“For the love of money is a root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many griefs.” – 1 Timothy 6:10
Money matters have always been a challenging topic for discussion. Most people’s first lessons are usually taught by parents. Whether it is good or bad, these lessons would be ingrained in our minds. As adults now, it takes mental effort to change the way we think about, earn, use, and save money.
While your parents were probably giving you good, well-intentioned advice, there are pieces of financial wisdom to live by that they may not have covered. These gems have been tried and true. They are signs that you are cultivating good financial health and a positive relationship with money, built on sound Biblical principles. Here are just a few:
- Don’t spend more than you earn – This is probably the most basic piece of financial advice you will often hear. People often spend more than they earn because of lifestyle choices. In essence, they might be trying to keep up with the Joneses, or more accurately these days, their favourite Instagrammers, bloggers, and YouTubers.
- Acknowledge your financial weaknesses – What triggers you to spend money unnecessarily and what can help you make more wise financial choices that are within budget? Are you spending too much on your rent or car payment? Do you make impulse purchases monthly?
- Automate your savings – Along with your tithes, the next thing you should be doing when you get paid is transferring a set amount to your savings. Whether you do it by salary deduction or simply just transfer to a personal savings account with your bank or an investment account, pay yourself first.
- Don’t buy something unless it makes sense to do so – I can thank my father for this nugget of financial wisdom. When I just started working, immediately I wanted to buy a car. My proximity to work at the time was very close. I contemplated whether having a car would enhance my life and make things simpler. So, I decided to listen, not to run and buy a car, but to rely on bus, taxi services, and my own two feet to get around. Buying a car would not just be the upfront payment. There are other costs: monthly car loan payments, insurance, parking, gas, and car maintenance. Interestingly, I was able to save and buy my first car cash.
- Keep your fixed expenses as low as possible – Next to your income, the thing that rules your budget the most is fixed expenses. These are the bills and costs you must pay every month. Whether it is JPS, NWC, FLOW/Digicel, or others. If you’re not paying them, your services will be terminated. Bills are not optional. You are obligated to pay for the goods and services that you consume and sign up for. Ensure you are disciplined to keep them inline.
- If you don’t have the cash to buy it, you can’t afford it – This applies to anything you might be considering to put on a credit card. You might use a credit card to earn points for cash back or travel rewards, but as a rule of thumb, don’t charge something to a credit card that you don’t have the cash to pay for. A credit card is not cash. It is not free money. A credit card is a tool to help you build your credit. Utilising it properly can be the difference between excellent credit and a deteriorating financial situation. Living by this rule means you will avoid accumulating high interest credit card debts. When you stick to your budget and spending goals, you will be on your way to living your best life.
