Common Sense

Learning to Fly Financially

By Edwin Palsma

When I first took my flying lessons, I didn't jump right into a jet or even two-propeller airplane. I started in a small, four-seat Cessna and took the time to start from scratch. The same is true when we first leave our parents homes and start out on our own.

Though it can be tough to find work or a first home, I think that most important decision that a person can make is in choosing the right lifestyle and standard of living. Many kids grew up in good homes with more than one car, good food, and lots of entertainment. This is not to say that there was money to burn, but their parents had worked for a long time and succeeded in creating a very nice lifestyle for their children.

It is hard to step back from that kind of experience. When we move out, we still want to do all the fun things that we did at home but we forget that then, our parents were footing the bill. Now we have to cover our own costs and there is usually little left over for the fun things in life.

Rather than starting small, we use credit cards to buy our furniture and home entertainment systems and then spend the next year paying for them. We get new cars and then get frustrated when our income barely keeps up the payments. We want to save up for a down payment on a house but just can't seem to scrounge up that little bit extra every month to put away.

Unfortunately, we don't realize that our parents didn’t always drive new cars and own their own houses and go out for meals every week. It took them years to get where they are and for most of those years, we weren't around or too young to notice. We will also have to go through the same process, starting small and slowly building up to owning homes and new cars. Just don't rush it.

Are there some keys to helping us get to same point that our parents achieved? Of course there are. Here are some tips.

Have a plan. When a person puts there foot down and says, "I will save $200 per month" it is likely to happen. On the other hand, if they decide to wait to the end of the month and save what is left, there is usually nothing left.

Keep track of your expenses. I know that is a difficult thing to do but it is necessary to know where your money is going and then you can make decisions on where you need to cut back and where you can spend more.

Don't compare yourself with others. We are each on our own track. Nothing can derail us faster than trying to get on someone else’s track or trying to keep up to them. God does have a plan for your life and he doesn't compare your financial situation to others.

Use credit cards wisely. I don’t know of anyone who has used his or her credit cards to get rich. Carrying a balance on your card is one of the worst financial decisions that you can make. Credit cards are incredibly handy, but they can be dangerous if they are not looked after.

Finally, give. This can be very difficult but it does three great things. First, it helps you to keep the perspective that money is not everything. Second, it keeps you from getting too self-centered. By helping others, you can see that your problems are most likely smaller than they seem. Third, God will bless you for it. Maybe not with more money and maybe not here on earth but He does see all our actions and remembers the good things that we do.

So remember, don't try to match your parent's standard of living but rather, create your own and you will be amazed that there is a lot less stress when you live within your means than when you are constantly playing catch-up with your finances.

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Common Sense Financial Ministries
22 Menlo Cres. Sherwood Park, AB T8A 0R9
phone: (780) 467-8031 (7283) fax: (780) 464-6564

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