How Christians Can Track Their Expenses And Save More For Retirement (#189)

Episode Summary: In this episode of "Financial Advisors, Say the Darndest Things," AB Ridgeway, a Christian financial advisor, delves into the importance of understanding and tracking expenses for Christian investors. He emphasizes the need to take control of one's finances to become better stewards of God's wealth. AB provides practical steps to determine expenses, differentiate between discretionary and non-discretionary expenses, and set savings goals aligned with biblical principles.

Key Takeaways:

1. Understanding Expenses: AB highlights the significance of knowing where one's money is going by analyzing past transactions, whether digital or paper statements. By identifying discretionary and non-discretionary expenses, individuals can gain clarity on their financial habits and make necessary adjustments.
2. Differentiating Needs and Wants: AB introduces the concept of distinguishing between "nice to have" and "half to have" expenses, equating to discretionary and non-discretionary expenses, respectively. This differentiation aids in prioritizing spending and directing resources toward essential needs, aligning with biblical principles of stewardship.
3. Setting Savings Goals: AB emphasizes the importance of proactively allocating funds towards savings goals, such as building an emergency fund or contributing to charitable causes. By setting clear objectives and adhering to a structured savings plan, individuals can honor God with their finances and prepare for future financial stability.
4. Tracking Progress: AB suggests utilizing financial tracking tools like Mint.com or personalized budget trackers to monitor spending habits and savings progress. By regularly evaluating financial decisions and adjusting as needed, individuals can ensure they are on track to meet their financial goals and fulfill their stewardship responsibilities.
5. Debt Repayment Strategies: AB discusses strategies for paying off debt, such as the snowball and avalanche techniques, which prioritize either smallest balance or highest interest rate debts, respectively. By choosing an appropriate debt repayment strategy and staying committed to financial discipline, individuals can achieve financial freedom and honor God with their resources.

Quotes:

1. "Whoever sows sparingly will reap sparingly, and whoever sows bountifully will also reap bountifully." - Second Corinthians 9:6
2. "Understanding your expenses, separating what is nice to have and what is half to haves will help you direct the money in the right places and away from the money drainers."
3. "Being a steward is not just paying someone else to do the work for you. It's about getting involved, participating hands-on, and contributing to a cause that you believe in."

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