Affording Your Desires: 3 Practical Ways to Make Wise Financial Decisions

Learn how to know if you can really afford something you desire. As a Christian, find practical ways to manage your finances wisely and in line with biblical principles.

As humans, we all have wants and desires. It could be a new car, a new house, a dream vacation, or even a new gadget. However, it’s important to know if we can really afford these things before making the purchase. Making an unwise financial decision can lead to debt, stress, and long-term financial problems.

Fortunately, there are ways to determine if we can afford something we want. In this article, we will explore three practical ways to know if we can really afford something we desire.

1. Calculate Your Budget

The first step to knowing if you can afford something you want is to calculate your budget. A budget helps you keep track of your income and expenses, and it helps you make informed financial decisions.

To create a budget, start by listing your sources of income and your monthly expenses. Your income may include your salary, bonuses, or any other source of income. Your monthly expenses may include your rent/mortgage, utilities, groceries, insurance, and any other monthly bills you have.

After listing your income and expenses, subtract your expenses from your income. If you have a positive balance, it means you have money left over after paying your bills. If you have a negative balance, it means you are spending more than you earn, and you need to cut down on your expenses.

Knowing your budget helps you assess whether you can afford the things you want. For instance, if you want a new car, you need to know if you can afford the monthly car payments, insurance, and any other associated costs without going over budget.

2. Consider Your Savings

Another way to know if you can afford something you want is to consider your savings. Savings are an essential part of financial planning, and they help you achieve your financial goals.

If you have savings, you can use them to purchase the things you want. However, it’s important to consider the impact of using your savings on your long-term financial plans.

For instance, if you use your savings to purchase a new car, you may not have enough savings left for emergencies or other important financial goals, such as retirement or saving for your child’s education.

Therefore, before using your savings to purchase something you want, consider the impact it will have on your long-term financial plans.

3. Assess Your Debt

The third way to know if you can afford something you want is to assess your debt. Debt is a common financial problem that affects many people, and it can lead to long-term financial problems if not managed properly.

Before making a purchase, it’s important to assess your debt and determine if you can afford to take on more debt. If you already have a lot of debt, taking on more debt may not be a wise financial decision.

Instead, it’s important to focus on paying off your existing debt before taking on more debt. This will help you improve your credit score and reduce your overall debt burden.

What Does the Bible Say About Money?

The Bible has a lot to say about money and financial management. In fact, there are over 2,000 verses in the Bible that discuss money and possessions.

One of the most famous verses about money is found in 1 Timothy 6:10, which says, "For the love of money is a root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many griefs."

This verse reminds us that money can be a source of temptation and that we must be careful not to let it become an idol in our lives.

Another important verse about money is found in Proverbs 22:7, which says, "The rich rule over the poor, and the borrower is slave to the lender." This verse reminds us of the importance of being debt-free and not being enslaved to our creditors.

Conclusion

Before making a purchase, it’s important to know if you can really afford it. Calculating your budget, considering your savings, and assessing your debt are three practical ways to determine if you can afford something you want.

As Christians, we must remember that money is a tool that God has given us to use for His glory. We must use it wisely and not let it become an idol in our lives.

FAQs

1. Is it okay to use credit cards to purchase things I want?

Using a credit card to purchase things you want is not necessarily a bad thing. However, it’s important to use credit cards responsibly and pay off your balance in full each month to avoid high-interest charges.

2. How can I avoid overspending on things I want?

To avoid overspending on things you want, it’s important to create a budget and stick to it. You can also avoid impulse purchases by waiting 24 hours before making a purchase.

3. Should I use my savings to pay off debt?

It depends on your financial situation. If you have high-interest debt, such as credit card debt, it may be wise to use your savings to pay off the debt. However, if you have low-interest debt, such as a mortgage, it may be better to keep your savings and pay off the debt over time.

4. What does the Bible say about giving?

The Bible encourages us to be generous and to give to those in need. In 2 Corinthians 9:7, it says, "Each of you should give what you have decided in your heart to give, not reluctantly or under compulsion, for God loves a cheerful giver."

5. How can I save money on things I want?

To save money on things you want, you can look for sales, use coupons, and shop around for the best price. You can also consider buying used or refurbished items instead of new ones.