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.
Showing posts with label budgeting. Show all posts
Showing posts with label budgeting. Show all posts
Monday, September 8, 2008
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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