On March 1st the LifePlanning Institute (LPI) hosted its first free financial education seminar titled LIFE PLANNING-101. This is the first in a series of monthly two-hour free seminars we will be hosting throughout 2014. Our goals, quite simply, are to: 1) Teach Individuals (and Families) how to successfully navigate the Five (5) Financial Landscapes of Earning, Protecting, Saving, Spending and Investing in the 21st Century; and, 2) Provide a comprehensive planning strategy that vastly improves on the conventional financial planning methods being promoted today.
Transforming How We Learn and Apply Financial Concepts
We pioneered use of the term Life-Planning because achieving your financial goals should not be determined without first determining your “P,” or what LPI refers to as your “Pursuit of Purpose.” If you are a long-term reader of our blog, then you may recall a previous post providing an introduction to our comprehensive planning model that I developed and now teach LPI students using the LPI Financial Formula I + P = V™. One such article can be found at http://blog.mylpi.org/2013/01/what-factors-will-most-affect-your.html. In effect, no matter how many small buckets you use to breakdown financial activity, it all gets categorized under one of three major areas.
- It is subject to obligations that are imposed or statutory—which is (I),
- it provides for what you define as your basic human needs, even necessities—which is (P),
- and, it is spent in discretionary (or voluntary) ways which can have the ability to be modified or avoided altogether—which is represented by (V).
Matching Career Objectives (and Your “P”) With Financial Assets, Earnings and Obligations
As a general overview, LPI’s Financial Model will begin by helping you determine some or all of your personal goals (or “P”), which includes career objectives and the education pathway and cost associated with achieving that goal; the appropriate spending-levels related to the differing stages of achieving these goals, and any other commitments you make towards other family members, organizations or transition stages in life. An individual pursuing a career goal of teaching at a pre-college level should realize that their income potential (from their professional field) will probably max at much less than someone pursuing an engineering career. Starting salaries, e.g., might range from $20,000 in a private school to $40,000 in a public school system. An engineer, on the other hand, might be offered a starting salary of $65,000 - $100,000 immediately upon graduating from college.
Over their careers the engineer will earn significantly more, yet both might spend just as much on obtaining their four-year college degrees. Therefore, what is earned and available while pursuing their education and what is available once graduating and securing full-time employment in their respective field might generate vastly different amounts for meeting basic human needs, such as housing and transportation, and for saving and investing in future goals. Assuming both paid for their college tuition with student loans, the engineering grad will have a smaller percentage of their earnings going towards loan repayments while the newly-minted teacher may find that their monthly loan repayment premium is a much bigger percentage of their earnings. I + P = V™ will factor in the career objective along with your current, projected and future asset base, to determine a realistic net worth.
Your Goals Are More Than Just Financial
Another important area where LPI’s Financial Model differs from conventional financial planning has to do with its recognition of another unique planning term called Glad-Giving. Most individuals believe in benevolence and donate their time, talent and treasure out of sheer gratitude for their own successes in life, some because they understand and are motivated by a specific need among others; some give to mitigate their tax obligations but, most according to many studies, give out of a desire to be a blessing and see others benefit and obtain goods and services they might need for themselves or their loved ones.
Accordingly, Christians should categorize Glad-Giving under “I” and the same way they render unto Caesar that which is Caesars’ (Mark 12:17), they should allocate a portion of their total worth and potential service to God. In doing so you elevate God’s portion to be as important—although truly more important—than what is statutorily allocated and paid to federal, state and local governments, and for food, beverage and item purchases, such as gas, clothing, etc. While Malachi 3:8-10 has been used in the past to bring Christians to a place of compulsory giving, much like statutory obligations impose, our effort here is merely to acknowledge that when an individual chooses to give to God, or as a benevolent gesture in general, that generosity and/or act of obedience needs to be factored in to your overall financial planning blueprint. In some cases, that monthly expenditure alone might range from 1% of gross earnings to a very generous 15%-20%. Either way, it has a direct and corresponding effect on distribution going from your gross income to determining your net income and discretionary spending.
Why Not Take Part In Our Next LIFE PLANNING 101 Seminar?
These subjects are just a tip of the iceberg of comprehensive financial planning using the LPI Financial Model and planning strategy. While the actual seminars are hosted live and will be taught at a specific locations throughout Hampton Roads, Virginia, please join us if you are in town or reside somewhere nearby. For all other readers, effective April 4th, LPI will be recording and offering each seminar as an online course that can be accessed via Webinar. A schedule of dates, times and specific seminar topics will be made available in the upcoming weeks.
More to the point why not tell us what topics you would like covered and would participate in? We are flexible and want to provide subject-matter that will interest and educate you as a loyal reader of our blog. Please tell us what topics to address by clicking here: And don’t forget to get your FREE Copy of my latest book titled “Seven Keys to Living a Kingdom Life.” It is FREE as a Limited Time Offer while in pre-publication as an eBook.Happy Planning!
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