Growing up I was very close to my grandparents. So it was no surprise when my grandma wanted to give me advice when I started making some extra baby-sitting money. Unfortunately, at 11 years old I assumed she didn’t know what she was talking about. So I didn’t listen. Had I taken her advice, the small amounts of money I picked up here and there could have easily become hundreds of dollars in my bank account by the time I left for college.
My grandma freely gave me financial advice. But she also kept a secret that might have made me listen: she and my grandpa were millionaires. I never knew this, because they never lived as I thought millionaires lived. Instead, my grandma drove the same car for 24 years (no flashy BMW’s for her) and lived in a typical home (not a mansion with a butler or a maid). But by applying the three principles you’ll read about below, my grandparents turned their average income into true wealth.
It’s All God’s Money
Deuteronomy 8:18 says, “But remember the LORD your God, for it is he who gives you the ability to produce wealth.” And Psalm 24:1 tells us, “The earth is the LORD'S, and everything in it.”
That means even when you give up a Saturday with friends to baby-sit, the money you make is given to you only because God gave you the opportunity. Realizing this will make you more grateful for $20instead of grumbling that you should have made $35. God has given us opportunities to make money, and we should be grateful for them. After all, that baby-sitting job could have easily been given to someone else.
Out of your grateful heart, you should want to give something back to God as an expression of thanks for all He has given you. In the Old Testament this was referred to as a tithe (Leviticus 27:30), meaning “one tenth.” One tenth of everything the Israelites made was given back to God. It was a requirement. The tithe was seen as belonging to God. And no one wanted to steal from God. So they did it. And you should, too. Not because you have to but because you want to thank God for all He has given you. Most churches have offering boxes or offering plates. This is so everyone can give her tithe to the Lord and thank Him for all He has given. Sponsoring a child or supporting missionaries are also ways of giving back to God.
You may wonder why you need to give 10 percent back to God if He gave 100 percent to you. I mean, why didn’t He just take 10 percent off the top and give you 90? From God’s perspective, your giving isn’t just about His getting. It’s about teaching you to be grateful for what you have.
Second Corinthians 9:7 tells us that “God loves a cheerful giver.” We can’t be cheerful givers if we never have the opportunity to give. My grandparents tithed faithfully, and God always blessed them abundantly as a result.
Pay Yourself Second
My grandma always said I should save money. When I was a teenager that concept never appealed to me. There was always so much stuff I wanted. But my grandma constantly hounded me, “Save 10 percent of everything you make.” If you give God 10 percent, why not give yourself 10 percent as well? You might be thinking, If I give God 10 percent, I give myself 90 percent.
But people who spend all of their money have no money, and therefore are never rich. In the New Living Translation, Proverbs 21:20 tells us, “The wise have wealth and luxury, but fools spend whatever they get.” Get rid of the mentality that every dime you make is a dime to spend and you’ll potentially have more money than any of your peers.
Most wealth comes from saving. Let’s say you make $50 baby-sitting in one weekend. You would give God $5 (10 percent) and have $45 remaining. If you take 10 percent of 45 and set it aside then you have $40.50 that you can spend. That’s still a lot of money to use however you want, but you’re also putting money away for something else—maybe it’ll be used to pay for part of your college education or for something like a new iPod. If you baby-sat for $50 three more times, your savings would increase to $18 fairly quickly. With diligence, you could have a large sum of money.
These days, I save 90 percent of my income. My husband, Michael, and I live off of his income, and the only money that comes out of my paychecks is the money we give to God. Right now we’re saving for a house. Sometimes we save for vacations or fun purchases. But no matter what we’re saving for, saving has become a habit for us.
Spend Wisely
The last thing my grandma taught me about money is to spend it wisely. Often, we want to rush out and spend it right away without paying any attention to sales or coupons. We want new makeup, so we buy the first makeup we see without looking for different colors elsewhere or comparing prices with other brands. Doing this causes us to get less for our money.
Yesterday I went shopping for some new clothes with a coupon in hand. Knowing I had only a certain amount to spend, I made my choices carefully. When the salesgirl rung up my items, the total came to the exact amount I had to spend—until she applied my coupon. Then I had enough money left over to buy a pair of shoes. Had I not used my coupon I would have been able to get only the clothes.
What if your favorite store doesn’t have coupons? Shop around. Compare prices. The same pair of shoes may be cheaper at one store than at another. Wait until the jeans you want go on sale. Every store has a sale sometime. You just may have to be patient. Never part with your money without asking, “Can I do this for less somewhere else or some other time?”
Three Simple Steps
I realize that the money you make is limited and infrequent. But implementing these steps will help you develop good money-management skills for when you get your first job and throughout the rest of your life. You can never be too grateful for what God has given you; you can never save too much, and you can never be too careful when you shop. Even if it will take you a long time to become a millionaire, it’s not too early to start living like one. So give, save and spend well!
