Causes of Financial Failure
Christmas is just around the corner and you know what that means: shopping! Or, more to the point, spending. It’s amazing how much we hear how poor our people are supposed to be, and yet see so many of our shopping malls always filled with people who don’t just go in and get free airconditioning but actually buy stuff! Or, how about all the expensive coffee shops mushrooming everywhere, always filled with people? And what of the fact that our country is the text-capital of the world? For a country that’s supposed to be so hard up, we certainly don’t seem to be behaving like it’s so! There seems to be a disconnect with our actual financial capabilities and our attitude towards the proper stewardship of our resources.
In this light, we are running a two-part series on the “Causes of Financial Failure” in the hopes that our sense of proper stewardship over our God-given resources would be piqued and, hopefully, prodded in the right, biblical direction. Be blessed!
CAUSES OF FINANCIAL FAILURE - Part 1
By Rev. Aubrey Jayroe
1. FAILURE TO FOLLOW SCRIPTURAL PRINCIPLES. The Bible is full of guidelines regarding financial principles. In fact, one-half of all parables and one out of six verses in the New Testament deal with stewardship. Get your Bible out and start studying. Ask your pastor for more information. See a Christian Financial Counselor for assistance. You will find great guidelines and principles in the Word of God.
2. FAILURE TO IDENTIFY YOUR PRIORITIES. Just exactly what do you want? More things or better financial stability? Prioritize your desires and needs and stick to it.
3. NO DISCIPLINE! That one horrible word causes us more problems than anything else in the world. We need to exercise discipline in every phase of our life, especially when it comes to discipline! Discipline yourself to limit unnecessary purchases and wasting money. Discipline yourself to sit down once a month to analyze your finances. Discipline will be the greatest thing you can establish in your life. Work diligently with disciplining yourself.
4. FAILURE TO ESTABLISH GOALS. A person who has no goal is a person without direction. A person without direction is going nowhere! To solve your financial difficulties, you have to establish a clear goal. Where do you want to be one year from now; five years from now, etc.? Write your goal down and work toward it.
5. NO CONTROLS. You must control your spending if you ever hope to get ahead financially. This compares to discipline, however, it means to have written controls over your spending. Write down what your limits are. Review them frequently. Abide by them.
6. FAILURE TO ESTABLISH A BUDGET. A budget is not a nervous breakdown on paper. It is a clear cut guideline of where your money comes from and how it is to be spent. It only takes about 1 hour per month to maintain a budget so that you can control the process of knowing where your money is and how it is spent. Don’t negate the importance of a written budget; it will be the greatest factor in helping you get your finances under control.
7. INABILITY TO CONTROL IMPLUSIVE SPENDING. If you don’t follow the direction of your budget and discipline yourself, you will be unable to stop spending when you see that item that you think you just must have. Don’t spend any unnecessary money until you discuss it with someone significant to you, such as your husband or wife, or a trusted financial advisor.
8. FAILURE TO IDENTIFY NEEDS AND WANTS. We all have desires. When we go shopping sometimes our desires override our needs. We need to identify what is really necessary to purchase and what can be put off until the finances are in better order. Again, it doesn’t hurt to write down the necessary items that you must purchase so that you will constantly be aware of how you can spend your money.
9. FAILURE TO ADJUST YOUR LIFESTYLE. We live in a society that promotes “keeping up with the Joneses”. Too often that process gets us in trouble because we over extend ourselves in order to gain and accumulate in order to impress others. We must learn to adjust our lifestyle so we can live within the means of our income.
10. FAILURE TO RESIST CREDIT BUYING. It is so easy to get credit cards today. In fact, many people get pre-approved applications in the mail each month. The reason credit card companies promote their credit card is because it is much easier to spend if you have credit cards, and they know it. The facts are a person will spend over 30% more if they have a credit card. Establish limits to your spending and stay within that boundary so you don’t get caught in the horrible trap.
(Check out next month’s issue for the second part of this article! – Ed.)
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