So there are three reasons for saving money Mr Ramseys says. The first we have been talking about for the last couple of days and that is for emergencies. The second is to make major purchases. He says, “Since we’re not borrowing money anymore, saving up for purchases is kind of a big deal!” (p14) Remember we are now, and forevermore, living a debt free lifestyle, so putting money aside for big needs, like maybe new furniture or a new car, is also a must. This is called a Sinking Fund, where you sink in money regularly that will go towards that specific purchase. Think that old cookie jar being filled so that Grandma could buy that new vacuum. Back in the day, people saved up the money, THEN bought the item. I know this sounds crazy in the “charge it and worry about paying it later” world we live in, but paying, cash down, right on the spot, for all our possessions, is incredibly freeing! And remember this is the whole point to being financially free!
We can calculate how much we need to save every month towards that item by taking the price and dividing it by the months in which we want to buy it. For instance, if we really need a new dining room set, because ours is literally falling apart, and it costs $5000 and we know we are 10 months away from Thanksgiving, where the whole family will gather, then we need to save $500 per month, so we can have that furniture by turkey time. ($5000/10=$500) Again, just like with the Emergency Fund and getting out of debt, we use our creativity here in order to stash that cash away, so that we will not go into more debt in order to have what we need. And need I say, if we cannot afford it, we do not buy it…there’s a shock to our system!!!
I just want to push pause on the book for a moment, and talk about needs versus wants. I alluded to it the other day but, we really have to get serious with ourselves about what is a “have to have it or I literally cannot live” need, as opposed to a “oh that is so convenient and popular and pleasurable to have” want. I know in this world a cell phone seems like a need, I will grant us that, but the latest $1000 phone? That is a luxury! We must be responsible stewards of God’s money, my Friends. Every gift He empowers us to have, like our income…remember Dt 8:18?…is meant to come to us and then through us. Money is the same. If we are wasting our hard earned salary on things we really could live without, or paying enormous amounts of interest on things that are here today and gone tomorrow…you see what I mean? We are not being trustworthy servants of God. And I am not sure about you, but one of the things I live for is to hear my Jesus say to me, “Well done, My good and faithful servant.” Save for purchases that you really need. Then pay cash for them and stay debt free. This will increase the amount of peace and joy you have, and it will glorify God!
2023’s Got A Minute? Book Club
January: The First & Best Book Ever: The Bible
February: Love Is In the Air: “The 5 Love Languages: The Secret to Love That Lasts” by Gary Chapman
March: Spring Growth: “Secrets of the Vine” by Bruce Wilkinson
April: Living the Resurrected Life: “The Wonderful Spirit Filled Life” by Dr Charles Stanley
May: My Spiritual Mom: “Making Good Habits Breaking Bad Habits” by Joyce Meyer
June: Spiritual Dad: “It’s Not About Me- Rescue from the Life We Thought Would Make Us Happy” by Max Lucado
July: Financial Freedom “Complete Guide to Money” by Dave Ramsey
<>< Peace, Diane
