Financial Freedom on Any Income

Condensed from: Ensign, Aug. 2006
By Jan D. Andersen, California State University, Sacramento

In the Doctrine and Covenants the Lord commanded, “Set in order your own house, for there are many things that are not right in your house” (D&C 93:43).

How can we set our financial houses in order? Prophets, past and present, have taught money management principles that if followed will provide financial freedom and financial peace of mind. These 10 tips for good financial management can help you find peace of mind.

Principle 1: Put God First
Financially, we can put God first by paying our tithes and offerings before all other expenditures. We also put God first by seeking His will and guidance in all of our money matters. In response to putting Him first, God promises to open “the windows of heaven” and pour out both temporal and spiritual blessings, blessings greater than we have the capacity to receive (see Mal. 3:10).

Principle 2: Work.
When Adam and Eve left the Garden of Eden, they needed to work if they wanted to eat. Further, they were promised that making a living would be hard work (see Gen. 3:19).  Lifelong work, is ordained of God and is necessary for our growth and salvation. While we may retire from our financial employment, we cannot retire from God’s plan of life for His children.

Principle 3: Don’t Covet the Possessions of Others.
The last of the Ten Commandments was “Thou shalt not covet” (Ex. 20:17). During, Christ’s ministry he reemphasized this telling the multitude to “take heed, and beware of covetousness” (Luke 12:15).

Elder Joseph B. Wirthlin of the Quorum of the Twelve Apostles has taught that covetousness “is one of the great afflictions of these latter days. It creates greed and resentment. Often it leads to bondage, heartbreak, and crushing, grinding debt.” 1
President Hinckley described coveting as a “trap that can destroy any of us in our search for joy and happiness. It is that devious, sinister, evil influence that says, ‘What I have is not enough. I must have more.’ ” 2

Principle 4: Increase Financial Knowledge.
The parable of the talents teaches that we have a sacred obligation to be wise stewards of the financial resources we have been blessed with. We are judged not by how much we have but by what we do with what we have. The servants who increased their talents from five to ten and from two to four received the same reward; the Lord told both: “Well done, thou good and faithful servant: thou hast been faithful over a few things, I will make thee ruler over many things” (Matt. 25:21; see also Matt. 25:23).

Sometimes it seems we are bombarded with financial advice from many different sources, even trusted friends or loved ones. I would not suggest that all of this advice is necessarily wrong, but it may be incomplete or based on the philosophies of men, or it simply may not apply in every situation. We must learn to recognize our own financial weaknesses and seek out the knowledge that we lack.

Helpful resources are: Elder Marvin J. Ashton’s pamphlet One for the Money: Guide to Family Finance (1992), available at www.ldscatalog.com. and the “Provident Living” section at www.lds.org.

Principle 5: Control Spending.
The key to financial success is to always spend less than we earn. This allows us to stay out of debt and to put some money away for a rainy day. President N. Eldon Tanner (1898–1982), First Counselor in the First Presidency, observed: “There is no way that you can ever earn more than you can spend. I am convinced that it is not the amount of money an individual earns that brings peace of mind as much as it is having control of his money. … Whether early in life or late, we must all eventually learn to discipline ourselves, our appetites, and our economic desires.” 3

Obtain a small notebook. Each day for a month record every penny of your spending. For each dollar amount include a brief explanation. Include all cash, checks, credit or debit cards, and electronic transfers. At the end of the month go through and categorize your transactions. Total the amount spent asking, “Did I spend my money the way I should have? What changes are needed in my spending behavior?”

Principle 6: Get Out of Debt.
Many people have fallen into the habit of using credit to live a lifestyle that greatly exceeds their income. When we live on credit, we are spending tomorrow’s income today; we essentially rob our future selves.

I am referring to those who use credit to live a debt-based lifestyle. Many people find themselves unable to pay more than the minimum payments each month  In Proverbs we read that “the borrower is servant to the lender” (Prov. 22:7). Consumer debt not only creates financial and emotional bondage, but it strains marriage and family relationships and prevents spiritual progression.

Principle 7: Save for the Future.
The Lord counseled the early Saints, “Save all the money that ye can … that in time ye may be enabled to purchase land for an inheritance” (D&C 48:4). The basic concept of inheritance is providing for future needs. The Old Testament story of Joseph in Egypt illustrates the wisdom of saving for future events, for times may come when financial and material resources are scarce or beyond our ability to obtain (see Gen. 41). The Lord’s command to save still applies to each of us today.

Elder Wirthlin reminds us: “The wise understand the importance of saving today for a rainy day tomorrow. They have adequate insurance that will provide for them in case of illness or death. Where possible, they store a year’s supply .... They set aside money in savings and investment accounts.” 4

Principle 8: Teach Children Sound Money-Management Skills.
Elder Wirthlin also notes that “too many of our youth get into financial difficulty because they never learned proper principles of financial common sense at home. Teach them that they cannot have something merely because they want it. Teach them the principles of hard work, frugality, and saving.” 5

Bishop H. David Burton, Presiding Bishop of the Church, observed that some parents, “have a difficult time saying no to the demands of overindulged children. Their children run the risk of not learning important values like hard work, delayed gratification, honesty, and compassion.” 6

Principle 9: Sacrifice.
“Of him unto whom much is given much is required” (D&C 82:3). The Lord requires us to give of our earthly wealth. C. S. Lewis said: “If our charities do not at all pinch or hamper us,... they are too small.” 7

President George Q. Cannon (1827–1901), First Counselor in the First Presidency, taught that riches have “a very corrupting effect upon the human heart, and it requires a very pure people to be as honest, virtuous, humble and upright when surrounded by luxury and wealth as when they are in poor and destitute circumstances. … Always remember that your lives, your ability, the food you eat, the water you drink, the clothes you wear, the earth you tread, the air you breathe, are all the Lord’s. … Then, whether you are rich or poor will make no difference. … You will look upon yourselves as stewards... And where people have this feeling, riches cannot hurt them..” 8

Principle 10: Endure Joyfully to the End.
Life is not a competition to acquire the most money or possessions. Christ taught that “a man’s life consisteth not in the abundance of the things which he possesseth” (Luke 12:15). Life is a test requiring sustained effort. Nephi learned: “He that endureth to the end, the same shall be saved” (2 Ne. 31:15).

Our response to our economic condition, especially the manner which we acquire and manage our financial resources, is part of life’s test. Everyone can pass this test and receive the highest reward; all can be winners. Unlike man-made tests, we are allowed to seek help in life’s examination. “Ask and ye shall receive; knock and it shall be opened unto you. Behold, I will go before you and be your rearward; and I will be in your midst, and you shall not be confounded” (D&C 49:26–27). Let us rely on this wonderful promise as we seek to put our financial houses in order. Whether rich or poor, good financial management can bring peace of mind.

Notes
1. “Earthly Debts, Heavenly Debts,” Ensign, May 2004, 40.
2. “Thou Shalt Not Covet,” Ensign, Mar. 1990, 2.
3. “Constancy amid Change,” Ensign, Nov. 1979, 81.
4. Ensign, May 2004, 42.
5. Ensign, May 2004, 42–43.
6. “More Holiness Give Me,” Ensign, Nov. 2004, 98.
7. Mere Christianity, rev. and enlarged ed. (1952), 82.
8. Gospel Truth: Discourses and Writings of George Q. Cannon, sel. Jerreld L. Newquist (1987), 525.
[illustrations] Illustrated by Steve Kropp
[illustrations] Left: Adam and Eve Driven Out of Eden; right: Moses Coming Down from Mount Sinai, both by Gustave Doré
[illustrations] Left: Joseph Makes Himself Known to His Brethren; right: detail from The Disciples Plucking Corn on the Sabbath, both by Gustave Doré