I have been blessed in knowing how to be wise in my financial stewardships. I learned how to be from my parents when I was still a small child. My parents taught me to be both imaginative and industrious in finding honest ways to earn money while growing up.
Once I earned money, I was taught that the FIRST thing I needed to do (first as in before anything else) was to set aside 10% to the Lord in tithing. After all, everything I have, I received from the Lord, and all He asks for in return is 10% to be used in the building of His kingdom.
Next, I was taught to set aside money into short-term and long-term savings. The short-term savings allowed me to think ahead so that I could pay for things of value, and also cover emergencies so that I would be able to avoid having to use credit and incurring debt. This is important for debt is not something you want to get caught up in.
“Some forms of credit, such as credit cards, have particularly high interest rates. Once you are in debt, you find that interest has no mercy. It continues to accumulate, regardless of your situation—whether you are employed or jobless, healthy or sick. It never goes away until the debt is paid. Do not be deceived by credit offers, even if they make debt seem attractive by promising low interest rates or no interest for a certain period of time.” Debt, True to The Faith
The long-term savings is basically setting aside for my future retirement. For it is smart to start doing so while you are still young. The sooner you can retire the better. Normally I set aside 10% into each of these funds.
Then I was taught (mostly by example) to set aside money for those in need. Normally, the Lord blesses us so that we in turn can bless those around us. I love King Benjamin’s discourse, in the Book of Mormon, on taking care of the needy.
“And also, ye yourselves will succor those that stand in need of your succor; ye will administer of your substance unto him that standeth in need; and ye will not suffer that the beggar putteth up his petition to you in vain, and turn him out to perish.
Perhaps thou shalt say: The man has brought upon himself his misery; therefore I will stay my hand, and will not give unto him of my food, nor impart unto him of my substance that he may not suffer, for his punishments are just—
But I say unto you, O man, whosoever doeth this the same hath great cause to repent; and except he repenteth of that which he hath done he perisheth forever, and hath no interest in the kingdom of God.
For behold, are we not all beggars? Do we not all depend upon the same Being, even God, for all the substance which we have, for both food and raiment, and for gold, and for silver, and for all the riches which we have of every kind?” Mosiah 4:16-19
Again, I usually set aside 10% to give in philanthropy whether through once-a-month fast offerings, or wherever I see a need. Somehow there is always enough to do so, and take care of my needs, as well.
My remaining funds were mine to do with as I pleased. However, I was warned by my parents as the Prophet Nephi warned his people more than two thousand years ago,
“Wherefore, do not spend money for that which is of no worth, nor your labor for that which cannot satisfy.” 2 Nephi 9:51
I was warned that when I grew older that I would have financial obligations in the form of bills which I would have to pay out of that remaining 60% of my earnings. Yet, if I practiced wisdom in my spending and sacrificed a few of my temporary wants to stay out of debt and live within my income that I would be blessed with peace of mind, and that I would have nothing to fear in the financial storms that would come my way.
“Look to the condition of your finances. Discipline yourself in your purchases, avoiding debt to the extent you can. In most cases, you can avoid debt by managing your resources wisely. If you do incur debt, such as a reasonable amount in order to purchase a modest home or complete your education, work to repay it as quickly as possible and free yourself from bondage. When you have paid your debts and accumulated some savings, you will be prepared for financial storms that may come your way. You will have shelter for your family and peace in your heart” Debt, True to The Faith
I am so grateful that I was taught this while still in my childhood. I have been blessed with much peace and security in handling my finances as I was taught. Many of my single adult friends either were not taught as I was, or chose not to follow the teachings of their parents on this subject. Because of this, they are in major debt, and live paycheck to paycheck, never knowing how they will make ends meet, from month to month, and they dare not even think of how this debt would affect a new marriage.
For those who are in the same financial difficulties as many of my friends, I would say to you, “Don’t give up!” It may be difficult, but there is a way to free yourself from your financial bondage. There is a great article in the July 2002 Ensign entitled Climbing Out of Debt. I encourage you to read it and apply the counsel given therein.
