Stewarding Well: 5 Practical Steps Toward Financial Security
- Chere
- 1 day ago
- 5 min read
“The plans of the diligent lead to profit as surely as haste leads to poverty.”
– Proverbs 21:5
One of the most common worries that keep people up at night is money. How much money you have or don't have, the bills, the rising costs of everyday items like groceries, gas, rent, retirement—the list goes on. As a single parent with a daughter in college in one of the most expensive cities in the country, and with retirement closer than I'd like to admit, financial security has definitely been on my mind.
The good news? Financial security isn't built overnight, but through consistent, manageable steps. Today I want to share five practical areas I'm focusing on to build a more secure financial future.
Protect Your Family with Life Insurance
Life insurance is an absolute must! If it's a benefit at your job, take advantage of it because most likely you'll automatically be approved without a medical exam. Don't stop there though—get an additional policy that will give your family real peace of mind if something should happen to you. The younger you are when you get it, the cheaper the premiums, so don't wait!
How much coverage do you need?
At least 5-7 times your annual income is generally considered the minimum for adequate coverage. Here are two common approaches:
Income replacement approach: 10-12 times your annual gross income. This is the most widely cited rule of thumb. So if you earn $50,000 annually, you'd aim for $500,000-$600,000 in coverage.
DIME method (a more comprehensive calculation):
Debt: Total debts including mortgage
Income: Annual income × years until retirement
Mortgage: Remaining mortgage balance
Education: Future education costs for dependents
Add these together for your total coverage amount.
A quick note on types: Term life insurance gives you substantial coverage for 20-30 years at affordable rates—perfect for the years when your family depends on your income most. Whole life is more expensive but builds cash value. For most people starting out, term life makes the most sense.
Here are a few resources that can help you determine the amount you need:
Build Your Emergency Savings
2025 really taught me the importance of having emergency savings. Your employment can change on a dime, and you want to make sure you have enough dimes to take care of your living expenses for at least 3 months,
The Standard rule: 3-6 months of essential living expenses (Essential costs like housing, utilities, food, insurance, minimum debt payments)
3 months if you have stable employment, dual income, or good job security
6 months (or more) if you're self-employed, single income household, work in volatile industry, or have variable income
Open a high-yield savings account (currently earning 4-5% APY at banks like Marcus by Goldman Sachs, Ally Bank, or Capital One 360) and set up automatic deposits weekly or monthly. Aim for $1000.00 No amount is too small to deposit, even if it is $5 a week, do whatever you can, because it adds up.
To save $1,000 in one year:
$1,000 ÷ 52 weeks = $19.23 per week
You could round that to $20 per week to make it even simpler, which would actually get you to $1,040 by year's end. Daily that is only $2.74/day (way less than a coffee from Starbucks!)
Currently, I am putting in $250 a month which is $62.50 a week to get $3,000 at the end of the year and hope to add a little more each month.
Start Investing: Make Your Money Work for You
One of my biggest goals this year is to learn more about investing, so my money works for me instead of just sitting still. I have a 401k (more on that below), but the stock market wasn't something I'd explored on my own until recently. I've been learning about the power of investing and how even small contributions can compound significantly over time.
If this interests you, I suggest reading everything you can and investing slowly but consistently.
The 3 brokerage accounts which are free to open, and I suggest looking into are:
You can start investing with as little as $1 by buying fractional shares. I opened a Fidelity account, and my current portfolio consists of:
SCHD (dividend-focused ETF)
VXUS (international stocks)
FZROX (total U.S. market fund)
I am doing my research, investing slowly, and diversifying my portfolio. Every week, I am upping my shares where it makes sense!
Check out the Market Beat Dividend Calculator to get an idea of how your money can compound.
You can always work with a broker to make sure that your portfolio suits your growing needs.
Maximize Your Retirement Funds
If your employer offers a retirement fund, they often contribute even if you don't. For example, my employer contributes 5% even without my contribution. But I strongly suggest you contribute too, even if it's just 1%. Pay yourself first! You work hard for your money, so make sure it works for you long-term.
The difference between retirement and regular investing: Unlike the taxable brokerage accounts I mentioned above, retirement accounts like 401(k)s and IRAs offer significant tax advantages. You're either getting a tax break now (traditional) or tax-free growth (Roth).
If your company doesn't offer a retirement fund, you can open a Roth IRA on your own. For 2025, you can contribute up to $7,000 annually ($8,000 if you're 50 or older).
If your employer matches your contribution, that's free money—always contribute at least enough to get the full match!
Additional Streams of Income
I cannot stress this enough: have more than one stream of income. You can use this additional income to pay off bills, add to your emergency fund or investments, or save for specific goals. We live in a volatile economy, and having a backup plan is taking care of your future self. It helps you build your reserves even if it's temporary.
I'll share more ideas about building additional income streams in future posts (I can't wait to tell you about a 6-figure contract I received by leaning in on my experience and creativity)—there are so many ways to bring extra money in!
The Bible has numerous scriptures about being a good steward of your money. Making a prayerful plan for your money not only gives you peace of mind but when used wisely honors God and affords you to be generous to others, your church and your community.
Throughout the year I will be posting more about additional resources and practical steps to save money!
Take One Small Step Today!
Your action step for today: Open a high-yield savings account and schedule your first automatic transfer. Even if it's just $5 or $10 to start—the point is to begin. You can always increase it later, but you can't get back the time you spend waiting for the 'perfect moment' to start. Do it during your lunch break today. Future you will be grateful you did."
*Disclosure: I am not a licensed financial advisor, and this content is for informational and educational purposes only. The strategies and steps I share are based on my personal experience and research. Please consult with a qualified financial professional before making any investment or financial decisions that affect your specific situation."
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