Qualities of a Risk-Taker

Do you have what it takes to be a risk taker? Lets look at some of the qualities of a person who takes risks:

Risk takers are people of prayer. It's in prayer that we receive direction. It's in prayer that we receive wisdom. It's in prayer that we receive revelation and vision and purpose and strength. Without these things, we can't move forward with confidence.

Risk takers are people of vision. "If you can imagine it, you can achieve it. If you can dream it, you can become it." (William Arthur Ward). If you can't see it, if you can't imagine it, you'll never risk for it. Risk takers don't risk for something they aren't sure of, they have a sharpness of focus and a clarity about what they pursue that propels them toward their goal.

Risk takers are people of obedience. Risk takers trust God enough to do whatever He says, even if it doesn't seem to make any sense.

Risk takers are people of faith. In order to be a risk taker, you have to hold fast to what you know to be true, regardless of what you see taking place in the present. You have to continue to believe even in the face of great adversity.

Risk takers are people of passion. They are compelled by powerful emotion about what they are risking for. They have an intensity that carries them through the valleys and the setbacks and keeps them moving forward.

Risk takers are people of focus. They are able to tune out all other distractions around them and fix their eyes on pursuing a single purpose.

Risk takers are people of confidence. They are confident in their God-given ability. They have a confidence that comes from knowing that they are headed in the right direction. They aren't just stumbling along blindly, grasping at straws, wondering if they are going to succeed. Risk takers are confident because they've prepared and they've planned.

And finally, risk takers are people of words. They speak their world into existence with their words! You won't hear negative words on their lips, only words of faith and a positive confession, regardless of their circumstances.

Why People Don't Take Risks

Monday we began a discussion of risk taking. Today, let's look at why people choose not to take risks.

First and foremost, people don't take risks because they fear of failure. They don't take the chance to change their lives by doing things differently in their finances because they are convinced that they can't do it, and they don't like to fail. Well, let me just help you with this one. First of all, you can do it and you will fail at it! There, now doesn't that make you feel better? You don't have to worry about it or wonder about it...you are going to fail, probably multiple times. But you can do it, and what you want to learn is not to be afraid of the failure. You need to learn to welcome it instead. See, its not so much the failure as it is how you respond to it. When our kids fall off their bikes and scrape up a knee, what do we do? Do we put their bike away, tell them that they should never ride it again? Of course not! We pick them up, dust them off, encourage them to get back on that bike and try again! The same is true with your finances. When you first start living by a budget, you're going to fail. It's easy to say "well, that didn't work, guess I'll just scrap it and move on". But if instead, you'll pick up, dust off and try again, it will become easier and easier. You'll refine and revise, you'll begin to figure out what works for you and what doesn't, you'll get better and better at it. If you learn to "fail forward", as John Maxwell calls it, and allow your failure to propel you towards your desired goal, you'll never have to be afraid to fail again.

Secondly, people don't take risks because they don't want to make sacrifices. Getting free financially is not always easy, in fact, most of the time, it's pretty painful! You may have to learn to let go of your desire for immediate gratification, you may have to give up some of your favorite luxuries, you may have to choose live a simpler life than our "keep up with the Jones' " culture might dictate. But the good news is that if you do it well, your sacrifice will only be for a season. The really great things about seasons is that they come, and then they go. They aren't permanent. And letting go also opens up your hand to be able to receive as well...as long as your fist is closed tightly around things, nothing more can get into your hand!

Finally, people don't take risks because they are comfortable. Taking a risk involves getting out of your comfort zone, stepping out of the safe, comfortable box you operate in and exposing yourself. That doesn't sound like a lot of fun, does it? What does the mother eagle do to teach her young how to fly? She slowly begins pulling the soft, comfortable feathers out of the nest. Over time, the nest becomes so uncomfortable that the eaglets will eventually leave the nest and learn to fly on their own. We've said this before, but unless the pain of staying the same is greater than the pain of change, you will not move. People get comfortable in their financial situation. They've learned to get by, living paycheck to paycheck has become a way of life, and they've made a habit of juggling this debt to pay that one. While they would admit that it's not ideal, it is familiar! Risk may mean being uncomfortable, but familiarity breeds complacency. If we can learn to thrive on change and become accustomed to a little discomfort, we will keep ourselves sharp and will avoid becoming so comfortable that we will accept the mediocre in our finances.

Becoming a Risk-Taker

What is a risk? Simply put, a risk is exposing oneself to the chance of injury or loss. Becoming a risk taker is not a characteristic that usually comes to mind when we think of what we want to accomplish in our financial character. Sure, as a money-manager in any capacity we have to take risks, but we usually try to minimize our risk when it comes to finances! So why should we be risk takers with our money? Learning to live financially free will cost you...it will be a risk. But great risk also yields a great return.

There are three kinds of people - people who watch things happen, people who make things happen, and people who say "what happened?" Which one do you want to be? To be someone who makes things happen, you have to take risks. Face it - in our culture today, living debt free is weird. It's not the cultural norm. Choosing to get out of debt and to refuse to use credit or go into further debt is taking a risk.
1. You risk your reputation. People might think you're one of those "Dave Ramsey fanatics" or just a downright tightwad (is that a bad thing?). And what if it doesn't work? How many people do you know who've "tried the budgeting thing" and it "didn't work for them"? When you step out in faith and go against the cultural norm, people are watching! Being different means you risk what people might think about you.
2. You risk your relationships. Your friends and family may think you're crazy or foolish. They may decide that they don't want to be around you because the way you're living makes them feel convicted about the way they are living.
3. You risk your ability to "get rich quick". There's a lot of people out there claiming to know how to make you rich quickly. But there's only one way that will get you there with a sense of peace and fulfillment, and that's the slow, steady way. Proverbs 13:11 says "Wealth from get-rich-quick schemes quickly disappears; wealth from hard work grows over time."
4. You risk your stuff. Living in financial freedom means making sacrifices, which sometimes means doing without something you want, or postponing the satisfaction of having something you desire.

But when you step out in faith and choose to "...not be conformed to the pattern of this world, but be transformed by the renewing of your mind..." (Romans 12:2), you stand in a place of power. Face it, the "pattern of this world" is a culture of debt, of excess, of instant gratification, of comparing image and status...and we're called out of that pattern to something different....a lifestyle of living in financial freedom. Imagine what the people of God could do for the Kingdom of God if they were financially free!

Are you ready to take some risks?

Sowing and Reaping

"Do not be deceived, God is not mocked; for whatever a man sows, that he will also reap."

(Galations 6:7)
What you sow is what you reap. Most people take this to mean that if you sow good things, you'll reap good things. If you so bad things, you'll reap bad things. But you can also read this to mean that what - or the kind - you sow, that you will also reap. When a farmer sows a corn seeds, he reaps corn plants. If he sows apple seeds, he reaps an apple orchard. Likewise, the kind of seeds you sow, you will also reap. If you sow by cooking meals for someone in need - whether its for illness, or new babies, or another sort of hardship - you can expect to reap food in a time of need. If you sow in time - for example, giving of your time to a family in watching their children - you can expect to reap care for your own children when you need it. If you sow finances into a building project, you can expect to reap finances for your own building project. If you sow mentoring into another person, you can expect to receive a mentor to challenge you in your own adventures.

Are you getting the picture? What we sow is what we reap. We reap in like kind. I'm sure you've heard it said, "If you have a need, sow a seed." So...what is it that you need? What can you sow right now that will allow you to begin reaping in that area? You need to remember that you don't sow and reap overnight, the harvest only comes after a season. You have to plant some seeds, leave them in the ground, and wait for a season to pass before they can be harvested. Look out into the future a bit. Are you a young couple without any children? Now is a great time to begin sowing into the lives of other couples with young kids. Offer them your services for babysitting so they can go on a date. In time, you will reap what you have sown. Are you facing a financial drought? Sow into someone else's difficult financial situation. My husband and I never do garage sales. For one, I can't stand to have "stuff" around for more than a week that isn't being used, but we've also considered this principle! We often ask ourselves, "Who might need this item, and can we give it away?" This is particularly true of our kids clothes and toys. We have made a habit of giving away clothes and toys that our kids outgrow, and in return, we've reaped a huge blessing in that area. For example, in the past 2 months, I've given so much clothing for my daughter that I had to send some of it back because it was more than we could use!

Here's the amazing thing. Almost always, this principle comes back to money. If you're reaping care for your kids when you need it...it means you didn't have to pay someone. If you're reaping meals, it means you didn't have to spend money on groceries and prepare them. If you're reaping kids clothes or toys, it means you didn't have to buy them yourself.

And isn't that what our God always promises? He promises not just enough, but an abundance. More than enough. Overflowing blessings. Hold him to His word on this, and see what He will do. What is it you need? Sow a seed and start the flow of blessing into your life.

Ingredients for Financial Success - Purpose

Our final ingredient for financial success is purpose. Without a purpose, your emotion and your efforts will lack meaning. Without meaning, your efforts cannot be sustained for any length of time. Simply put, you won't have the staying power you need to win with money in the long run. Being successful in your finances is a marathon, not a sprint.

What is the purpose behind your desire? What is the vision that gives you endurance? Is is grounded in selfishness or selflessness? We lose ourselves in order to find ourselves. If the purpose of our success is simply for our own benefit, our own edification, our own advancement, our own glory, our own profit, we may still achieve some measure of success, but we will not be content. And we know from last week that contentment is the key, the one thing, the root of our financial success. We will not find fulfillment in our successes.

As believers, until we find our purpose in Jesus Christ, we are running a useless race. When we understand that He owns it all, and that we are just stewards of all that He's given us, we become motivated to be good managers. It's not really ours anyway! The goal is to understand what HIS purpose is for us, and align all of our passions and plans up with that. Then we will find what we are truly longing for, then we will begin to realize success in terms of the Kingdom instead of the kingdom.

How do you discover your purpose? There's a great book called "Chazown", by Craig Groeschel, that can help you discover the God-given purpose for your life. It walks you through the process of understanding your core values, your gifts and talents, and your past experiences, only to find your purpose at the intersection of the three. Knowing your purpose will help ignite your passion and supercharge your plan to bring you incredible success.

Ingredients for Financial Success - Planning

The second ingredient for financial success is planning. You have to create a plan! Burning passion without the practical, every day steps to accomplish something will get you nowhere fast. You'll end up wasting time, effort and money, only to find yourself back right to where you started...spinning your wheels and wondering how to get from point A to point B. Your plan is your action steps to direct the compelling emotion towards a realistic goal. Have you ever heard a message spoken that got you so stirred up, so inspired to do something...but when you walked away, you had no idea where to start? That's passion without a plan, and it's something that inspirational speakers are excellent at! You get all fired up to act, but don't have a clue what to do. Your plan must go hand in hand with your passion in order for you to be successful.

Your plan needs to be in writing, and should consist of the following items:

1. Your priorities - what is important to you when it comes to money? If you're married, you and your spouse may both have different priorities and that's ok! Just make sure you record them both.

2. Your goals - Where do you want to be financially in 3 months, 1 years, 5 years, 15 years? Set some short term goals, some mid-term goals, and some long term goals. Savings, debt reduction, retirement planning, and planning for future purchases are just a few things you can structure your goals around.

3. Your cash flow plan - Simply put, your budget. We don't care how you spend your money, as long as you're spending it on purpose. Make sure you tell every penny how it's going to be spent...ON PAPER...before you spend it. Then track every penny you spend so that you can see how you're doing to your plan.

Need some guidance getting your plan together? That's what we're all about at Northwest Financial Navigators - helping you get excited about change, creating a customized plan that fits your specific situation, and helping you get on track and stay on track for the long haul. We'd love to get you started on the road to financial success!

Ingredients for Financial Success - Passion

Throughout this week, we're going to do a three part series on the key ingredients for financial success.

Passion is the first ingredient. What exactly is passion? Passion is a powerful and compelling emotion or feeling, boundless enthusiasm,or an intense desire. Passion applies more to success than to finances in particular. When you are passionate about something, anything, you set yourself up to succeed in whatever it is you are doing. I think the component of passion that is most applicable is the word "compelling" - we are compelled to act as a result of our intense desire. Without action, nothing is accomplished! Good intentions are useless - you have to have something that will motivate you to put feet to your intentions. Maybe its the idea of getting completely out of debt that motivates you. Maybe its the thought of the amazing vacation you will be able to enjoy guilt free when you've saved enough to pay for it in cash. Maybe its that new car you've had your eye on. Maybe its being able to help others or give generously when the opportunity or need arises. Whatever it is that motivates you, hitch your wagon to it and put it to work for you! For me, its the thought of being free to live without any obligations, able to give as I want, able to take as much time off work as I want to for mission trips, family events, or just getting to all my son's baseball games. It's the idea of being free that motivates me.

How do you discover your passion? Think about things that make you really frustrated when it comes to money. For example, never seeming to have enough to do the things you want to do. Feeling frustrated that all your money seems to be going towards payments. Feeling out of control because you don't understand how all your money just seems to disappear every month. Next, think about the things that really bring you security or satisfaction or pleasure when it comes to money. Giving extravagant gifts at holidays or birthdays. Blessing another person in need. Having the cash to pay for a fun family vacation. Six months of income just sitting in savings. Being able to actively save for retirement. All these things, both the positive and the negative, are things that you can use to fan the flame of passion in your finances.

Make sure you come back on Wednesday for ingredient number two for financial success - A Plan!

Getting Your Finances Organized

If you've ever lamented at the mess you've created for yourself in your finances, you're in good company. Nearly everyone I've counseled has felt the same way at some point, including myself! Today we're going to work on bringing some order to your chaos, starting in your office.

The most important thing is that you start exactly where you are. Don't try to go back today and fix everything in the past, lets just get moving in the right direction from this day forward. Here's a couple tips I use to keep myself on track:

1. Organize your office or computer desk or wherever it is that you typically sit to pay bills. You'll need a system - something to keep yourself organized. You need to find what works for you, but at a minimum, you'll need to have a program for tracking and maintaining your money, an "inbox" for incoming bills and receipts, a "ready to file" box for paperwork entered/paid/completed and ready to be filed, a filing system of some sort for storing receipts and statements that are necessary to save for tax purposes. For the "inbox" and "ready to file" functions, I personally like the desktop organizers that are like an all in one caddy - they have slots for paperwork, writing notebooks, pens/pencils, scissors, and other miscellaneous items. You can pick one up at pretty much any office supply store. For the filing system, I have a plastic file tote that holds letter size hanging files. Each one is specifically labeled (mortgage paperwork, bank statements, insurance, medical, auto...etc), and at the end of the year I can just remove the paperwork from that particular file, bundle it up, put all the bundles together in a manila envelope, and label the front with the year its applicable to. The manila folder goes into a large tub, stays there untouched until 7 years has passed, then gets shredded!

2. Find a tool to help you manage your money. I like to use Microsoft Money and Excel. Money to manage my accounts, and Excel for my monthly cash flow plan. These tools will help you keep your check register, balance your checkbook, spend your money on paper before you spend it live, and track your actual spending so you can see how you're doing to your cash flow plan.

3. Choose a day once a week and designate it as "bill day". This will help you keep on focussed without feeling like you have to be at it every day. Save up the bills and receipts in the system I described above, then on "bill day" you can pay all the bills at once and enter them, along with any other receipts for the week, into your money tools. If you're married, make sure whoever is "doing the bills" is communicating with the other...Josh and I like to sit down after the bills are paid and receipts are entered and just go over where we are at. This keeps us on the same page and communicating about our finances.

So....your assignment this week is:
1. Find and install a money management program on your computer (or check to see if there's already one there!).
2. Purchase a desk organizer to store incoming and to-be-filed receipts.
3. Purchase a filing system for this year's receipts and paperwork.

The Secret of Being Content

"...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." (Philippians 4:11-12, NLT)

Remember in the movie "City Slickers" when Curly held up his finger and said "You have to find the one thing"? For every area of our lives, I believe there is the "one thing". Its the key that will make us successful in that particular area of life. For finances, I believe the key, the "one thing", is found right here in Philippians. It's learning to be content with what you have, in every situation, whether with a lot or just a little.

The problem with our personal finances today is that most of us live in a mentality that says we need a lot. But when is "more" ever "enough"? Until you learn to be content, it never will be. Now here my heart...I'm not saying that you shouldn't ever desire something more, I'm just saying don't let it rule you. Don't let it make you a slave to the lender. Don't let it make you a slave to the clock. Don't let it make you a slave to the expectations of others. Be content.

To be content, you have to know purpose. Paul (in Philippians 4) was content because he knew purpose! Understanding your purpose will get you through even the most difficult circumstances. When you have a vision, something you are working towards, and a reason for it, you'll find yourself operating with an intensity and diligence that you can't manufacture...its simply a by-product of understanding your destiny. It's what drives the entrepreneur working on his nth business venture after failing multiple times. It's what keeps a couple afloat while they live with milk crate and cardboard box furniture as they work to pay off their debt. It's what motivates a person to make sacrifices they wouldn't normally make for the greater good. Without purpose, life has little meaning.

If you're interested in learning how to be content and discover your purpose, there are some great resources out there. I recommend "Chazown", a book by Craig Groeschel, that will walk you through the process of clearly understanding your unique and important purpose, so that you can walk out your life with passion and fulfilment. There's also a "tool kit" online so to speak that you can access to help you develop your own personal plan. I also recommend "Visioneering", by Andy Stanley as another great resource!

Deanna Koffler, Nine36 Financial (936 Financial)

Digging New Wells

"And he moved from there and dug another well, and they did not quarrel over it. So he called its name Rehoboth, because he said, 'For now the Lord has made room for us, and we shall be fruitful in the land.'" (Genesis 26:22)

I was reading in Genesis 26 this morning about Isaac. The story tells of how Isaac had come to Gerar (Philistine territory) in a year of famine, and sowed into the land. During the same year, he "reaped a hundredfold because the Lord blessed him. The man became rich and his wealth continued to grow until he became very wealthy...so the Philistines envied him." (Genesis 26: 12-14)

Isaac's father Abraham had dug wells in the land, and to get back at Isaac because of their jealousy, the Philistines filled them all in with dirt - stopping up the wells. Isaac set to work digging up the wells, and the interesting thing is that as he dug them back out and they began to flow with water, the herdsmen of Gerar quarreled with Isaac's men about the water, saying it was theirs! Well, Isaac, being a gentleman, didn't fight them over the water, he just went and dug out another stopped up well. But the more he did this, the more they followed him around hassling him about the water and how it really belonged to them! So finally Isaac went and dug a new well, and no one hassled him again. God had made room for him in the land so that he could be fruitful - the water was his and he had no competition for it.

This is a really fascinating story, because I think as business men and women and especially entrepreneurs, we face these scenarios day in and day out. There are two things that strike me about this story. First, what person in their right mind sows in a year of famine? A man of faith sows in a year of famine. When you are a child of promise - like Isaac was - you sow in a year of famine, and what happens? You begin to prosper. This year has been a year of famine in our economy as a whole. As financial navigators, we see more and more people struggling under immense burdens of debt, facing foreclosure, and feeling completely out of control in their finances. It has been a year that has challenged us personally in our business ventures. And yet the truth remains the same...if we are a child of promise (and as believers in Jesus, we are!), we can sow in a year of famine and expect to reap a harvest. To begin to prosper and to increase, in spite of the famine, in spite of the economy, in spite of what the press is saying. Take it for what it's worth...I needed that today!

Second, there are countless fruitful markets and deep wells of fresh prospects and consumers for our business just waiting to be sown into and dug out. But I think we find ourselves over and over again re-digging old wells that have been covered over and stopped up by jealous competition trying to undercut and undermine us, trying to stop up our wells to keep us from being prosperous. And sometimes these old wells even give fresh water if we work at it hard enough...but the fact remains that they are old wells with lots of other thirsty people around them waiting for you to do the hard work so that they can clamber for their share. What we need to do is seek out a place to dig a new well. Create a new market with fresh, bubbling springs of demand for what we have to offer. Open up some space and allow God to make room for us so that we can be fruitful.

And here you thought that "Blue Ocean Strategy" was a new idea..... : )