Behavioral Finance: The Principle of Contentment
Behavioral Finance teaches us that our attitude toward what we have and don’t have is what makes the difference (for more about how to change your thinking read this personal finance article).
All Christian business opportunities are just that… opportunities. Your attitude is often the major factor between success or failure in any Christian based business.
Applying the five principles of getting debt free leads you to enjoying what you have:
The Principle Of Contentment
The Bible tells us that the key to contentment and financial happiness is:
Not Having What You Want, But Wanting What You Have
Our Attitude Makes The Difference
From a position of peace you can move forward into the purposes of God and fulfill you callings, your dreams, your hopes… move from insecurity to a place of confidence.
Attitude affects Altitude is a known behavioral finance principle. What we think affects what we do.
The strength to change your future position is from contentment with your present position. This enables you to avoid the trap of trying to be someone or something you are not. You can be yourself, which is what Christ offers through His sacrificial death:
Unconditional Love And Grace
Discontent Plus Easy Credit Equals Financial Ruin
“People who long to be rich fall in to temptation and are trapped by many foolish and harmful desires that plunge them into ruin and destruction.” (1 Timothy 6:9)
Paul is not talking to those who are rich… but those who long to be rich. This points to a sense of emptiness you try to fill with material things. Marketing experts know this and use behavioral finance psychology to sell you stuff! They’re called SALES.
The secret Paul learned was to be who God called Him to be. To be wise in what is good. Some call this “walking in the Spirit”. When you walk in the Spirit concerning your household finance you’ll be content with what you have so you can get out of debt!
You’ll stop the endless cycle of spending more than you make.
Avoid the Credit Trap
Consider the following two scenarios in evaluating the intelligence of the American Way which says, “I want it and I want it NOW!”
1. Ellen is thirty years old. She has a $3,500 balance on her credit card at 18% interest. She makes the minimum payment each month. How old will she be when she pays her credit card off?
2. Tom and Susan need a new washing machine. They go to Sears and find one on sale for $299… only if they use a Sears card to purchase it. They get the Sears charge card and make the minimum payment each month. How much do Tom and Susan actually pay for that washing machine by the time it’s paid off?
(Answers: 1. 70 years old; 2. $1200)
Act Your Wage
There are a lot of people earning $40,000 trying to live like they earn $60,000. People will often say, “I can’t live on what I make.” A more accurate statement would be, “I can’t support my lifestyle on what I make.”
It is better to fall behind on your lifestyle than to try and catch up with your income.
Instead of asking, “What do I really want?”, try substituting, “What do I really need?” as you consider a purchase.
Realize that if you are not happy with what you have now, you won’t be happy with more. Behavioral finance findings are used by advertisers to convince you of the opposite.
You cannot go looking for contentment. That is the mistake most often made by those who are wanting that one last thing and then they will be happy. Contentment cannot be found. It has to be realized.
Do What God Blesses
You can’t pick and chose the order God blesses. You’ve seen the bumper sticker that says “Live Well: Eat Dessert First”. Well it doesn’t work when it comes to money.
Whatever area in life you want God to bless you in, put Him first in it.
What Most People Do:1. Earn it2. Enjoy it3. Repay it4. Save it5. Give it |
The Order God Blesses:1. Earn it2. Give it3. Save it4. Repay it5. Enjoy it |
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