The Real Value of Money

In the past, people could enjoy the blessings of life without spending real money. Nowadays, we think that to enjoy life, we must have real money.

Life is all about living – it comes with some hard work and simple integrity. If life is all about living, then it is not about regrets and dreams. Regrets look back at the past; dreams look forward to the future. Unfortunately, both are not within our control. If the value of money is based on accumulation of wealth or the acquisition of material things, then living indeed becomes a labyrinth of regrets and dreams – regrets over wrong investment decisions, and dreams of great fortune.

The real value of money is integrity. This is an important quality that can influence your value of money, in particular, your financial decisions. Integrity is to value what life has to offer and not the things purchased with money. Life has a great to offer, and some of the best things in life are free, such as your ability to think, to reason, to learn, and to remember. Remember, money is a means to an end, never an end in itself. This is the real value of money.

Why is integrity important in terms of money?

If a financial problem arises, your integrity will play a critical role. Instead of reacting to the problem due to the flawed value of money, integrity will demand you not to leave it to chance. Integrity will demand you not to ignore the problem. Integrity will demand you come up with a plan, a budget, and action steps to deal with the financial crisis.

Integrity is one of the core values in life. Do not compromise it under any financial situation. If you do, you will be distorting the real value of money.

Stephen Lau

http://www.stephenlau.name

http://www.smartcreditsmartmoney.com

Why Pay Cash?

The American society does not promote paying cash. That explains why many people lease cars, electronics, and just about anything. That also explains why so many people are debt-ridden.

I remember when I first came to the United States some two decades ago, I was told not to pay cash for any purchase, or else I would never be able to establish my personal credit rating. This is the characteristic of the American culture: promoting buying on credit and debt.

If you buy into this absurd notion that paying cash is bad, you are in fact buying into a lifetime of debt. Of course, this is your choice: after all, this is a free country.

Just remember this: “The borrower is slave to the lender.” Proverbs 22: 7.

For one reason, if you do not have the cash to buy something, maybe you shouldn’t buy it in the first place. Do not lead a lifestyle of debt by anticipating what you will get. Instead of delayed gratification, it becomes anticipatory buying. The only legitimate reason for carrying a credit card is that you don’t want to carry too much cash with you. Or maybe another reason is that you may want to manage your finance by using different credit cards for different expenses. However, if for any reason, you carry a balance on your credit cards, you maybe heading towards a lifestyle of debt, which is easy to get into but difficult to get out of.

Why pay cash?

If you do not have the cash right now, you may make an extra effort to save towards getting what you want to purchase.

Delayed gratification often gives you more time for second thoughts – you may decide against the purchase. That may save you a lot of money!

Delayed gratification may also give you more opportunity to get what you want at a much better price, or more ammunition to negotiate with the vendor. If you pay cash, the vendor may not push the sale so much, knowing that without an easy financing, there will be less profit from your purchase. Remember, the vendor has much to benefit from easy financing as opposed to paying cash: the vendor benefits at your expense.

Paying cash is good because it saves you from debt. If paying cash is debt free, then why do we have corporate debt? Well, corporate debt may not be such a good idea after all because it encourages buying when no cash is available, and any economic downturn may jeopardize the corporate investment. If corporate debt is good, why is Microsoft debt free?

The bottom line is: no cash, no purchase; no cash, no investment. Don’t buy into the notion that the investment is an opportunity of a lifetime, or that some debt is good. All debt is bad. Even a 3-year mortgage may be bad for you. For example, if you have problems making your monthly payments, most probably you have taken up a mortgage larger than you can afford, and that may become a bad debt, leading to foreclosure.

Stephen Lau

http://www.smartcreditsmartmoney.com

http://www.abundantwebcash.com

How God May Help You Save Money

Money is important. It means different things to different people. Different things are important to different people when it comes to money and happiness in life. Money may or may not bring happiness to you. But we can’t do without money. We all need money for different purposes.

If you need money, then you need to save. But how can you save if you don’t have much money to begin with or you’re living from paycheck to paycheck every month?

God may help you save your money if you apply the Biblical principles of saving.

The first Biblical principle of saving is gratitude. Be grateful of what you have, and stop complaining of your lack! Learn to live on a dime.

God may have given you less than others, but everything is relative. Presently, you may be struggling from paycheck to paycheck; you may be working hard, and still you can hardly keep your head above water.

"You plant much but harvest little. You have scarcely enough to eat or drink and not enough clothes to keep you warm. Your income disappears, as though you were putting it into pockets filled with holes." Haggai 1:6

Yes, your pockets may seem to be filled with holes. Nonetheless, be grateful! Instead of whining, put your time and effort on saving to live a debt-free lifestyle. Learn to live on a dime. Choose a credit card that helps you save. Look for a money-making opportunity.

The second Biblical principle of saving is sharing what you have with others. Yes, the more you give, the more you will receive. It is not the other way around: receiving more before giving more.

”’Bring all the tithes into the storehouse so that there will be food enough in my Temple; if you do so, I will open up the windows of heaven for you and pour out a blessing so great you won't have room enough to take it in! Try it! Let me prove it to you. . . . ,' says the Lord Almighty.’" Malachi 3:10-11

This leads to the third Biblical principle of saving: God owns it all. Whatever you have is not yours, but God’s. You are just a steward of God’s money. Once you understand this principle, you will be careful with your money – you will not spend it on yourself. However, to start saving, you must PAY YOURSELF FIRST. No matter how small your income may be, set aside a small sum each month before you pay others or your bills. If you diligently and truthfully apply the Biblical principles, God will make your both ends meet. Just trust Him!

Stephen Lau

http://www.smartcreditsmartmoney.com