APPEARED IN
Living Within One’s Means—How It Can Be Done

IMAGINE that you have a bag with a hole in it, and you have the task of keeping the bag inflated. How would you do it? Well, as long as the volume of air you blow into the bag is at least as much as the amount escaping through the hole, you can keep the bag inflated.

That, basically, is what is meant by living within one’s means. Your income can be likened to the air you blow into the bag. Your expenses are like the air escaping through the hole. The challenge is not to allow your expenses to get bigger than what your income can actually support.

Even though the basic idea sounds simple, putting it into practice and benefiting from it is quite another matter. People could spare themselves many financial woes if only they would endeavor to follow this basic concept. How can it be done? Where can we find guidelines that really work? The Bible is a source of much helpful information in this regard. Let us take a brief look at what it has to offer.
Bible Principles That Will Help

The Bible contains many practical principles that can help you manage your finances. We will examine just a few of these. See if you agree that these principles can help you live within your means.
Have a plan, or a budget.

To manage money effectively, you need to know how much money comes in and where it goes. The Bible says: “The plans of the diligent one surely make for advantage, but everyone that is hasty surely heads for want.” (Proverbs 21:5) Some use a simple envelope system. Each envelope represents a category of expense, such as “Food,” “Rent,” or “Clothing.” Whether you use this simple method or something more elaborate, the important thing is that you know where your money is going, always putting necessities, not luxuries, first.
Avoid envy.

Many in developing nations yearn for the things that people in industrialized nations have. On an individual level, many are tempted to want the things that their neighbors flaunt. This can be a trap. Maybe the neighbor cannot really afford them either. Why follow someone else in his foolishness and end up in financial trouble? The Bible warns: “He chases after wealth, the man of greedy eye, not knowing that want is overtaking him.”—Proverbs 28:22, The Jerusalem Bible.
Keep your life simple.

Jesus advised his followers to keep their eye “simple.” (Matthew 6:22) Setting your eyes on lobster and fine wine when all you can afford is dried fish and water can easily lead to financial ruin. According to one Asian Development Bank report, nearly a third of the people in the Philippines and over half of those in India live below the poverty line for Asia, which is about $1.35 (U.S.) per day. When people have such meager income, it is the course of wisdom to focus on the basics. However, even in wealthier countries, the same principle can help keep people out of a lot of financial trouble.
Be content with what is really needed.

This goes hand in hand with the counsel to keep your life simple. The Bible gives this advice at 1 Timothy 6:8: “Having sustenance and covering, we shall be content with these things.” Some of the happiest people in the world have little money; nevertheless, they find satisfaction in what they do have, which includes not just material things but the love of family and friends.—Proverbs 15:17.
Avoid unnecessary debt.

How true the Bible statement: “The rich is the one that rules over those of little means, and the borrower is servant to the man doing the lending”! (Proverbs 22:7) Although there are circumstances when going into debt may seem unavoidable, those who take on unnecessary debt just to buy something they want will often find themselves shackled to a very heavy financial millstone. This can be especially true when credit cards are used. Time magazine stated: “Once we’ve got our card in hand, our behavior becomes riddled with irrationalities.” Eric, who lives in the Philippines, says: “When I use a credit card, I often purchase more than when I use cash. It ruins my budget when I have to pay the bill.” How wise it is to be very, very careful in using easy credit!—2 Kings 4:1; Matthew 18:25.
Save up money before buying.

Although it may seem old-fashioned, saving up money before making a purchase is actually one of the wisest ways to keep out of financial trouble. Doing so keeps many out of debt and its associated plagues, such as high interest rates, which ultimately add to the price of everything a person buys. In the Bible, the ant is depicted as being “wise” because of saving up “food supplies even in the harvest” for future use.—Proverbs 6:6-8; 30:24, 25.

THE WATCHTOWER JUNE 2011
http://www.jw.org/en/publications/magazines/wp20110601/living-within-means/