The Compass Catholic Money Map™
Trying to get your finances straight? Don’t know where to start or what to do first? Steady plodding is the way to reach true financial freedom. You can be successful by following a plan with a series of small achievable steps along the way, and by simply focusing on each step one at a time. Proverbs 21:5 says, “Steady plodding brings prosperity.” With God’s help, you can make progress.
The Compass Map is an easy to follow step-by-step guide that works for everyone, regardless of income. The map answers two big questions: Where am I financially? and What do I do next? The first step is to find out where you are now. Look at the map. There are seven destinations and each destination has several steps. Review each step in each destination and check off what you’ve already accomplished. Now, you know where you are. The next step is to determine what to do next, which is simply to focus on completing the first destination you haven’t yet finished. Complete each destination in order before proceeding to the next.
Focusing on each destination one at a time will help you make steady progress and as you complete each destination you will be building a solid financial foundation for your future. Download the map and start the journey now!
- Save $1000 for Emergencies. This is a must.
- Start Using a Spending Plan. You will decide where every dollar will go.
- Begin Giving. This includes time, talent and treasure!
Once you budget for your needs, any extra money will go to:
- Increase Emergency Fund to One Month’s Income.
- Pay off Your Credit Cards using the debt snowball method.
After you have one month’s income in an emergency fund AND your credit cards are paid off, you will:
- Increase Emergency Fund to 3 Month’s Income.
- Pay off All Consumer Debt also using the debt snowball method. This includes vehicles, student loans, HELOC’s, etc.
Now that you are DEBT FREE (besides your mortgage) and you have an emergency fund, you can:
- Save for Major Purchases. No more auto loans for you!
- Save for True Financial Freedom aka Retirement. You should aim to save at least 15% of your gross household income.
- Start Saving for college and/or Your Own Business!
Now the journey starts to get exciting! Your next step includes:
- Begin Prepaying Your Home Mortgage
OR - Purchase an Affordable Home with a down payment of at least 20%.
- Invest in Nonretirement Accounts.
True Financial Freedom is right around the corner! Before you get there, you must:
- Pay off Your Home Mortgage.
- Finish Funding Your Child’s Education (if applicable).
Congratulations! You are FINANCIALLY FREE!
- Your Retirement is Fully Funded!
- You Own Your Home Outright.
- Your Income From Your Savings, Investments and Retirement Funds Your Lifestyle.
But Now What?
After reaching Destination 7, you no longer need to earn a salary to meet your needs. Your are now in a position to say “HERE I AM LORD!” to whatever God is calling you to. That is TRUE FINANCIAL FREEDOM.
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