How to Set Financial Goals: God-Honoring Financial Planning

As faithful followers of Christ, we're called to manage our wealth in ways that honor God. At Peak Financial, we understand the challenge of aligning your financial decisions with your faith. That's why we've created this guide to help you set financial goals based on biblical principles.

Why Christians Should Set Financial Goals?

Many of us drift through life, spending money without direction or purpose. However, as Christians, we're called to a higher standard - to recognize that God is the ultimate owner of everything. Psalm 24:1 clearly states, 'The earth is the Lord's and the fullness thereof, the world and those who dwell therein.' This foundational truth transforms our relationship with money and possessions.

Because God owns it all, we are called to be good stewards of the resources He has entrusted to us. We're not owners, but managers of His gifts. Jesus emphasizes this in Luke 16:11, saying, ' So if you have not been trustworthy in handling worldly wealth, who will trust you with true riches?' This verse underscores the importance of managing our earthly resources wisely, knowing that we will give an account to the true Owner.

Understanding our role as stewards rather than owners shifts our perspective on financial planning. It's not just about accumulating wealth for ourselves, but about faithfully managing God's resources for His purposes

Setting financial goals is the first step in faithful financial management. Here's why it's crucial:

1. Stewardship: Goals help us be intentional about how we use God's resources.
2. Accountability: Written goals provide a benchmark against which we can measure our progress.
3. Focus: Clear objectives help us prioritize our spending and saving decisions.
4. Alignment with Values: Goal-setting forces us to reflect on what truly matters to us as Christians.
5. Reduced Stress: Having a plan can alleviate financial anxiety and promote peace.
6. Kingdom Impact: Well-planned finances can increase our capacity to give and serve.

At Peak Financial our Certified Kingdom Advisors (What is a Certified Kingdom Advisor?) teach "Open-Hand Planning." This means we set goals, but we also recognize that life changes and only God knows the future. As Proverbs 19:21 (NIV) reminds us, "Many are the plans in a person’s heart, but it is the Lord’s purpose that prevails.”

Our goals need to be adaptable, held with an open hand before God. By setting financial goals, we're not trying to control our future, but rather to be faithful with what God has given us today while preparing wisely for tomorrow.

What are the Biblical Perspective on Financial Planning?

While our plans may change, God's Word remains constant. The Bible offers timeless and transcendent principles that apply to everyone, regardless of economic circumstances or cultural context. At Peak Financial, we believe God's Word is the ultimate authority for every financial decision we face.

Here are some key biblical principles that should guide our financial planning:

1. God's Ownership

Psalm 24:1 declares, "The earth is the Lord's, and everything in it, the world, and all who live in it." This foundational principle reminds us that we don't truly own anything; we're managers of God's resources.

2. Stewardship

In the parable of the talents (Matthew 25:14-30), Jesus teaches about the importance of wisely managing what we've been given. We're accountable for how we use our resources.

3. Contentment

1 Timothy 6:6-8 encourages us to find contentment in God, not in material possessions. "But godliness with contentment is great gain. For we brought nothing into the world, and we can take nothing out of it. But if we have food and clothing, we will be content with that."

4. Generosity

Throughout Scripture, we're called to be generous. 2 Corinthians 9:6-7 says, "Remember this: Whoever sows sparingly will also reap sparingly, and whoever sows generously will also reap generously. Each of you should give what you have decided in your heart to give, not reluctantly or under compulsion, for God loves a cheerful giver."

5. Avoiding Debt

Proverbs 22:7 warns about the dangers of debt: "The rich rule over the poor, and the borrower is slave to the lender." While not all debt is sinful, we should be cautious about taking on financial obligations.

6. Planning for the Future

Proverbs 21:5 says, "The plans of the diligent lead to profit as surely as haste leads to poverty." God encourages wise planning.

7. Seeking Wisdom

James 1:5 invites us to ask God for wisdom. This applies to our financial decisions as well: "If any of you lacks wisdom, you should ask God, who gives generously to all without finding fault, and it will be given to you."

These principles form the bedrock of biblical financial planning. They're not just good advice; they're God's instructions for how we should manage our resources. By aligning our financial goals with these principles, we ensure that our plans honor God and contribute to His Kingdom's purposes.

Helpful video from Desiring God.‍
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What are the Biblical Guiding Principles for Setting Financial Goals?

At Peak Financial, we've distilled how to set financial goals based on biblical teachings into three core principles that guide all our financial advice and planning:

1. God Owns it All, Therefore, We Are Stewards:

This principle shifts our perspective from ownership to management. It reminds us that we're accountable to God for how we use His resources. This mindset can dramatically change how we approach earning, spending, saving, and giving.

2. God's Word is The Ultimate Authority for Every Financial Decision:

In a world full of conflicting financial advice, we anchor ourselves to the unchanging truth of Scripture. Before making any significant financial decision, we should ask, "What does God's Word say about this?"

3. Contentment is a Choice:

Our culture constantly tells us we need more to be happy. But true contentment comes from God, not from our financial situation. As we set goals, we need to check our motivations and ensure we're not chasing worldly definitions of success.

These principles provide a framework for all our financial decisions. They help us stay focused on what truly matters - honoring God with our resources and using them for His purposes.

Step-by-Step Guide to Setting Biblical Financial Goals:

Step 1: Identify Your "Why"

The first step in setting God-honoring financial goals is to clearly identify your "why." Ask yourself: Why do you want to take charge of your finances? Is it to reduce financial stress in your marriage? Spend more time with family? Support Kingdom work more generously?

Your "why" is your destination - it's the big-picture purpose behind all your financial goals. It should align with your faith and values as a Christian. Here are some questions to help you discover your "why":

• How do you want your finances to support your calling as a Christian?
• What impact do you want to have for God's kingdom through your financial decisions?
• How can better financial management help you serve others more effectively?
• What financial burdens do you want to eliminate to free up resources for God's work?

Once you've identified your "why," write a brief vision statement. This should be 1-4 sentences describing your ideal financial situation, and it must include the word "because." For example: "I want to be debt-free and have six months of living expenses saved because it will allow me to be more generous and respond quickly to God's calling without financial constraints."

Your "why" will serve as a North Star, guiding all your other financial decisions and goals.

Step 2: Identify and Prioritize Your Values

Financial planning involves trade-offs. Knowing your top priorities helps you make God-honoring decisions when faced with competing options. At Peak Financial, we've created a digital card game to help you identify and prioritize your values. Here's how it works:

1. You'll be presented with a series of value statements.
2. For each statement, you'll indicate how important it is to you.
3. The game will then help you identify your top values.

Some Christian values you might consider include:

• Support family members
• Reduces my taxes
• Support charitable causes
• Provide a lasting legacy
• Not being a burden on loved ones
• Protecting our loved ones if we’re not around
• Establish/maintain safety net
• Maintain my lifestyle
• Spend time with family and friends
• Grows as a person
• Achieve financial freedom
• Spend guilt-free

Once you've completed the game, record your top 5 values. These will be crucial in Step 5 when you prioritize your goals.

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As you go through the value identification process, remember to be honest with yourself. There are no 'right' or 'wrong' answers - this exercise is about understanding your true values, not choosing what you think you 'should' value. Your genuine priorities will help guide your financial decisions more effectively.

While our faith certainly influences our values, it's important to recognize that each person's financial priorities may look different, even among Christians. God has given each of us unique circumstances, callings, and responsibilities. As Colossians 3:23-24 reminds us, 'Whatever you do, work at it with all your heart, as working for the Lord, not for human masters, since you know that you will receive an inheritance from the Lord as a reward. It is the Lord Christ you are serving.' This verse encourages us to approach all aspects of our lives, including our finances, with sincerity and dedication.

By identifying your authentic values, you'll be better equipped to create financial goals that truly resonate with you and align with your personal calling. This alignment will make it easier to stay committed to your financial plan in the long run

By clearly identifying your values, you gain insight into what truly matters to you financially. This self-awareness helps you create goals that are personally meaningful and motivating, rather than following generic financial advice that may not resonate with your individual situation.

Tip: Need help in identifying your priorities? Work with Peak's Christian Financial Advisors.

Step 3: Write Preliminary Goals

Now that you've identified your "why" and your core values, it's time to start drafting your goals. At this stage, don't worry about refining them - we'll do that in the next step. For now, focus on getting your ideas down.

Consider the six categories of long-term financial goals:

1. Financial Flexibility: This isn't about early retirement or achieving a specific financial status. Rather, it's about working towards a financial situation that allows you to respond more readily to God's direction in your life. Consider:

• How might reducing financial stress help you focus more on serving others?
• What steps can you take to create more financial margin, allowing you to be more generous or responsive to opportunities to serve?
• Are there any current financial constraints that you feel are hindering your ability to fully engage in your calling? How might you work towards addressing these over time?"

2. Debt Elimination: Proverbs 22:7 warns that "the borrower is slave to the lender." What debts do you need to eliminate to achieve so your debt is only with God?

3. Starting a Business: If God has given you an entrepreneurial vision, what financial goals do you need to set to bring it to fruition?

4. Family Needs: This could include saving for your children's education, caring for aging parents, or building a strong financial foundation for your family. How can you honor God in meeting your family's needs?

5. Lifestyle Choices: This might involve saving for a home, planning for travel, or budgeting for hobbies. How do your lifestyle choices reflect your Christian values?

6. Maximized Giving: 2 Corinthians 9:7 encourages cheerful giving. What giving goals would bring you joy and advance God's kingdom?

For each category, write down as many goals as come to mind. They don't need to be perfect - we'll refine them in the next step. The important thing is to get your ideas flowing.

Remember, these goals should all tie back to your "why" and align with your Christian values. Each goal should be a stepping stone towards being a better steward of God's resources and advancing His kingdom.

Step 4: Refine Your Goals Using the S.M.A.R.T Framework

Now that you have your preliminary goals, it's time to refine them. We'll use the S.M.A.R.T framework to turn your ideas into actionable, motivating goals. S.M.A.R.T stands for Specific, Measurable, Achievable, Relevant, and Time-bound.

Let's walk through an example:

Preliminary goal: "Be debt-free"

Specific: What exactly do you want to accomplish? How will you do it?

Refined: "Pay off all consumer debt using the debt snowball method"

Measurable: How will you know when you've achieved the goal?

Refined: "Pay off $20,000 in credit card and personal loan debt"

Achievable: Is this goal realistic given your current situation?

Refined: "Pay off $20,000 in debt by putting an extra $500 towards debt each month"

Relevant: Does this goal align with your "why" and your values?

Refined: "Pay off $20,000 in debt to free up money for increased giving and saving"

Time-bound: When do you want to achieve this goal?

Final S.M.A.R.T Goal: "Pay off $20,000 in consumer debt using the debt snowball method by putting an extra $500 towards debt each month, in order to free up money for increased giving and saving, by December 31, 2025."

See how much more motivating and actionable the refined goal is? It gives you a clear target and a plan to achieve it.

Go through this process for each of your preliminary goals. As you do, keep in mind the biblical principles we discussed earlier. Each goal should reflect your commitment to stewarding God's resources wisely.

Step 5: Prioritize Your Goals

You've come a long way in this process. You've identified your "why," clarified your values, set preliminary goals, and refined them using the S.M.A.R.T framework. The final step is to prioritize your goals.

Life is unpredictable, and as Proverbs 16:9 reminds us, "In their hearts humans plan their course, but the Lord establishes their steps." Prioritizing your goals ensures that you keep what's most important at the forefront, even when circumstances change.

We recommend placing your goals into three categories based on importance:

1. Musts (most important): These are non-negotiable. You're willing to give up all your other goals before you'll budge on these.
2. Wants: These are high priority, but you'd sacrifice them if necessary to maintain your Musts.
3. Wishes (least important): You would love to achieve these, but they're the first to go if something has to give.

To help you categorize your goals, refer back to your Top 5 Values from Step 2. If a goal is directly related to one of your core values, it should probably be in the "Musts" category.

For example, if one of your top values is "Generosity," then a goal related to increasing your giving might be a "Must." If "Financial Independence to Serve God" is a top value, then your debt payoff goal might also be a "Must."

By prioritizing your goals, you're preparing yourself to make wise decisions when faced with competing financial priorities. You're also acknowledging that while we plan, ultimately, we submit our plans to God's will.

Conclusion

Setting financial goals as a Christian is about more than just managing money effectively. It's about aligning our financial lives with God's purposes and using our resources to advance His kingdom.

By following these steps - identifying your "why," clarifying your values, setting S.M.A.R.T goals, and prioritizing them - you're on your way to creating a financial plan that honors God and aligns with your faith.

Remember, this is a journey. You may need to revisit and adjust your goals as life changes or as God leads you in new directions. That's okay. The important thing is that you're being intentional about managing the resources God has entrusted to you.

At Peak Financial, our goal is to guide you to the true peak of financial health – a place beyond mere security where you create a surplus to serve God's Kingdom. We're here to support you every step of the way on this journey of faithful stewardship.

If you need help implementing these steps or want personalized advice on setting God-honoring financial goals, don't hesitate to reach out. Together, we can work towards financial decisions that reflect your faith and values, allowing you to live a life of greater generosity, purpose, and impact for God's kingdom.