A Penny Saved

We need to keep our word. If we say we will do something, we need to do it. This is especially true in finances. A vow can be defined as a promise, a pledge, or a personal commitment. It can be verbal or it can be written (like a contract). When we make a vow to pay someone back for a loan - whether a relative, friend, or a financial institution, we need to keep that commitment.

It saddens me to read about people just walking away from their obligations, without giving a thought about how it impacts their reputation or character. “It is better that you should not vow than that you should vow and not pay” (Bible, Ecclesiastes 5:5).

There are consequences to our breaking of vows or pledges, and it runs deeper than just our pocketbooks. It impacts our character, and our reputation - something worth much more than silver or gold.

It is easy to get tempted to cut corners ethically when we face financial challenges. But we should never allow ourselves to be trapped into anything that is unethical, immoral, or dishonest, no matter how inviting it seems. “Such will be my wages. So my honesty will answer for me later, when you come concerning my wages.” (Bible, Genesis 30:32)

There are no small lies and no small thefts–there are only lies and only thefts.

In the short run cutting corners may seem to benefit. But in the long run integrity is what pays.

Death and Taxes are inevitable. (Thomas Chandler Haliburton–1796-1865)

While most people today are fixated on the latter (it being April 15th), I have been involved in the former. The church is preparing for a funeral tomorrow; I had an older lady and her son in my office earlier grieving - her husband of many years will probably pass away within the next 24 hours;  I just received a report about my good friend who was having surgery today - he had a heart attack while having the surgery (the doctors are consulting with his wife now).

I hope you have prepared for your taxes this year. More importantly, I hope you are prepared for when life ends:

• That all your important personal relationships are good and you have no unresolved issues (as far as you are able)
• That you have a will, and your final wishes laid out (funeral plans, burying spot, etc.)
• That you have no regrets
• That you enjoy life now

My position as a pastor brings me face to face with death on a regular basis. I guess it is ironic that on a national tax day my day has been so focused on death. And yet it is a good reminder to keep things in the right perspective.

I hope your day has been good. Keep the faith.

We all need help. None of us knows everything about everything. “A wise man will hear and increase in learning, and a man of understanding will acquire wise counsel” (Bible, Proverbs 1:5). Some of the smartest and most respected individuals I know seek the help and knowledge of others.

This is true in all areas of our life, even in finances. Whether it is through blogs, books, friends, etc., it is good to keep learning and growing - and to share that knowledge with others.

So, I would like to give a big thanks to all those who have helped me along the way, including the readers and commentors of  A Penny Saved - THANKS!

Contentment is hard. It’s easy to want what someone else has, to want the “latest”. We just seem to always want just a little bit more. In my lifetime, I have seen the progression, especially in areas of technology. For instance:

• First, it was black and white TV’s with rabbit ears
• Then came color TV’s
• Then came remote controlled color TV’s
• Then came large screen TV’s
• Then came cable, then satellite
• Then came surround sound, Dolby, etc. TV’s
• Then came flatscreen TV’s
• Then came digital
• Then came….

I’m sure I am missing a few things, but I think you get the “picture”. Would any of us be content with a black & white TV with rabbit ears today? I remember reading somewhere (I think it was an MSNBC article) about going on a 1970’s budget as a way to save money - no cable, no cell phone, no home computer, etc. Funny how we (at least those of us old enough to remember) made it through without those things but now they are necessaties.

Now, I like these things and they are helpful (as well as dishwaters, air conditioning, and other things I didn’t have growing up!). But it is easy to slip out of contentment.  And when we do, and we desire more riches (or stuff), it can become a snare which can plunge us into ruin and destruction (i.e., credit card debt, house foreclosures, etc.).

We brought nothing into this world, and we will take nothing out (Bible, 1 TImothy 6:7). But in between we sure like to collect and keep up. So be content with where you are - not complacent or lazy. But content and hard working.

Have a great and contented day!

In honor of April Fool’s Day, I thought I would share an appropriate story…

A dog was walking home with his prized dinner, a large piece of meat, in his mouth. On his way home, he walked by a river. Looking in the river, he saw another dog with a wonderful chunk of meat in his mouth.

     ”I want that meat, too,” thought the dog, and he snapped at the dog to grab his meat which caused him to drop his dinner in the river.

The moral of the story: “It is very foolish to be greedy.”

Have a Happy, but Wise, April Fools Day! 

I was reflecting this weekend how powerful emotions are in regard to fianances. What got me thinking about this was an event that happened Firday at our home. It started Wednesday when our refrigerator started making some strange noises. By Thursday evening we knew something was wrong. So Friday morning my wife called the appliance dealer that we bought it from four years ago. Well they came out and it was the compressor, which is a very expensive part of the refrigerator.

Between Wednesday and Friday I was bummed. Here we go again, anouther unplanned expense. And my emotions started caving in. “Why is it every time we try to pay off debt something happens” (not true in reality, but emotionally I was there). “What is the use.” And on and on. It was just a downward spiral - and my friends consider me pretty level headed and steady.

Then on Friday as I am thinking how much this is going to cost me, my wife calls me and says the repair will be free! The refrigerator was still under warranty, and the part they were replacing (it was the condensor) was part of a bad batch of units, and the company that made the refrigerator would cover everything including the service call.

Now my spirits were soaring. Life was good again.

The whole episode got me to thinking how important emotions are in finances, and likewise, how finances affect our emotions. During my brief frustration between Wednesday and Friday, I was tempted to use money to bring “happiness” - shopping therapy. Fortunately I did not do that, but there was temptation. Likewise, after I found out that it would cost us nothing, I was ready to go back to full scale pay off the debt.

Nothing changed but my frame of mind, my emotions. So I have been thinking about how important emotions are to achieving our goal of being debt free. It’s good to understand our tendancies, how things will affect us, and set out a plan.  It’s also good to have someone on your team. For me, it’s my spouse, but it could be another relative or friend. When things get tough (and they will), it’s good to have someone on your side to pick you up and cheer you on.

I hope you have a plan that will help you weather the financial storms. And I hope you have someone else on your team to pick you up when you fall.

“He who is faithful in a very little thing is faithful also in much” (Bible, Luke 16:10). Faithfulness in finances begins with the little things. If we cannot control ourselves in the little spending areas, it will soon become evident in the bigger areas.

Some of us look at the debt or saving mountain ahead of us and we despair, we give up, it’s too big. These mountains are real, they are big, and they are hard. We feel like we have made too many mistakes, and have been too lax regarding spending or money decisions. But you do not have to conquer the mountain in a day, or week, or even a year. Start being faithful in little areas of your life, and build upon it. Not only will these little steps build upon each other, but your faitfulness financially will spill over into faithfulness in other areas of your life. And then one day you will look back and be amazed at how far you have come.

My current FD principal is $12,420.39! Yay!

So, I guess it’s time to set a mini-goal for March. I think getting my principal to under $11,850  by March 31st sounds reasonable… not too easy, and not too hard. I love watching the principal melt away. But still, being patient is a challenge. I just hate being in debt so much.

Anyway, sorry for the vague post earlier this week… just dealing with the normal “oh hai I’m an adult now stuff.” I guess my financial responsibility is a sign of maturity, but frugality has come pretty easily to me. Like Mrs. Micah, I don’t buy “stuff.” I pay for rent, internet, cell phone, groceries (and other toiletries/household items, like toilet paper and light bulbs), gas and car repairs, insurance, and student loans. That’s it. I eat out a few times a month, but at (semi-)inexpensive places. For example, I love Qdoba (mmm, shredded beef nachos), but I have found ways to make it less expensive. I signed up for their email list, so I get coupons and notifications about special deals. I also have a Qdoba rewards card, so after I buy ten entrees, I get one free! And even so, I’ve only been seven times since I started this blog. I go to the movies a few times a month, but it’s $4 a pop, and we have a free re-fillable popcorn bucket. Oh, and I buy a new book maybe every five months, to support webcomic authors. That’s about it. I don’t buy clothes, don’t buy make-up, don’t buy magazines (though I used to - I had a bad magazine habit in high school. Now I read blogs instead.),  don’t buy cds or dvds, don’t buy electronic gadgets - don’t buy “stuff.” And I like it. It keeps my tiny room from getting cluttered. I already have what I need, anything else is just icing on the cake. Sure it would be nice to have an mp3 player, but I’ve thus far managed to live a fulfilling life within one. I spend less than $800 a month on living expenses, and if need be, I could cut that back even further. Now *that* gives me a feeling of security.

Sometimes I am amazed at how fortunate I am. Financially, I have enough to provide for my needs and many of my wants, all while putting more than the minimum towards my student loans and saving for my future. I work at a small company with a relaxed environment and friendly co-workers, doing work that is varied and challenging. I share an apartment with my closest friend. I’m young and healthy. Life is good. And I know the future will change things, bring new problems and new joys, but that doesn’t change the fact that right now, I am so very fortunate, and grateful for that fortune. Life is very “normal” : no changes, no storms to weather - it’s all quiet sea and sunshine. But I suppose these times of peace are the abnormal times in the long run.

But there is a danger, too, to these calm waters. I could too easily stay here forever, should no wind come to move me. Contentment blurs into complacency. I want to see the mountains, the deserts, the waterfalls and tropical islands, both literally and metaphorically. I want stories to tell. Most stories I tell now are not my own, they are those of the people around me; my own life is dull in comparison. I don’t do much except the usual range of my life: small motions, imperceptible changes, recycled content, the rocking of my rowboat. I slide my oars in the water and begin to row, then pull them out again. It’s much to nice of a day for such things. So I lean back, pull my hat over my eyes, and fall asleep.

The thing about times of trouble is: they force decision. Sink or swim. I sometimes worry that I don’t know how. My life has been too easy and airy and never learned how to hold my breath underwater. The storms I’ve weathered so far are nothing but summer showers compared to what I know of the hardships in the lives of many of the people I know. And while decision, motivation, can come from within, I’ve rarely managed to keep it up for long enough to get myself anywhere. I’m more likely to do something, anything, if I have some emotional impetus. The only reason I applied for the job I have now back in September was because my roommate and I were arguing at the time. The paths that lead from where we were to who we become are often twisted and strange, but I know I am more likely to start walking, or to trigger events that lead to change when I am discontent. Contentment blurs into complacency blurs stagnation. Contentment loses its warm glow and begins to be loved for its own sake, you fear leaving it because you have never known anything else, or you maybe did, and, as you found it distasteful, are grateful for the distance from that reality that contentment provides. It provides time to think, but, without conflict, you might find you have nothing to think about.

So, happy as I am, I don’t think I would want to spend the rest of my life exactly as I am, if it meant that I would never grow up anymore than I already have grown up, or never experience anything that I haven’t already experienced.