10 Principles for Financial Peace


Having engaged in the financial arena for over 30 years, I have developed 10 economic principles that can bring financial peace at most any age. While some of these may be familiar, others may be new to you. Notwithstanding, power lies in their application and consistency in your life.

On countless occasions I have heard a client exclaim, “I wish I would have known that 10 years ago, I’d be so much better off.”  Yes, adhering to important time tested financial principles can make a big difference.  Whatever the timing in your life, the key is to start today.  Consider the following:

#1 – Give back. Much could be said regarding this principle. Paying an honest tithe or giving to a selected cause is a meaningful pursuit in one’s life. The joy that comes from giving can lift one’s spirits and bring a brighter perspective in your journey.  I believe in this principle and do not shy away from recommending it to others. No matter your faith, consider this habit in your life. Ponder Malachi 3:10-12 in the Old Testament. There is power in giving back.

#2 – Have an emergency fund. Everyone knows, “stuff happens.” Establishing an emergency fund is essential. Who in their life has not experienced an unexpected job loss, a surprising medical bill, an unanticipated repair cost or even a actual family emergency. Holding 3-6 months of income in a liquid emergency fund can help turn lemons into lemonade.

#3 – Live on less than you earn. Heber J. Grant once said: “If there is any one thing that will bring peace and contentment into the human heart, and into the family, it is to live within our means. And if there is any one thing that is grinding and discouraging and disheartening, it is to have debts and obligations that one cannot meet.” Those who establish a standard of living which allow a little surplus, control their circumstances. Those who spend more than they earn are controlled by their circumstances.

#4 – Distinguish between needs and wants. The notion of delayed gratification has all but evaporated in our culture. The “get it now” philosophy is alive and well. Attractive offers such as “90 days same as cash” or “zero money down” coupled with low interest rates create a retail atmosphere that entices the undisciplined. A helpful suggestion is to simply pause and ask yourself, “Do I really need this right now?” My grandfather always said, “When you have the urge to splurge, purge the urge.”  Take some time as a family to prioritize needs and wants.

#5 – Develop and live within a budget. Many agree with the old adage, “Plan your work and work your plan.” Moreover, write down your goals and share them with someone you trust.  This can create a relationship of accountability. While uttering the “B” word is a quick way to dampen a good party, successful people know that executing a budget is important to achieve economic freedom.

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#6 – Invest in your future. With less than 10% of the private work force participating in defined benefit pension plans, millions of American do not have this option. We each must realize we are responsible for our own retirement, not someone else. As a general rule, save 15% of pre-tax income. If you feel behind, you likely are and need to double this savings rate.  Realize that this portion of your monthly income belongs to the future.  I rarely meet with clients that say they have saved enough. 

#7 – Align financial strategies to mitigate risks. Both pre- and post-retirees face a variety of financial risks: market, inflation, long-term care, longevity, tax diversification, survivorship and legacy comprise just a few. Each risk presents unique problems and challenges. First, be honest to identify the economic risks in your life. Second, quantify each one. Third, work with a professional to construct effective financial strategies to mitigate each risk.

#8 – Take a comprehensive view of your financial life. As we begin to formulate meaningful strategies, we must understand and view our financial lives in a comprehensive way. Like the game of chess, when one piece on the board is moved, the whole board changes! We should look at our financial lives much the same way. If not, we inevitably run the risk of creating, what we refer to as, a “financial junk drawer.” We get calls to fix these all the time.

#9 – Take ownership for where you are. Be honest about whether you live in the accumulation or distribution phase of life. Those in their 20s, 30s or 40s face different risks and need different financial strategies than those in their 60s, 70s or 80s. While we know this is true, few are honest with themselves about this reality and thereby pursue strategies that are incongruent with their economic stage of life.

#10 – Seek professional advice. We live in a complicated world. Many will live 25-30 years in retirement. Applying sound professional advice along the way is essential for financial peace. Engage someone who takes a comprehensive view, has the heart of a teacher, seeks first to understand and is willing to stay connected with you over time. At McKell Partners, we pride ourselves in such an approach.

Begin to apply each of these principles. One by one, you will begin to experience the wisdom of their application. Then, through their application, you will begin to have a credible claim on financial peace. Happy Trails!


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About the Author: Mark McKell

Mark McKell is the Managing Partner of McKell Partners, a full-service wealth management practice. Its mission is to “Help individuals and families experience financial peace so they can focus their lives on what matters most." Mark is focused on providing the personalized financial services retirees and pre-retirees need to combat the risks associated with retirement.

With a BS in Accounting from Brigham Young University, Mark has worked as a financial professional since 1985 and has acquired a depth and breadth of knowledge that comes from over three decades of experience in a variety of financial arenas. Those arenas range from public accounting with Ernst & Young to positions as a corporate controller, CFO, and CEO. In 2001, he decided to devote his experience and training to helping people with their personal financial goals.

Away from work, Mark is a dedicated family man and committed to his church, country and community. He and his wife, Susan, have been married for over 35 years, and have four married children including six wonderful grandchildren.

To learn more about McKell Partners and their services, simply visit mckellpartners.com. Visit Mark’s personal blog at markmckell.com where he shares his thoughts about what matter most.

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What will I learn from the Pre-Retirement Crash Course?

  • Your Financial Chessboard – A new perspective of how to look at your financial life.
  • Four important truths in navigating pre-retirement life.
  • The difference between the accumulation and distribution phases of life.
  • How to better visualize your financial future, by “beginning with the end in mind.”
  • Six important guide posts to developing effective financial strategies.
  • Seven important “down the mountain” rules for retirement survival.
  • And finally, eight key insights in choosing a financial advisor and much, much more.