Don't Be a Miser

Counting the change from the year

It is an odd title for this time of year as we work to share and give to so many around us, but it is an important message for us to remember. Many know I was heavily influenced by Dave Ramsey back in 2021, when I became a Ramsey Master Coach. He is notoriously known for the Baby Steps and Financial Peace University, but many people overlook the latter aspect of his message, which is to be outrageously generous.  While I was heavily influenced by him, my learning on this topic of financial control did not stop with him, after all, he is not the only one who knows a thing or two about money management.  

As you work through your journey, let me give the other books and people I have followed to expand my thinking along with some key takeaways and tips to help you on your journey.

Books and people in no distinct order.

• Your Money or Your Life by Vicki Robin

• Die with Zero by Bill Perkins

• The Total Money Takeover by Dave Ramsey

• The Money Guy Show - https://www.moneyguy.com

As you look across these there are some consistencies but some key points that ring loud and clear that you need to understand.

1. Debt brings risk! The higher the interest, the higher the risk. Most people encourage you not to keep high-interest (aka Credit Card) debt. Why?  Well simple, from a basic concept perspective, this is costing you a significant amount of money. Credit cards compound interest daily, so if you hold $1000 balance on Day 1, you are going to be charged interest on that amount, then on Day 2 you are going to be charged interest on the $1000 + Interest from Day 1 and so on throughout the month, year, etc. $1000 balance on January first with a 25% interest is going to cost you $20.75 on Feb 1st, then February you are going to have $1020.75 balance and by the end of the year you will have racked up an additional $279.52. You might not think that is too bad, but the average monthly balance according to TransUnion is $6,380 in 2024 and more than 50% of Consumers do not pay off their balances every month, meaning my calculations above show this is costing people $1,677 per year. Want to see what your debt is costing you, do the math for every $1000 and you will get pretty close.

2. Spend within your means!  You must have some control over your spending, whether you do a budget, manage what is in your account, or some form of this, you must know what you are spending it on and be reasonable to spend within the limits of what you earn.  Why? Because you work hard to earn money, you need to manage it appropriately.  Why is credit card debt increasing?  Simple, people are not living within their means, and when you add inflation into the mix it gets worse. Per Your Money Or Your Life, you are spending work hours (time away from family and loved ones) to earn money, so be wise with how you spend it.

3. Save for your Future! Social security cannot sustain you after retirement, it is simply not enough. There is enough information out there to show you that you must have some form of savings to sustain you when you are older. What is that number? It varies from individual to individual, so it is important to know your number and sit down with someone who can help you understand how to financially plan for your retirement. At a minimum, you should be saving 10-15% towards your future.

4. Give!  Now the key to all of this is to build a muscle for giving.  As a believer in Christ, I believe the tithe is 10% and it is simply us giving back to God what is rightfully his. I started this long before 2021, but I will tell you from the moment I started giving I never questioned whether I had enough. It is an important muscle to ensure money does not control us and we are not dependent on it. If we as a world gave like we were intended to give, we could conquer world hunger and so much more. Sadly, many barely give much of anything.

Now, as you bring this all together I want to zero in on point four, aligned to my title.  You work your whole life, you save your whole life, but if you die with a boatload of money stored away, what good is it? How could you have used it better throughout your life?  This is the concept of Die with Zero. Our time on this earth is precious and we should use that time wisely. Here are some key biblical concepts that easily apply to life, no matter where you stand biblically.

A good man leaveth an inheritance to his children's children: and the wealth of the sinner is laid up for the just - Proverbs 13:22

Luke 12:16-21 - I'll paraphrase. A rich man had a crop that grew plentifully, so he built barns to store it up. He then proceeded to eat, drink, and be merry because he accumulated so much. Then God said unto him, "Thou fool, this night thy soul shall be required of thee..."

As you bring these two verses together, we must understand the concept.  We are supposed to take care of our children, and our families to leave them a portion of us behind, but don't go crazy.  Enjoy what you have saved up to see the fruits of it today. Die with Zero goes more into this but I'll share a few examples. Would you rather give an inheritance to your kids when you are dead, or bless them today and see the joy today that it can bring (go on that big vacation and spend time when you can)? Would you rather bless your church with a large inheritance, or provide it today, where it can be used to God's glory and you can enjoy seeing the blessing from it?  Spend wisely what you have accumulated today and see the fruits of it. I want you to save for your future but don't live like a miser your whole life just so you can leave a large amount upon your death.

See we have to save, but not so much that we miss out on enjoying the blessings today! Live well, and save, but do not forget to give generously and use what you have while you can.