Join Financial Advisor Tim Russell, CFP® and Rev. Drew Gysi as they discuss when it's bad to be a cheapskate.
See the show notes here!
Learn more at: StewardologyPodcast.com
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or call us at: (800) 688-5800
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A ministry of Life Financial Group & Life Institute.
Securities and Advisory Services offered through GENEOS WEALTH MANAGEMENT, INC. Member FINRA and SIPC
Join Financial Advisor Tim Russell, CFP® and Rev. Drew Gysi as they discuss when it's bad to be a cheapskate.
See the show notes here!
Learn more at: StewardologyPodcast.com
Schedule a Personal Stewardship Review at: StewardologyPodcast.com/Review
Get in touch with us at: Contact@StewardologyPodcast.com
or call us at: (800) 688-5800
Send us episode ideas! StewardologyPodcast.com/idea
Subscribe to get episodes delivered to your inbox every week.
Follow along: Facebook, Instagram
A ministry of Life Financial Group & Life Institute.
Securities and Advisory Services offered through GENEOS WEALTH MANAGEMENT, INC. Member FINRA and SIPC
I want to start by telling a story
During the summer, a group of guys from one of the ministries that I pastored at and where we all became friends through the years, do a yearly day trip to a very large local car show and swap meet (we are all motorheads!). I was not looking for anything specific during this outing, but always looking for a good deal on car parts. As we walked down an isle, a set of tires caught my attention. Not just any set of tires, but a set of tires for a John Deere Garden Tractor. The other year my wife and I bought a 20+ year old John Deer Garden Tractor with a bucket to do yard work around the house (we have some property out in the countryside). The tires that came with the tractor were very old and continually slipped up and down the slight inclines at our house. I told my wife that in the next month to a year, I need to replace those tires with some better ones, and sadly the cost of just the tires would be around $300-$400 for a pair of rear tires, not including a set of rims if needed/wanted. If rims were included in the purchase price, I would have to spend more than $500!
Well, after checking the tires out at the swap-meet, and doing a quick internet search about my tractor, I found out that the tires were the exact right size that I needed. They came with rims that would fit my tractor, and they were brand new! NEVER USED! I walked up to the vendor and asked him how much he wanted for them. He said, "150, I want them gone today."
I proceeded with a counter offer, "$100 and I will take them."
The man said, "No, 150 firm. I know what I have and I know it is a bargain for $150."
I hemmed and hawed for a while. I engaged in conversation with him hoping that he would budge in price. I again offered the $100, and he said no. My friend, Chris, was next to me listening to the whole discourse and knew what I researched price wise for the tires. He knew it was a bargain at $150!
I held to my price and decided to walk away. Inwardly, I was saying this to myself, ”if I walk away, he would know that he missed an opportunity to get rid of them and he would call me back and either agree to the $100 or knock it down a little."
Was I being too cheap? I was provided a situation to save big bucks on brand new tires, but refused to budge on my offer. I would say that the answer is, YES. I was being ridiculously cheap.
I walked away from the tires only to be lovingly talked to by my friend Chris. He pointed out again to me the very good price for the tires compared to buying new from a store or online. He asked me again if I needed them, or just wanted them. I told Chris that I needed the tires due to the safety hazards and wear and tear I faced with my old tires. The tires were a replacement need and not a want! My friend Chris then, lovingly convinced me to go back and make the purchase, knowing that I would still be saving a boat-load of money.
I was being cheap! I knew that this was going to be a purchase that I needed to make in the very near future. I knew and I was planning on spending up to $500 for the tires in the very near future! The Lord put right before me an opportunity to save $350 in that purchase. This was a 70% savings right in front of me that I was being cheap about and was willing to walk away from! I am glad I had a voice or reason speaking into me that day. Chris, I know you listen to this podcast, and I want to thank you again!
The moral of my story: Being cheap can cost you more in the long run.
Why Do I Tell You This Story?
In this episode, we want to answer the question, "when is it bad, or costly to be a cheapskate?" Have you ever thought of that? Would you consider yourself a cheapskate? Maybe you are just a frugal person, right?
In order to get a proper understanding, It would be best to define the difference between the two terms:
Another simple definition of the two terms is this:
What about a "Steward?" - A Steward process the 5 Biblical Sequential Priorities when making financial decisions. This transcends the categories of 'frugal' and 'cheap.' A Biblical Steward must be found faithful. He takes into consideration the cost, value, and priorities.
You may be a cheapskate if...
Bigger Mistakes To Avoid!
What Does The Bible Say About Being Cheap?
Conclusion
Next Steps
Material presented is property of The Stewardology Podcast, a ministry of Life Financial Group and Life Institute. You may not copy, reproduce, modify, create derivative works, or exploit any content without the expressed written permission of The Stewardology Podcast. For more information, contact us at Contact@StewardologyPodcast.com or (800) 688-5800.
The topics discussed in this podcast are for general information only and are not intended to provide specific investment advice or recommendations. Investing and investment strategies involve risk including the potential loss of principal. Past performance is not a guarantee of future results.
Securities and advisory services offered through GWM, Inc Member FINRA/SIPC