Financial Principles: Being a Prudent Consumer
Shrewd + Beatific
Wow, it’s crazy to think that we started this Financial Principles journey during the blog launch week back in September and here we are wrapping it up in 2017!
Welcome to a new year, gals! If you’re been following along on Instagram, you know that I am really looking forward to all that this year has in store! I think it’s the anticipation of resets, fresh starts, and milestones. It’ll become clearer in the next couple of weeks as I roll out the next few series, so keep a look out for that!
In the meantime, let’s talk spending shall we?
The Basics
According to the Good $ense Ministry (GSM) a prudent consumer is “one who enjoys the fruits of their labor yet guards against materialism”.
What does this mean exactly? Well, I think it’s not enough to be aware how much you’re spending, you also need to be conscientious about what you’re buying and why.
Beware of idols.
“You shall not make yourself an idol in the form of anything in heaven above or on the earth beneath or in the waters below” - Deuteronomy 5:8
GSM goes on to say that “materialism—which so saturates our culture—is nothing less than a competing theology in which matter (things) is of ultimate significance; that is, things become gods or idols.
“They . . . worshipped and served created things rather than the Creator” - Romans 1:25
Couple of things on idols before we continue. For whatever reason, this word has transformed into Christianese (read: Christian jargon), but basically what we mean here is anything that we love more than we love God has become a replacement for Him. The reason this is problematic is because the only thing that can fill the God-sized hole in our hearts is Him, not relationships, things, or money.
n.b. If you want to explore this more, I would recommend checking out Tim Keller's book Counterfeit Gods.
Guard against greed and things that do not bring happiness.
“Beware! Don’t be greedy for what you don’t have. Real life is not measured by how much we own” - Luke 12:15
I think most people are aware of greed in the most extreme sense of the word, but I think our personal struggles are with the everyday greed that we don’t even consider as such. I think greed is like pride in the sense that most people reserve this word for very nasty people and situations. However, I will venture to say that even when I envy what my friends have – that new sweater for Christmas, that delicious donut, or the promotion at work – I am being greedy.
The way I flesh this out is by asking ask myself: do I really need what they have? Do I need that sweater or just want it? Same with the donut and the promotion. If the answer is ‘no’ then I am struggling with greed.
What do you think? How do you tease this “ugliness” (as I refer to it) out and bring it into the light to deal with it appropriately?
The To Dos
Now that we understand who we are aiming to be and what to primarily avoid, the next logical step is to break it down to what we’re meant to do in order to be this prudent consumer.
Seek moderation.
“Give me neither poverty nor riches, but give me only my daily bread. Otherwise, I may have too much and disown you and say, ‘Who is the LORD?’ Or I may become poor and steal, and so dishonor the name of my God” - Proverbs 30:8-9
The idea of seeking moderation is challenging because “moderate” is a relative concept. What is middle of the road and not excessive might not be the same as what you think that would be. The same is true for the other end of the spectrum. I might think that aspiring for or maintaining a daily Starbucks habit is moderate but that spending $10k on a European vacation is excessive only to meet someone that feels the exact opposite, another that thinks both are reprehensible and a third that thinks they’re both fine.
The key here is not to be aspiring for mediocrity, 70% of your potential, or picking and choosing some vices while eschewing others to average out as moderate.
If you look at the passage, it is about focus and that focus should be 100% on God.
He is your daily bread.
He is your sustainer.
If you follow Him first and foremost, He will moderate you instead of you needing to moderate yourself.
That’s the funny think about God. He doesn’t just give us more than we can handle, but He also showers us with favor whenever He desires.
Keep God in the forefront of your heart and mind and seeking moderation will be the fruit of your labors.
Be content.
“I know what it is to be in need, and I know what it is to have plenty. I have learned the secret of being content in any and every situation, whether well fed or hungry, whether living in plenty or in want. I can do everything through him who gives me strength” - Philippians 4:12–13
“Godliness with contentment is great gain. For we brought nothing into the world, and we can take nothing out of it. But if we have food and clothing, we will be content with that” - 1 Timothy 6:6–8
This is the greatest non-secret wisdom you can take away from this. Attitude differentiates a situation from being a wonderful adventure and the most challenging trial. Contentedness, in its truest form, comes from a faith in Christ above all else. As I said in my Year-End Reflection post about Personal Finances, I learned a valuable lesson in financial contentment this year because I trusted God’s lead around where I should live and then had to keep coming back to Him for peace when I felt the repercussions of that decision in other areas of my life.
God has got you. He knows what you need in this life and we need to remember that no matter what, we’re not taking what we acquire here with us after it’s over.
Watch your finances.
“Be sure you know the condition of your flocks, give careful attention to your herds; for riches do not endure forever, and a crown is not secure for all generations” - Proverbs 27:23–24
While this is sounds a bit ominous, it is not saying that you need to give into your fear of lack and hoard as much as you can. Rather it’s saying that you need to know what is going on in order to make sure you’re spending in alignment with your values and goals.
Apathy and ignorance are not the ways to achieve prolonged peace around your finances.
I know that you might be tempted to glaze over the “to do’s” in an effort to find the interesting, new revelations. I almost want to and I love this stuff! The tough part about this – as well as the other topics in the Financial Principles series - is that they are decidedly unsexy. It’s boring in the same way that “sleep eight hours a night”, “eat your greens”, and “workout regularly” are.
However, you want to know why it’s conventional wisdom and repeated ad nauseam by so many wise people?
Because it works!
One of my favorite quotes is “trust the process” and I think that it really applies here. Trust that God is good and making healthy - albeit tried and true - choices will get you where He wants you to go.
The Takeaways
God has showed up in a majority of this post and yet there are two things I would leave you with that sum up the prudent consumer:
Don’t waste God’s resources.
“When they had all had enough to eat, he said to his disciples, ‘Gather the pieces that are left over. Let nothing be wasted’” - John 6:12
If you don’t need it, pass it along to someone that does. God is infinite but His resources on this earth should not be treated as such. It’s up to us to be good stewards of what we’re given.
Enjoy a portion of God’s provision.
“Command those who are rich in this present world not to be arrogant nor to put their hope in wealth, which is so uncertain, but to put their hope in God, who richly provides us with everything for our enjoyment. Command them to do good, to be rich in good deeds, and to be generous and willing to share. In this way they will lay up treasure for themselves as a firm foundation for the coming age, so that they may take hold of the life that is truly life” - 1 Timothy 6:17–19
What a great verse to end on. Part of worshipping the Lord is enjoying what He has given us. We need to be good receivers as well as joyful givers.
It’d be like watching your nephew open a Christmas gift only to return it to you unopened because they think that they have enough toys already and feel guilty about it. How would that make you feel? Hurt that he didn’t accept it gracefully and think fondly of you each time he played with it? Imagine how God feels.
On that note, that’s a wrap on the Financial Principles series! I have loved traveling this biblical foundation journey with you all. From here we will travel into a lot of secular personal finance topics that might not feel like they’re very much about God at all.
That is why I started here.
He is our foundation.
If we start here, we can do all sorts of things together on top of it.
If we started with the basics, how would we be able to guard against getting sidetracked or sucked into the ways of the world?
Can’t wait to explore the new series coming up and see where God takes all of us this year, S+B gals! I have a feeling it’s going to be really good.
