The “VALUE EQUATION”
He that loveth silver shall not be satisfied with silver; nor he that loveth abundance with increase: this is also vanity. Ecclesiastes 5:10
More money and more stuff that money can buy will not satisfy the deepest needs of your heart. Because we tend to overvalue money and stuff, we can get caught into bad spending habits. Today, please consider the God given stewardship He has entrusted to you.
How much is money worth to you? How much are the items you buy worth to you? What value do you place on the new TV, Phone, Car, etc.???
We can work the math to determine our money and materialistic values. The “Value Equation” takes into account how much money you make per hour and then divides the total cost of the item you hope to purchase to then tell you how many hours you need to work to buy that item. For example:
Suppose you make $15 per hour and work 40 hours per week.
Let’s say a new TV will cost $640. You make: $15 an hour. (Divide cost of item by hourly wage.)
How many hours does it take you to buy the TV? 42.6 hours of work or nearly a full week of work. That is how you determine value. Is the TV worth it? Should you save up a little longer? Should you wait for the TV to go on sale or consider a different model? Are discount codes and coupons worth looking for and using this purchase?
Have you ever said “It is only $5?” That is about 20 minutes of work (at $15/hour). Looking at money and value this way will help you make better fiscal decisions.
A new iPhone is $800. 800/15 = 53.3. It will take a person 53.3 hours of work to be able to buy an iPhone. Factor in all the other real needs you have and the iPhone may not be worth 6 long days of work to.
Remodeling a room in your house? Let’s say a new remodel is $3000. That is 200 hours of work or 5 weeks of work (at $15/hour and 40 hours per week). Again, the power, gas, and water bill must be paid and you still must eat each day and feed your family. Consider the insurance bill comes every 6 months and the house payment is a big portion of your budget. It may be a good idea to save up a little longer to do the remodel.
IF Christians understood the value of money, while learning not to love money, we would become better stewards of the money God has entrusted to us. “How much is it?” is not the best question to ask. “How much do I value it?” is better. Greater still, “Is this what God would have me to purchase?” Ask the Lord to help you become better disciplined with His finances.