Sunday, March 18, 2018

MoneyWalk 434 Sensible Holiday & Birthday Spending

This program will help you undo financial bondage.

Many people are suffering financially. Some have been hit with extraordinary catastrophes beyond their control and some simply mismanaged money and failed to believe poor stewardship would negatively affect them. They did not pay attention to their flocks and herds and so they could not produce financial well-being. Their economy went down under and credit markets could not help them. They did not plan and budget to ensure they would not spend more than take home pay.

Some people will say they did plan and budget because the sum of all their monthly payments seemed to fit within take home pay. However, they in fact did not appropriately plan and budget because the total purchase price of the cars, furniture, jewelry, clothing, and other items they bought was greater than their take home pay and available assets. This was ushering them into deep financial trouble just waiting for the problem to get even worse by the loss of their job / business / income and inability to quickly obtain another one with at least the same pay and benefits.

If they had planned and budgeted to live only on take home pay and not purchase any item on credit that was not a historically verified appreciating asset (houses, commercial property, land, etc.), then they would not be in the position of suffering they are in today. Yet, many people continue to believe that our economy cannot thrive if people aren’t spending all they make and they further believe they cannot have comforts in life without obtaining car loans, furniture loans, jewelry loans, revolving credit from retailers, and other types of loans. This same attitude flows over into how they treat special holidays & birthdays. They’ve bought into the lie that celebrating these days requires expensive gifts and traditions. This takes a big bite out of their finances especially when they are not in a position to handle it. This mindset also causes them to use credit cards to get spouses, kids, families, and close friends the best gifts and to use credit cards to get what they cannot afford.

Some surveys purport that an average person spends only in the high hundreds of dollars on each holiday or birthday gift and has only about $9,000 in total outstanding revolving loan amounts. However, I’ve long known that people on average spend way more than these amounts because those amounts would not be causing the financial hardship that many are suffering through today. Put together these amounts represent only $400 in monthly payments. This is a miniscule portion of the average annual take home pay of a U.S. citizen. If the average earner spent only that much he would not have revolving loan amounts lingering for months or years with an inability to pay them off.

First, Christmas and other special days are about one thing and that is recognizing and honoring our Lord Jesus Christ for the sacrifice He made to allow us to choose to be set free from sin and have an eternal heavenly home in the presence of Almighty God. This is not done through gift giving or family traditions. Rather, it is best done through devotion to Almighty God through a born-again relationship with Christ in which you regularly fellowship with Him in praise, worship, and prayer. Everything else is secondary and should not be engaged in when you do not have the resources to engage them. God does not want you to put yourself in financial trouble by failing to see the forest for the trees.

Good biblically based stewardship requires planning and budgeting income. A good steward uses this principle to help control the cultural, familial, and emotional motivations he feels that would have him spend beyond his means. Believe me we all feel this pull. However, it can and should be avoided. Set your budget for special days early in the year based on your expected disposable income that can be forecast via budgeting. List all the people and activities you’ll spend money on and the specific amount for each. Be willing to eliminate or cut gift and holiday spending when you are faced with a financial situation (job loss, reduction in take home pay, expected layoff, etc.) where such spending would put you and/or your family in harm’s way.

Let your spouse and children know the reasons why you cannot purchase gifts or pay for particular activities. They may be disappointed, but they love you and together you all can find other low or no cost ways to make your time together very special when holidays & birthdays come. If you’re truly able to follow your plan because your written budget shows you can, then spend only the planned amounts based on what you have available in cash above your six-month emergency reserve.

Again, before anything else make your priority to spend time in fellowship with Christ and do only those things during any season that help you obey His commands and thus bring joy to His heart and peace to your life.

Please pray for this ministry and email me with any questions. May the LORD bless you richly as you follow His plan!

Proverbs 16:3, 20-22, 22:6-7, 27:23-27, 31:26-28, Luke 12:42, Romans 13:8

Please forward these bondage-breaking articles to other people who can use helpful insight!

You can find books authored by Randy Parlor and Karen Parlor at www.Amazon.com

You can find many other MoneyWalk articles on Facebook by looking at the NOTES created by Randy Parlor at https://www.facebook.com/#!/profile.php?id=100000444069041&sk=notes.

You can connect with Randy Parlor on Twitter and Linkedin

You can also view and/or listen to MoneyWalk articles at https://www.youtube.com/channel/UCXnztOIesOKIrSd_H6c-8mQ

No comments: