The way you handle your day-to-day cash speaks volumes about your money personality. So says this article from bankrate.com. And I agree.
I watch our financial accounts pretty closely. Not in an insecure way (although I’m sure some would argue that point) but in a way that says, “I don’t want this to get out of hand like I’ve seen happen with other people.” I’m a volunteer budget coach with Crown Financial Ministries. I’ve seen all kinds of money behavior, rationalizations and states of denial.
And I read lots and lots of articles on personal finance, debt, the evils of credit cards, you name it.
Being in denial will not help your situation, no matter how bad it is. In my reading, in my conversations with people in debt, and sometimes even in my own situation, I have found that not knowing is worse than knowing – even when the bottom line is lower than you had imagined.
I used to update our Quicken accounts almost daily. But with the busyness of life, that has fallen to the bottom of the priority list lately. And it is uncomfortable knowing the backlog is getting out of hand. When I finally get back to it, the updating can seem overwhelming. So I do what any normal person would do: I procrastinate even more.
But it doesn’t go away just because I ignore it. So when I buckle down and get the records current, it is so freeing. I feel almost euphoric, even when our balances are close to zero! At least I know where we stand.
One of the first things we do in our Crown counseling is encourage the counselees to write down every penny they spend for the next 30 days. Every penny. That requires keeping a little notebook (or a piece of paper) with them at all times. It is a nuisance at first, but it can make a huge difference. One woman I counseled came to our second session with the news that this practice had been revolutionary. “I was skeptical when you told me to do it, but I was amazed at how much I was spending without even realizing it. The little things do add up.”
Yes, it is amazing. When you see it on paper – in black (or red or blue or green) and white, it can be sobering. When you write it down, you are less likely to spend it the next time. My guilty pleasure is a Route 44 diet Coke or a cherry limeade from Sonic – with tax, nearly two bucks. For a while, I was buying one nearly every day. When I started writing it in a notebook, even though I didn’t have to show the notebook to my husband (he wasn’t in the Crown small group with me), I started driving to Sonic less often. It can be embarrassing, but financially empowering, to open your eyes to the areas where you are simply wasting money. It’s not like a diet Coke is good for me, other than as a “comfort food” that lasts only as long as it takes to drink it. Not a lasting treasure.
One Crown seminar leader I know still tracks every penny every day. This is someone who is not in debt. I’ve never asked him whether he keeps this up because 1) he feels a responsibility to practice what he preaches, 2) he thinks he will slip up and fall into debt if he doesn’t or 3) he is anal-retentive. The answer may be some combination of the three. Nevertheless, Dave has demonstrated that keeping tabs on his spending is a big key to financial freedom.
Contrary to what a lot of people believe, it’s not the amount of money you earn, it’s the amount you spend that determines whether you are in financial bondage or freedom. People who make tens – even hundreds – of thousands of dollars a year can be just as in-deep-doodoo as those of us with much lower salaries. And many “poor” people experience a freedom that some “rich” folks can only dream of.
Crown seminar instructors are not millionaires. In fact, I don’t know any Crownies who are. Crown co-founder Howard Dayton, who stepped down as CEO a few months ago, didn’t take a paycheck as the ministry’s leader. He isn’t “in it for the money,” as they say. His aim is to lead people to fullness in Christ through understanding the importance of putting their treasures in the right place.
The way to do that is to focus on what’s truly important in life, and it isn’t our money. Money is a tool for right living, not the key to happiness. Many people misquote the Bible, thinking it says money is the root of all evil. The verse actually says the love of money is the root of all kinds of evil. The love of it, not the money itself. 1 Timothy 6:10
How we handle it is the thing. How we abuse it, misuse it, misunderstand its purpose and deny our situation is how we get into trouble.
Proverbs 22:7 is my favorite memory verse from the Crown Life Group Study: “Just as the rich rule the poor, so the borrower is servant to the lender.” I have thought about getting it printed on my checks as a reminder.
Because we all need reminders.
Visit Crown.org to find:
Information about a Life Group Study.
A Money Map coach (budget coach) – online or in person.
Calculators for getting a handle on your finances.
Financial forms, pamphlets and articles.
By the way, can you guess my money personality? Tell me yours.