If our bodies need physical exercise and tools such as gym equipments to be strengthened, the same could be said for our finances. There are tools that we need to have and habits that we need to build to improve our finances and the way we handle our money. For registered financial planner (US-based global certification) Edric Mendoza, it’s all about the concept of time under tension, and there are three tools that will help us make greater gains in the area of money: tools that protect, tools that track, and tools that grow.
In an episode of FUNDamentals on Plus Network, Mendoza talks about time under tension and these tools and how they can help us experience greater financial gains.
1. Tools that Protect – Similar to the things that we wear for protection when we go to the gym such as shoes and gloves, we also need tools that protect us when it comes to our finances. It is important for us to recogjnize the tools that we need to protect our finances, and for breadwinners, one of those is life insurance. According to Mendoza, there have been many instances during the COVID-19 pandemic where people have lost their lives without having life insurance to cover their medical needs and expenses, which then wiped out their life savings.
Aside from insurance, another essential tool for protection are HMOs and medical coverage, which gives you a chance to get checked up and ensures that you have the resources to cover your medical expenses. Mendoza previously talked about the things to consider when getting life insurance in a previous episode of FUNDamentals.
2. Tools that Track – It is important to track our progress as we’re working towards our goals, whether it’s toward physical fitness or when building our finances. Having tools that track allows us to determine a good starting point, allowing us to move forward with clear objectives as we work towards our goals. In the area of money, this comes in the form of budgets. For Mendoza, his personal budget is 50% for needs, 20% for wants, 20% for savings and investments, and 10% for tithing. He discusses more about saving and instilling discipline when saving in previous episode of FUNDamentals.
3. Tools that Grow – And finally, gains will not happen in any area without growth, and the same rule applies for finances. Mendoza explains that it is only through time under tension that we will experience greater gain. It is important for us to find our goal, start a plan to achieve that goal, which will also be the tool that will help us grow financially. Whether it’s saving up for your child’s education, building a retirement fund, or setting up your own business, it is important to create a financial plan to achieve that goal.
Aside from a financial plan, another tool that will help our finances grow is making investments, which Mendoza also discussed in a previous FUNDamentals episode. The concept of time under tension applies here, as budgeting your expenses while working toward your financial goals involves sacrifice, and achieving this plan takes tension and sacrifice. For instance, when making investments, the market goes up and down, and those fluctuations involve stress and tension. However, just like with physical exercise, it will only be effective with repetition and over time.
In closing, Mendoza shares the passage from 2 Timothy 1:7, which says that “for the spirit of God gave us does not make us timid, but gives us power, love and self-discipline.” He shares that if we want to unlock greater gains not just in our finances, but in our life as a whole, we need to look to God. That’s because God is the one that will give us the power we need to be able to achieve greater things by giving us His spirit. It is time for us to try the true source of strengthen who will give us the power that will allow us to experience great gains in our life, which is God.
For more financial tips, you can watch more episodes of FUNDamentals. For more financial tips, visit PLUS Network on Facebook, Instagram, Twitter, and YouTube.
