It is in the family where members learn habits of thrift or not. Mundia Liywalii

Walking in God’s  Favor: But anyone who needs wisdom should ask God, whose very nature is to give to everyone without a second thought, without keeping score. Wisdom will certainly be given to those who ask. James 1:5 CEB

If  your intention is to become a wise steward of your wealth, you must expand your financial IQ.  Robert Kiyosaki, author of Rich Dad, Poor Dad, says many college educated people with great incomes, remain in debt and poor because they never increase their financial intelligence. Quite often, you spend your money on things that go down in value or increase your liabilities.

Here’s the bottom line, your net worth, not your income determines your financial wealth. In order to determine your net worth, subtract your liabilities from your assets. Your liabilities are the money owed on items such as credit cards, student loans, your home and any debt you make have. Your assets are your savings, IRA’s, investment portfolio, paid for vehicles, equity in your home, business, and any other items of value you own.

For example, if you are buying a $250,000 home and you have paid $100,000 on the principle of the home. The $100,000 is your equity value in the home. The remaining $150,000 unpaid balance is your liability.  Subtracting the $150,000 liability from the $250,000 home asset value leaves you with your home equity value worth of $100,000. Does that make sense?

Now, is always a good time to increase your financial intelligence. Ardella and I both have made major steps in raising our financial IQ and increasing our wealth, primarily because of prayer and coordinating Financial Peace University classes over the last 10 years.  FPU is a 9 week, biblically based, personal finance class that covers financial skills, attitudes, and habits.

We are currently coordinating a class www.firstsdachurch.com on Monday at 6pm throughout the month of December. We invite you to visit our class to obtain a blueprint that will increase your financial wisdom.  Prayer really works and Bible promises are true.

Prayer of Blessing: Lord, give us wisdom to make wise financial choices.

Michael Vance is a senior account executive  with Hundley Batts & Associates and the co-founder of stewardshipofwealth.com. Ardella Vance is  a gifted educator and  a Master Guide in the Pathfinders  Club, a global organization empowered to teach life and leadership skills to young people.  The Vance’s have been married well over 25 years and share their lives with four adult children and six grandchildren. They currently reside in Huntsville, Alabama and blog weekly from their financial workbook ” The Stewardship of Wealth“.