Declaring Your Own Financial Independence Day

Intro: Welcome to the Christian Financial Perspectives Podcast, where you will learn what the Bible says about stewardship and finance. Here you will gain insight, wisdom, and knowledge of how to integrate your Christian faith with your finances. Here’s your Christian Financial advisor’s host, Bob Barber and his co-host, Shawn Peters. Shawn: Welcome to another episode of Christian Financial Perspectives. So glad that you joined us. As always, we’d love for you to hit that subscribe button if you enjoy content from on financial topics, but from a Christian perspective. Bob, we still got about 80% of our viewers and listeners haven’t subscribed. Bob: I hear you say that a lot. Shawn: I know. It hurts my feelings a little bit. But anyway, so today first of all, Happy July 4th. Bob: Exactly. 4th of July. I was talking with Rachael, and I was like, Rachael, what do we talk about on the 4th of July? She says, why don’t you talk about financial independence? I said, that’s a great subject. Shawn: So today is about declaring your own financial independence day. I just have to say I love that we do fireworks for July 4th. I know we’re not the only country that uses fireworks. But it does crack me up that, how do we celebrate our independence? ‘Merica. Blow something up. Lots of colors and blow things up. Bob: We’re gonna start the scripture off today, and I want to end up on this scripture as well. Okay? Because I think it’s a very good scripture when we talk about financial independence. I think Paul had financial independence in the Bible. And from Philippians 4:11-13. So you’re our scripture reader. So go for it, Shawn. Shawn: All right. Philippians 4:11-13 is from the New Living Translation. “Not that I was ever in need, for I have learned how to be content with whatever I have. I know how to live on almost nothing or with everything. I have learned the secret of living in every situation, whether it is with a full stomach or empty with plenty or little, for I can do everything through Christ who gives me strength.” Bob: You know, Shawn, we all know the 4th of July is about financial independence. I think from that scripture, Paul… Shawn: Well, just about independence. Bob: Yeah. Paul. Well, yeah. It is about the independence, but it’s also about financial independence I think Paul had independence financially because he was content in whatever his circumstances were. And that’s true financial independence. But we know the 4th of July. Yes, we know it’s about Independence Day, but it’s also about financial independence. Remember the Tea Party? You know, there was that rebellion and we’re not gonna pay your taxes anymore, Great Britain. We’re done with that. And so, as we celebrate the 4th of July, I do want you to think about financial independence for yourself and how do you get there? First, there’s a definition I found in Wikipedia. You know, they come up with everything on Wikipedia, because it’s always changing, but what is considered financial independence today? Go for it. Shawn: So the Wikipedia definition, which of course is always cited by plenty of sources, right? Bob: Oh yeah, exactly. Shawn: But anyway, definition is, “Financial independence is the status of having enough income or wealth sufficient to pay one’s living expenses for the rest of one’s life without having to be employed or dependent on others.” Bob: So Shawn, I think that financial independence can mean many different things to different people. That’s the definition of it, but I’m not necess–, I don’t really think that is financial independence, just having a gigantic portfolio. Shawn: Yeah, it is a good definition. It’s a good starting point, I think for today. But the other thing too, Bob, is what one person’s income that’s sufficient to pay for living expenses is not necessarily another person’s, because it depends a lot on your, well, what’s your standard of living that you’re trying to adhere to? Bob: That’s exactly right. Shawn: So if you can live on a lot less, then obviously from this definition, you don’t need near as much to be financially independent. Bob: So I wanted to break down financial independence into two areas. One would be spiritual and the other would be physical. Shawn: That’s a good point. Bob: So in looking at physical, I mean the spiritual side first, I believe it’s truly finding contentment in the things and income you already have and what you already make, not focusing what you don’t have. But focus on what you do have. Look at the glass like it’s half full, not half empty. I think that’s a spiritual side of that. Shawn: That’s right. A second one for that on the spiritual financial independence, it could be declaring independence from social media and outside influences for making any financial decisions. Bob: You could talk into that one, couldn’t you? Shawn: Little bit. Bob: Most definitely. Because the world’s always thinking you need more. You need this, you need this material thing, and then you can be happy. Shawn: How much is enough? Bob: Yeah. Shawn: Never. Bob: There’s never enough. It’s always a little bit more, and thinking of spiritually is that declaring that independence from the grip of materialism because materialism and America especially is all about grabbing you, putting handcuffs around you, thinking that you need that. Shawn: We’re a very consumer focused economy. Bob: So, and another one… Shawn: Declaring from debt. Bob: I mean, I know this is physical. Yeah. Declaring from debt. I know it’s physical, but at the same time I think it’s spiritual because you’re not, like Proverbs says, “You’re a slave to that lender.” Shawn: That’s right. Bob: So by declaring independence from that debt, you’re no longer slave to that lender. And then one of the last things was, is even declaring independence from coveting what others have, Shawn. You know, that’s the last of the 10 Commandments. And sometimes, the last is the most important and there’s a real tendency for us to covet what others have. And we need to be very careful with that. So much so, there’s only 10 commandments, just 10, and that is in the 10 commandments about coveting. Shawn: So the next part we want to cover is physical financial independence. So the few ways to think of that or what it could look like, number one, arriving at financial independence number or at a financial independence number by saving over many years that could now generate your annual living expenses from the dividends and interest. Bob: And remember when we went over that a few weeks ago, like, what’s your number? And it was like 25x what you wanna live on. 20 – 25x what you wanna live on, or it could be becoming completely debt free. And there’s a real funny thing to that. Shawn: Including your home mortgage. Bob: Exactly. I don’t know. I’ve had people say, oh, we’re debt free, and then they say, well, we owe money on our home mortgage. No, you’re not debt free till you’re debt free. And that means that you don’t owe anything to anybody in the form of debt. So if you still have a mortgage… Shawn: It’s still a good thing. It’s still a good thing if the only thing you have is the mortgage. Bob: It is. It is a good thing. Shawn: But it could be, it could be very different than actually being debt free, because if your mortgage is the only debt you have and it’s still 30 to 40% of your monthly income. Well, it’s not as good as it sounds . Bob: Yeah. Shawn: And then the third one, selling unneeded assets and or repositioning by downsizing to a more simple lifestyle. Bob: How about that one? I just met with a couple yesterday and they’re saying, we’re thinking about doing that. We don’t need the big house anymore. We’re thinking about selling that. You know, we don’t need the bigger car now. We don’t need the, like you’ve got now, you’ve gotta handle your kids, but a smaller car, smaller home and downsizing and making things more simple. That’s definitely a physical thing, but it’s also, I think that can be your spiritual thing, as well. Shawn: And one thing to consider is on that number three, on selling unneeded assets. If you’re considering getting a storage unit, you have too much stuff. Bob: I… Shawn: I mean the amounr of self storage in this country is ridiculous at this point. So I’m sorry if you own self storage, but to be perfectly honest, we have got to stop holding onto so much stuff, just as people. Bob: It is crazy. Shawn: Especially if you’re trying to be physically, financially independent. You don’t need a storage unit. You need to get rid of some stuff. Bob: I agree. It’s amazing how we’ve seen that here in New Braunfels, all the places build more and more storage units, it’s time to downsize and get rid of the, get rid of the stuff like you said. But the point of today’s program as we come to the end is, is that financial independence can mean different things to different people. Shawn: That’s right. Bob: And we want you to be financially independent and not have that handcuff around you and I think today being the 4th of July that this is coming out is a great day to think about this. And now, this may not happen all today. It may take several years for that to happen, to be financially independent of what you want, that goal you want to get to and get free from that grip of materialism. But I will say this, that we are here to help you to get to that goal. It comes down with drawing those goals up. So we’re gonna end, like I said, we started off on the scripture. I want to end up this scripture. I don’t think there’s anything wrong with saying this scripture twice today, because truly, this is financial independence in my opinion. Shawn: Before we do that scripture, just remember that, like Bob said, it doesn’t mean that you’re gonna be financially independent today, but today can be your financial Declaration of Independence that you’re deciding to make some changes and to focus on moving towards that goal, both spiritual and physically financially independent, and moving that direction. And like Bob also said, we’re here. We’d love to talk to you on the phone, text, send us an email, check out our website, but start today. So, let’s end with this scripture. Philippians 4:11-13, “Not that I was ever in need, for I have learned how to be content with whatever I have. I know how to live on almost nothing or with everything. I have learned the secret of living in every situation. Whether it is with a full stomach or empty with plenty or little, for I can do everything through Christ who gives me strength.” Bob: Amen. Need help with declaring your financial independence? We’re here. Our phone number or text is (830) 609-6986 during business hours. Or you can reach us on the web www.christianfinancialadvisors.com. Have a good 4th of July. That’s all for today. ——- [CONCLUSION] That’s all for now. We invite you to listen to all of our past episodes covering many financial topics from a Christian Perspective. To make sure you don’t miss any of Bob’s upcoming episodes you can subscribe to Christian Financial Perspectives on iTunes, Google Play Music, Spotify, or Stitcher. To learn more about integrating your faith with your finances, visit ciswealth.com or call 830-609-6986. [DISCLOSURES] Investment advisory services offered through Christian Investment Advisors Inc dba Christian Financial Advisors®, a registered investment advisor registered with the SEC. Registration as an investment advisor does not imply a certain level of skill or training. Comments from today’s show are for informational purposes only and not to be considered investment advice or recommendations to buy or sell any company that may have been mentioned or discussed. The opinions expressed are solely those of the hosts, Bob Barber and Shawn Peters, and their guests. Bob and Shawn do not provide tax advice and encourage you to seek guidance from a tax professional. While Christian Financial Advisors® believes the information to be accurate and reliable, we do not claim or have responsibility for its completeness, accuracy, or reliability.