A new way to think about spending

A new way to think about spending

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     I have a confession to make: I love to shop. I love the feeling I get when I get a good deal on my purchases. I feel like I really accomplished something! Do you know I rarely pay more than $20 for a clothing item?! My secret is probably not so secret: I shop the clearance rack first, then I check out the sales. If I have a coupon, it’s even better!
      Although I love to shop, I don’t go crazy. My tithe is given, bills are paid, we pay ourselves (savings), groceries are bought. I am aware of money spent and how much I can use to go shopping. Sometimes I can get tempted by sales and savings and have to tell myself, “you don’t need it.”  
      We live in a culture that wants us to spend money. These companies and business owners know how to persuade you to buy by using psychological triggers. You see it in social media feeds, on tv, newspapers, billboards, in movies, books, etc. They try to persuade you to buy things to solve problems you didn’t even know you had! Using words, colors, pretty faces, pain, love or pleasure to evoke emotions in us, compelling us to spend. Have you ever been compelled to enter your email address to get that free thing to help you make money? Or buy something because they say it is the last time the price will be this low? Feelings can be a strong motivator in us humans. I say can, feelings should not rule us. Remember we (believers in Jesus) have the spirit of self-control in us, among other things. You are more than your feelings. Don’t be roped in to buying things you don’t need or investing in business deals that are shady. Stop step back and think on it.
      According to financial experts there are spending guidelines to follow. The guideline is called the 50/30/20 rule. I will add in tithing and the new way to think about spending will be called the 10/50/20/20 rule;

• 10% of your income will be for tithing and/or charity. Remember God first in everything.  
• 50% of your after tax income is spent on living expenses. This includes mortgage/rent, groceries, bills, transportation, child care; all household expenses. Mortgage or rent should be no more than 35% of your income – 25% is best. You don’t want to be house poor. Having the biggest, baddest house, but no food, no furniture, or no life because you can’t afford it is not the best decision. (same with a car)
• 20% after tax income is used for flexible spending. Clothes, gifts, memberships, coffee shop drinks, etc.
• 20% for long term financial goals. Savings, college savings, emergency funds, credit card debt, student loans for example.

            What do you think of the new way to think about spending, the 10/50/20/20 rule? It may not be easy and remember it is a guideline, not the end all be all. Except the tithing rule – which is in the Bible.  
            This scripture sums it up. “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). When Jesus speaks we need to listen!
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Your homework:

• Meditate on the verse “For where your treasure is, there your heart will be also.” Write down what comes to mind. Where is your heart?
• Are you honoring God with your spending?
• Do a calculation of the 10/50/20/20 rule with your after tax income. Assess the percentages of what you are spending currently of your income for each category. Are you able to change the amounts? How do you feel of the 10/50/20/20 rule?
• If you are in financial troubles I recommend seeing a certified financial counselor or certified credit counselor. (Make sure they have a real accreditation, there are some scammers out there!)
• Try a 21 day spending fast. Only spend money on necessities – mortgage/rent, bills, gas, groceries, medicine for example. Whatever is left put in savings.  At the end of the fast reflect on how you felt. (I’ll admit it is a challenge!)
• Pray for wisdom and guidance for dealing with money.
• Remember God doesn’t love you based on how much money you have or don’t have!

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Reference: Williams, G.  A Guide to Creating Your Ideal Household Budget. U.S. News and World Report. https://money.usnews.com/money/personal-finance/articles/2014/06/03/a-guide-to-creating-your-ideal-household-budget   Published July 10, 2018. Accessed July 17, 2018