The Truth About Money Lies (Wisdom Notes)
The Truth About Money Lies
by Russ Crosson w/ Kelly Talamo
The following is a summary and my reflection and take-aways on the book.
God’s Word has timeless principles and truths for daily living.
We are free to accept or reject truth but we are not free from the consequences.
All of our spending can be placed in one of five categories: Giving, taxes, living expenses, debt repayment and savings. (pg. 23)
All the lies we listen to are based upon conjecture and presupposes something will happen that we have no control over. Biblical faith is rooted on what God can do, not presumption. Just because something worked in the past doesn’t mean it will work now or in the future. (pg. 31)
House purchase
Several reasons on why people buy a bigger house than what they need.
We fear of missing out on a good deal
Believing our income will go up
Trying to maintain a standard of living
Losing fear of being in debt.
We purchased two houses in our lifetime on premise #2 above. One was the housing crisis in 2009 and then the move to Zeeland. We purchased bigger houses than we wanted. Yet, we followed the three rules in all cases (i.e. at least 20% down, a 15 year mortgage, and living in it at least 3 years)
Business writer, James Altucher says to never buy a house and far better financial sense to rent. https://jamesaltucher.com/blog/own-house/
Debt
The lie is if you can make payments you are fine. Most people do not consider the interest spent or the depreciation of the purchases (a car, boat, etc.).
Proverbs 22:7- The rich rule over the poor and the borrower is slave to the lender.
The key to financial freedom is exhibiting financial maturity by delaying present desires for future rewards and benefits. Credit cards have made a short cut to the principle of delayed gratification. (pg. 47)
Less debt increases margin, flexibility, and freedom. If you can’t pay cash for a consumer item, wait, save and then pay cash.
Our business is operated cash purchases. We use a credit card to buy parts and pay the total amount each month and incur no interest.
Lifestyle
Isaiah 30:1-12 tells the story of about a child of God who lives in rebellion and no longer listens to God’s instructions. Far too many people live a lifestyle they cannot afford. My neighbors drive new cars and go on exotic vacations and I often wonder how they can do it given their income.
People find attachment promising fulfillment other than God will find them empty. (pg. 59).
Few people recognize the price of debt to pay for lifestyles. This price includes economic, spiritual, emotional and family.
Money is a spiritual matter
There are several reasons which make it difficult to talk about money; pride, embarrassment, family background, and pain. Yet accountability is helpful in making behavior changes.
Malcolm Gladwell wrote a book called The Tipping Point: How Little Things Make a Big Difference, in which he defines a “tipping point as the critical mass, threshold and budgets are the tipping point. Budgets provide freedom and not restriction to your money. Creating margin (spending less than you make) will lower stress.
Happiness
Show a person who says money won’t buy happiness and I will show you a poor spender (fable). Several articles that conclude we make more money than ever before yet we are less happy than ever before.
Wayne Dyer said, “When I chased after money, I never had enough. When I got my life on purpose and focused on giving of myself and everything that arrived into my life, then I was prosperous (pg. 97)
Ecclesiastes 5:10-11 said it this way. He who loves money will not be satisfied, nor he who loves abundance with its income. When good things increase, those who consume them increase. So what is the advantage to their owners except to look on? (pg. 98)
I have been given several opportunities to purchase items, events, and experiences at a great cost. Most have left me unsatisfied and lacking contentment. Others, however, have been fantastic. Not sure how to explain it. (pg. 102)
Comparison
Comparison never changes reality but only distorts it. Social media has magnified this by 10X. We often think that peer pressure doesn’t impact us as adults yet in some cases it is more powerful than when we were in our youth.
Our value is not in our possessions, money and net worth, it has everything to do in who we are in Christ. Comparison of our wealth is like comparison in the gym we can find someone better off than us or not as well as us.
Generosity
Generosity is in conflict with self-preservation. The world says look out for yourself but Christ says look out for the interest of others. ~Your tithe will determine what you believe.
Stepping out of your comfort zone is not careless or irresponsible but an act of obedience.
Be in place where you are not 100% comfortable giving the money but too uncomfortable not to give it. It is a test of faith to live with an open hand financially, giving freely, and trusting God to replenish your stores of seed. Giving leads to freedom, and a wise investment.
The story of Luke 12 says the rich man ran out of life before he ran out of money.
Investing
If we believe the role of investments is to preserve wealth and not create it then we make better investments.
Keys to investing (pg. 160)
only invest if you can keep money there for a long time
Diversify your portfolio
Risk and reward go together
Take the money mindset assessment at https://yourmoneymind.finlife.com/
What did you discover about your views on money?
How does that shape your budget and finances?
What do you think your spouse’s view of money is?
Is it different than yours and how does it manifest itself?
