“Tell them to do good, to be rich in good works, to be generous, ready to share, thus accumulating as treasure a good foundation for the future, so as to win the life that is true life” (1 Timothy 6:18-19).

Have you ever been told you just need to save money and found yourself wondering why? I am guilty of telling others to save a certain percentage of their income without diving into the reasons. It is not a bad habit to be saving, but what is the goal driving it?

As Catholics, when we dive into this topic, we come upon the question: Why might God be asking me to save? After all, he has a plan for my life, but how am I preparing for the plan he has laid out before me?

To save for the sake of saving can be difficult for many people. For example, when we encounter an impulse purchase, it is easy to say “yes” to the current happiness if we do not have a saving goal we are working toward. We may put off opening a savings or investment account because there is no real urgency. However, if we take time to dream and set goals while making our saving and investing plans, we are more likely to say “no” to impulse purchases and to start saving right away.

Step 1: Discernment

Goals and dreams are great motivators, but as Catholics, we need to discern whether or not they come from God. Take some time to think about and write down what you want this year, in the next five years, in the next 10 years, and beyond. Write down what you would want your retirement to look like. Dream, and dream big.

When you have your lists, take them to prayer. Ask our Lord, “Are these goals what you want for me and for my life?” Spend an hour or more in Adoration reviewing them with God, and see what changes he places on your heart.

Step 2: Make a Plan 

As you settle on a few goals or dreams, it is time to work backward. I am going to focus on the financial side of this process, but you also need to consider the other actions that are necessary to accomplish your goals.

First question: What do you need to do now financially to make those dreams a reality? Let’s use the example of retirement. It can seem like a long way off, but if you do not think about it now, your retirement may struggle to look like your dream. As Catholics, we are called to work, but that calling does not always mean working for financial gain. What might retirement look like for you? Volunteering at your parish or the local soup kitchen? Visiting your children and grandchildren whenever you want, wherever they are? Giving extra generously? Owning a mountain or beach home you allow others to use for retreats when you are not there?

I do not know what God has placed on your heart, but I do know that all of these ideas have real financial consequences. Let’s say you want a simple retirement, but you have six kids and want to be able to help with your grandkids and see them whenever you want. Realistically, your six kids will probably end up in different parts of the country, so you will need to travel to see them, maybe for six trips per year. Right now, plane tickets can range from $200 to over $500, depending on locations, which might mean $1,800 per year in flight expenses.

To keep this scenario simple, we will assume you will stay with your children and use their cars when you visit, but realistically, you will probably spend at least another $500 per trip spoiling those kids and grandkids. Rounding up, this is roughly $5,000 per year in today’s dollars. In 30 years, with a 3% average inflation cost, $5,000 will be around $12,000. If you are in retirement for 20 years, adjusting for inflation for each year, these trips would cost you $335,000.

We are not looking at any of your living expenses while in retirement—simply your dream of visiting your grandkids whenever you want. How do you plan to save this additional $335,000? This is where goal-based saving and investing comes in.

Is this dream what God is asking of you? Start now, and have the motivation to follow through. It may look like a big number, but with the right plan in place, you can make it happen.

Let me show you how.

Goal-based Saving and Investing

Now, we have our goal: an extra $335,000 for travel throughout 20 years of retirement. Let’s say you will retire in about 30 years. There are many ways to break this down. First, if you simply want to save, you could save roughly $1,000 per month and have $360,000 after 30 years. Another option could be a high-yield savings account, which yield an average return of 1% to 3% per year. With an average 2% return per year, you would need to save about $675 per month to have $335,000 in 30 years.

You could consider bonds or certificates of deposit that have slightly higher interest rates, but typically they would require you to put down all the money up front. Finally, you could increase your retirement contributions or open an investment account. Depending on your risk level, an average return on a well-managed stock portfolio can yield an average 6% to 10% return over a 30-year period. At an 8% return, you would need to invest $230 per month to hit your goal of $335,000 in 30 years.

These examples are all just options; none of them is meant to be investment advice, and you should contact a professional before you make any decisions, because everyone’s financial situation is different. (Here’s some advice on finding the right financial professional for you.) The point of this example is to illustrate that the next step is determining how to financially accomplish your goal.

Making the Sacrifices

Now you know your “why” and your “what.” The next step is implementing. Let’s say you want to save an additional $230 per month in an investment account to hit your saving goals. You are adamant you want to see those grandbabies! First step: Today, not tomorrow, open that investment account. Do not let yourself get distracted now that you understand how waiting a year or even a month can change the amount drastically.

Make a plan for funding the account. How can you rearrange your current spending to make it possible? Maybe you say “no” to buying coffee and lunch out. Maybe you cut out a monthly subscription. Maybe you choose parks instead of paid activities for the kids. More than anything, though, I recommend you automate it. Within the first week of the month, have the $260 come directly out of your checking account and into your investment account. When the money is not there, we are far less likely to spend it! Automation will also keep you on track without adding another monthly task to your list.

Finally, Be Flexible

We all know God sometimes works in curved paths. If something arises that means your goals need to shift, be flexible and prayerful. God may have motivated you to start saving for that dream and is now putting a different one on your heart. That is OK! He has blessed you with the money, and whatever he is calling you to with it is between you and him. Just because you opened an account for travel does not mean that has to be spent on travel. Be mindful and allow him to work, but also be intentional. Money is a tool that will help you to achieve great things for God’s kingdom.

Erica Mathews, CFP® is a CERTIFIED FINANCIAL PLANNER™ Professional with Financial Counseling Associates, a small, family owned, independent, financial planning and investment management firm. She is passionate about helping families and individuals build their wealth so they can live out the calls God has places on their hearts. As a wife, mom of four, and businesswomen, she understands the complexities of family life and helps relieve the burden of financial stress with organization, a plan, and automation so her clients hit their goals. She lives in Colorado with her husband and four kids. They love everything outdoors including gardening, hiking, biking and simply exploring nature. If you would like to reach out to Erica, her email is erica@fca-inc.com.