FRUGALITY

Warren Buffet was recently quoted with some great investing advise. "Be fearful when everyone is greedy and be greedy when everyone is fearful". With the economic difficulties the world economies are currently facing, this must mean it's a good time to buy. That's probably true for those that have cash. Most of us, however, don't have cash because we have already spent it. To make matters worse, most people also spent what they did not have via a devastating crutch called credit. The only thing worse than having no cash is having no cash while you're in debt. The reason people go into debt is to have things now that they can't afford until later. Multiple generations of Americans are now known as Gimme-Now folks that created a cliche of "keeping up with the Jones". Since Warren Buffet is a multi-billionaire and one of the wealthiest people in the world, you may be surprised he still has the same house in Omaha that he paid $31,000 for. He has demonstrated he understands frugality. Possessions can rule your life, or they can be a tool to accomplish what you've been called to provide.

Frugality is the state of being frugal. Frugal is defined in the dictionary as 1) economical; not spending freely or unnecessarily; saving; sparing; not profuse, prodigal or lavish, or 2) denoting economy; indicating the necessity or desire to save; sparingly provided; not costly or luxurious. Between the words of the definitions is an unwritten understanding that the use of money is disciplined. Americans would do well to remember the words of Thomas Jefferson "Never spend money before you have it. Never buy what you do not want, because it is cheap; it will be dear to you. Pride costs us more than hunger, thirst, and cold." Of course thousands of years before Thomas Jefferson, the Psalms recorded in chapter 22 "Just as the rich rule the poor, so the borrower is servant to the lender". Romans 13:8 even says "Do not owe anyone anything, except to love one another..". The Bible contains over 2350 verses dealing with money so there is no shortage of biblical wisdom on how to handle and view money. There are also many great organizations to help, such as Crown Financial or Dave Ramsey's Financial Peace University.

A visit to a third world country, either physically or virtually, will help you determine the difference between needs and wants. At this time of year, many of the ministries that focus on the needy in our county or the children in other countries target consumers to support those that they provide for. Yet, billions of dollars will be spent on gifts for the Christmas season that are often not even what people want. A celebration of the birth of Jesus Christ, the savior of the world, is what Christmas is about. Because the wise men from the east brought gifts, the tradition of gift giving began and grew into the commercialism we witness today. Perhaps some words from Jesus himself on the subject would be enlightening. Matthew 16:19-21 says "Don't collect for yourselves treasures on earth, where moth and rust destroy and where thieves break in and steal. But collect for yourselves treasure in heaven, where neither moth nor rust destroys, and where thieves don't break in and steal. For where your treasure is, there your hear will be also". He followed that up with a series of parables, but Chapter 25 verse 40 clarifies what was meant: "Whatever you did for the least of these brothers of Mine, you did for Me".

Therefore the purpose of frugality is not to build up wealth for yourself, it is to be a good steward of what God allows you to control. The needs of others trumps the wants we each have. We have responsibilities to provide for ourselves, our families, our futures, but also for those placed in our life experience. The balance between what our loved ones want and what our "neighbors" need is where frugality comes into play. The bad economic news we hear from the media include growing numbers of people who don't have jobs. The plunge in the value of stocks and real estate have caused many to consider adjustments to their lifestyle. Frugality practiced in previous years would free up the cash needed now. Frugality now just allows survival through the tough times. The point is that the wisdom of frugality is important at all times. Live on less than you make. Stay out or get out of debt. Become more disciplined with how you handle money if you can't provide what is needed and wanted now. Have a Merry Christmas with what you have and start the next year off with a frugality plan.