Spending and contentment
As Christians, we are called to be good stewards of the resources God has given us. This includes our money. One way to be a good steward of our money is to live below our means. This means spending less money than we earn. When we live below our means, we have more money to save and give to others.
One way to live below our means is to distinguish between needs and wants. Needs are things that we absolutely must have in order to survive. Wants are things that we would like to have, but that we do not need. It is important to be honest with ourselves about what we need and what we want. When we are tempted to buy something that we do not need, we should ask ourselves if it is really worth the money.
Our reference group can also influence our spending habits. Our reference group is the group of people that we spend the most time with. They can be our friends, family, neighbors, or church members. Our reference group can influence our spending habits by setting the standard for what we think we should have. For example, if our reference group all have new cars, we may feel like we need a new car even if our old car is still in good condition.
It is important to remember that our reference group’s definition of a necessity may not be the same as our own. We need to be careful not to let our spending habits be influenced by what other people think we should have. Instead, we should focus on our own needs and priorities.
Living simply and frugally is about striving for a less complicated lifestyle, and it should not be misconstrued as being cheap. It’s about making deliberate and thoughtful choices that align our spending with our values. However, we must be cautious that frugality itself does not become an idol. The Apostle Paul, in 1 Corinthians 6:12, reminds us, “Everything is permissible for me, but not everything is beneficial.” Our financial decisions should never overshadow our commitment to God and our love for our neighbors. It is important to remember that being frugal can become an idol. If we become so focused on saving money that we forget to enjoy life, then we are doing it wrong. Frugality should be a tool that helps us to live a more fulfilling life, not a burden that weighs us down.
By examining your spending each month, you can better understand your priorities and realign them if needed. This exercise can serve as a practical reflection of where your heart truly lies, as Jesus said, “For where your treasure is, there your heart will be also” (Matthew 6:21).
One should also consider the ‘weaker brother’ when making financial decisions. In our spending and lifestyle choices, we should be mindful of the potential impact on others who may be more vulnerable or easily influenced. We are called to love and care for one another, and our financial behavior can be a powerful demonstration of this love.
Tracking expenses aka budgeting
Understanding where your money goes is an integral part of financial stewardship. This knowledge not only aids in preventing overspending but can also serve as a tool for contentment. When we have a clear picture of our financial landscape, we can appreciate what we have, live within our means, and cultivate a heart of gratitude.
Being aware of how our resources are allocated can help ensure our spending is based on needs rather than impulsive wants. It brings to light areas where we might need to exercise restraint or make adjustments.
It’s particularly crucial to get the “big ticket” items right, as they often account for a significant portion of our budgets. These can include housing, taxes, cars, and charitable giving.
According to the 2024 Consumer Expenditure Survey, the largest chunk of spending for both all US households and those under 25 is housing, a third of the total (33% and 36% respectively). Transportation is next (17% and 20%), then food (13% and 15%). Taxes aren’t in the 2024 tables, because the Bureau of Labor Statistics didn’t estimate them that year. Insurance, pensions and Social Security, healthcare, entertainment, and education are other important areas of spending. Where Does the Money Go? breaks it down by age, income and household type, and lets you set your own budget beside any group.
In the context of Christian personal finance, the line item of charitable giving deserves special attention. While it represents a relatively small percentage of total expenditure (3% for all US and under 1% for those under 25; the survey’s “cash contributions” also include gifts to people outside the household), it’s an area of spending that speaks directly to our spiritual commitment and values. Giving is not merely an economic act; it’s an expression of faith and a response to God’s generosity towards us.
The act of tracking and understanding your spending is not merely a financial exercise. It’s a spiritual discipline that enables us to live responsibly, generously, and contentedly. It’s about ensuring our financial decisions align with our Christian values, helping us live out our faith in a tangible way.
Ready to actually set one up? See Set up a budget with YNAB or a spreadsheet.