Lack of Financial Discipline, Not Income Is The Problem

Financial Discipline Part One: Wisdom from Genesis

Photo by Andre Taissin on Unsplash

Joseph’s Simple Plan

Genesis Chapter 41 records a survival plan for the nation of Egypt to navigate a seven-year famine successfully.

This same model can be used on a personal level to get through the “lean” years, which almost all families experience.

The concept is simple: Save during the plentiful years to supplement the lean years.

But, let’s be honest here.

Simple is not always easy

A concept remains a concept until there is a plan to implement it.

And therein lies the issue. Not only having a plan but having the discipline to implement the plan in your own life and/or family.

An eye-opening exercise is to establish a Social Security Account (or log in if you have an account) and look at your income history over the years (This is especially instructive after you’ve logged a couple of decades of employment). As you look at the years, you will more than likely see an up-and-down trend. Some years were good. Some years weren’t.

That is typical of the average family. All sorts of things factor into this: job changes, lay-offs, etc.

Then, as best you can, try to match your financial habits during the good years as well as the bad years. Did you save during the good years? Did you spend too much during the lean years?

Instead of putting money aside for the inevitable low-income years, most of us have a tendency to spend the excess on things we want, justified as a “need”.

• I need that brand-new truck with the $700+ payment

• I need that bigger house

• I need that latest 85” smart TV

• I need all those streaming services

  … and on it goes.

It’s all about discipline

I wrote the article below to give an overview of how it’s possible to live just fine (without going into debt) in the lean years. Even with a large family.

But it takes discipline, which is unnatural to most of us.

This Was Supposed to be About Budgeting, But It Went In Another Direction

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In the Genesis story we started with, Joseph lays out a plan for Pharaoh.

Now therefore let Pharaoh look out a man discreet and wise, and set him over the land of Egypt.

Let Pharaoh do this, and let him appoint officers over the land, and take up the fifth part of the land of Egypt in the seven plenteous years.

And let them gather all the food of those good years that come, and lay up corn under the hand of Pharaoh, and let them keep food in the cities.

And that food shall be for store to the land against the seven years of famine, which shall be in the land of Egypt; that the land perish not through the famine.

Genesis 41:33-36

A whopping 20% was put into “savings” to guard against the lean years. I can hear you now, “There is no way. I have too many expenses. I can’t do that”.

I am not trying to be unkind when I say this, but

YES YOU CAN

The issue is not whether you can put 20% of your income away for a “rainy day”. The issue is YOU DO NOT WANT TO GIVE UP ANYTHING, in order to make that possible.

Everything today is too easy. Easy credit, easy entertainment, easy come, easy go.

In their recent article, What is the average credit card debt? published in USA Today, Ben Luthi and Robin Saks Frankel outline these key points about overall personal (consumer) debt:

• Average credit card debt in America is $7,951, based on 2022 data from the Federal Reserve and the U.S. Census Bureau.

• Credit card debt varies due to age/income/other factors, but only makes up a fraction of personal debt. The average consumer’s debt in America is $95,067.

• Generation X possesses the most credit card debt on average. The average Gen X individual has $8,134 in credit card debt.

• Alaskans have accrued the most credit card debt, with an average balance of $7,338.

• Men and women possess roughly the same amount of credit card debt.

It’s an eye-opening article. I recommend reading the whole thing.

But Cork!

I would love to save up to 20% of my earnings for those down years to come but, I have too much debt. I could never do that.

Again, I say: YES YOU CAN. It may take you some time to get to that point, but you can do it.

And notice that Joseph didn’t try to do this alone. He had help.

If you’re serious (key here) about getting and staying out of debt, here are a few tips:

1. Start by putting 10-20% toward paying down the debt vs. savings.

2. Get help. Implement Dave Ramsey’s Debt Snowball Plan (not an affiliate link).

3. For inspiration, read or listen to the Debt Free Stories of those who have successfully paid off large amounts of debt.

4. Get off the “Stupid Wheel” and sell your expensive cars/trucks and implement the 10-10-10 car buying program laid out in this article:

   You Paid WHAT For That Car?

5. Maybe you need to downsize or at least stay where you are instead of buying a bigger, more expensive house.

6. Eat more at home and make eating out a special occasion. Depending on the work/school schedule and time available, this may entail a “prep day” to make a few days of meals ahead of time. There’s a lot of information on this online.

7. To do more meal prep at home you will need to learn to shop economically for the food items you need (not necessarily want).

   1. Use grocery store apps/ads for prices before you shop.

   2. Shop as much as possible at stores such as Aldi or Lidl, if you have one in your area.

8. Use the free GasBuddy app to find the least expensive gas in your area.

   1. A Costco or Sam’s Club Membership is well worth the price, just for the gas discounts alone, if there is one reasonably close by. These stores are also good for finding clothing bargains, buying bulk food, and Over-the-counter (OTC) pharmacy items such as vitamins and personal care items. Just compare before you buy.

   2. Bundle your errands. This saves gas.

These are all sound practices to get in the habit of being a saver.

I know it all sounds like a lot. But once you get in a routine it becomes second nature.

Bottom Line

In order to change your financial picture, you must first change yourself.

Dave Ramsey’s signature slogan is

If you want to live like no one else (can), you must first live like no one else (does).

I don’t mean for this to be a Dave Ramsey commercial. There are many other financial and debt-elimination programs. Ramsey is just the one I’m most familiar with.

Do your research and MAKE A PROMISE to yourself and your family that you will not continue the debt cycle any longer. Discipline yourself. Do what it takes.

In future articles, I explore some of these concepts further. For now, do your research and START.

I’ll leave you with this one last Dave Ramsey quote:

ACT YOUR WAGE

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