“So, they got more money, but you can get more money from a savings account if you keep adding to it each year ... (comparing an “asset-heavy” business to an “asset-light” business). One is a marvelous, absolutely sensational business, the other one is a terrible business.” – Warren Buffett

When I talk to leaders about measuring financial success I always steer them away from their income statement and to their balance sheet. Why? Because it is not what you make, but what you keep that matters.

For instance, if you are in an “asset-heavy” industry, you probably spend a lot of money each year upgrading or replacing assets. Because these are capital purchases, they won’t show up on your income statement but they are taking cash or borrowing capacity out of your business. These purchases are sucking up your capital and your return on investment. Asset light businesses don’t suffer from the same problem.

So, if you get the opportunity to choose between investing in an “asset-heavy” or an “asset-light” business with similar looking income statements, choose the asset-light business. The return on investment will be much higher.

Now let's turn this theory on us. Are we living “asset-heavy” or “asset-light” lives? We can make a ton of money (income statement) in a given year and consume it all. Our balance sheet won’t be any better and the stuff we bought is probably rapidly depreciating or wasn’t an asset at all.

Our income statements look great but our balance sheet is no better.

What if we had a great income year and decided instead of consuming all of that cash to pay off some debt or invest in an index fund for the future? Our balance sheet would improve just like our income statement did.

That is how you become financially successful on this earth.

But what if you want to be financially successful for eternity?

The same principles apply. You want to make as much as you can by delivering as much value as possible with your time. But if we are living an “asset-light” life, we can invest that cash in things that improve our balance sheet here and for eternity.

“Do not store up for yourselves treasures on earth, where moths and vermin destroy, and where thieves break in and steal. But store up for yourselves treasures in heaven, where moths and vermin do not destroy, and where thieves do not break in and steal. For where your treasure is, there your heart will be also.” – Matthew 6:19-21(NIV) - Jesus speaking

If we can convince ourselves to live “asset-light” lives, we can invest more eternally. When we do that our hearts will automatically become more focused on heavenly things than things of this world.

Rick Warren gave a great example of this. When we give to kingdom-building activities, more people end up in heaven (for eternity). When we get there or when they get there (depending on who goes first), there will be this group of people lined up to tell you how that gift that you gave (financially or time) played a part in getting them to heaven (for eternity).

That’s a big deal. Good financial stewardship requires us to build a good balance sheet on earth, but I hope I can spend more of what I earn building a great balance sheet in heaven!

Curt Fowler is president of Fowler & Company and director at Fowler, Holley, Rambo & Stalvey. He is dedicated to helping leaders build great organizations and better lives for themselves and the people they lead.

Curt and the team at FHRS help leaders build great companies through Fractional CFO, strategy, tax and accounting services.