Financial Stewardship

As defined in Wikipedia, "stewardship is an ethic that embodies the the responsible planning and managment of resources."  Since money is a resource, good financial stewardship means responsible planning and management of the use of money.  Here are some of the elements of finanical stewardship:

Spending plan.    How much money is needed for fixed and discretionary expenses?  This is also called a budget.

Income plan.How will money be acquired for the spending plan?   This is also a career and investment plan.

Sustainability plan.  How can one ensure results from the income plan are at or (preferably) greater than the spending plan for a lifetime?  This is also known as living below one's means.

While there are no guarantees, good financial stewardship can increase the probabilty of creating and building personal wealth.

For more on  The Practice of Personal Finance, check back every Wednesday  for a new segment.

This is not financial or wealth building  advice. Please consult a professional advisor.

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