The third principle of self-reliance is managing money -- this time focusing on temporal skills rather than the spiritual. But don't forget as discussed in principle #1, temporal matters are also spiritual matters. For example, D&C 104:78 says: "And again, verily I say unto you, concerning your debts--behold it is my will that you should pay all your debts."
I like to think that I've always done well managing money. In fact, my work colleagues will often laugh at my desire to eat cheaper lunches. They'll say, "Surely you can afford to pay $15 for lunch." And sure, I could, but I'd rather spend that money elsewhere and not waste it away on just an hour of my enjoyment. When you budget, you can plan how much money goes to which categories. You can plan a big trip with the family, or build up an emergency fund. Currently, we're working toward replacing some furniture.
However, most of the US appears to have a big debt crisis. Here's a good read:
Americans are dying with an average of $62,000 of debt. (CBS News 3/22/2017)
As we pile up on debt, interesting things happen. Choices become limited to us--that is fewer entities will provide further credit. Emergencies can devastate us financially with no hope of recovery. Less money will go to our children when we die--creditors get their money first until assets run out. And when creditors lose money, they become less willing to lend money to others, which results in higher interest rates, and so on.
Robert D. Hales said, "There seems to be a sense of entitlement in today's culture. ... When we become burdened with excessive debt, we have placed ourselves in self-imposed servitude, spending all of our time, all of our energy, and all of our means in the repayment of debts. ... It is essential that we ... develop a spending and savings plan--a budget--and distinguish between wants and needs."
I have learned the virtues of waiting for the "wants," leaving open possibilities and having more financial freedoms in the long run. And I've witnessed what happens when people get the "wants" first and end up dodging creditors and experiencing the feeling of being financially trapped.
So how does one manage money? The lesson manual provides a 4-step process.
Step #1) Work hard and smart to receive money.
I don't know many people who haven't been tempted by get-rich schemes. Even I have have tried a couple. Of course it hardly ever pans out. I wouldn't complain if a million dollars landed in my checking account from some nice philanthropic dude, but on the most part I've earned most of my money the old-fashioned slow-and-steady way.
By the way, do you know what JOB stands for? Just Over Broke. And that's what it often feels like, but at least I can look back and take pride in how I got where I am today. I've been honest in my dealings. I've worked for practically every penny, and I've taken every available opportunity to increase that income. Hopefully it will translate into an early retirement so I can finally spend a lot more time writing music and fiction.
Step #2) Pay the Lord first.
Yeah--I know. I get a lot of flack from atheists/agnostics, and even other religionists about the idea of paying tithing.
Atheists will say, "You're wasting your money. Of course a religious text is going to say 'Pay the Lord first' as that translates into 'give us money.'" That's understandable. Any atheists reading this can skip this part. Though I realize 10% is a big chunk of money (it could fund a family vacation or cover debt and emergency expenses), I still think it does go to a good cause. When I pay tithing, it feels like I'm helping other people.
Other religionists will say, "I prefer the collection plate mentality where you pay whatever you can when it comes around." However, to me this seems to translate into "pay the Lord second." This is understandable when one is struggling just to survive on what little cash they're receiving. I've been there several times.
I don't know how many stories I've heard where people choose to pay their tithing first and the "heavens are opened" and they received unexpected blessings. One time my wife and I had only $25 in our banking account and no job during the summer--very stressful, but we still paid tithing, and we have never run out of money since.
Yet I strongly suspect that when one chooses to pay tithing first, something else happens. That person most likely takes a good look at his financial situation and then makes decisions that allow the tithing to be paid. The decision making itself helps the person get out of financial troubles, and that's what ends up bringing on the "opening of the heavens." I don't think paying the Lord second ends in the same place.
Step #3) Pay ourselves second.
This one makes sense, though sometimes it's very difficult. There have been times for me when this was impossible, but you should always strive to set aside money for a rainy day. Many jobs offer payments into 401k's with nice matches, but keep in mind that you can't touch that money until you retire. You can also put money into a more liquid savings or money market account. It took me decades to build up my emergency fund, and it's served its purpose several times.
If you're able to pull this one off, it could possibly help you to retire early, or even enjoy life more along the way.
Step #4) Spend less than we earn and avoid debt.
This last one should be called the no-duh rule. If you're spending more than you earn, it's unsustainable. You're going to run out of credit, and then comes financial entrapment and being a burden on others. During my college years, I ended up having to do some creative things with debt, but when I started receiving a more steady income, that debt went away very quickly. And yeah ... during those hard times, it was very difficult to splurge on anything, hardly eating out, getting our furniture from discarded items in the neighborhood dumpster, and so on. I remember saving up money to buy a $100 CD player with good sound -- and we were excited about it. Those were the days!
The biggest part of this is maintaining a budget. First spend a month recording all the money you spend, and then analyze where it all goes. Compare the expenses to what you earn, and see where you can make changes. What can you cut out? What needs more attention? How can you save a little for yourself? Can you see a way to get ahead on your debt?
Just a little discipline can change everything, and eventually get yourself on top of it all. It could take a few years to get there, but it's well worth it. The old-fashioned slow-and-steady way works more than any other failed get-rich-quick schemes.
Finally, to reiterate what I said in Principle #1: I don't know how many times I've heard these concepts discussed in LDS lessons, firesides, and seminars. In particular, I've heard Marvin J. Ashton's "One For the Money" lesson taught several times. (I highly recommend reading his 12-point plan for improving finances.)
With this in mind, it's no surprise to me that many Mormons end up being successful in life. It's engrained in our way of thinking. But yet, many of us still struggle, and there's always room for improvement.
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