Either/Or: Making Trade-offs

We can only spend a dollar one time. But there are so many things we want to do with it! In our culture, we’re not used to “either/or” – we want “both/and”. And to get that, we make all kinds of unwise financial decisions.

When we realize that we have to make some adjustments, we tend to start with the assumption that our bills are all non-negotiables. But are they really? Some of our bills – even the fixed expenses – are actually discretionary; we can choose whether we want to continue them. And some of our variable expenses – like groceries and clothes – are not discretionary; we have to have them, though we might have opportunities for savings or even for postponement of some expenses in order to straighten out our cash flow.

Sometimes, making a spending plan work is a simple matter of making a few minor adjustments. But some of us find ourselves in a position where small tweaks aren’t going to get us where we need to be. Instead, we need major life changes – like a different job or a less expensive house or car.

Podcast host James Lenhoff helps us work through what kinds of changes we need to make in order to make life work financially. “Either/or” doesn’t have to mean that we forgo all enjoyment. It means we make choices according to what we value most.