PRACTICAL MONEY SAVING TIPS SERIES-EATING OUT

The Frugal Accountant is always interested in saving money. Saving money is wise. Why spend more for something than you have to? How does one go about learning to save money? It depends upon what is being purchased. If you are buying a big ticket item, it is wise to shop around and compare prices. These are items that are not purchased very often and therefore do not require immediate decision. In this instance, it is always best to take your time.

Saving money means that you keep the savings. If you did not save money on a transaction, then the seller gets more of your money. It is like a game. You want to be able to come out ahead. Saving money also means that we do not have unlimited budgets. Our funds are limited and we want to stay out of debt. To accomplish this means, we want to be able to save money on each transaction that we can.

To save money on purchases, one must first have a system in place. This is not a hit or miss proposition. There is preplanning involved in saving money. Saving money also takes self discipline. When you have a system in place, it will keep you from impulse buying. Nothing can destroy your financial situation faster than buying on impulse. Impulse buying adds up quickly. Impulse buying is a clear demonstration of a lack of discipline and a system. This where a lot of people get in trouble.

People who find themselves having financial troubles will be characterized by a lack of financial discipline. They refuse to discipline themselves, so someone else must do it for themselves, whether it be their bank, credit card company, or the bankruptcy court. Because they refused to do what was necessary, they will be forced against their will to do what they should have done a long time ago. They refuse to take action until it is too late. The cows are out of the barn at this point. This is when they get going.

People in financial troubles are led by perception and not by concepts. Instead of seeking to learn how finance works, they take their credit cards and charge them up to the maximum and then pay the minimum. They are going to be forever in bondage to the credit card companies. To make matters worse, they have more than one credit card. They do not understand the concept of credit and how it works. All that they know is that they see something they want and then they charge it on a credit card.

Financial troubles are objective proof of someone who does not understand how money works. Most of the time they will eat out often, especially at lunchtime. It costs a lot of money to dine out. Most of the time, when my family and I eat out, it costs about $60. If we did this each week, it would end up costing $3,120 for the year. That is not an unsubstantial amount of money. Think how much more it is for those who eat out more often than once a week.

What could you do with an extra $3,000? By foregoing eating out except for special occasions such as birthdays, anniversaries etc., you can save a lot of money over a year. $60 can buy a lot of groceries. There is no comparison between what you get at the restaurant and the grocery store. Dining out is done more for emotional reasons than for any other reason. The Frugal Accountant considers eating out a luxury and not a necessity. For those in financial troubles, it just the opposite. They eat out because it is an emotional necessity for them. They do not consider it a luxury.

One thing that the Frugal Accountant generally will refrain from is having dessert. That little piece of cheese cake is extremely expensive. The Frugal Accountant avoids dessert because he is usually too full from the main course. Dessert is an extra and adds greatly to the overall bill. When eating out there are hidden costs that most people do not think about. When ordering something that costs $9.95, you have to add in tip and taxes. Most people do not think about all the costs associated with eating out. The Frugal Accountant calculates how much the overall bill will be.

When figuring a tip, the accepted amount is 15%. I usually do not give over 10%. Why should they get more than a tithe? When figuring the tip, I see what the amount is before taxes. Why should I tip on tax? You should tip on earned income (your waitress), not on unearned income (taxes). Most people would not be this conscientious because they do not have a system in place. They do not know how they will react to a situation in advance, so they pay on the whole bill. They are tipping on tax. I would rather keep the money to myself.

I know of a restaurant that recommends 15% gratuity. I have not gone there and I will not go there. I do not like someone telling me how much to tip. That privilege remains with me. It is not right to stiff someone on a tip. This type of person is a weasel. He would not want this done to him and if it was, he would be the one to scream the loudest. Knowing how much you can legitimately afford to eat out on is planning ahead of time. This keeps one within their budget.

Spending money is an emotional experience. This is why those who are in financial trouble usually will be seen eating out at lunch. If they spend $7 a day for lunch over a year’s time, he will have spent $1,820. $7 a day for lunch seems like a small amount. Small amount cumulated together eventually add up to large amounts. The Frugal Accountant will eat out lunch rarely. He will pack his lunch. This will save him a good amount of money.

By eating out only on special occasions and eating out lunch rarely, the Frugal Accountant has saved close to $5,000. For someone in financial trouble, this savings would help them out greatly. The Frugal Accountant will take this savings and invest it in something worthwhile and have more of an abundance. The financially troubled would read this and say that it is too hard. This is because they are emotionally addicted to spending money and like all junkies, they do not want to go through the withdrawal symptoms. They choose to have financial troubles. I realize that I am preaching to the choir. Likes beget likes. The disciplined appreciate discipline. The undisciplined hate discipline.

THE WISE STEWARD

Introduction

How much would you be willing to pay to receive something that would actually make you money without a great investment of time and effort? Most individuals that have a great deal of money subscribe to newsletters that keep them abreast of the financial markets and these newsletters cost $125 and up for a year’s subscription. Those who send their money must get some benefit from them. What about those of us who do not have a great deal of money to invest? Can we benefit from a financial newsletter? The largest untapped market are those who need financial advice but cannot afford to pay the price others can.

I am a Pastor. This is my calling. However, the churches that I have been the pastor of generally, have not been able to pay me enough to live off . Therefore, by Providence, I have had to have another source of income, also it has forced me to become inventive in ways to make more money or save money. In other words, I have had to learn to be an astute money manager. I have many years of experience in the arena of finance. My background is very different for a pastor. I have a Bachelor of Arts degree. I took 24 credit hours of Economics. I have the equivalent of a major in accounting also with 24 credit hours. I was a Certified Financial Planner. I worked as a Tax Accountant for many years with some of the largest accounting firms in the world. I have had an interest in finance and economics for quite some time and still retain that interest.

Does the Bible have anything to say about Finance and Economics? The answer is a resounding yes. In fact, if we follow the wisdom of the Bible, we will be farther up the road than by attending the Wharton School of Business or Harvard School of Business and will not have to pay back student loans for many years after graduation. In fact, the things that I will be sharing with you I did not learn in school. I gained my knowledge from reading books from a Christian perspective. Even Christians programs a lot of times are just warmed over worldly ideas. The Bible has had the answer all the time.

I believe that anyone can benefit from being taught these basics of financial management. All of us want a pay raise. Sometimes we cannot control whether or not we get a pay raise at work, but by being good stewards of the resources that God’s providence has given us, we can see our amount of money that we have available actually increase. If you invested $10 a year in this newsletter and it saved you $15, you are ahead $5. So it would have been worth the monetary outlay. You should be able to save far more than this by following the system that will be laid out here for you and by developing a financial acumen. One of the principles is "If you put nothing into something, you get nothing out. If you put nothing in the bank, don’t try to make a withdrawal". This is reality and yet people actually believe they can get something for nothing. If you do not apply what you learn here, you will have wasted your time and money. Always keep in mind that there is no such thing as a free lunch!

Application

This newsletter is titled The Wise Steward. Noah Webster’s 1828 Dictionary defines "wise" as, "1. Properly, having knowledge; hence, having the power of discerning and judging correctly, or of discriminating between what is true and what is false; between what is fit and proper; and what is improper...2. Discrete and judicious in the use or application of knowledge; choosing laudable ends, and the best means to accomplish them. This is to be practically wise." We are seeking to be practically wise. Webster renders "steward" as, "A man employed in great families to manage the domestic concerns, superintend the other servants, collect the rents or income, keep the accounts &c...5. In Scripture and theology, a minster of Christ, whose duty is to dispense the provisions of the gospel, to preach its doctrine and administer its ordinances." Therefore, we are going to be applying knowledge efficiently in superintending our finances by keeping accurate records. If we do such, then we will be wise stewards.

The Lord Jesus said in Matthew 25:29, "For unto every one that hath shall be given, and he shall have abundance: but from him that hath not shall be taken away even that which he hath." Those who have capital have plenty and are able to add to what they already possess. Those who do not expand their capital base will suffer loss and what they possess will be lost through mismanagement. In other words, we reap what we sow. What we plant comes back to us. If we do nothing, we receive back the same. If, on the other hand, we are diligent and put forth productive effort, we will recognize gain. These are concepts that must be grasped.

Behind being a wise steward, we must realize that there is a philosophy. There are presuppositions. Where we start is where we will end. This newsletter will be intensely practical. At the beginning it is vital to begin with concepts so that, as we progress, it will make it easier to apply your knowledge to a given situation. The main idea of the wise steward can be called the capital principle or the productivity principle. Capital if properly utilized becomes productive. Something has to be produced. We must expend energy. Paul said in Ephesians 4:28, "Let him that stole steal no more: but rather let him labour, working with his hands the thing which is good, that he may have to give to him that needeth." Generally, thieves are people who do not like to work or are in an otherwise destitute situation i.e. lack of capital. They do not want to take the time and effort required by work, so they suffer want. The thief shows repentance by being industrious in honest labor and then from his abundance gained by his effort, he is able to give to those who are in need of the basic necessities of life.

In the above example, we see the concept of productivity. "Product" as defined by Webster is "...2. That which is formed or produced by labor or by mental application; as the products of manufactures, of commerce or of art; the products of great and wise men. In the latter sense, production is now generally used." Notice that something is being expended. Products do not come to market by hoping they will. There must be effort put forth to accomplish the task.
God has built subduing the earth into every human activity. Genesis 1:28 says, "And God blessed them, and God said unto them, Be fruitful, and multiply, and replenish the earth, and subdue it: and have dominion over the fish of the sea, and over the fowl of the air, and over every living thing that moveth upon the earth." Webster renders "subdue" as, "To conquer by force or the exertion of superior power, and bring into permanent subjection; to reduce under dominion." This subduing will take the form of either physical labor, machinery, or intellectual operation and in reality is a combination of all three. These comprise capital that allows one to be able to accomplish the assigned task.

It must be understood that from the beginning God intended that man work. So many believe that Eden was to be a life characterized by no labor. This is the main reason that all utopian ideals are never realized. They are not built into the fabric of creation. The Lord Jesus said in John 9:4, "I must work the works of him that sent me, while it is day: the night cometh, when no man can work." Even Jesus realized that He had to be busy doing what His Father had sent Him to do. In other words, He was focused on accomplishing His mission and bypassing all other activities. This is an important principle for each and every one of us. Each of has limited time and talent. We need to discover what we are good at and focus on that. This needs to be our primary focus. This is the concept of specialization. Our present economic structure allows us to do this. Few, however, end up doing this. They spend all their life trying to figure out what they want to be when they grow up.

As Gary North has done in many of his newsletters, find out what you would be irreplaceable at doing and concentrate on that. One of mine is writing. I currently write weekly sermon notes and a Discipleship Training Curriculum. These comprise 2 pages each for a total of six pages a week. This amounts to 312 pages over a year and 1,560 over five years. That is a large book. What am I doing? I am being productive weekly and therefore, building up a lot of writing capital. There are a lot of things that I will not have to research again. I have already done the work. This puts me ahead. If I need a sermon quickly, I can choose from well over 250. They are written, so I have a permanent record, including date when presented. I use the Curriculum during our Discipleship Training. I give the sermon notes to those in the congregation. They can take a sermon home and study it further, if they choose to do so. When people just hear a sermon, they will forget the majority of it. This gives them a reminder of what has been preached. It is a form of capital.

The point here is to show productivity. We are not to be consumer oriented but productive directed. If we produce, then consumption will take care of itself. Most people do not understand this. They think that they can get wealthy by consuming. This just leads to having nothing. What will you be able to show at the end of your life? What will you have left behind that will benefit those that remain? In other words, what did you do with your life? Were you fully employed or did you try to take your ease and thus lived a life of mediocrity? If there is one thing I do not want to have said about me at the end of my life is that I was mediocre. I want to do what I do with excellence. This requires a putting forth of effort, not just putting in the minimum trying to get by.

The Lord Jesus had something to say about ease in Luke 12:16-21, "And he spake a parable unto them, saying, The ground of a certain rich man brought forth plentifully: 17And he thought within himself, saying, What shall I do, because I have no room where to bestow my fruits? 18And he said, This will I do: I will pull down my barns, and build greater; and there will I bestow all my fruits and my goods. 19And I will say to my soul, Soul, thou hast much goods laid up for many years; take thine ease, eat, drink, and be merry. 20But God said unto him, Thou fool, this night thy soul shall be required of thee: then whose shall those things be, which thou hast provided? 21So is he that layeth up treasure for himself, and is not rich toward God." Here is the example of a man who was productive. By his energies, he was able to generate a bountiful harvest (of course, he would have had to rely on God for rain etc. whether he acknowledged the hand of God or not). He was not lazy. However, when he had such an abundance, not only did he not confess that God had enabled him to have this great harvest by being rich toward God, he decided that he no longer needed to be energetic but was going to take it easy. He decided to go into early retirement. It all came to nought.

No matter how economically well someone is, they need to continue to keep active doing something of benefit to others. In other words, the concept of retirement is absent from the Bible. This is when a man usually dies, right after he retires. Our physical bodies were designed for movement and action. It is reported that we have over 664 muscles in our body. This does not sound like something that needs to be sitting around all day long. You might have gathered by my tone that I do not approve of laziness. That is a perceptive observation on your part. Do you think that God accepts slothfulness?

Notice what it says in Genesis 2:1-3, "Thus the heavens and the earth were finished, and all the host of them. 2And on the seventh day God ended his work which he had made; and he rested on the seventh day from all his work which he had made. 3And God blessed the seventh day, and sanctified it: because that in it he had rested from all his work which God created and made." Notice the word work in the second verse. When God created the heavens and the earth in a literal 6 days, He was working and if God worked, how can we then put ourselves above Him? God did not say when you are 65 years old that you no longer should work. This is the humanist dream world, trying to escape reality of God’s world. Many people work harder trying to get out of work rather than working. When you do something because you enjoy it, no doubt labor almost becomes pleasurable.

As we proceed further, we will continue to discover that the Bible has much to say about economics. Noah Webster’s 1828 Dictionary defines an "economist" as, "One who manages domestic or other concerns with frugality; one who expends money, time or labor judiciously, and without waste." This is what you are going to become, a good economist and we are going to learn how to economize. Webster renders this word as, "To manage pecuniary (my note: monetary, financial etc.) concerns with frugality; to make a prudent use of money, or of the means of saving or acquiring property. It is our duty to economize, in the use of public money, as well as of our own." Management is the key. To be a good manager requires skill and especially accurate information on which to base decisions. If you do not know how much money you have, how can you make wise determinations?

Both of these definitions used the word "frugal." "Frugality" as defined by Webster is, "Prudent economy; good husbandry or housewifery; a sparing use or appropriation of money or commodities; a judicious use of any thing to be expended or employed; that careful management of money or goods which expends nothing unnecessarily, and applies what is used to a profitable purpose; that use in which nothing is wasted...Frugality is always a virtue...Without frugality none can become rich, and with it few would be poor." It is virtuous to be frugal. It demonstrates wisdom in action. It realizes that we live in a world of scarcity. Also, as was pointed out in the last part of the definition, you will not become rich but by becoming frugal. The best way to fight poverty is not by creating a welfare state, but by citizens learning the excellence of frugality.

Conclusion

All this requires diligence on our part. Most people have never given a thought to the area of economics. They did not consider that they had an integral part to play in the advancement of their financial situation. If I had a choice between being healthy and wealthy and sick and poor, which do you think I would choose? Which would you prefer? There is no virtue in being poor. I have always been interested in success and have studied it for many years. I characterize myself as a high achiever. I want results so I look for what works and implement it. I look for what gets me the effects I am looking for. What about you? Do you have a strategy to increase your wealth over time or are you just drifting along, accepting everything that comes your way?

Most people have not taken the time to consider what they are doing in the realm of economics. To some of you this will be all new. I believe that I have accomplished my goal in this initial newsletter, I have got you to think about things in a different way. You have already begun to consider ways where you can be more frugal and a wiser steward of God’s providence. As we progress, you will learn to become a financial whiz without going seven years to college, deep in debt, to get an PhD in Economics. God and the Bible have given us a short cut by which you are not drowning in debt, but rather will have become affluent.

WHO DETERMINES WHAT LABOR SHOULD COST?

In our day and time, there has been much clamoring over the minimum wage. The minimum wage is, of course, a creation of government. Our government is extremely arrogant in so many ways and this is just one. They think that they can tell business owners how much they have to pay for labor. They want to regulate and control every aspect of our lives. They honestly believe that we are incapable of looking out for our own best interests.

Nothing could be further from the truth. I am guided by self-interest. I look out for my own best interests. This is, of course, not at the expense of others. The fact of the matter is that if I do not look out for my own best interest, who will? The government wants us to look to them for direction in every facet of our lives. It is coming to the point that we are going to have to have a hall pass just to go to the bathroom in our homes. This is the control that government seeks in our daily lives.

When one does not accede all of God’s attributes to Him, then they take these characteristics to themselves. In other words, they replace the God of the Bible with themselves. This is the epitome of Genesis 3:5 right out in the open, "For God doth know that in the day ye eat thereof, then your eyes shall be opened, and ye shall be as gods, knowing good and evil." All elites believe themselves to be omniscient. When their policies are put into practice, they always have the opposite effect of what was originally intended. In other words, they lack what they say they possess.

They do not want to be measured by the results of their programs, but by their good intentions. Good intentions have never provided a living for anyone. Only productivity has delivered the goods and to be productive one has to have a job. Minimum wage legislation keeps certain people out of the workforce. Before delving into why this is true, we must first ascertain what is the philosophy behind the minimum wage.

The first thing that ought to stand out to us regarding the minimum wage is the fact that is wholly arbitrary. Who can say with absolute accuracy that it is set at the right level for each and situation in the marketplace? To be wholly set at the correct wage would require the Godlike attribute of omniscience. Since men lack this attribute, the must make the best guess they can based upon the numbers that are applicable to their particular business.

One thing that needs to be pointed out from the hypocrites in our Congress (House and Senate) is the fact that these people have the ability to determine whether or not they get a pay increase each and every year. Is it not astounding that they vote themselves a pay increase each year? It should be obvious that these hypocrites are not bound by the minimum wage laws, even though they should be because any amount of money paid to them is overpaying them.

Who does the minimum wage really apply to then? Those who have few job skills, generally the entry level worker. We are not talking about anyone who possesses much job experience or skill level. The higher skill level will demand a greater price from the market. You do not trust brain surgery just to anyone and for good reason. Also, one does not hire a minimum wage worker to build a $500,000 home. No one could maintain a household on the minimum wage. Therefore, it would be applicable, generally, for single young workers.

The minimum wage works against incentives. It is a floor beyond which an employer cannot go below. Since it is a guarantee, there is no incentive on the part of the worker to improve his skills. The U.S. Government puts a gun in the belly of an employer and tells him that he must pay this amount or face the consequences. The minimum wage is therefore, paid by coercion and not voluntarily. The minimum wage is code for welfare. It is given to people who may not earn what they are paid.

The market rewards the productive. Minimum wage workers are hopefully trying to increase their skills. If they are not then, what this legislation has produced is a permanent underclass living in poverty and a strain upon a government’s resources. All of the government’s welfare programs would be open to these people. They would be living a subsistence level unless they are receiving some form of subsidy i.e. from parents or the government.

Basic economics are always in force because we live in God’s world. The unemployment rate is high among young entry level workers with few job skills because many small businesses simply cannot hire them at the artificially set minimum wage. The minimum wage guarantees permanent unemployment of the unskilled work force. Instead of allowing the market and employers to determine the wages of its workers, the government intervenes on socialistic principles. If anyone, wants to see the results of such policies, all we have to do is remember all communist governments. Because they take away all incentives to better oneself, they have set in motion, bankruptcy.

Government regulation and bureaucracies is an attempt by our government to legislate itself as god. Minimum wage legislation is an attempt at omniscience. It is, however, a failed attempt. It has failed everywhere it has been tried. If someone wants to make more money, then they must increase their job skills. The market will pay them what they are worth. Our legislators are only worth the minimum wage themselves. God has already legislated. Their legislation is fallible as they are and next to worthless.

Who then determines what labor should cost? The market and employers are best to make this judgment. The government who claims omniscience does not have clue and the sooner they butted out of people’s business in this regard, all the better for each and everyone of us. There should be no minimum wage.

SPENDING CURRENT INCOME

You only go around once in life. We never know how much time we left in this life. All that we know is that we have the present. So why not be able to enjoy the present? Being frugal does not preclude enjoying of life. Being frugal has to do with living within one’s means. Being frugal includes being systematic in savings. Being frugal also means balancing the two extremes of being a spendthrift and being parsimonious (in a bad sense).

A spendthrift is one who spends money indiscriminately and profusely. Someone who is parsimonious is excessive in their attachment to their property and will spend less than is necessary or honorable. Both of these extremes are to be avoided. Frugality would mean that we spend only what is necessary and also means that we not only pay our bills in full but when required to leave a tip, we do so adequately. A parsimonious man would not tip anyone.

It is good to save money but not to the exclusion of the enjoyment of life. Solomon gave us the following wisdom from Ecclesiastes 9:7-9, "Go thy way, eat thy bread with joy, and drink thy wine with a merry heart; for God now accepteth thy works. 8Let thy garments be always white; and let thy head lack no ointment. 9Live joyfully with the wife whom thou lovest all the days of the life of thy vanity, which he hath given thee under the sun, all the days of thy vanity: for that is thy portion in this life, and in thy labour which thou takest under the sun." Enjoy yourself and have a good time. Spend your discretionary income on what you want.

Discretionary income is money you have left over once you have met all of your necessary expenditures. Necessary expenditures includes not only your bills but first and foremost God’s tithe (which is your first obligation to be paid) and your savings. The priority is to pay God first, pay yourself second, and pay your creditors third. Anything left over is yours to do with as you wish. This is the land of wants. The needs are met, now go and have a good time.

Does God want us to have a good time? Deuteronomy 14:22-26 provides the answer, "Thou shalt truly tithe all the increase of thy seed, that the field bringeth forth year by year. 23And thou shalt eat before the LORD thy God, in the place which he shall choose to place his name there, the tithe of thy corn, of thy wine, and of thine oil, and the firstlings of thy herds and of thy flocks; that thou mayest learn to fear the LORD thy God always. 24And if the way be too long for thee, so that thou art not able to carry it; or if the place be too far from thee, which the LORD thy God shall choose to set his name there, when the LORD thy God hath blessed thee: 25Then shalt thou turn it into money, and bind up the money in thine hand, and shalt go unto the place which the LORD thy God shall choose: 26And thou shalt bestow that money for whatsoever thy soul lusteth after, for oxen, or for sheep, or for wine, or for strong drink, or for whatsoever thy soul desireth: and thou shalt eat there before the LORD thy God, and thou shalt rejoice, thou, and thine household." The LORD here gives the Israelites the right to celebrate by having a feast of whatsoever they desire and they were to rejoice for what the LORD had provided for them.

One way to accomplish having discretionary income to spend on vacations, trips, or other wants is to allocate your savings in a sixty, twenty, twenty fashion. Sixty percent should be for long term investing or savings. This amount should never be touched but allowed to grow. Twenty percent should be for an emergency fund. An emergency fund is what it says it is for unseen emergencies that arise such as an unexpected vehicle repair. The final twenty percent is a want fund. This is money you spend on whatever you want to. Say that you save one hundred dollars a week. Sixty dollars would go for into your long term fund, twenty dollars for emergency fund, and twenty dollars just to blow on whatever you want to. By following this plan over the course of a year, you would have three thousand one hundred twenty dollars in your long term fund, one thousand forty dollars in your emergency fund and zero in your fun fund. You will have spent all one thousand forty dollars having a good time.

Man needs to have releases. Without having a release valve, he will simply blow off steam in a wrong fashion. All work and no play makes Jack a stressed out mess. Paul taught us this important principle in 1 Timothy 6:7, "For we brought nothing into this world, and it is certain we can carry nothing out." Everything that we accumulate in this physical world, we are going to leave it behind. Being too attached to our physical property is not an enviable spiritual attitude to possess. Parsimony is covetousness. Being covetous is breaking the Tenth Commandment.

Spending money is an emotional experience. Being frugal takes the emotion out of spending money. At the same time, we cannot deny the emotional side of our being. This is why it is essential to establish a fun fund. When I was not as wise as I am now i.e. learned from making bad decisions, I would limit how much my family could spend on an item on the menu at a restaurant. This can take all the fun out of going out to eat. Now, I say choose whatever you want on the menu. I have not quite got to allowing the dessert part yet but maybe I can bring myself to it at some point. Usually, we are to full from the main fare to want to add to it by having dessert. Discretionary income is meant to be spent currently.