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.
Showing posts with label budget. Show all posts
Showing posts with label budget. Show all posts
Monday, November 17, 2008
Monday, September 8, 2008
Daily Reflections on Prov. 22:26-27 (Getting into a Financial Mess is Easier than Getting Out)
These are depressing times. The economy is slowing down. Unemployment rates are going up. Gas prices are through the roof. The stock market is volatile. Foreclosures are at an all time high. Home values are plummeting. Banks are failing. And today, two of the biggest backers of home mortgages, Freddie Mac and Fannie Mae, were just seized by the government. Can things get any worse?
Perhaps, things wouldn't be so perilous financially for people today had we listened to the simple advice of Solomon in Proverbs 22. A lot of people today are in a quandary financially because of the failure to heed Solomon's practical instruction. Banks have failed and gone into receivership due to their less than prudent actions regarding lending practices.
In verses 26 and 27 of this chapter, Solomon states that we shouldn't pledge a debt that we don't have means to pay or else we'll lose our bed, or in more modern terms, our house. In other words, if we can't afford something, don't buy it. Don't borrow money you have no way of paying back.
In the past few years, the sub prime mortgage offers enticed a lot of people into purchasing homes they couldn't really afford. Most people reasoned that they could get into a nicer home at a lower payment and then refinance later. That lower payment looked awfully good. But most didn't consider the exploding balloon payment that got there sooner than they expected. When the housing values begin to fall, many found themselves owing more on their house than what their house was worth. And just like Solomon said, "if you lack the means, your very bed will be snatched from under you."
As the amount of foreclosures have risen, the value of homes have been driven even lower. That has put more people into upside down situations and into financial peril. Banks and lending companies, eager to make a profit through seductive offers, are now suffering the consequences of their own greed. Many of them are now over extended and experiencing huge losses.
But this type of mentality isn't limited to mortgage lenders. Credit card debt has long since taken the lead in heaping debt on the average consumer. Many of us buy things or charge things that we have no ability to repay. Now add growing interest and the debt becomes unmanageable. And with new bankruptcy laws taking affect, getting clear of our debt is even harder.
If only we could get a grasp on the wisdom of Solomon in this simple financial matter. Don't borrow beyond your means to pay back. I don't care how good your are at manipulating your cash flow, it will catch up to you and you will always be scrambling. Financial struggles bring on tension. Tension often leads to disagreements. Disagreements sometimes kill relationships. (Did I mention that financial issues are listed as the number one cause of divorce?)
God, please help me live within my means. Credit offers, easy payment plans, makes things seem so enticing. I confess, I have an "I want" syndrome. Give me the wisdom and the discipline to use sound financial and budgeting principles. I don't want to put my family in distress and I don't want to take away from giving to your Kingdom.
Perhaps, things wouldn't be so perilous financially for people today had we listened to the simple advice of Solomon in Proverbs 22. A lot of people today are in a quandary financially because of the failure to heed Solomon's practical instruction. Banks have failed and gone into receivership due to their less than prudent actions regarding lending practices.
In verses 26 and 27 of this chapter, Solomon states that we shouldn't pledge a debt that we don't have means to pay or else we'll lose our bed, or in more modern terms, our house. In other words, if we can't afford something, don't buy it. Don't borrow money you have no way of paying back.
In the past few years, the sub prime mortgage offers enticed a lot of people into purchasing homes they couldn't really afford. Most people reasoned that they could get into a nicer home at a lower payment and then refinance later. That lower payment looked awfully good. But most didn't consider the exploding balloon payment that got there sooner than they expected. When the housing values begin to fall, many found themselves owing more on their house than what their house was worth. And just like Solomon said, "if you lack the means, your very bed will be snatched from under you."
As the amount of foreclosures have risen, the value of homes have been driven even lower. That has put more people into upside down situations and into financial peril. Banks and lending companies, eager to make a profit through seductive offers, are now suffering the consequences of their own greed. Many of them are now over extended and experiencing huge losses.
But this type of mentality isn't limited to mortgage lenders. Credit card debt has long since taken the lead in heaping debt on the average consumer. Many of us buy things or charge things that we have no ability to repay. Now add growing interest and the debt becomes unmanageable. And with new bankruptcy laws taking affect, getting clear of our debt is even harder.
If only we could get a grasp on the wisdom of Solomon in this simple financial matter. Don't borrow beyond your means to pay back. I don't care how good your are at manipulating your cash flow, it will catch up to you and you will always be scrambling. Financial struggles bring on tension. Tension often leads to disagreements. Disagreements sometimes kill relationships. (Did I mention that financial issues are listed as the number one cause of divorce?)
God, please help me live within my means. Credit offers, easy payment plans, makes things seem so enticing. I confess, I have an "I want" syndrome. Give me the wisdom and the discipline to use sound financial and budgeting principles. I don't want to put my family in distress and I don't want to take away from giving to your Kingdom.
Saturday, November 10, 2007
Daily Reflections on Lk. 14:28-33 (Why Is Everything So Expensive?)
Why does everything cost so much and getting more expensive? I don't know what $100 a barrel of oil means, but I know what $3 a gallon means. Ouch! I fully expect $3.50 by Christmas. I don't know how people are doing it? Can anyone say credit card debt? How about second mortgages? I seriously look for mortgage or quick cash lenders to start showing up at or next door to convenient stations. Several grocery stores and Wal-mart already have them in their buildings in my area.
After several years in ministry, my observation is that most people can't spell budget. It's simply not in their vocabulary. Now spending, that's a whole new subject. People buy, go, spend with little thought about income. A lot of people I know are like the freshman girl a former college administrator and friend told me about, who wrote checks all over town thinking that the bank would just fill up her checking account when it ran dry. Wouldn't that be great? Talk about bounce protection.
My observation is that most people end up in financial trouble when they fail to develop and work a financial plan. We call that accounting and be accountable. Can't outspend your income. It's just that simple. But you can carefully budget and plan so that your bases are covered. Driving an Escalade or Lexus would be nice, but my 92 Ford Areostar Van gets me there and hauls stuff around for our church plant just fine. Insurance is less. Property tax is less. Tags are less. No car payments. And nobody wants to steal a 92 Ford Areostar Van. In other words, it fits a church planter's personal budget. It's what I can afford. Right now I couldn't handle payments on a new vehicle.
Counting the cost is hard. But here's what else I've learned; people who don't count the cost financially, rarely count the cost in various other areas of their life. They don't count the cost in their relationships. They don't count the cost in their behavior. They don't count the cost of their time. And if we don't count the cost, more often than not we get caught short. Some people live life believing they can do whatever they want and they won't get caught or have to pay any consequences.
I have a little saying that goes like this, "You can choose to do whatever you want. But you can't choose the consequences." There are always consequences for our actions, good or bad. Jesus says in this passage that anyone with any smarts will sit down and do the accounting. If you don't figure the costs, you're gonna pay the price. It's true in all areas of life, including your spiritual life. Jesus says that if you're not willing to give your life over to Him you can't be His disciple. If you're not His disciple, you're on your own with God. Question: Who do you want to be representing you before God on Judgment Day, Jesus or you? Just a thought.
God, I know it's all or nothing with you. You want all of me or none of me. My problem is that I want you but I want things of this world too. Sometimes I just don't count the cost. I want to fudge the numbers. Help me count the cost daily in areas of my life.
After several years in ministry, my observation is that most people can't spell budget. It's simply not in their vocabulary. Now spending, that's a whole new subject. People buy, go, spend with little thought about income. A lot of people I know are like the freshman girl a former college administrator and friend told me about, who wrote checks all over town thinking that the bank would just fill up her checking account when it ran dry. Wouldn't that be great? Talk about bounce protection.
My observation is that most people end up in financial trouble when they fail to develop and work a financial plan. We call that accounting and be accountable. Can't outspend your income. It's just that simple. But you can carefully budget and plan so that your bases are covered. Driving an Escalade or Lexus would be nice, but my 92 Ford Areostar Van gets me there and hauls stuff around for our church plant just fine. Insurance is less. Property tax is less. Tags are less. No car payments. And nobody wants to steal a 92 Ford Areostar Van. In other words, it fits a church planter's personal budget. It's what I can afford. Right now I couldn't handle payments on a new vehicle.
Counting the cost is hard. But here's what else I've learned; people who don't count the cost financially, rarely count the cost in various other areas of their life. They don't count the cost in their relationships. They don't count the cost in their behavior. They don't count the cost of their time. And if we don't count the cost, more often than not we get caught short. Some people live life believing they can do whatever they want and they won't get caught or have to pay any consequences.
I have a little saying that goes like this, "You can choose to do whatever you want. But you can't choose the consequences." There are always consequences for our actions, good or bad. Jesus says in this passage that anyone with any smarts will sit down and do the accounting. If you don't figure the costs, you're gonna pay the price. It's true in all areas of life, including your spiritual life. Jesus says that if you're not willing to give your life over to Him you can't be His disciple. If you're not His disciple, you're on your own with God. Question: Who do you want to be representing you before God on Judgment Day, Jesus or you? Just a thought.
God, I know it's all or nothing with you. You want all of me or none of me. My problem is that I want you but I want things of this world too. Sometimes I just don't count the cost. I want to fudge the numbers. Help me count the cost daily in areas of my life.
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