I Know The Way
Theme / Financial Planning
Read Time / 3 Minutes
“Do you need directions?” Doug asked as we hopped on the 202-loop heading west.
An independent living senior community brought us out to Gilbert, Arizona in August. We didn’t pack sweatshirts, and you guessed it, we didn’t need sweatshirts. We were happy to cope with the heat knowing we were there to educate families on the importance of biblically responsible investing. During our free time, we ventured out to taste the finest of what the Phoenix Valley had to offer. This led us to getting breakfast about 15 miles from our accommodations. After finishing our delicious and slightly greasy breakfast, we hopped back in the car, and Doug asked me, “Do you need directions?”
Directions tell us how to get to a destination. They take our current location and develop a sequence of steps — some easier than others — leading us to our desired location.
Over the last decade, I’ve admired Dave Ramsey’s 7 Baby Steps. If you aren’t familiar with them, the baby steps give us directions on how to live a financially independent and sustainably generous life.
Baby Step 1: Get a starter $1,000 emergency fund.
Baby Step 2: Pay off all your debt (excluding your home) using the debt snowball.
Baby Step 3a: Build on your starter emergency fund to equal 3-6 months of expenses.
Baby Step 3b: For non-homeowners, start saving for a down payment. The goal is a 20% down with the priority being a 15-year mortgage that’s less than 1/4 of your take home pay.
Baby Step 4: Invest 15% of your income for retirement, biblically responsible.
Baby Step 5: Save for your children’s college fund. For many families, this looks more like saving for your children’s future.
Baby Step 6: Pay your home off early.
Baby Step 7: Build wealth and give.
When you arrive at baby step 7, financial freedom is most realized — acknowledging real peace only comes from Jesus Christ. With our goal destination to maximize the freedom in our life while being outrageously generous, there is no more proven strategy to lead families like these steps.
Many of us (including myself), often critique the baby steps due to their simplistic nature. However, their weakness in many eyes is actually their very strength. They provide clear direction. Every time I get a paycheck, I have a call to action. No need to pull out a tortuous financial plan. The Baby Steps continuously reengage us to say yes to partnering with our identity Christ paid His life for – for us to be a slave to no-one (1 Corinthians 7:23).
One of greatest minds in human history, Albert Einstein, embodies the importance of walking the line of sophistication and simplicity by saying, “Keep things simple, but not simpler.”
Back to my story. Full and satisfied from our breakfast, Doug and I began our return home. The directions to breakfast were clear and efficient so when Doug asked if I needed them, I replied, “I know the way.”
Ryan De Amicis
Wealth Advisor
408.758.6413
ryan@christianwm.com
