Savvy Spending?

There was a recent article at MSN® that asked if one was ‘a savvy spender’. The article outlined these tips to be ‘savvy spender’:
Spend less than one earns.
Avoid debt.
Save money.
Give to charity.

Does that sound familiar? It is not surprising that the ‘world’ adopts Biblical principles. Christians have the advantage since we can claim the Promises of God.

We have discussed giving, stewardship, and contentment. Noticeably absent has been the topic of saving. Saving is important. However, consider this; does it make sense to ‘earn’ 4% A.P.R. on $200 in a savings account while ‘paying’ 12% A.P.R. on a $200 debt?
What does one do about an investment portfolio? No one is advocating cashing in a ‘Retirement account’ (IRA, 401K). Planning future retirement is smart and necessary. That does not address a current portfolio. A brother-in-law observed that money in the stock market is ‘virtual money’. While one has invested ‘real’ money into the market, that money is not generating a ‘real’ return even if the stocks gain value.
This is exclusive of dividends. One must ask if the dividends paid on investments are equal or greater than interest paid on debts. If the answer is ‘no’, then one should seriously consider selling the stocks (or other investments) to eliminate debt.




This begins an address of the topic, “What to do once debt is eliminated.”



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