Tuesday, February 4, 2014

"How to Determine Life Style"

Stewardship Lesson #9

How to Determine Life Style

When discussing finances, the style of our living hits very close to home, for this tells exactly what our priorities are.

How fancy of a house do you really need?

How new a car?

How fancy do the clothes that you wear need to be?

Do you really need that new skateboard, or can the old one still work?

These are all questions that, when we spend, reflect our priorities.

We all approach finances similarly to our parents. Either we are attracted to their buying style in a positive way or in a negative way. When it comes to buying, there are some myths that need to be dispelled, especially if we wish to gain control of our finances. They are listed on the following chart for you.

Myths of Buying

Buying Myth
The Truth
Buy now because it will cost more later. Incorrect, because it presupposes that you will need the items you are buying in the future. We buy for our greed rather than our need.
Always borrow to buy.
CONSIDER THE COST OF CREDIT! See the chart & apply it to the cost of credit instead of the return on investment.
You can never accumulate enough.
This is pure greed. Call it what it is.

Note: A wise & knowledgeable person can beat inflation by spending less than is earned because the earning power of money will, over time, always be greater than the inflation rate.

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