Join us today for an episode about the way to view money you are getting...
Today's episode is focused on why "free money" is a dangerous thought...
In today’s episode about developing your influence through stewarding your treasures, I talk with you about how you may want to view the money you have coming from any source. I share why it’s not wise to ever think of things as “free” money. I then share how to consider the opportunity cost that comes along with money.
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00:00:00 Welcome to Episode 590 of the inspired stewardship podcast I'm Ryan Engelstad from Pop Psych one a one. I encourage you to Find health and one way to be inspired. To do that is by listening to this the inspired stewardship podcast with my friend Scott made her. I think of it as money that you've earned as income. Think of it as money that's come into your life and that you are now the steward of that money, and your job is to be responsible with it and leverage that money to grow the influence of God's kingdom on earth.
00:00:44 And when you look at it that way, when you take that responsibility when you reframe it, welcome and thank you for joining us on the inspired stewardship. Podcasts. If you truly desire to become the person who God wants you to be, then you must learn to use your time, your talent and your treasures for your true calling in. The inspired Searchie podcast will learn to invest in yourself, invest in others and develop your influence so that you can impact the way in today's episode about developing your influence through stewarding your treasures.
00:01:23 I talk with you about how you may want to view the money you have coming in because of the stimulus and even just what's coming in because of you've earned it. Why it's not wise to ever think of things is free money and how to consider the overall opportunity cost. When you're making decisions about money as we talk about stewarding your treasures, wouldn't it be great if you could support this podcast and do it without costing yourself an extra dime? It turns out you can't. All you have to do is use inspired stewardship dot com slash amazon when you're ready to make a purchase via Amazon,
00:02:02 and a small commission will come back to support the show. If you enjoy the show when you're ready to buy from Amazon,
00:02:09 just use inspired stewardship dot com slash amazon. Here's an interesting thing. You know, right now, a lot of people are talking about the different sorts of money that may be coming in right now.
00:02:24 Toe help you out during this time. If you live in the US, we've got a big stimulus package that was passed and some of us this week or last week have seen money show up in their account from the government.
00:02:38 Maybe you're a small business owner, and you've applied for some sort of economic disaster relief that's offered either by the federal government or your state.
00:02:47 Maybe you've applied for the payroll protection. Maybe you've got unemployment coming in because you've lost your work because of the Corona virus.
00:02:58 This is an interesting time when it comes to getting quote free money. See, that's how I've heard some people describe the money that's coming in is free money.
00:03:09 And I'm not gonna go on a long rant about government and taxes and the fact that this money ultimately comes from the taxes that we pay or from debt that the government leverages now.
00:03:19 Instead, I'm just gonna talk about the mindset and philosophy when you look at any money that you have coming in as free money.
00:03:30 The problem here is that that thought process the looking at it as free, something that you've gotten without earning it,
00:03:38 something that just comes in magically. We get this sometimes with tax returns. You can have this happen to people with an inheritance or winning the lotto are gambling win when they go to Las Vegas and they just happen to win big on the slot machine.
00:03:57 This view that the money that we got came from nowhere always ends up causing problems in what we then do with the money.
00:04:08 I'm going to encourage you to reframe, and any money that comes into your life is really just income.
00:04:17 It's just money coming in on one side of that mathematical equation. See, when we have money coming in,
00:04:24 we should always have a plan on what we do with that money, even unexpected money, even money that comes in from some source that we couldn't predict even an inheritance,
00:04:36 even getting money from the government. A tax return, Anything that comes in has to enter into our plan for income.
00:04:46 See, the truth is, we only have two sides to this equation. Income and expenses, and what you do on both sides of that equation is what really makes a difference in how you get ahead in life and what happens with the money that allows you to then do things to serve.
00:05:06 Others do things too, expanded your influence, do things to make an impact on people's lives in a positive way.
00:05:15 Let's face it, you can't give if you don't have it. So the truth is, when you look at any money that you have coming in,
00:05:24 no matter what the source, it needs to come in as income that you then have a plan for.
00:05:32 And hopefully you've already planned what to do with income, including unexpected money. See, really, there's only three things you can do with money.
00:05:42 You can give it, you can spend it and you can save or invest it. And the difference between saving and investing is really the term how long you're doing it.
00:05:52 But that's really all you can do. So if you've got unexpected money coming in, you should be able to apply a formula to it.
00:06:00 There's nothing wrong with spending some of the money enjoying some of the money, but there's also a portion that should be dedicated to those other categories as well.
00:06:11 What are you going to do to give some of the money toe? Let some of that money go out and help others?
00:06:18 And what are you going to do to save or invest some of that money so that money begins to grow over time and actually leads to an even bigger impact down the road instead of thinking of it is free money.
00:06:36 Think of it as money that you've earned as income. Think of it as money that's come into your life and that you are now the steward of that money.
00:06:46 And your job is to be responsible with it and leverage that money to grow the influence of God's kingdom on earth.
00:06:56 And when you look at it that way, when you take that responsibility, when you reframe it and stop thinking about it as free,
00:07:03 you suddenly recognize that you have a responsibility to do something good with that money. See, the truth is,
00:07:12 when I said You can spend it, you can save it and you can invest it. Those are a way of framing the opportunity cost,
00:07:21 so you can't spend the same money twice. If you've spent a dollar. For one thing, you can't then turn around and spend that same dollar on something else.
00:07:30 You can't spend a dollar and give that dollar and invest that dollar. You have to have $3 to do a dollar to each of those categories,
00:07:40 so the opportunity cost for any money that you have coming in is you have to choose what you're going to do with it because you only have the opportunity to do one of those three things with every dollar that you have coming in.
00:07:56 It's important to think about that ahead of time. This is what happens to people sometimes when they get the big tax return,
00:08:04 and so they go out and blow all of it on a brand new big screen TV and then a few months from them,
00:08:11 an emergency happens and they lose their job or their car breaks, and they don't have any money set back and saved for those emergencies.
00:08:20 And so now they've got a financial emergency and they've got the car emergency or the medical emergency that's going on.
00:08:29 That's how that happens, because they put all of that money into one category. Spend it. They didn't save any.
00:08:36 They didn't give any, and at the end of the day, what that costs them down the road was even Maur difficulty with their finances.
00:08:47 So if you stop and think ahead of time, any time I have money coming in, I've got to do a little bit of all three of these things.
00:08:53 I've got to give a little bit. I've got to spend a little bit and I've got to save a little bit.
00:08:59 The percentages that you put into each of those categories may very based on your situation, where you are in your plan,
00:09:06 where you are in your income, how much money you had come in. But the truth is, you can establish a pattern of behavior if you're conscious about the money coming in as income and reframe it from being free,
00:09:23 or an inheritance or gift or something that you didn't earn and instead bring it into your mindset and run it through that filter of waters,
00:09:31 the opportunity cost. If I do this with the money, what am I giving up? What am I losing?
00:09:37 And then make a plan and execute on that plan? And it doesn't matter whether you're in the midst of a disaster or whether this is just a blessing that came to you today through some sort of gift or something else.
00:09:51 In both cases, you have to think first. What am I going to do with the money? What's my plan.
00:10:00 How do I take this income and use it in the best way possible? That allows me to do the work that God has called me to do.
00:10:11 Thanks for listening. Thanks so much for listening to the inspired stewardship Podcast. As a subscriber and listener,
00:10:23 we challenge you to not just sit back and passively listen. But act on what you've heard and find a way toe.
00:10:31 Live your calling. If you like this episode on the stewardship of treasures, you can sign up for our treasures tips by going to inspired stewardship dot com slash treasures or text in the U.
00:10:49 S. 44222 Treasures tips and we'll send you five weeks of our best tips on stewarding your treasures until next time investor time,
00:11:03 your talent and your treasures develop your influence and impact world.
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In today's episode, I talk with you about:
Never spend your money before you have earned it. - Thomas Jefferson
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