Financial Lessons We've Been Learning on the Ranch and in Life

Over our lifetime, we’ve been continually learning financial lessons through reading, learning, and experience.  Some lessons have been relatively small like unnoticed monthly subscriptions while others have been larger lessons about risk, opportunity, and trusting God with the resources He provides.

1.      Be intentional about where your emergency fund sits

As Dave Ramsey students, we followed “Baby Step 3” and built up our three to six months of emergency savings.  About one-third of Americans have no savings built up at all and according to Ramsey Solutions research, nearly half saying they wouldn’t be able to cover three months of expenses if they lost their income. 

For years, we just kept this ‘emergency fund’ in our checking account earning a very negligible amount of interest.  Looking back, we could have been more strategic with it while still keeping it low-risk and accessible, but I simply didn’t take the time to follow up on it.  About a year and a half ago, we finally opened up a Money Market account with Edward Jones to hold the emergency fund and additional cash we’re saving for future ranch-related investments.  Since then, it has earned about 3.9% interest and is accessible within two days if needed.  Matthew 25 shares the parable of the servants and how they stewarded the gold they were entrusted with, and we need to stive to be diligent with the resources God has given us as well.

2.      Communicate and review charges regularly

Another lesson we’ve learned is the importance of regular communication.  At one point, we were somehow being charged for an extra cell phone we no longer had.  Recently, I finally asked Kaleb about the $20/month charge to a health store that I assumed was vitamins or supplements he’d ordered.  We realized neither one of us had a subscription from there and I was finally able to cancel it. 

Subscriptions can also add up quickly.  I don’t believe in having an Amazon prime membership, but occasionally the “free trial” box gets checked at checkout and months later we realize we’re still getting charged for it.  My takeaway has been to more closely examine the bank account and to have regular conversations about recurring charges, regardless of how ‘busy’ we think we are.  If we can’t be faithful in the little things, how will we be faithful with the larger things? 

3.      Ranching is a balance of risk and opportunity

In 20/20 hindsight, there’s been times we likely should have bought more bred heifers or

One of the purchased bred heifers from 2023 that I now wish we'd bought more of at the time!

cows when we had the opportunity, but we’ve been relatively risk averse.  Back in 2000 as a 6^th grader, I took I took out a $5,000 Farm Service Agency youth ag loan (7% interest for up to 7 years) and purchased six yearling heifers.  We haven’t borrowed money for cattle since then, and while we’ve maybe missed some opportunities along the way, there will no doubt be more opportunities to come as well.  Last spring, we contracted calves too early in comparison to how high the market later rose, but there is a lot to be said for having an above breakeven price locked in.

4. Put God first in finances

Lastly, there was a time that I held very tightly to whatever financial resources I had.  The good Lord had to continually use finances to get my attention to put Him first and trust Him.  The Bible speaks clearly on finances and tithing (Leviticus 27:30, Proverbs 3:9, Genesis 28:20 – 11, Malachi 3:10, etc.) and there has been times God has needed to remind me that He will make the 90% go farther than the 100% without a tithe ever would.  Does the good Lord ‘need’ our money?  Not at all?  Do I need to remember that I depend on Him in all things and for all things and to be obedient to His Word?  Absolutely.

We will no doubt have many more financial lessons to learn in the years to come through ranching, but for now, I better go double check that we’re not Amazon Prime members again! What lessons have you learned throughout your lifetime that you'd add?