Matt Bell's Blog, page 30

The Starting Point for Building Effective Money Management Habits

Welcome to 2023! At the beginning of this new year, I have an odd question for you. Financially speaking, do you know who you are?

Just go with me on this. I realize that most people probably haven’t even thought about their financial identity. Even for those who have, what in the world does it have to do with finding some financial breathing room, getting out of debt, or investing more successfully?

In short, it has everything to do with all of that and so much more.

As James Clear, author of Atomic Habits, puts it, “True behavior change is identity change.” And, “The most effective way to change your habits is to focus not on what you want to achieve, but on who you wish to become.”

Since you’re reading this blog, I assume you are a person of faith. And yet, that’s no guarantee that you understand your biblical financial identity. 

If we don’t understand who we were made to be, or if we haven’t fully embraced it, that leaves us vulnerable to our culture’s point of view. And in countless ways, both subtle and overt, our culture tells us we are “consumers.” 

What’s in a word?

That may sound harmless, but have you ever looked up what it means to be a “consumer”? To consume is to use up, destroy, or spend wastefully.

But it’s worse than that. You see, “consumer” is more than a word; it’s a worldview.

If I’m a consumer, life is all about me—my pleasure, my comfort, my happiness.

If I’m a consumer, happiness is found in money and what it can buy.

And if I’m a consumer, life is a competition to have more.

I’m not saying we overtly, consciously arrange our lives this way, but this is the direction the culture pulls us in, and if we’re not intentional, our lives can start to look a lot like that.

A consumer is the polar opposite of who God made us to be and what he made us to be about.

The Bible doesn’t say life is all about us; it says life is about God (Matthew 22:36-38).

The Bible doesn’t teach us to love money and things; it teaches us to love people (Matthew 22:39).

And the Bible doesn’t say life is found in competition; it says life is found in contribution (Ephesians 2:10).

Those are the three overarching purposes of our lives: To love God, love people, and make a difference with our lives. That means those are the three overarching purposes of money. Orienting our use of money around those purposes will lead to the most successful, satisfying experience with money.

Remembering who you are

What’s the word for such a person? Typically, we hear the term, “steward.” While that’s accurate, let me ask you: Does it motivate you? Are you excited about being a steward? If so, that’s great. However, it’s been my experience that some people carry that identity as a heavy burden. It’s as if God has said to them, “Here’s some of my stuff. Not don’t lose or break any of it.” 

But that isn’t at all God’s message to us. To the two servants depicted in the Parable of the Talents (Matthew 25:14-30) who made something more of what was entrusted to them, God not only said, “Well done.” He also then entrusted them with more to manage. With all that He entrusts to us, we’re encouraged to build our lives wisely.

“Therefore everyone who hears these words of mine and puts them into practice is like a wise man who built his house on the rock. The rain came down, the streams rose, and the winds blew and beat against that house; yet it did not fall, because it had its foundation on the rock. But everyone who hears these words of mine and does not put them into practice is like a foolish man who built his house on sand. The rain came down, the streams rose, and the winds blew and beat against that house, and it fell with a great crash.” – Matthew 7:24-27

You were designed to be a wise builder. The “rock” is God’s word. Build your life, financially and otherwise, on a foundation of God’s word and it will stand strong. The “sand” is the shifting fads and philosophies of our consumer culture. Build your life on sand and it will fall.

Anything less is settling for too little

Jesus said, “I have come that they may have life, and have it to the full” (John 10:10). The New Living Bible translates this as, “My purpose is to give life in all its fullness.” 

Our role is to take all that has been entrusted to us and build—a thriving relationship with God, loving relationships with others, and lives of meaningful contribution.  

This blog is all about the financial implications of that—exploring what it looks like to manage money with those goals in mind and to experience “life in all its fullness.” 

If that’s what you’re after, I’d like to ask two things of you. First, participate in this blog by leaving comments, sharing your experience, and asking questions. And second, invite others to come along. Tell others about this blog by sending them a link and encouraging them to subscribe.

With God’s Word and the guidance of the Holy Spirit, far more of us should have a better relationship with money. It’s possible, it’s available. Let’s take the next steps into the new year together, and let’s bring some friends along for the journey. 

Take it to heart: “Now after a long time the master of those servants came and settled accounts with them.” – Matthew 25:19

Take action: One day, the Master really will return. One habit that will help ensure that we will be found faithful is to ask these questions as we consider various financial decisions: What would a manager of God’s resources—a wise builder—do in this situation? And will this choice help me love God, love people, and make a difference with my life, or could it hinder any of that?

Read more: An Identity Theft Like No Other

Profitable Ideas: Spend Your Time Well, Use That Gift Card Now, and More

Weekly roundup of recommended personal finance articles from around the web.

Are you spending your time on what is time-worthy? (Lifehack). As we get set to start a new year, this question is well worth spending a little time on.

A financial guide on what to do after college (Morningstar). Young people have an invaluable asset: time. Making some good financial decisions early in life can have a hugely beneficial multiplying effect.

Seven negotiation steps to save money on your next purchase (Better Humans). Being willing to ask for a better price is a personal finance super power.

Parents are giving phones to their kids at younger ages, and wireless companies are benefiting (MarketWatch). As long as your kids are under your roof, if they have a cell phone, tablet, or computer, they should also sign a contract between you and them governing the use of such technology.

Americans hold onto $21 billion in unused gift cards (CBS Money Watch). If you received a gift card for Christmas, the faster you use it, the less likely you are to lose it.

5 investment resolutions to make for 2023 (Kiplinger). Far better to make commitments in advance than to try to navigate a crazy market like we had in 2022 on the fly. See also, Investors, here’s why you need a plan (The Evidence-Based Investor)

10 tips to help save money on healthcare expenses (Financial Independence Hub). One of the least profound but most effective tips is to simply take better care of ourselves!

7 financial tips from the book of Proverbs (Foundation for Economic Education). Lots of timeless wisdom here.

To weigh in on any of the above, just leave a comment below. And if you haven’t done so already, sign up for a free subscription to this blog.

To Go Big, Think Small

Goal setting is all the rage this time of year. Unfortunately, so is bashing the practice. Some have become tired of the whole New Year’s resolutions routine. It seems trite to them, unproductive.

It’s cool to be anti-goal. I’m okay with being uncool.

I love the start of a new year. It always feels like a chance to begin again, to wipe the slate clean if things haven’t gone well in the previous year or to build on what has gone well.

But one thing has changed in my approach to goal setting. My goals list has become smaller. A lot smaller.

I saw a headline recently for an article promising “50 Ways to Improve Your Finances.” Just reading the headline made my head hurt. I couldn’t bear to read the article.

I don’t want 50 things to do. I want to focus on a much smaller number of things that’ll make the biggest difference in my life.

Curly’s secret to success

In the movie City Slickers, three urban-dwelling, middle-aged guys going through a mid-life crisis decide to go on a cattle drive. There they meet a tough, grizzled cowboy with the unlikely name of Curly who teaches them how to rope a cow, and in one memorable scene, an important life lesson:

Curly (played by Jack Palance): “Do you know what the secret of life is? This (holding up one finger).”

Mitch (played by Billy Crystal): “Your finger?”

Curly: “One thing. Just one thing. You stick to that and the rest don’t mean anything.” (okay, he actually used a more colorful word at the end)

Mitch: “But what is the one thing?”

Curly: “That’s what you have to find out.”

Think about your finances. What one thing – what single change – would make the biggest difference in your life in the new year?

It isn’t rocket science

When it comes right down to it, accomplishing a goal, even a big one, isn’t a mysterious process.

A few years back, Seth Godin revised and repackaged Zig Ziglar’s “legendary” goals program, Pick Four.

It consists of four simple spiral bound books in which you write down all the goals you can think of.  Then you whittle the list down to just four, preferably with some balance across various aspects of your life – faith, family, health, career, etc.

Most of the rest of the books are diary pages where you keep track of what you did each day to pursue your goals.

The idea couldn’t be simpler. Focus on a small number of goals, take meaningful action toward their accomplishment each day, and you stand a very good chance of accomplishing those goals.

You just do the work. Every day.

Taking your financial life from good to great

In his business classic Good to Great, Jim Collins says companies that achieve remarkable success take the same route. They steadily pursue their vision day by day over a long period of time.

He calls it “turning the flywheel.”

When I took on the task of paying off $20,000 of credit card debt, it seemed overwhelming at first. There were many days when I was deeply discouraged. Progress came slowly. I wanted to quit. But I kept going, kept pushing.

Every month I worked as hard as I could to make as much money as I could, and then I sent a big portion of what I earned to my creditors.

It was a heavy flywheel. It took time to build momentum. It took consistency. Hard work every day.  Big checks sent to creditors every month. Then one day – four and a half years after starting – all of the debt was gone. That was an amazing day.

What is it for you? If you could accomplish just one financial goal this year – one goal that would greatly improve your life – what would you choose?

Are you willing to go after it? Are you willing to do the work? Even when it doesn’t feel good? Even when you can’t see any progress? Every single day?

Scripting the critical moves

In Chip and Dan Heath’s book, Switch, which is about what it takes to make a lasting change in our lives, they talk about the importance of breaking goals down to smaller goals.

I use that process when I do cardio. If I think about how long I plan to go, it can seem overwhelming and discouraging. But if I just focus on sub-goals along the way — the next five minutes, for example — I find it a lot easier to keep going. Accomplishing each goal feels good and adds to my momentum. As long as I hit each sub-goal, eventually I’ll stay with it as long as I intended to.

So, as you think about your most important financial goal for 2023, break it down into more manageable sub-goals. What daily habits will help you get there?

What is it for you? What’s your one thing—your most important financial goal for the new year?

Take it to heart: “The plans of the diligent lead to profit as surely as haste leads to poverty.” – Proverbs 21:5

Take action: There’s nothing like the accountability and encouragement of a good friend to keep us on track toward a goal. Tell someone about your most important financial goal for this year and invite them to ask you about your progress from time to time.

Read more: Seeing Your Goals Through

Who else should read this article? Why not send them a link? And if someone forwarded this post to you, I’d love for you to become part of this community by signing up for a free subscription.

Profitable Ideas: Leaving Your Heirs More Than Money, Who’s Influencing Your Investments, and More

Weekly roundup of recommended personal finance articles from around the web.

How to use tech to create an ethical will (Wired). Filling in the gaps left by a traditional will.

How should your children inherit? 4 scenarios where ‘equal’ is not appropriate (Kiplinger). This is a tough issue for a lot of parents, but it’s worth thinking about.

No degree, no problem. (Fidelity). I’m seeing more and more companies that either do not require a college degree or will help pay for one.

Trading games (Of Dollars and Data). Be careful who you take investment advice from. 

Best used cars for the money (Clark Howard). Prices still seem steep. As Howard concluded, if you can hold off on this purchase for now, that is likely the best option.

Americans throw out 32% of the food they buy. Here’s how to avoid so much waste (Fast Company). Food is one of the biggest expenses for most families, so throwing less of it away is a good goal. So is composting.

Don’t bank on getting your tax refund quickly, IRS cautions (CBS Money Watch). First came news that refunds are likely to be lower than last year. Now comes word that they’ll be slower to arrive as well.

The inn had no room; does your heart? (Eternal Perspective Ministries). Some powerful, timely thoughts about the miraculous birth of Jesus. Here’s wishing you a wonderful Christmas.

To weigh in on any of the above, just leave a comment below. And if you haven’t done so already, sign up for a free subscription to this blog.

The Light of the World

So they hurried off and found Mary and Joseph, and the baby, who was lying in the manger. When they had seen him, they spread the word concerning what had been told them about this child, and all who heard it were amazed at what the shepherds said to them. – Luke 2:16-18

A few weeks ago, as I rounded the corner toward our home after a tiring day, I was greeted by a neighbor’s home beautifully lit up with Christmas lights. I can’t tell you how much that ministered to my soul.

I’ve had a hard time getting into the Christmas spirit this year. It’s been an extra busy season for our family, and we have several friends who are dealing with especially difficult circumstances—illness, and loss, and more. This time of year also reminds me of my parents. My mom died a week and a half before Christmas. The next year, my dad died the day after Thanksgiving.

Those lights lifted my spirits.

They brought me back to the original meaning of Christmas lights: to proclaim—to remember, really—that Jesus is the Light of the world.

As Christmas becomes ever busier, ever more commercial—and as all of that bumps hard against the Constant Negative News about the war in Ukraine, various political squabbles, and who knows what next—it restores my soul to re-read the story of the first Christmas.

I need the reminder that the first celebrants were not in a hurry to get to the mall; they were in a hurry to get to Jesus. And upon seeing Him, their thoughts did not turn toward fretting over what to buy or bake; they turned toward telling others about Him. That’s a timeless prescription for a great Christmas.

While Jesus is the true Light of the world (John 8:12), remarkably, He used the same metaphor to describe us, His followers.

You are the light of the world. A town built on a hill cannot be hidden. Neither do people light a lamp and put it under a bowl. Instead they put it on its stand, and it gives light to everyone in the house. In the same way, let your light shine before others, that they may see your good deeds and glorify your Father in heaven. – Matthew 5:14-16 

So, this Christmas, remember that you don’t have an obligation to prop up the economy, but you do have an opportunity to spread the word about all that has been told you about this child.

That isn’t about adding one more thing to your to-do list. No one needs that. It’s simply about being who God made you to be.

You never know what people are going through, but it’s a sure bet that many people you encounter every day are going through some kind of difficulty. And whatever it is, this season has a way of magnifying the pain.

So, as you take in the Christmas lights this year, remember what they represent. Jesus. The Light of the world. And remember this: You’re the light of the world, too.

Take it to heart: “A new command I give you: Love one another. As I have loved you, so you must love one another. By this everyone will know that you are my disciples, if you love one another.” – John 13:34-35

Take action: Who could you share Christ’s love with today? Who needs a word of encouragement? Who would enjoy knowing that you’re thinking of them? A call or a note from you might be one of the greatest Christmas gifts they receive this year.

Read more: Isaiah 9:6