multiply it by 100.</li><li>Knowing your current savings rate will help you determine if you’re on track to meet your goal in the time you have remaining.</li><li>Maybe the most valuable lesson you learn from this exercise is that every dollar you spend is one less you can save and it takes you a dollar further away from reaching your savings goal</li></ul>On today’s program, Rob answered the following listener questions: 
<ul><li>What is a donor advised fund and how can that be used for tithing? </li><li>How much is enough to retire on given current inflation? </li><li>What are your healthcare options if you’re self-employed? </li><li>When does it make sense to drop life insurance? </li><li>How do you determine whether you need a trust or just a will? </li><li>How does it work when you trade in your car with negative equity (still owe money on your trade-in vehicle)? </li></ul>RESOURCES MENTIONED ON TODAY'S PROGRAM 
<ul><li><a href="https://www.chministries.org/">CHministries.org</a></li></ul>Ask your questions at (800) 525-7000 or email them to Questions@MoneyWise.org. Visit our website at <a href="http://moneywise.org/">MoneyWise.org</a> where you can connect with a MoneyWise Coach, purchase books, and even download free, helpful resources like the MoneyWise app. Like and Follow us on Facebook at MoneyWise Media for videos and the very latest discussion! Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab at the top of the page.

FaithFi

Faith & Finance is a daily radio ministry hosted by Rob West. The program offers a practical, biblical and good-natured approach to managing your time, talents and resources.

Faith & Finance with Rob West

Proverbs 21:5 tells us “Steady plodding brings prosperity; hasty speculation brings poverty.” But if you have a really big financial goal in mind, how do you know if you’re plodding enough?   A simple formula can help you determine if you’re on track.

Big Goal Savings Formula

null | Mar 15, 2022

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Where Faith Meets Finance

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