The Positive Benefits of Financial Asceticism
Written by: Dr. Karen-Marie Yust
The term ‘asceticism’ has negative connotations in many North American contexts. It suggests extreme forms of religious denial and withdrawal from society. At its heart, however, Christian asceticism is a practice of saying no to some desires in order to say yes to other things we want to have or experience. It is a practice of decision-making that acknowledges the interrelationship among our desires and the limits of our time, energy, and finances. From a financial perspective, it is a practice of intentionally choosing financial limits and investments that enable us to meet our long-term financial goals. Say, for instance, that owning a home is a long-term goal. To say yes to this desire requires saving for a down payment, reducing debt, and building up one’s credit rating in order to qualify for a mortgage. Thus, we have to say no to expenses that prevent us from paying off credit cards and building our nest egg.
Financial asceticism does not mean we can never spend money on things we enjoy or that give us pleasure. Rather, it means making deliberate choices about the limits we set on various kinds of spending so that we can achieve our overall goals and enjoy those things as well. Many of us find this kind of financial intentionality difficult, particularly when we first begin this spiritual practice. We notice the absence of what we have given up without yet seeing the benefits of our long-term desires. For this reason, becoming a financial ascetic is best done gradually. Each quarter, pick one small expense to let go, or one credit card on which to increase one’s payment a set percentage beyond the minimum required. Focus on learning to live with this change for three months, and then pick another expense for reduction (or payment for increase). Over the course of a year, this gradual process results in four ascetic moves that can pay off in the ability to say yes sooner to that home, or college education for a child, or dream vacation that is the goal of our financial asceticism.
Questions for Reflection
- What are the long-term financial goals you want to say yes to?
- What is one expense you could say no to for the next three months?
