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“There is another serious problem I have seen everywhere - savings are put into risky investments that turn sour, and soon there is nothing left to pass on to one’s son. The man who speculates is soon back to where he began – with nothing”

– Solomon

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Principles & Beliefs

Financial Innovations believes the smartest investors are not those who waste time seeking to divine what will happen next, but work diligently to implement the following principals to their lives:

Think Long Term - Investing, by definition requires a long-term perspective. The alternative to taking a long-term view, placing money at risk for the short-term, is called gambling!  When making difficult decisions in life regarding money, family, career or relationships, long-term consideration simply provides better results.

Maintain Positive Cash Flow - Positive cash flow (spending less than what you earn), provides for the opportunity to save, invest and give. If you spend less than you earn consistently, you will have the opportunity to provide a blessing to your home and be a blessing to others.

Establish Reserve Funds - At the end of his life, King Solomon warned about a grievous evil he had seen under the sun: "When a father takes his savings and places them into speculative investments that then turn sour, leaving him with nothing left to pass on to his son."  I believe it is a grievous evil because two mistakes were made: (1) placing his savings into investments and (2) making speculative investments. Having adequate savings will then help you avoid debt when unexpected expenses occur.

Avoid Debt - The problem with debt is that it presumes upon the future and the future is unknown.  Debt may allow you to do more or have more now, but it will reduce your ability to have more in the future. Almost every negative headline in today's news represents financial institutions that have presumed upon the future with debt.  I know of few cases of financial disaster occurring without it.

Give Generously - While there is a benefit to saving and investing, the most significant returns are achieved when giving. Giving to others provides joy now and blessing in the future!

While these financial principles are simple, they are often overlooked as they require hard work to make them happen. Applying these principles to your investment plan will provide positive, long-term benefits in any market.