Competent

Jordan PetersonJordan Peterson is having “a moment”. A widely circulated interview brought his considerable platform into the spotlight with a variety of articles including this David Brooks piece which summarizes things nicely.

In the aforementioned interview, he uses a word I hadn’t fully considered: Competent.

“Competency is power”

I bounced that idea off my kids around the dinner table last night. I do want them to marry someone who is competent. Competent at cleaning the kitchen, competent at raising children, competent at balancing a checkbook, competent at managing conflict in a healthy way, competent at managing the many problems life brings.

When my wife and I started dating, my roommate and I were not competent at lots of things, not the least of which was cleaning. We once went an entire year without cleaning the kitchen. Don’t ask. The bathroom was worse, so it took most of the attention away from the kitchen. People would just leave rather then use the bathroom.

We aren’t born competent. We have to learn, and most learning comes from Someone who already knows how to do it.

It’s ok if we aren’t competent in our personal finances yet. It’s not ok for us to stay that way. We, our (future) spouse, our business partners, our children, and our parents deserve better. Have you ever had a friend (usually when you were younger) that always was asking to borrow money? It’s hard to be friends with that guy.

It’s important to develop competencies at:

No judgement. I doesn’t matter when we find ourselves today. I’m much better at cleaning my kitchen these days. Let’s pick one area, talk to someone who knows that area, and start making small actions.

You and I have the capacity to be financially competent.

REMINDER: INCOME VS EXPENSES

money tree

When I counsel people (including myself) on how to make their budgets work, I often find that they are much better at EITHER controlling spending OR earning money.

As a reminder, there are two sides to each budget/balance sheet:

INCOME

and

OUTGO (expenses)

The old cliché is that we tend to be ‘savers’ or ‘spenders’. While that is often true, it is very difficult to win with money if you a thrifty saver but don’t earn enough money. Likewise, no matter what my income is I can always find a way to outspend it.

To make a budget/balance sheet work, we need to earn enough AND spend it wisely. The majority of people that volunteer to come talk to me about their money (grad students), tend to be thrifty savers but are having a hard time making ends meet without going into debt – something they don’t want to do.

For them, they don’t have a saving/investing type problem. Instead, we have to put our heads together on how they can earn more money. That can be challenging with the time constraints of school and family. It also isn’t a quick fix – there isn’t one change to be made.

The good news is that there are lots of options. Earning more money is a skill that can be built. The reality is that someone that has earned more in the past is significantly more likely to earn more in the future. Why?

It may be that they are more apt to recognize financial opportunity, how to leverage their skills in the marketplace, how to ‘sell’ themselves as a bargain to potential employers, or how to provide and communicate their value.

More on that:

https://graduatefree.com/2015/01/20/part-time-jobs/

https://graduatefree.com/2016/11/17/how-to-get-paid/

https://graduatefree.com/2016/12/07/how-to-reset-your-life/

Step one to any change is making a decision. If we decide we need to make more money to make our budget work, we will begin to look for and see opportunities. Prayer is a powerful tool in this. God can open the eyes of our mind.

Financial Peace Classes

fpuTen years ago exactly this month, Noelle and I opened the credit card statements from Christmas and realized we owed over $7,000 on those two charge cards. We also owned a condo that wasn’t rented, had a car loan on a sweet Mustang GT convertible, and one more student loan for old times sake.

That week I was playing basketball on a Monday night at Smoky Hill Vineyard church and saw a sign there for a class: Financial Peace University. We had missed week one, but the next night – week two of the class on a Tuesday in January, we were there.

It didn’t happen overnight, but we sold the condo, sold the mustang, lived on “beans and rice”, and paid off all of that within the year.

It isn’t a coincidence that these classes start this time of year. January is a time of new year resolutions and new beginnings. If you’re “sick and tired of being sick and tired”, now is a great time to push the reset button.

You can find a class at a local church. CLICK HERE FOR LIST OF LOCAL CLASSES.  

Feel free to reach out to me for more on our experiences and what we’ve done in the 10 years since.

TOOLS

hand-sawI have a friend who works in the construction trade. He confessed that sometimes he puts off or just forgets to make his truck payment for a month or two. He always catches up and pays it back current, it’s just hard to keep track of all of his bills and pay them on time. Now he was worried his low credit score wouldn’t let him expand or buy a house in the future.

I know this friend is really skilled at his job. I also know he is meticulous about cleaning his tools at the end of the day. Why I asked him? Because, he told me, “If you take care of your tools they will take care of you.”

These are the wise words of a skilled craftsman.

The following word picture occurred to me and we talked through it:

One of the many reasons we all work and is to secure our unknown financial future. Good credit is a symptom of someone that takes care of their personal business. I want you to think of your credit as a tool in the toolbox of your financial future. Take care of this tool with the same diligence you bring to your physical tools.

Sometimes it’s hard for us to think and work outside the area of our expertise. If we’re working long hours, in graduate school writing papers into the night, feeding and changing small children, or feeling the weight of ministry demands it can be difficult to remember the importance of the other ‘tools’ in our life.

Our physical body might be our most important tool. We can’t do anything without it. Let’s take care of that tool. Everyday.

Success in life is impossible without healthy relationships – to God and others. Is there some rust building there?

When Noelle and I were really motivated to get out of debt, we spent a few minutes each day thinking and taking a small action. We understood that meeting this financial goal would be a valuable tool that would enable us to be able to do ministry, provide a stable home for our children, and be generous givers.

Take care of your tools and they will take care of you.

Year End – Goal Setting

smart-goalsDo not forsake wisdom, and she will protect you; lover her, and she will watch over you.

For several years around this time of year, one of the most important activities I’ve done is set my goals for the upcoming year. This morning I awoke with the following idea:

Wisdom is the intersection of the Intellectual and Spiritual.

It isn’t enough for me to know something. It also isn’t enough for me to just believe it. Wisdom is applying what I intellectually know through an act of my will.

What goals should I set? I have goals in four areas of my life. Those four areas are taken from the following verse:

Jesus grew in wisdom and stature, and in favor with God and man.

This verse says there were four areas that Jesus himself developed:

1.) Relationship with God

2.) Relationship with other people

3.) Wisdom on how to live well (financial, intellectual, career, etc.)

4.) Physical health

I figure if I can win in those four areas that life will turn out ok. I recommend keeping it very simple. I carry my goals in writing with me all the time. Pull me over sometime if you’d like to see them!