The confident life, part 2
I am on the road a lot! Sometimes, to pass the time, I will turn on the “Pure Comedy” channel on Sirius XM. One comedian, Greg Warren, shared about his poor saving and spending habits. He admitted to spending $55 on an umbrella. Then he gets miffed when his friends point out that he should have been saving in his younger years, as compounding interest is one of the most powerful forces in the universe.
He remarks that he should have saved more but “can’t go back in time to compound some.” He adds, “The only things that I’m good at compounding are the consequences of my poor decisions in life,” he laments, “and they are piling up.” I know the feeling. He humorously addresses a truth many of us face: not having a long-term plan for money.
So, how can we avoid compounding our bad decisions and long-term plans for money? First, we must acknowledge that God designed a system in which we work and create to meet our needs. We are designed and required to work in order to survive (2 Thess 3:10). We receive monetary gain in exchange for our work, for efficiency, and for our benefit. We then use that money to provide for our and our family’s needs, both now and in the future. (1 Tim 5:8). We also are to use some of our money to help those who cannot earn enough to take care of their needs (Matt 35:36-41). We also use some of it for God’s purpose of advancing the Gospel (Mark 12:41-44).
Knowing these fundamental truths, you must begin building a plan that accomplishes all four purposes. We call this plan a budget; without it, your money will find its way out of your pocket and toward things like 55-dollar umbrellas. To be a wise steward, you must determine what you “earn” and spend. Then, make minor or drastic adjustments to ensure you are funding all four of these areas. Dr. John Birchet, pastor at Second Baptist Springfield, says, “Most people budget for their expenses, but not their goals.” He is right; if you don’t create some margin (spending less than you make), you will never be able to live out your biblical calling to help others or the Kingdom.
Budgeting goes beyond calculating expenses today; it is about meeting your future goals. If you are not yet retired, you should save for retirement (10-15 percent of income is a rule of thumb). You should also save something for a rainy day (about three months of expenses). Saving money, however, may never be enough to meet your future goals, as money loses its value over time due to inflation. To combat this, think about creating a generosity account; every time you get unexpected dollars, you should put a portion into that account to share with God’s church, his people, and their needs. The greatest of which is to have access to the gospel.
No matter where you are in your financial journey, today is the best day to start since none of us can go back in time. I hope you are ready. If not, don’t hesitate to reach out to us at the Missouri Baptist Foundation to help you make your plan, so you won’t end up like Greg.