It's been called the worst economic times since the depression. Since I didn't live in the depression I'd have say that it's the worst economic times that I've experienced since the Jimmy Carter days. Back then we faced double digit inflation, interest rates reached as high as 21%, gas prices had quadrupled through the decade. Things were spiraling out of control. It was an uneasy time for America.
But today's financial crisis is something that I've never experienced before. The idea of a total economic meltdown has many really worried. Poor fiscal practices at all levels have no doubt led us to where we are today nationally and internationally. Even if you had saved diligently and thought you invested wisely for your future, you are still not safe. Many 401k's or retirement accounts are taking huge hits. I like the cartoon that recently appeared in the New Yorker magazine of stock broker on the phone telling his client he needed to diversify mattress.
Solomon gives some wise advice in Proverbs 27 regarding financial security. He talks about knowing the conditions of your flocks and herds. Now most of us don't measure our wealth by our livestock these days. But there is something to be said about keeping a close eye on our assets and investments and being aware of the condition of our overall finances.
As I read these words I was just reflecting on the condition of my own finances and got out a pen and paper. To be honest, it was a little depressing. My wife and I had used up all of our reserves to invest in the church plant we are currently serving. So this last year has been especially hard. Our youngest daughter was suspected of having lymphoma. Our part of the bill was over $5,000. Our oldest daughter totaled one of our cars. The payoff on the loan was over $1,500. Within the span of six weeks I lost engines in 2 vehicles and along with other repairs and car rentals the cost was over $13,000. We made an investment to start a new business to cover some these costs of over $6,000. In just the last twelve months we have had unexpected expenses totalling over $27,000. Ouch! And that doesn't include my wife's 401k that has lost nearly 40% of it's value over the same time period.
Depressing? Absolutely. Defeated? Absolutely not. Now more than ever Solomon's sound words make sense. By considering the condition of our finances we can make wise financial and budgeting decisions about our present and our future. Despite $4 a gallon gas and crashing stock markets, through careful financial planning we've been able to increase our offerings to our church by 20% and still knock off over $5,000 of our unexpected debt.
God, Solomon was right when he said that riches don't endure forever. It's really important in the stewardship of life and resources to pay attention. I don't need a lot of luxuries. I just need the basics. Even in a tanking economy living by your wise advice both personally and financially makes a lot of sense. I know that the only way we've been able to make it is by trusting you to supply and giving us the wisdom to manage our finances. Thanks, Lord.
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