"Through laziness, the rafters sag; because of idle hands, the house leaks." This verse from Ecclesiastes 10:18 paints a very clear picture to the results of doing nothing regarding a house, and we should be able to relate to it easily. But have you considered the repercussions and costs from doing nothing in certain areas of your finances?
God warns us in many places of His Word how He feels about laziness and neglect. Including Proverbs 18:9 - "Whoever is slack in his work is a brother to him who destroys." and with the slothful servant in Matthew 25, who hid his masters money in the ground - the master took the money from him and cast him into the outer darkness.
But if we turn towards being aware of what we can do and investing some time and effort, there are many places we are able to reduce or stop this drag against our finances, which because of the effects of compound interest is almost as certain as the effects of gravity when left alone.
If you currently carry a balance on your credit card - simply meaning you are not paying it off every month, it is making everything you buy more expensive. According to the Federal Reserve, as of November 2024 the average interest rate was 22.80%. If you feel inflation is making some things more expensive, try adding 22% onto that price of that item because that is what you are actually paying in the end if you carry a balance on your card(s).
Where can we do something instead of doing nothing here to lower what gets charged in the first place?
Planning Ahead - look at the upcoming day in advance and what your needs may be, so you can avoid paying the high prices at convenience stores and vending machines. Bring coffee, snacks or lunch with you to work (at least part of the time). Bring a list to the grocery store and stick to it. Buy end-of-season items from retailers and receive huge discounts.
Use Your Tools - a few minutes to check for and clip coupons or utilize apps like Ibotta, Rakuten and RetailMeNot, one minute to look for the best gas prices on GasBuddy or another app, a minute to sign up online at favorite restaurants to receive offers, for larger purchases research online for the most reliable brands and models and to see customer reviews.
After doing these things, stay in touch with your credit card balance by checking it online.
If you do nothing to reduce your credit cards, expect it to continue to increase due to the effects of compound interest.
When it comes to your car, doing nothing can be much, much more expensive than the cost of doing something. So keep up to date with the maintenance required for your vehicle to avoid a self-inflicted expensive repair. Consider learning how to do some basic tasks yourself, such as replacing filters, oil changes, etc. Online videos can be a great help in this area.
Car insurance continues to rise, especially in this area. Take the time to look at your policy. Make sure it covers only what you want and does not have extra items you do not use. Think about raising your deductible to lower your premiums. When it is renewal time, shop around and get competitive quotes. Remember that by doing nothing in this area, you will continue to pay the same amount, and more when rates increase.
Your mortgage is obviously your greatest expense... and your greatest potential area of savings. There is the choice of doing nothing - paying it month-by-month which then adds up to about 2 to 3 times the price of the home. Then there is the choice of doing something - making additional payments towards the principal, which reduces your principal balance dollar-for-dollar immediately and will reduce greatly the length of the time of your mortgage.
I will say that according to the step-by-step debt elimination plan that my wife Karen and I have taught at our church, that the mortgage is usually to be addressed after you have paid off your credit cards, car loans and any other debts. If you would like to see additional materials about paying off your mortgage, click on the Archives section of this page to view "The Death Pledge" from October 2020.
In closing, if you are still on the fence about making changes, I first want to share a remarkably accurate quote from Ben Feldman, champion life insurance salesman:
"Doing something costs something. Doing nothing costs something. And, quite often, doing nothing costs a lot more!"
Then be encouraged from what is written in Isaiah 40:29:
"He gives power to the faint and weary, and to him who has no might He increases strength [causing it to multiply and making it to abound]."
God Bless you and may He show Himself greatly to you,
Paul