Category Archives: Control Spending

Avoid The Christmas Hangover – Spending, Debt, and Stress

Christmas is a holiday with many competing areas of focus. Some manage to stay focused on the Lord, but there are many distractions.

Some focus on family, but one can easily get caught up in a month long stress about the “perfect holiday” and “who is or is not coming” and “do we have the perfect gifts for everyone”, etc.

I have seen people who strive to genuinely follow Jesus yield a month of every year to stress associated with the Christmas holiday, and almost none of it is focused on actually celebrating Christ.

Others get lost in debt, convinced by marketing and our culture that to celebrate Christmas requires spending lots of money, often money they don’t have. For the record, even “good discounts” cost you money unless you were going to buy that item anyway. It costs even more if you buy other stuff along with the thing that was on sale. That is why the companies selling you things run the sales… to make money, not to save you money!

Often this debt creates stress that lasts for months after Christmas is over as the credit card bills roll in.

Rather than waiting for that after Christmas “hangover” to set in along with the credit card bills and extra 5 pounds you put on by eating too much… consider challenging some of the holiday cultural norms.

1. Cut Down Your Gift List

Buying gifts for everyone you know is not necessary. Instead of buying gifts out of obligation for many with whom you are not close, just make a point to be nice to them all year round. Treat them with kindness and sensitivity and they will know you care for them even if you do not give them a gift.

If they only like you when they receive a gift, then they are not really your friend anyway. If you are concerned that they will buy for you and you will not have something for them, just have a real conversation with them about managing your expenses and budget responsibly and encourage them not to give something to you.

If they are not close enough to you to have this conversation, then why are you even exchanging gifts with them? In some cases, it may be very important to someone close to you to exchange gifts… go ahead if you want to.

2. Set a Reasonable Budget

Contrary to advertising… you do not need to buy a car, a diamond, gold jewelry, expensive electronics, etc. for people just because it is Christmas. If you don’t show them that you love them throughout the year, you will not fool them with an expensive gift in December.

For those with whom you want to give or exchange presents, you can set a reasonable budget for each person and then stick to it. This helps you set your overall Christmas budget in a predictable instead of impulsive way.

3. Plan Ahead and Avoid Credit Card Debt

Once you decide who you will get gifts for and how much to spend, you have a good estimate for your budget planning. Now divide by 11 and start saving it each month starting in January and continuing through November. Inevitably you will still have surprise expenses in December from the season’s activities, so you don’t plan on taking money for gifts from that month’s budget.

4. Redirect the Spirit of Giving

You can even consider replacing your current gift exchange traditions with a donation to a charity or family in need… someone you can give to in God’s name with no hope of receiving a gift in return. You will spend less money and honor God more.

If you find yourself condemning me as “Grinch”… I do not mind. You are not alone, but you are in fact also not correct. If Christmas is all about giving and getting gifts as the centerpiece and focus, then it has nothing to do with Jesus Christ and is simply a pagan festival where people want to get a lot of expensive stuff from each other.

The alternative is to recognize that gifts are intended not as the focus, but as a means of showing those closest to us that we were thinking of them. That does not require spending lots of money, despite what our culture would have us believe.

Besides, you can  give gifts to those you love any time during the year… it does not have to be at Christmas.

Dispelling Misconceptions about Gift-Giving and Examining Biblical Truths

Many tell us that giving gifts is a tradition originated to honor God’s gift to us in the birth of Jesus Christ or because of the acts of the real man who came to be known as Saint Nicholas. Though many give with this in mind, the fact is that this is not the accurate origin of gift exchange. In fact, gift giving to children in late December did not start with Christian origins, but rather as part of a pagan celebration of the sun god, Saturnalia, in ancient Rome. It is easy to research for yourself… even in Christian history encyclopedias such as by Zondervan.

Let’s explore the gift giving tradition further and test if it is even consistent with celebrating Jesus’ birth according to the principles of the Biblical record of that glorious event. Does this tradition point to or honor God, or is it just a tradition of men and a potential distraction from God?

Mary and Joseph did not get gifts for one another or even for Jesus and they knew who He was and that He would be born soon.

The shepherds came to celebrate and honor God. They did what they were commanded by God to do… which did not involve bringing gifts.

The wise men did not even come when Jesus was born… contrary to common tradition.  Scripture tells us they came and found Jesus in a house, not a manger. Herod killed all the male children two years and younger… not a week and younger, or even a few months and younger. It was likely they arrived over a year after Jesus was born. When they did come, they brought gifts to honor God. They did not exchange gifts with each other, nor did they expect to receive gifts in return from Joseph and Mary.

I should not fail to mention that God came down as Jesus to die for us and while this is a great gift, He expects no gift from us in return.

So if you really want to focus on giving gifts to honor Christian traditions… give in a way that honors God to those who will not be able to give anything in return. You will honor God more, find more joy and peace instead of stress, and spend less.

Wrapping up

If suggestion number 4 seems overwhelming… start with suggestions number 1-3. The less focus you put on gift exchange, the more focus you will find is available to consider God’s gift to us in the person of Jesus Christ. You will have more time and less stress to enjoy the holidays and hopefully you will not have the Christmas “hangover” in January.

Yours in Christ,

John


Remember that all you have belongs to God. Manage your money God’s way and use it for His glory rather than your own. Visit GrowGodsMoney.org .

Navigating Budget Leaks: Benjamin Franklin’s Wisdom 🚢

In the vast sea of budgeting, it’s easy to dismiss the significance of small expenses, letting them slip through the financial cracks. Many of us nonchalantly spend $5-10 here and there without considering the cumulative impact. However, at the end of the month, the revelation of these seemingly inconspicuous expenses can be surprising.

Let’s take a simple example: grabbing a $5-10 meal for breakfast and lunch each weekday. That seemingly modest routine can quickly swell to over $200-400/month, and that’s just the tip of the iceberg!

Benjamin Franklin once shared a timeless piece of wisdom that vividly illustrates this financial phenomenon:

“Beware of little expenses. A small leak will sink a great ship.”

Just as a small leak in a boat can spell disaster for even the mightiest ship, those seemingly insignificant expenses have the potential to sink a budget. While it’s prudent to initially focus on trimming the sails of larger expenditures, it’s equally crucial to scan the financial horizon for where these smaller, consistent leaks may be occurring.

Navigating the Financial Seas: Tools and Techniques

Consider using financial management tools like Quicken to diligently track these small expenses. Monthly reflections can reveal surprising patterns and highlight areas where seemingly trivial habits are creating budgetary holes. If using software feels too intricate, a simple review of credit card statements, categorizing and totaling those minor expenses, can provide a clear snapshot of spending habits.

🔍 Patching the Holes: A Call to Action

  1. Awareness is Key:
    • Acknowledge that small leaks can have a significant impact on your budget. Awareness is the first step towards effective financial management.
  2. Track and Analyze:
    • Use tools or manual methods to track small expenses. Whether it’s your morning coffee or a quick snack, documenting these expenditures can shed light on areas for improvement.
  3. Review and Adjust:
    • Regularly review your spending patterns. Identify categories where small expenses accumulate and assess whether adjustments can be made without sacrificing lifestyle quality.
  4. Embrace Change:
    • Small changes in spending habits can yield substantial results. Consider brewing coffee at home, bringing lunch to work, or exploring cost-effective alternatives without compromising enjoyment.

⚓ Safeguarding Your Financial Ship:

Just as a vigilant captain addresses potential leaks to keep their ship afloat, proactively managing small expenses is integral to financial stability. Let Benjamin Franklin’s wisdom serve as a compass, guiding you through the vast seas of budgeting. As you navigate, patch those holes, and ensure your financial ship sails smoothly towards your desired destination. ⚓💰

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Remember that all you have belongs to God. Manage your money God’s way and use it for His glory rather than your own. Visit GrowGodsMoney.org .

Smart Spending: Prioritize the Big, Save Big

Hey savvy savers! 💰✨ When it comes to cutting expenses, it’s not just about clipping coupons or switching to generic brands. Dive into the bigger picture by focusing on major expense categories first.

This approach, known as Pareto analysis, ensures you tackle the areas with the most significant impact on your budget.

🔍 Message: Begin by identifying your major expenses—housing, transportation, and long-term commitments. Remember, owning assets means not just their cost but also maintenance expenses.

Pare down your list, organizing from largest to smallest, and prioritize slashing costs in the bigger categories. Don’t ignore the small expenses, but don’t let them distract you from significant savings in larger areas.

The key is distinguishing between wants and needs. Set your budget based on income and long-term objectives before deciding what you can afford. Avoid the common pitfall of starting with pricey desires and then fitting them into your budget.

💰 Financial Wisdom: Say no to debt! Saving up for significant purchases like a house or car requires discipline and long-term planning, but it saves you a ton in the end. Patience and contentment are virtues that pay off. This goes for credit card debt too—avoid it like the plague. Remember, all you have belongs to God; manage your money His way.

Here are several common areas where families in the USA tend to have high spending:

Housing Costs:

    • Rent or Mortgage: Housing is often the most significant expense for families. Monthly rent or mortgage payments, property taxes, homeowners’ association fees, and maintenance costs can add up quickly.

Transportation:

    • Car Payments: Many families have car payments, and with the desire for newer models and additional vehicles, transportation costs can become substantial.
    • Fuel and Maintenance: Beyond the car payment, fuel, insurance, regular maintenance, and unexpected repairs contribute to high transportation expenses.

Healthcare:

      • Insurance Premiums: Health insurance premiums, whether through an employer or independently, can be a major monthly expense.
      • Out-of-Pocket Costs: Co-pays, deductibles, and expenses not covered by insurance can quickly accumulate, especially for families with frequent healthcare needs. 

Education:

        • Tuition and School Fees: For families with children, private school tuition or higher education costs can be a significant financial burden.
        • Education-Related Expenses: Books, school supplies, extracurricular activities, and other education-related costs contribute to the overall spending.

Debt Payments:

    • Credit Card Debt: Families may accumulate credit card debt, and high-interest rates can result in substantial monthly payments.
    • Student Loans: For those who pursued higher education, student loan repayments can be a long-term financial commitment.

It’s important for families to carefully assess these areas and create a budget that allows for necessary expenses while also planning for savings and unexpected costs.

⚖️ Call to Action: Challenge yourself to reevaluate your expenses. Distinguish wants from needs, prioritize the big-ticket items, and resist the allure of debt.

Share your tips and insights in the comments to inspire others on their journey to financial freedom.

💻 Resource: Explore more about managing money God’s way at GrowGodsMoney.org. Let’s cultivate financial wisdom together!

#SmartSpending #BudgetWisdom #FinancialFreedom #ParetoPrinciples

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Remember that all you have belongs to God. Manage your money God’s way and use it for His glory rather than your own. Visit GrowGodsMoney.org .

Stewardship: A Divine Perspective on Finances

Hey everyone! 💰✨ We all understand the importance of responsible resource management. We wouldn’t hand over our checkbooks without a second thought, expecting others to spend without aligning with our values and purposes. So, why do we sometimes struggle to grasp that God cares deeply about how we handle the resources He entrusts to us?

💡Just like we manage our businesses and families with purpose, God desires us to steward His blessings in a way that aligns with His will. Let’s dive into the divine perspective on finances.

💼 Whether it’s a company or a family, limited resources require careful management. We appreciate those who use resources wisely and correct those who do not. Consider your own checkbook – would you hand it over without caring how it’s spent? God cares about how we manage all aspects of our lives, including our finances.

God’s ownership of everything is emphasized in Psalm 24:1, stating, “The earth is the LORD’S, and all it contains, The world, and those who dwell in it.” Just as a business owner entrusts their possessions to employees, God entrusts us with His resources, expecting us to steward them faithfully.

In Luke 20:21-25, Jesus reminds us to render to Caesar what is Caesar’s and to God what is God’s. Our financial decisions are a reflection of our submission to God’s authority. In Proverbs 3:9-10 and Malachi 3:10, we’re encouraged to honor God with our wealth and tithes, experiencing blessings when we do.

The parable of the talents in Matthew 25 reinforces the importance of faithful stewardship. The master rewards those who use their talents wisely and rebukes the one who hides his. It’s a powerful reminder that God expects us to invest, not hoard, the resources He provides.

💬 Friends, have you submitted all your finances to be stewarded on behalf of God, or are you holding back for personal purposes? Let’s discuss in the comments.

Share your experiences and reflections on managing your resources to further the kingdom of God.

🌱 Invitation: Take a moment to reflect on your financial decisions. Are they aligned with God’s principles? Share your insights and tag someone who could benefit from this divine perspective on stewardship.

Let’s encourage each other on this journey of responsible and purposeful financial management!

#DivineStewardship #FaithfulFinances #GodsResources #KingdomBuildingWealth

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Remember that all you have belongs to God. Manage your money God’s way and use it for His glory rather than your own. Visit GrowGodsMoney.org .

A Father’s Wise Advice

The wisdom in Proverbs 6:1-15 is as relevant today as it was when it was written. Please read it slowly and thoughtfully. Avoid reading so fast you cannot dwell on the message contained here. Allow God to speak to you for your life and the lives of those you may be able to help.

Take great care in giving a pledge or guarantee on behalf of neighbors and strangers. Do not do so unless you can afford to lose that amount if something does not work out.

1My son, if you have become surety for your neighbor,
Have given a pledge for a stranger,

      2If you have been snared with the words of your mouth,
Have been caught with the words of your mouth,

3Do this then, my son, and deliver yourself;
Since you have come into the hand of your neighbor,
Go, humble yourself, and importune your neighbor.

4Give no sleep to your eyes,
Nor slumber to your eyelids;

5Deliver yourself like a gazelle from the hunter’s hand
And like a bird from the hand of the fowler.

Be not lazy. Instead, be industrious, taking ownership for your own care and for that of others you are responsible for. Think ahead, well beyond the short -term daily provision but rather looking ahead to the future. It may seem far off now, but if you don’t prepare now, you will face crisis later.

6Go to the ant, O sluggard,
Observe her ways and be wise,

7Which, having no chief,
Officer or ruler,

8Prepares her food in the summer
And gathers her provision in the harvest.

9How long will you lie down, O sluggard?
When will you arise from your sleep?

10“A little sleep, a little slumber,
A little folding of the hands to rest”—

11Your poverty will come in like a vagabond
And your need like an armed man.

Do not devise evil for your own financial gain.

12A worthless person, a wicked man,
Is the one who walks with a perverse mouth,

13Who winks with his eyes, who signals with his feet,
Who points with his fingers;

14Who with perversity in his heart continually devises evil,
Who spreads strife.

15Therefore his calamity will come suddenly;
Instantly he will be broken and there will be no healing.

Consider scripture from Proverbs as if it were advice from a wise, loving father… because it is just that.

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Remember that all you have belongs to God. Manage your money God’s way. Visit GrowGodsMoney.org .

The Basics: Control Spending and Debt

There is no amount of income, no matter how great, that can make up for out-of-control spending. To rely on income without controlling spending is like a fisherman who works feverishly to empty water from his boat with a bucket, but never plugs the large hole in his boat… he may keep up for a while, but eventually the boat is going to sink.

If you need convincing, do not take my word for it… look at governments around the world who routinely take in unthinkable revenue/income and still manage to spend more than they take in. The more they have, the more they spend… until finally the boat is sinking, and often they still do not control spending. They just look for a bigger bucket to scoop the water out of the boat.  It would serve them well to plug the hole in the boat.

Ok, you say…that is governments… they are spending other people’s money. It can’t happen to individuals. Look at celebrities or professional athletes who make many millions of dollars and then end up broke and bankrupt when their career is over. They never controlled spending or debt.

It is a crucial part of any financial strategy to be intentional and controlled in your spending and debt. Please check out our resource links on Control Spending and Debt to get a great head start in this area.

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Remember that all you have belongs to God. Manage your money God’s way. Visit GrowGodsMoney.org .

Intentional Spending vs. “Impulse” or “Luxury” Spending

Don’t worry, we are not talking about selling your car and home and living out of a box or moving back in with Mom and Dad. It is an entirely different thought process that should be considered in validating that your home, car and other long term spending commitments are appropriate and not excessive. Today’s exercise is focused on getting a reality check on your short-term spending habits for discretionary spending.

Think of it like a “fast” from discretionary spending. Choose a month each year, perhaps January is a good month to start with as many are recovering from over-spending in December. For that month, make a commitment to avoid discretionary spending. Minimize or eliminate eating out at restaurants, avoid impulse purchases of clothes or electronic items or really anything. Clearly define “need” vs. “want”. Even be intentional in buying groceries to stick with what you need, rather than a bunch of extras like snacks or expensive luxury items when less expensive basics will suffice. Avoid going out to the movies or sporting events or concerts. Follow through to the point that you feel you are giving up things you like.

At the end of the month, evaluate your spending and see how much less money you spent than your typical month. Then you can reflect on where you should make permanent adjustments to your spending habits to reduce your monthly spending, perhaps reducing below what you thought practical. Even if you change nothing outside of one month of lower expenses… you will help offset your likely over-spending in December. If you did not over-spend in December… you can dedicate the money saved to pay off debt, or set up an emergency fund, etc. Even donating the extra money to serve someone in need can be very rewarding and in keeping with God’s instructions for our life.

Are you willing to take the challenge? or are you addicted to discretionary spending?

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Remember that all you have belongs to God. Manage your money God’s way. Visit GrowGodsMoney.org .

Biblical Guiding Framework For Financial Freedom

God lays out important principles for managing finances in the Bible. He wants His people to be wise stewards of the resources He provides.

In this article, we lay out a high-level framework that provides valuable insight for those who take the time to genuinely understand and apply it. I have paired the elements of the framework with some of the scriptures that support them, but there are many other scriptures that could be added.

You can also check out our Resources section of the website for other organizations with a great depth of material on this subject.

1 – Earn Money: Develop skill and work hard to generate income.

  • Colossians 3:23 – Work willingly at whatever you do, as though you were working for the Lord rather than for people.
  • Proverbs 6:9-11 – But you, lazybones, how long will you sleep? When will you wake up? 10 A little extra sleep, a little more slumber, a little folding of the hands to rest— 11 then poverty will pounce on you like a bandit; scarcity will attack you like an armed robber.

2 – Control Spending:  Set a budget that matches your income and stick to it in order to control spending. This budget should include short term “monthly expenses” but also saving ahead for long term expenses like a house, university education, future medical expenses, retirement, and contingency funds for the unknown.

  • Proverbs 6:6-8 – 6 Take a lesson from the ants, you lazybones. Learn from their ways and become wise! 7 Though they have no prince or governor or ruler to make them work, 8 they labor hard all summer, gathering food for the winter.

3 – Control Debt: Carefully consider any debt before committing.

  • Proverbs 22:7 – Just as the rich rule the poor, so the borrower is servant to the lender.
  • Romans 13:8 – Owe nothing to anyone—except for your obligation to love one another.

4 – Invest: Choose to invest your financial resources for growth. Don’t stuff your mattress with cash in hopes of avoiding risk.

  • Matthew 25:14-30 – Jesus teaches us through the parable of the talents. Click the link to read the scripture.
  • Ecclesiastes 11:1 – Send your grain across the seas, and in time, profits will flow back to you.

5 – Diversify Investments: Diversify investments to manage risks.

  • Ecclesiastes 11:2 – But divide your investments among many places, for you do not know what risks might lie ahead.

6 –Consider Carefully and Seek Wise Counsel: Whether choosing how you will earn income, how to control spending or debt, or how to invest to grow your finances you should carefully consider your strategy and seek wise counsel.

  • Proverbs 22:3 – A prudent person foresees danger and takes precautions. The simpleton goes blindly on and suffers the consequences.
  • Proverbs 15:22 – Plans go wrong for lack of advice; many advisers bring success
  • Proverbs 14:15 – Only simpletons believe everything they’re told! The prudent carefully consider their steps.

7 – Steward Your Financial Strategy: Once you establish your financial strategy you must periodically review and analyze all elements to ensure you are following it and it is effective. This applies to earning income, spending, debt, and investment.

  • Matthew 25:14-30 – Jesus teaches us through the parable of the talents not only that we should invest, but that a good steward periodically checks on the effectiveness of his investments and makes adjustments according to their performance.

8 – Ethics: Following God’s instruction in how we manage our finances is more important than the actual dollars themselves.

  • Proverbs 22:1 – Choose a good reputation over great riches; being held in high esteem is better than silver or gold.
  • Proverbs 22:5 – Corrupt people walk a thorny, treacherous road; whoever values life will avoid it.
  • Ecclesiastes 12:13 – That’s the whole story. Here now is my final conclusion: Fear God and obey his commands, for this is everyone’s duty.

9 – Do Not Be Greedy: To those who love money, they will never have enough. Money is a tool to serve God and to support yourself and your family. The draw to “get rich quick” brings much risk.

  • 1 Timothy 6:10 –  For the love of money is the root of all kinds of evil. And some people, craving money, have wandered from the true faith and pierced themselves with many sorrows.
  • Ecclesiastes 5:10 – Those who love money will never have enough. How meaningless to think that wealth brings true happiness!

10 – Store Up Treasure in Heaven

  • Matthew 6:20 – Store your treasures in heaven, where moths and rust cannot destroy, and thieves do not break in and steal.
  • 2 Corinthians 9:7 –  You must each decide in your heart how much to give. And don’t give reluctantly or in response to pressure. “For God loves a person who gives cheerfully.”
  • Proverbs 22:9 – Blessed are those who are generous, because they feed the poor

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Remember that all you have belongs to God. Manage your money God’s way. Visit GrowGodsMoney.org .

Try This Simple Strategy To Eliminate Debt from Car Purchases

For many, debt is commonly used for a home, car, or other large purchases. It has become so commonplace, it is hard for some to even imagine avoiding it for major purchases. However, debt carries with it expenses in the form of interest payments on the debt. These can significantly increase the expense of the item you are buying over time.

Debt also inherently carries a risk in the case that you are overextended with things like your home and car(s) you may lose them in the event of a short-term income disruption or if you experience a life-changing event like one that would incur significant medical cost. If you can’t make monthly payments, someone may take the asset away from you and sell it.

Eliminating debt minimizes your cost because you don’t have to pay interest and provides some protection in case of short-term loss of income or unexpected emergency expenses.

For those who are disciplined and want to avoid a major source of debt, try this strategy to start working toward buying future cars in cash… ok, you can write a check.

For those who don’t have the money just sitting around and need monthly payments to enable buying a car at this point here is how to get started.

  • Challenge yourself on the paradigm of how many cars you think you “need” vs. “want”. Not every person needs a car. Not every family needs 2 or more cars just because they have that many drivers. It is very convenient… but is it a need?
  • Control the car you purchase to a “need” for transportation and not a “want” for style  or showing off or competing with others. This can easily save over ten thousand dollars on a car purchase.
    • Buy used but reliable brand that will last but already has 50,000 miles on it. You may be surprised how much money you save. Depreciation (decrease in value) is your enemy when you buy new cars but your friend when you buy used cars.
    • Do not look for something with loaded options packages – it is transportation… not an arcade. You can save 3-5 thousand dollars in many cases. Do you “need” a seat warmer? or just “want” one because it is fun.
  • Treat your car like a tool, not a fad. Keep it until it is no longer safe to drive or at least until you have saved up money for your replacement car purchase in order to extract maximum value. Many of today’s cars should be able to go 200,000 miles.
    •  Perform routine maintenance along the way to ensure you give your vehicle the chance to last. It may be a short term expense, but it has a long term payoff in life of the vehicle.
  • If you have paid off your vehicle, or once you have… keep making monthly payments in your budget, but put them in a bank account and keep track of them (eg. spreadsheet or notebook) as funds set aside for your next auto purchase.
    • Want to pay off your current vehicle faster… pay extra toward it every month… whatever you can afford even just $25/mo
  • Do not spend this saved money on other expenses. You should already have an emergency fund and this should not be pillaged to create a vacation fund or you will not succeed. Just because you set aside money for future major planned expense does not mean you should take that money every time your base budget is tight.

You may not make it to fully transition to cash with your next car, but if you repeat the steps above, you will find yourself paying for your cars with cash you saved in advance. People will be amazed that you can do it, but it is really no different than paying monthly payments and not buying something too expensive

I have implemented this strategy myself and found it very rewarding. I think you will too.

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Remember that all you have belongs to God. Manage your money God’s way. Visit GrowGodsMoney.org .

God’s Wisdom in Financial Choices: Digging, Gambling, or Investing?

 


There are always a lot of uncertainties in the world. Some may be global political conflicts or wars or terrorism. Others may include domestic conflict between political parties with very different views. The world is still recovering from a recession with a lot of interference from central banks keeping interest rates lower than they should remain. You do not hear about it much anymore, but banks are not really back to historical interest rates, which indicates they are still manipulating the markets to the extent they can.

How do you handle your finances in a situation like this? Are you digging a hole, gambling, or investing with your finances?

Digging a hole refers to constantly spending more money than you earn. Even if you are not accumulating debt, if you are not saving money for future emergencies or future planned expenses (e.g. car, house, retirement, etc.) you are actually digging a hole for yourself that gets harder and harder to climb out of as you get older. This principle applies whether world events are volatile or calm. Remember, that if you want to retire someday or even if you have to retire due to medical issues… you may not always be able to continue bringing in new income.  That means that over the long range, you need to save ahead, not dig a hole or even break even paycheck to paycheck.

Gambling reflects those who, often driven by greed, make disproportionately large investments, or bets, on things like oil or a particular stock that they think will make them “rich” if it moves in a particular direction. This approach may be acceptable as a speculative diversification in part of an investment portfolio but the typical investor should never assume any particular investment is “fool proof” and go “all in” on it. Sometimes it will work out, but it may also result in disaster.

A wise investor instead diversifies across multiple investments. He or she is prepared for unexpected moves in value of the investments in short term and long term. The wise investor does not always make the highest return on any one investment, but instead makes a steady and predictable return on investment regardless of circumstances.

So each of us should periodically reflect… “Am I digging a hole? gambling? or investing?”

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Remember that all you have belongs to God. Manage your money God’s way. Visit GrowGodsMoney.org .