Oran A. Hall | Taking lenten discipline to personal finance

Ash Wednesday, February 18, marked the beginning of Lent, forty days of preparation for Easter, for many Jamaicans. Beyond its religious significance, this time of renewal can also be a period of significance for adopting and maintaining meaningful discipline in personal financial management.

During Lent, many Christians embark on a course of self-control, discipline, sacrifice, and acts of charity. They fast, abstain from meat, preferring fish and vegetables, among other habits that they give up for the period, and give to the needy. I found it startling how easily a late former in-law of mine was able to give up drinking during Lent and was startled by how easy he found it to pick up the bottle again the very day after Lent had passed.

Individuals needing to make changes for their financial health should not be like him but should see the wisdom in adopting a lifestyle of sustained discipline to help them achieve their financial goals. In some cases, the period could be short, but in others, it would be imperative for it to be over an extended time – depending, of course, on the gravity of their situation. Let Lent be the start of a period of financial discipline.

Let the period be one of financial fasting by foregoing spending that is not a priority; for example, discretionary spending like eating out. Let it be a period of discipline by, for instance, avoiding impulse buying by keeping away from window shopping and avoiding the company of people who could make it easy to engage in impulse buying. Impulse buying can also be restrained by having a shopping list, or leaving the credit and debit card behind, or steering clear of shopping sites on the net.

Rein in spending also by considering how much is required to buy essential items and focusing on them. Then visualise the benefits to be derived from having them, and have a reward system that kicks in when a goal is achieved. It would also be good practice to track spending daily and match it against pre-planned spending goals and available funds.

Create a no-spend list – items and activities on which there is to be no spending, at least for a time. Put priorities like food, utilities, shelter, debt repayment, and medical expenses, for example, at the top of the spending list.

To give to charitable causes, set a fixed sum or fixed percentage of income and stick to it. If, for some reason, you exceed it in one period, reduce the amount for the following period by that amount.

Bear in mind that wealth-building over the long term is critical. Set a specific proportion or sum of income for savings and investment. At the same time, invest in financial education, if necessary, by attending relevant courses, reading relevant material, and watching and listening to relevant material. If necessary, take the approach of channelling funds directly from salary or chequing accounts to savings and investment accounts.

Avoid lifestyle inflation – increasing spending as income increases. Holding the line if the opportunity presents itself in the period can lay the foundation for a more sustainable effort at letting spending lag behind increases in financial resources.

Build solid debt strategies during the Lenten period. Resolve to do so and make it happen. Learn some strategies to achieve this goal if necessary. If it means leaving the credit card behind, do so. Perhaps it could make sense to surrender it if it becomes hard to manage. If possible, establish a plan and put it into effect to reduce and ultimately eliminate high-cost debt.

Put aside spending driven by social comparison, that is, buying to keep up with the lifestyle of others. Let emotional spending – that is, buying because of guilt, or because of feelings of stress, or to relieve feelings of anxiety or sadness, or feelings of being overwhelmed – take a back seat. Avoiding these pitfalls in all seasons can go a long way in arresting the urge to overspend.

In much the same way that many Christians find the experience of Lent transformative as it lifts them to a higher level in their Christian experience, drawing from the mindset of Lent and following some practices associated with it can be of value to individuals desiring to repair their financial situation and rise to long-term financial fulfilment.

Keeping the end in view is critical to the achievement of financial goals – like all goals. Preparation includes developing the plan, implementing it, monitoring it, and reviewing it. Getting the ball rolling in the Lenten season that focuses on sacrifice and discipline, particularly for those for whom it has meaning, is the ideal time to start.

Oran A. Hall, author of Understanding Investments and The Handbook of Personal Financial Planning, offers personal financial planning advice and counsel. Email: finviser.jm@gmail.com