Don't Waste Your Life - Why It's Better to Invest Than Be An Alcoholic

"Wine is a mocker, strong drink is raging: and whosoever is deceived thereby is not wise."
—Proverbs 20:1

I am not trying to offer some high-brow moralism about tee-totaling, but merely a reflection on the ill consequences of alcohol in excess—particularly on the wallet.

So, anyway, here is a hypothetical thought exercise to ponder: if one is a boozer and drinks all the time, and blows U.S. $40.00 per week on average every week for the prime of one's thirty-year work span (i.e., age 25-55), then here is what one can probably expect. Health problems and family relationship problems.

In contrast, if one opts not to drink that much and hardly allocates any financial resources to strong drink, and instead saves $40.00 per week on average every week for the prime of one's thirty-year work span (i.e., age 25-55), then here is what one can expect from a S&P 500 fund. Since 1976, the average annualized return of the S&P 500 index has been roughly 12.15% per annum. Hypothetically, if one were regularly contributing that $40.00 per week to a mutual fund indexed to the S&P 500, one might expect comparable future returns. With the benefit of compounding, and annualized returns of 12.15%, a mere investment of $40.00 per week could result in a staggering $632,695.26 nestegg within thirty years. It could produce $176,747.17 within just twenty years, which could put a sizable dent in your kid's college expenses. This should be a compelling enough reason alone to save and forego the attendant miseries of not saving.

"A good man leaves an inheritance to his grandchildren, but the sinner's wealth is stored up for the righteous."
—Proverbs 13:22

Alcohol might as well be a euphemism for any number of wasted expenditures. One can arguably waste money on any number of vices from clothes to expensive dining to recreation. Granted, it's natural to want some travel, entertainment or luxury from time to time, and one need not be a total miser. In my humble opinion, a wise man should reflect upon the virtues of prudence, thrift and saving all the same. Simply put, a lifetime expenditure of $40.00 per week for alcohol is a prime example of a wasted life and wasted money. If we tossed out such non-essentials, and instead saved what we would have otherwise wasted, then in due season, we can reap sizable dividends over the long-term by investing. Is there something you or I could really do without? Anyway, it's a point to ponder when contemplating provision for savings. If one lacks discipline to save, or needs some external controls to ensure consistency, then there is always the option of setting up automatic bank drafts.

Even if one didn't save that money, and simply gave away $40.00 per week to a Christian missionary for example, then it is still arguably better than frittering it away on alcohol. It's better to give than receive after all. That might be the wisest investment of all, as Jesus in the Gospel of Matthew exhorts: "But lay up for yourselves treasures in heaven, where neither moth nor rust doth corrupt, and where thieves do not break through nor steal" (Matthew 6:20 NKJV).

For an analagous Biblical perspective on stewardship consider reading Matthew 25:14-30.

Plans and more Plans

A wise man hath told me it is good to chronicle realistic goals and plans.

Pending my new 40-hour plus work-week and decent-paying job, I plan on saving aggressively and begin contemplating an investment portfolio while concurrently paying down my student loans. I will see about how I prioritize debt retirement and saving. From time to time, I will make double payments on my student loans. I plan to be so enamored in my work that I will have little time to fritter away that hard-earned money that I earn on frivilous things. Self-discipline is the key, but I think automatic bank drafts implemented in a reflective moment of sobriety can help me maintain my savings goals, and become accustomed to being frugal.

I can do without needless luxuries , and will be content to buy a few books each year and leave it at that. I want to save and invest aggressively, but at this juncture, paying off my debt should have greater priority.

So, I plan on working at least five years straight while building a savings nestegg—before I reconsider higher education. I will max out my individual retirement account (IRA) contributions at $5,000 year hopefully. As I understand, $10,000 from a Roth IRA can be used towards a down payment on a home, and the tax-deferred benefits coupled with rewards from compounding returns make it worth saving in a Roth IRA for that expressed purpose.

Also, as a Christian, I want to devote more time to spiritual pursuits and maintain a balance in my life with regards to Bible study, discipleship and fellowship. I fall short, and should always be striving to better myself in this arena. I shouldn't focus on yesterday's achievements, but seek new ones today.

I very much believe that what I do in this life will echo in eternity. It's best to give it one's best, but also learn from our mistakes. Our mistakes are rebukes, and offer lessons, and training for making better future decisions. I want to do right by my future wife and posterity, and work to advance my station in life and become a more able provider for my family household in the future. My life should be an example of self-sacrifice for the church and for my family. And where I fall short, I look to God's grace to grow and become more profitable.

I want to be prudent in the future in my exercise of financial stewardship. This requires frugality in expenditure, thrift with regards to borrowing, and maintaining a small debt-to-income ratio.

I look to the kind hand of providence to bless me in my endeavors. I hope that any blessing would not be merely for my benefit, but for that of my future family. Whatever I inherit from my parents, I want to bestow in entirity to my future posterity, and seek their well-being and make provision for their education to get a start in the race of life.