Patience: How this Biblical Virtue is Evident in our Finances
By: Corban Galloway
Patience is something most of us lack. We possess the ability to obtain anything and everything with 2-day or overnight shipping. We live in an unprecedented time in history in which we all have easy access to borrowing, with the world redefining what it means to “be able to afford it”. The perspective of our culture is that we should gather all the possessions that we can and that our present lifestyle should be our priority because we owe it to ourselves. One of the reasons people borrow is because they don’t want to wait. As Christians, we are called to be patient, as an extenuation of the two greatest commandments, to love God, and to love others. In Paul’s letter to the Corinthian Church, he writes that “Love is patient, love is kind. It does not envy, it does not boast, it is not proud. It does not dishonor others, it is not self-seeking, it is not easily angered, it keeps no record of wrongs. Love does not delight in evil but rejoices with the truth. It always protects, always trusts, always hopes, always perseveres.” (1 Corinthians 13:4-7, NIV)
What is patience? If we look at its definition, we find that “The root word for ‘patience’ is ‘patient’ which, in turn, is derived from Middle English pacient and Greek pēma. This etymology results in the inclusion of the following phrases in the dictionary definition of ‘patience’: “1: bearing pains or trials calmly or without complaint, 2: manifesting forbearance under provocation or strain, 3: not hasty or impetuous, and, 4: steadfast despite opposition and difficulty” (Mish, 1987, p. 852).” (Akhtar, 2018).
Patience can only be expressed in response to difficult situations. It is a conscious choice.
Some people may have a strong emotional reaction to getting cut off in traffic while driving, while others are hardly bothered by the inconvenience. A “difficult situation” is entirely subjective to each person, which suggests that we can rewire situations that we perceive as difficult into more neutral territory. Since our behavior follows our beliefs, if we change our beliefs about what actions constitute good money habits, we will be more inclined to do them.
The concept of behavioral economics may be able to shed more light on this subject. “Behavioral economics combines both elements of economics and psychology to understand how and why people behave the way they do, as people do not always make the most “rational” or “optimal” decision, even if they have the resources to do so” (Witynski).
Our main cognitive bias in patience is called Hyperbolic Discounting (also referred to as Current Moment Bias or Present Bias). Hyperbolic discounting is the tendency of people to give stronger weight to payoffs that are closer to the present time when considering trade-offs between two future moments.
If given the option to receive a guaranteed $100 right this second, or a guaranteed $200 exactly one year in the future, a sizable percentage of us would choose the immediate payoff, even though a 100% interest rate can’t be found anywhere else (without significant forfeiture risk).
Why is this? One reason, a lack of trust. A year is a long time, can you truly trust that whoever is offering the $200 to remember the deal? Another reason is worry. You may begin thinking of all the uncertainties that could occur over the next year: The car could break down, the economy could enter a recession, or anything else.
How to become more patient in our decision-making:
“Research shows that there are several ways of reducing hyperbolic discounting. A 2016 study concluded that being exposed to words like “future,” “long-term” and “self-control,” made participants more likely to think of themselves and their future in this way.
What does this mean for us? Thinking about and discussing your long-term future on a regular basis may “prime” you for making decisions that prioritize it. A second method, supported by research, is trying to imagine and interact with your future self. Picturing the “you” that might result from your short or long-term decisions might influence you to make decisions that favor the latter.” (The Decision Lab, 2021)
How can we practically apply patience to our finances?
- Eliminate choices from your day-to-day decision-making that result in paying for goods and services at a premium when more cost-effective alternatives are available.
In other words, instead of going out to eat at a restaurant for dinner, you could prepare dinner at home or plan beforehand for such a scenario by meal prepping. This skips having to pay the restaurant’s overhead costs, such as paying rent, utilities, and employees.
- Determine your main long-term financial goal
Use your financial goal as a measuring stick by which to measure financial decisions against. The simpler it is, the better. For example, if you have a long-term goal of paying off your $50,000 of student loan debt, it will inform better day-to-day financial decisions IF you find your own way of consciously remembering it.
Matthew 14:28-30 “Suppose one of you wants to build a tower. Won’t you first sit down and estimate the cost to see if you have enough money to complete it? For if you lay the foundation and are not able to finish it, everyone who sees it will ridicule you, saying, ‘This person began to build and wasn’t able to finish.’”
- Save for large purchases instead of financing them.
After determining if a large purchase fits with your long-term goals: If you needed to purchase a newer phone for around $500 for example, financing the entire purchase at an annual rate of 18% (the national average APR on a credit card) would result in you paying $590 for that $500 phone. Instead, why not set aside a small amount of your income every paycheck into your savings account through an automatic deposit? Proverbs 13:11 informs us “Dishonest money dwindles away, but whoever gathers money little by little makes it grow.”
