As you navigate through life, it’s important to take care of your finances in the same way you might take care of your physical and emotional well-being. This is where the concept of financial stewardship comes in.
Financial stewardship is not just about managing your money or making investments. It goes way beyond that. It’s about being intentional with your finances and making wise choices that align with your values and long-term goals.
In this blog, we’ll explore the meaning of financial stewardship and why it’s so important in today’s hectic, chaotic world. We’ll also discuss some practical ways you can incorporate good financial stewardship into your everyday life.
What is Financial Stewardship?
In simple terms, financial stewardship is the responsible management and use of your financial resources.
It can include things like:
- Creating a budget for your income and expenses,
- Making strategic investments, and
- Staying on top of your financial goals.
From a values perspective, it means being a good steward of your finances: making decisions that benefit not just yourself but others, too, including your family and those in your community.
Financial Stewardship: Key Values
Intentionality
The key to all this is intentionality. Just as you might go to the gym to look after your body, or to a counsellor or trusted friend to care for your emotional health, it’s important for you to make deliberate decisions to preserve, safeguard and grow your financial resources. You might also consider reaching out to a qualified financial advisor to help you make those kinds of decisions.
Accountability
That is where another important principle of financial stewardship comes in: accountability. As a good steward, you are accountable for how you manage your money and the impact it has on your life and the lives of those around you. This means being aware of your financial situation, setting goals and, perhaps most importantly, sharing these decisions with others you trust to help you stay on track.
Integrity
The final value to highlight here is integrity. This means being honest and transparent in all your financial dealings: honest with yourself, and open with and accountable to others. It also involves aligning your financial decisions with your values and beliefs: “Is this cause important to me? How will this decision benefit my community? How can my resources make the greatest impact for those I love?”
Why Does Financial Stewardship Matter?
Financial stewardship matters because it directly affects your life, your family’s life, and the world around you. When you practice it well, you can not only improve your own financial well-being but contribute to the greater good.
Here are a few reasons financial stewardship is important:
- It is a values-based framework that will help you achieve your goals: By being intentional with your finances and making wise choices, you can reach your short- and long-term goals, such as buying a house, saving for retirement, or even starting a business in your community.
- It helps to foster stability and security: Financial stewardship allows you to build a strong financial foundation despite the uncertainty of the world you live in. Putting it into practice can help you prepare for unexpected expenses or emergencies.
- It helps you to care for others: Your financial decisions don’t just affect you, but those around you, too. This means your family, friends, and community. By practicing good financial stewardship, you can make sure that you have enough to take care of yourself and to positively impact the lives of others.
How to Practice Good Financial Stewardship
Now that you understand the importance of financial stewardship, let’s explore some practical ways you can implement it in your everyday life:
- Budgeting: Creating a budget is an essential part of financial stewardship. It helps you track your income and expenses, prioritize your spending, and stay on top of your financial goals.
- Saving and investing: Setting aside money for the future is crucial. Whether it’s for short- or long-term goals, saving and investing allows you to grow your wealth and achieve financial stability.
- Giving back: Being generous with your finances is an important component of financial stewardship. It allows you to support causes and organizations that align with your values and make a positive difference in the world.
- Educating yourself: Staying informed about financial matters can help you make better decisions as a good steward of your money. This can include reading books, attending workshops or seminars, or seeking advice from trustworthy financial professionals like those at Iron Point.
What Next? Reach out to Iron Point Financial for Help
If you are feeling overwhelmed or unsure about how to start practicing good financial stewardship, know that you are not alone. Many people have been in your shoes, and it’s completely normal to feel a bit nervous or uncertain about your next financial steps. However, by educating yourself and seeking professional guidance, you can face your future with confidence.
If you think you could do with a little help on your journey, why not reach out to a financial advisor at Iron Point Financial? We can help you create a budget, save for retirement, and invest in both yourself and your community — and we are committed to supporting you in this for the long-haul. Contact us today to learn how we can help you become the best possible steward of your financial resources.
We serve the Grove City, Greenville, Erie, Cranberry Township, and Boardman, OH areas.
The opinions contained in this material are those of the author(s), and not a recommendation or solicitation to buy or sell investment products. This information is from sources believed to be reliable, but Cetera Advisor Networks LLC cannot guarantee or represent that it is accurate or complete.
