The Money Map

There are all kinds of systems and programs out there that are supposed to do essentially the same thing: put you on the right path in terms of handling your money. I usually don't post about them for that reason, but occasionally someone will put me on to one that is interesting or different.

Yesterday, my coworker showed me a copy of a "money map" developed by a group called Crown Financial Ministries. I don't know much about them except that they appear to use Christian principles to promote financial well-being. Their money map (available here) basically gives you seven "destinations" starting with building emergency savings, and ending with having a retirement that's fully funded. At each destination you check off specific goals like saving $1,000 for emergencies, paying off credit cards, buying an affordable home and funding your children's education.

Two things I think are notable: the plan encourages you to make some uncommon sacrifices, but it also builds rewards into the system at every destination. For example, you're not told to start saving for retirement, a home or your children's education until destination 4, after you've already paid off your credit cards and all other consumer debt. That runs contrary to most financial advice I've ever heard, which generally suggests that you allocate money to saving, retirement and paying off debt simultaneously.

In all I think it's an interesting and workable plan that I might adopt for a few months if for no other purpose than to blog about it here. Does anyone else have a plan that they're following that they can share?