Control Your Finances or They Will Control You
From an early age, a lesson I learned well from my parents was to spend money with care and exercise financial responsibility. As a result, I’ve never lived beyond my means, as so many people do today.
Though I lived for a time at my level of income, I quickly decided to live below my means. Remember, money is not a goal to aim for or a scorecard to brag about. Instead, it’s a means to provide for our needs.
Here’s my financial plan:
Spend
I determined to live a lifestyle simpler than I could afford. I decided to only spend some of my money. This allowed me to have funds to save and to share.
Save
At first, I saved to have a financial safety net. Once established, I then saved for major purchases, paying by cash and avoiding credit. Later I added saving for retirement to the mix.
These all allowed me to live a financially responsible life. I’ve planned, and I’ve prepared. What a burden this lifts from me when I look toward the future.
Share
The third area of finances is charity. It’s giving some money away. This doesn’t mean donating a portion of excess funds. Instead, it’s to plan for and be prepared to give to needs. We talked about this in the chapter on generosity.
My parents modeled using money for these three areas as I grew up. But they didn’t state it. They just did it.
Joyce Meyer, however, succinctly summarizes this plan—which she and her husband follow—as “spend some, save some, and give some.”
Notice she doesn’t state amounts or percentages but leaves it open-ended. This means it’s for us to decide. The only ratio I find unacceptable is 100-0-0. That’s both shortsighted and selfish. Don’t be that person.
For myself, I began working toward a goal of 80-10-10. It took a while to get there. I then worked to move beyond that and will continue to do so.
Life Lesson We need to treat money as a tool to live responsibly and help others.
Read more in Peter Lyle DeHaan’s latest book Sticky Living featuring his compelling story-driven insights and tips, part of the Sticky Series.
Peter Lyle DeHaan is an entrepreneur and businessman who has managed, owned, and started multiple businesses over his career. Common themes at every turn have included customer service, sales and marketing, and leadership and management.
He shares his lifetime of business experience and personal insights through his books to encourage, inspire, and occasionally entertain.