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dizzle
December 27th 2003, 12:56 PM
Christian Living and Personal Finance
Part I

by "Ishmael" - Cliff Bennett (http://www.theologyweb.com/forum/member.php?s=&action=getinfo&userid=75)


After many years of doing finances the wrong way I sometimes think that I would be better qualified to write an article on what not to do when it comes to finances. But God has been good to me and so nowadays I feel like I have been given a mission to spread around the knowledge that I learned from Dave Ramsey (www.daveramsey.com), and others, about personal finance. It’s knowledge about money of course, but it’s also wisdom about life. About how to say NO! to those little things you buy that steal your money bit-by-bit and eventually steal your financial peace. And it is wisdom about how managing your money wisely helps save lots of things besides wealth—things like families, marriages, and your future. So I hope that this short series of articles by my wife and me will help you start a journey towards peace. Because managing your personal finances well is about finding a place of peace that very few people in our culture choose to seek anymore. -B

Introduction

Personal Finance is a spiritual discipline. And just like prayer, fasting, going to church, and Bible study takes discipline and commitment, so does personal finance. The Bible is fairly clear about this to my mind. Luke 16:10-14 says, “Whoever can be trusted with very little, can also be trusted with much. And whoever is dishonest with very little will also be dishonest with much. So if you have not been trustworthy in handling worldly wealth, who will trust you with true riches?” Jesus made it clear in passage from the parable of the talents that we Christians are stewards of God’s wealth and that we are not only to preserve His investment in us but to make a profit as well. That is how we get the opportunity to manage more of God’s wealth. Pretty simple.

So why is it that Christians seem to have such a low degree of commitment to this discipline while keeping the more “spiritual” of the disciplines with an abundance of at least token discipline? There are various reasons but the most important reason is that the culture we are a part of has influenced us instead of us influencing it.

America is a culture of consumers who are driven to make purchases by an intense campaign of marketing that businesses of all kinds conduct on the open, free market. And most Americans, influenced by the superb marketing of corporate America, flock to the shopping malls like sheep ready to be fleeced of their money with no spending OR savings plan. In fact in a recent national survey conducted by Jean Chatzky (www.jeanchatzky.com) over half of Americans can't pay off their credit cards each month and 2 out of 10 say money just evaporates out their pockets - with no idea where it goes!

And the average American Christian is doing the exact same thing as the average American. According to a survey conducted by His Voice Financial Seminar (http://www.good-steward.org/Seminar/Seminar_1_Intro.htm) forty percent of Christians overspend each month. And all because Christians, just like non-Christians, have no plan for spending and an uncontrollable lust for more and more “stuff” titillated and fueled by advertising. And the endless cycle of making more money and spending more money begins and ends with broke Christians with lots of “stuff” that doesn’t deliver the happiness that it promised in the commercials on TV.

And that’s where me and Hope’s story begins, at the end of a very frustrating cycle of making more money and buying more “stuff”…

Too Much is Never Enough

About one year ago I had just come to my very first unit in the Army. I was making more money than I had ever made in my life yet was still broke. Oh, I had a nice paycheck coming in but that paycheck was going out just as quickly as it came in - “only the name on the check was changed to protect the innocent.”

It had always been the same for my wife and me during our seven years of marriage: when the income increased so did the debt. So we were just as broke at $50k per year as we were at $20k per year. What we didn’t know then was that more money wasn’t the answer to our financial problems.

“…More money will often not solve the problem; in fact, it may actually accelerate the problem.”1 There will never be enough to solve your money issues; instead, more becomes a shovel that digs you into deeper debt unless you decide change the way you think about money OR, in some cases, begin to think about money for the first time.

A sad reality is that in our culture most people don’t give a second thought to their money in terms of how they spend it. No, we just buy whatever we want, often on credit, until we find ourselves in debt and barely making ends meet. The payments steal any chance we have of saving anything against hard times and so we find ourselves enslaved to both our jobs and to our fears about the uncertainty of the future.

Make a Plan

So my wife and I decided that we were through with the stress and worry and started to develop a plan. The first step was to stop borrowing money! We drew a line in the sand and said, “never again!”

The Bible, in Proverbs 21:5 says,

“The plans of the diligent lead to profit as surely as haste leads to poverty.”

Children always do what feels good; adults make a plan and stick to it.

The first part of that plan has to be to stop digging the hole you’re in by not taking on any more debt. Just stop borrowing money! And do it today. Draw a line in the sand and say, “THAT’S ENOUGH!!! I don’t want to be a slave anymore!”


Slavery in the 21st Century

Don’t think you are a slave? The Bible says in Proverbs 22:7 says, “The poor are ruled by the rich, and those who borrow are slaves of moneylenders.” And there are so many moneylenders in our culture. Money lending and borrowing money has become the norm in our culture. In fact, there were 50 million Discover cards, 49 million Citibank Visas, and 48 million American Express cards in circulation with an average household balance of $4500 per card by the end of 1998.2 No wonder America has become a society of slaves and masters!

Hope and I decided to be free from slavery and you can too…
Proverbs 6:1-5 says:

1 My son, if you have put up security for your neighbor, if you have struck hands in pledge for another, 2 if you have been trapped by what you said, ensnared by the words of your mouth, 3 then do this, my son, to free yourself, since you have fallen into your neighbor’s hands: Go and humble yourself; press your plea with your neighbor! 4 Allow no sleep to your eyes, no slumber to your eyelids. 5 Free yourself, like a gazelle from the hand of the hunter, like a bird from the snare of the fowler.

…You just have to decide to get yourself free and work at it with intensity.

Save Some Money

The second part of our plan was to save some of our money for an emergency— because we learned that the minute you decide not to borrow any more money you will walk out into the driveway and your tire will be flat. Life will go on and you will pull out a credit card and make new debt if you don’t have any cash. So we quickly put about $1,000 in a saving account as insurance against “life.”

Cut up the Plastic and Restore Your Hope

Then we cut up all our credit cards and started to aggressively pay off the debt. Yes, in the short term, we had to “live without” some new “stuff”, but after we paid off those first few credit cards we were be able to buy some “stuff” and more with the money we were KEEPING and not sending to the bank.

Proverbs 13:22 says,

“A good man leaveth an inheritance to his children’s children: and the wealth of the sinner is laid up for the just.”

In other words, because of the decision my wife and I made, we were finally out from under credit card debt and were actually beginning to build some wealth. Not only that, but also our marriage started to grow better than it has ever been and our daughter begin to reap the benefits. We had restored hope in our family.

As long as we were in debt we had no hope and the Bible teaches, “Hope deferred makes the heart sick…” But once we got ourselves free we activated the second part of the proverb in our lives, “but a longing fulfilled is a tree of life” (Proverbs 13:11).
Having a sense of hope regarding your financial future is the best gift you could ever give your family. Run towards your debt - not away from it. Face it with the fierceness of an enemy in battle and you WILL see victory.

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Further installments of this series will be posted on TheologyWeb for reflection and discussion. We thank Cliff very much for both his service to the United States of America and for his friendship and support of TheologyWeb. His service makes it possible for sites like this to exist, and we thank him and his fellow servicemen very much though Christ our Lord.

1Rich Dad, Poor Dad, Robert T. Kiyosaki, p. 65.

2As noted in Dave Ramsey’s Financial Peace University.

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dizzle
December 28th 2003, 09:48 PM
Very well said Ishmael. I get into the credit card trap, and you are right, it is bondage.

How do you feel about home mortgages?

Alien
December 29th 2003, 06:17 PM
Interesting that there have not been more responses. Perhaps everyone simply agrees!

I agree with just about everything that was said, with one exception, that Dee Dee alludes to. Some things (houses are a good example) are just too expensive to be purchased without taking a loan. If we were to save up the cost of a house we would all be old and grey before we moved in! And we still have to live somewhere, and pay rent. In a rising house market, prices can go up faster than we can save, so it makes very good financial sense to buy as early as possible.

So, I would apply the spirit of Ishmael's advice and consider carefully how expensive a house I could afford, taking a pessimistic view of my future earnings .... am I assuming nothing will go wrong when I decide whether I can afford the mortgage payment? Have I assumed that future raises will materialize?

Incidentally, you don't have to cut up your credit cards if you can apply a bit of self-discipline. I buy most things on my credit card, it's a very convenient way of paying for things. BUT, I always pay off the full balance every month.

Socrates
December 31st 2003, 08:04 PM
Right you are Alien. A home loan is an example of financially wise debt. It it is also a form of forced saving. And also right that credit cards can be good servants if the balance is paid by the due date, but bad masters if the debt mounts up so you're paying interest on interest.

gotAnswers
January 2nd 2004, 04:14 AM
I appreciate anybody addressing the issue of compulsive spending. I think the wisdom of this Part 1 article is hard to disagree with. It's much like the wisdom that one shouldn't be addicted to any kind of medicating drugs. Not many will disagree with that wisdom. Don't know how many will discontinue their addiction because of it though.

Not much stated is far from what any good financial planner would recommend. You might say this is the most acceptable Biblical wisdom of our day (while the problem persists). Don't get in debt or get out of debt, because debt is bad. Maybe the financial planner won't have the Scriptures to endorse their recommendations is the only difference.

This wisdom is also very middle class American. Americans value being debt-free. For the poor or the rich, credit card debt isn't an issue. You might even say they are being "good stewards".

What about when things outside our control change: Loss of job, horrible unforeseen debt, loss of health, all of the above or something else. How will these principles help a person who finds themselves having more expenses than income and every savings method has been deployed? Is it better to get government or church help than to take out a loan? Many churches now "loan" money to those in these types of situations, especially if they are seen as temporary. Still many churches can't afford to help at all (except to recommend government aid) for those in these situations. How can the words of Jesus help here?

The article implies a few points: 1) Discipline and commitment is required to alleviate this problem. 2) Jesus was concerned about how we handle our finances (Luke 16:10-14) and 3) Debt is equal to slavery. Here are some questions these assumptions raise in my mind:

- Is discipline and commitment the only requirement for this to work? If I just discipline myself enough, will I get out of debt?

- Is the object of the Luke passage on the use or misuse of money or the honesty/loyalty of relationship to the Boss over and above money? Jesus says in verse 13, "You can't serve both God and the Bank". Followed by verse 14, "When the Pharisees, a money-obsessed bunch, heard him say these things, they rolled their eyes, dismissing him as hopelessly out of touch." (Msg version). The Pharisees were the best financial planners of their day and didn't like what Jesus taught here, Why?

- What gives debt the power to enslave (the issue of physical slavery aside)? Is it the debt itself or could it be something about the image the debt implies about the kind of person that I am?

The US government laws provide a means of getting out of credit card debt. It's call bankruptcy or Chapter 11. The same laws that many lenders have used themselves or would use if needed. We have pity on businesses when they must go bankrupt, but often look down when it's an individual: Why the double standard? Why little mention of these USA endorsed laws to protect us from excessive debt from the pulpit? (No, I'm not a lawyer).

Finally, How do we explain the potential misuse of money that was blessed by Jesus, three times? The widow that gave her last penny. Everything she owned went to charity or 100% tithe. Even Ron Blue wouldn't recommend such nonsense. Jesus asked the rich young ruler to do the same. Lastly, the woman who spent an annual incomes worth of oil/perfume to make Jesus feel and smell better. All of these examples are extravagant. They also appear as a complete violation of stewardship principles as taught by many Christian financial planners (and especially the non-Christians ones).

RAHster
January 2nd 2004, 11:47 AM
This is a great article and follow-up questions. As a CPA for over 20 years, I can attest to the bondage personal finances can be. Simply put, personal finance is a part of our lives that need to be brought into balance and under control like other parts of our lives (i.e. eating). < Uh... I shouldn't have used that example after the holidays... Oh well.>

I have listened to Dave Ramsey and his advise is mostly sound. Any error tends to be in the area of applying a general financial principle to all individuals. Individuals and their understanding of personal finance management vary greatly. Good advice for one may not be helpful to another. The common advice of eliminating credit cards would fall into this category. I know some who can't handle the temptation. I know others who find the right card, at the right rates, with the right bonuses (i.e. air miles) and use it to their advantage. Credit cards themselves are neither good nor bad.

Finally, the Bible is full of great financial wisdom. While the Proverbs provides guidance to keep us from financial folly, this is secondary to consistent commands in both the Old and New Testament to share what God has given. We are to be fools for Christ. This kind of spiritual financial management takes faith and maturity to make sure we are blessing others and not adding to their problem. Much more could be said, but must wait.

By the way, this is my first post...

dizzle
January 2nd 2004, 09:57 PM
12-29-2003 @ 05:17 PM post located here (http://www.theologyweb.com/forum/showthread.php?s=&postid=357595#post357595)
Alien:

Incidentally, you don't have to cut up your credit cards if you can apply a bit of self-discipline. I buy most things on my credit card, it's a very convenient way of paying for things. BUT, I always pay off the full balance every month.

I put everything on my AOL Visa, I pay it in full every month and the pionts I earn pays for my ISP service.

Alien
January 3rd 2004, 12:57 PM
Yesterday @ 06:57 PM post located here (http://www.theologyweb.com/forum/showthread.php?s=&postid=361445#post361445)
Dee Dee Warren:

I put everything on my AOL Visa, I pay it in full every month and the pionts I earn pays for my ISP service.

There you go!

I have an AOPA (Aircraft Owners and Pilots Association) card, and I get 5% off all aviation related purchases.

Incidentally, they just sent me a note about a change in the rules .... if I miss making a minimum payment, the interest rate goes up to 25%! Now there's extortion for you! I will have to be extra careful to send the payments in good time.

dizzle
January 3rd 2004, 01:00 PM
Now you guys know why I stay with AOL. I get it for free basically, plus I am a pretty loyal customer.

Ishmael
January 12th 2004, 10:45 AM
Hey! I am glad there is some activity on this subject that I love so much. Iwant to comment on home morgages and other kinds of "good debt" and will do so soon. I just got back to Iraq and my battalion is now spread all over the place again and I must travel to my new home in the morning. I have internet there too and so I will comment once I get settled...

TTFN

SuzzieQWho
January 14th 2004, 02:06 AM
nt

aicko
January 26th 2004, 02:19 AM
I appreciate anybody addressing the issue of compulsive spending. I think the wisdom of this Part 1 article is hard to disagree with. It's much like the wisdom that one shouldn't be addicted to any kind of medicating drugs. Not many will disagree with that wisdom. Don't know how many will discontinue their addiction because of it though.

Not much stated is far from what any good financial planner would recommend. You might say this is the most acceptable Biblical wisdom of our day (while the problem persists). Don't get in debt or get out of debt, because debt is bad. Maybe the financial planner won't have the Scriptures to endorse their recommendations is the only difference.

This wisdom is also very middle class American. Americans value being debt-free. For the poor or the rich, credit card debt isn't an issue. You might even say they are being "good stewards".

What about when things outside our control change: Loss of job, horrible unforeseen debt, loss of health, all of the above or something else. How will these principles help a person who finds themselves having more expenses than income and every savings method has been deployed? Is it better to get government or church help than to take out a loan? Many churches now "loan" money to those in these types of situations, especially if they are seen as temporary. Still many churches can't afford to help at all (except to recommend government aid) for those in these situations. How can the words of Jesus help here?

The article implies a few points: 1) Discipline and commitment is required to alleviate this problem. 2) Jesus was concerned about how we handle our finances (Luke 16:10-14) and 3) Debt is equal to slavery. Here are some questions these assumptions raise in my mind:

- Is discipline and commitment the only requirement for this to work? If I just discipline myself enough, will I get out of debt?

- Is the object of the Luke passage on the use or misuse of money or the honesty/loyalty of relationship to the Boss over and above money? Jesus says in verse 13, "You can't serve both God and the Bank". Followed by verse 14, "When the Pharisees, a money-obsessed bunch, heard him say these things, they rolled their eyes, dismissing him as hopelessly out of touch." (Msg version). The Pharisees were the best financial planners of their day and didn't like what Jesus taught here, Why?

- What gives debt the power to enslave (the issue of physical slavery aside)? Is it the debt itself or could it be something about the image the debt implies about the kind of person that I am?

The US government laws provide a means of getting out of credit card debt. It's call bankruptcy or Chapter 11. The same laws that many lenders have used themselves or would use if needed. We have pity on businesses when they must go bankrupt, but often look down when it's an individual: Why the double standard? Why little mention of these USA endorsed laws to protect us from excessive debt from the pulpit? (No, I'm not a lawyer).

Finally, How do we explain the potential misuse of money that was blessed by Jesus, three times? The widow that gave her last penny. Everything she owned went to charity or 100% tithe. Even Ron Blue wouldn't recommend such nonsense. Jesus asked the rich young ruler to do the same. Lastly, the woman who spent an annual incomes worth of oil/perfume to make Jesus feel and smell better. All of these examples are extravagant. They also appear as a complete violation of stewardship principles as taught by many Christian financial planners (and especially the non-Christians ones).
:eek: In regards to the potential misuse of money that was blessed by Jesus,we must look at the quote-
Matthew 13:34 All these things spake Jesus unto the multitude in parables; and without a parable spake he not unto them:
Which means that every statement attributed to Jesus was a symbolic statement. It meant something other then what was said. Whether you be poor or rich or young or old, we look at what Jesus was truly saying" Will you not give what is so dear to you, your last penny, will you not sacrifice your way of life or your lifestyle, will you not give everything to show your love and devotion to me, to follow me. It has nothing to do with being extravagant or foolish with money. Even if it did have to do with actual money nothing would be too much to ask for God.
Matthew 13:34