[Better Money Challenge – Week 3]
INTRO
Perhaps we should begin by having a “midway” celebration. You and I are in the middle of this challenge already. Have you learned something new? Any fresh perspectives or ideas for things to change for the better this year?
Last week, we evaluated both giving and sharing. Remember, giving is where you release certain resources for the benefit of others. Sharing allows you to hold on to at least some things while also benefiting someone else.
As we move forward this week, we are looking at saving and investing, both of which allow you to hold on to some resources. You will likely desire to keep certain things for short-term plans. And other resources preserved for your long-term goals and dreams.
SAVING
My grandparents grew up in a generation that spoke about “saving for a rainy day”. Honestly, I really do not recall them ever dipping into this fund whenever it physically rained. However, when some unforeseen expense hit, they were prepared.
If you are looking at making a purchase in the foreseeable future and would like to pay-in-full, you will definitely want to consider saving something every single paycheck (if possible). This could be an item you need or want to replace within the next year or so.
You may even be wanting to make a larger purchase, but not plan to have all the money at the time of purchase. Consider setting aside something regularly (where you will not accidently spend it) for the downpayment. Maybe a new home.
INVESTING
Many people will have differences of opinion in this category. First and foremost, I encourage you to invest in yourself. And invest in your family. Education can go a long way and pay for itself many times over.
If you have at least one drop of entrepreneurial blood flowing through your veins, you may have a dream of starting your own small business. This may require a significant investment of time and/or money. Remember, you can start part-time (if desired).
One of my favorite areas of investing is retirement. Honestly, I likely will never fully retire. Yet having some resources for “the golden years” could allow a little extra flexibility. Truthfully, who really knows what our needs will be at that point?
TAKEAWAY
When you think of “saving”, let us focus on those things which are “short-term” (for the most part). You are looking at a purchase in the near future that you may not wish to finance, so you set aside some funds ahead of time.
As we move to “investing”, we should generally be thinking “long-term” (often a decade or more into the future). Setting aside funds that you do not use today will allow greater levels of possibility. Your next chapter of life will probably thank you for doing so.
As Christian believers, we have accepted the Bible’s teaching of humans as being “spiritual” and “eternal” beings. Please consider setting something aside (for a legacy) that will produce results for other people even after your life on earth is over.
Under the Shadow of the Almighty” (Psalm 91:1),
Shawn Episcopo