Surviving Financial Meltdown

It is time for a FIRST Wild Card Tour book review! If you wish to join the FIRST blog alliance, just click the button. We are a group of reviewers who tour Christian books. A Wild Card post includes a brief bio of the author and a full chapter from each book toured. The reason it is called a FIRST Wild Card Tour is that you never know if the book will be fiction, non~fiction, for young, or for old...or for somewhere in between! Enjoy your free peek into the book!

You never know when I might play a wild card on you!

This is a very timely book, obviously, as many are facing a financial pinch - and sometimes much more. How can we navigate? Ron Blue is well-known as a Christian financial adviser and he presents some practical advice for Christians who want to avoid total financial meltdown.

Today's Wild Card authors are:

Ron Blue

and

Jeremy White

and the book:

Surviving Financial Meltdown

Tyndale House Publishers (January 20, 2009)

ABOUT THE AUTHORs:

Ron Blue has been a financial planner and consultant for over 30 years. He currently leads an international effort to equip and motivate Christian financial professionals to serve the body of Christ by implementing biblical wisdom in their lives and practices, resulting in financial freedom. Ron has appeared on national radio and television programs and has authored 13 books on personal finance, including the best-seller Master Your Money.

Visit the author's website.

Jeremy Whitehas been a Certified Public Accountant since 1988 with financial experience in public accounting and industry. He’s currently practicing as a partner with Blythe, White & Associates, a certified public accounting and consulting firm in Paducah, KY. Jeremy is a qualified member of Kingdom Advisors. He has coauthored or assisted with four other best-selling financial books including The New Master Your Money, Splitting Heirs, and Your Kids Can Master Their Money.

Visit the author's website.

Product Details:

List Price: $12.99
Paperback: 144 pages
Publisher: Tyndale House Publishers (January 20, 2009)
Language: English
ISBN-10: 1414329954
ISBN-13: 978-1414329956

AND NOW...THE FIRST CHAPTER:

Riding Out Financial Storms

How to Prepare for Economic Uncertainty

Plunging home values. Declining stock market. Vanishing credit. Rising gas prices. Ongoing war against terrorism. Failing banks. Soaring food costs. Falling value of the dollar. Swelling budget deficits. (Suggested cover story for the next Money magazine—Best Investment Now: Antacids!)

If you’re worried, you’re not alone. You’re not the only one feeling the uncertainty. Consumer confidence measurements have reached their lowest level in decades.

Most of the world would still leap at the chance to trade economic situations with you. You realize that. But you’re still nervous and searching for answers.

It’s easy enough to present our case that economic times are challenging. The daily headlines back us up on that. Our challenge in this book is to prepare you so you have less fear and more financial peace.

We want to help you develop a common-sense financial strategy to weather the economic storms of today as well as those in the far-off financial future. In times of economic uncertainty, the strength of your strategy will determine whether you thrive or survive.

Let’s get started with a reminder of how you prepare for tough times: Prepare in advance.

Don’t Let Your Dreams Be Washed Away
The aerial photo is startling: An attractively designed yellow two-story home stands alone on highly sought-after real estate along the Texas Gulf Coast. Just a few days before, that house was part of a thriving community. Now, it is surrounded on every side by the wreckage of about 200 other homes and buildings. A private helicopter pilot, flying over the area after it had been slammed by Hurricane Ike, had taken the photo.

Not long after he posted the image on CNN’s iReport site, the buzz started. Viewers began debating whether the photo was a fake. After all, how could one home withstand 110 mph winds and a storm surge while every other building around it had been pulverized? The speculation ended when the sister of the home’s owners identified it and provided another photo of the house taken just a few months earlier.

Reporters quickly located the home’s owners, Warren and Pam Adams. Just three years before, the Adams’ home had been destroyed by Hurricane Rita. Because they loved the beach, the couple wanted to rebuild rather than leave the coast. So they did—but with the knowledge that their new home might also be in the path of a hurricane some day.

The couple hired an engineering firm to oversee the contractor as their new residence was built. The builder put the house’s bottom floor on wooden columns that raised it above the surrounding houses. The foundation was made with reinforced concrete, and builders followed the latest hurricane building codes to the letter.

Despite its solid construction, the home did sustain some damage in Hurricane Ike. The first-floor garage and a wooden staircase on the home’s exterior were destroyed. The interior suffered some water and mud damage. Yet unlike their neighbors, who returned to their former home sites hoping to find a few personal belongings among the rubble, the Adams can repair their home.

The precautions the couple took when rebuilding their home after Hurricane Rita may have seemed extreme to some. Yet their foresight appears brilliant now after the town sustained a direct hit by a hurricane. In fact, after Aaron Reed, a spokesman with the Texas Parks and Wildlife Department, confirmed that the Adams’ home was the only surviving home on that side of the beach, he added, “I thought, if I were ever to build a house on the coast, I’m going to contact the guy who built this.”1

In fact, the couple simply displayed common sense. They knew that their home had been destroyed once by a hurricane and that it could happen again. Of course, others along the Gulf Coast knew they faced that threat as well. The difference was in how they responded to that risk.

Like some Gulf Coast residents, many of today’s investors build their financial houses without much of a strategy. When you build something you want to keep, common sense dictates that you build it according to a plan and with materials that will last. This strategy works for all types of construction, from putting together a financial portfolio to building a house.

Warren and Kay Adams can’t prevent a hurricane from smashing into their home on the coastline. They can’t control which way the wind blows. They can, however, build their house to withstand the wind and water.

Mr. Blue Goes to Washington
Palms sweating and heart racing, I (Ron) remember climbing the granite steps of the Capitol building to testify as an expert witness before a Senate subcommittee. I entered the chamber room where the hearings took place. I had often seen it on television. It was impressive yet intimidating. The senators were seated higher than the witness table and the visitors’ gallery.

I recognized many of the senators’ names on the plaques at their table and took a deep breath. I reminded myself that I wasn’t in trouble—even though the room had the feel of a courtroom. The Senate subcommittee was holding hearings on “Solutions for the New Era: Jobs and Families.” I was one of several “experts” from various economic and social fields. Other participants on the panel pressed for more social programs.

When my turn to speak came, I was hoping my voice wouldn’t crack. Could I live up to my introduction as a financial expert? Leaning in toward the microphone on the table, I began to answer a senator’s question about what the average American family should do in the current economy to survive and thrive. I said I believed the American family could benefit from following a four-part financial plan:

1. Think long-term with goals and investing

2. Spend less than they earn

3. Maintain liquidity (or emergency savings)

4. Minimize the use of debt

The Senate chamber room fell silent for a moment. I was expecting laughter to reverberate among the marble columns and high ceiling at the simplicity of what I said. The committee chairman, Christopher Dodd, looked down at his notes. He furrowed his brow and pursed his lips. He recited the points back to me. Instead of chuckling at me, he then said, “It seems like this plan is not just for the family. It seems it would work at any income level.”

“Yes,” I replied with some relief. Now I was the one doing a bit of chuckling as I added, “including the U.S. government.” We went on to have an engaging conversation about how the senators could exercise strong leadership through wise financial practices.

Four Principles of Financial Success
I had prepared my four-part answer to the senator’s question over many years. In fact, I heard that same question over and over. After a presentation to a large audience or in response to a call-in radio program, people often ask how to get out of a financial mess—or avoid one. Often the questioners hope that I’ll provide a dramatic, one-time solution for their financial difficulties. Though they may be disappointed to hear my commonsense strategy, I know this time-tested, biblically supported answer works.

Let me briefly expand my explanation of these principles here:

Think long term. The longer term your perspective, the better financial decisions you’ll make. Set goals in writing for the future. Invest for the long term and worry less about short-term ups and downs in your 401(K) or investment portfolio.

Spend less than you earn. To accomplish this, you need to know what you’re earning and what you’re spending. Make a spending plan (or, if we dare use that loathed term: a budget). Monitor how you’re doing. Develop the self-control to avoid overspending. If you spend less than you earn consistently over a long period of time, you will do well financially.

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Maintain emergency savings. A reserve set aside will help you ride out the surprises life throws at you. You must spend less than you earn to build savings. Savings will then help you avoid debt. These principles work together.

Minimize the use of debt. Debt increases risk. It may allow you to do more or have more now, but debt will reduce your ability to have more in the future. I know of few cases of financial disaster occurring without debt. Financial problems are magnified with debt.

These four financial principles are so simple that they may easily be overlooked. Yet they have stood the test of time. They work when the economy is in a recession, depression, or boom times. They work despite inflation or deflation. They apply when gas prices or real estate values are rising or falling. They were outlined thousands of years ago in the Bible. Many rich people—and many poor ones—can attest to their truths.

Some technical professionals, such as doctors and engineers, initially think these principles are too simplistic. They want to make succeeding financially as technically challenging and sophisticated as their fields. But you can’t go wrong if you follow these steps. What kind of financial trouble would you ever get in if you spent less than you earned, minimized debt, kept savings available, and thought about the long term?

When Do I Apply These Principles?
Warren and Kay Adams prepared for possible disaster before it happened. The best time to apply these four steps is before the financial storms come.

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You may be thinking, Well, it’s too late for that. I’m in the midst of a financial crisis. The hurricane has already hit. Now what do I do? Here’s hope. You start with these four principles of financial success. If you haven’t done them before, then start now. You can’t lay a solid financial foundation without these four steps. They will lead you out of a crisis—and prevent many future ones.

Perhaps your financial crisis has already happened. You may have lost your job. You may be getting calls from creditors. Perhaps you fear a possible foreclosure. You’re picking up the pieces and trying to rebuild. What do you do? Same answer. You start with these principles.

Perhaps you don’t currently face a financial crisis but are anxious because of all the economic bad news. The Adams’s house is a great illustration that may motivate you to prepare for storms in advance. You can take great comfort in these transcendent principles that apply before, during, and after the crisis.

In fact, some positive results can come from our country’s current economic downturn. We’ve learned that a crisis can sharpen our focus. It helps us think more rationally. When gas prices rose significantly, consumers started moving from large sports-utility vehicles and oversized trucks to more fuel-efficient vehicles. This is rational. But even when gas was less expensive, was a Hummer ever a sensible purchase for an urban dweller?

People ask us, “Now that _____________ (you fill in the blank) is happening, what should I do?” we always give the same advice: follow these four principles. If you set long-term goals and invest accordingly, if you spend less than your income, if you have available savings, and if you eliminate debt, then you’ll be as prepared as possible.

No Surprise Ending with This Book—But Keep Reading
We suppose this would make a poor novel. No mystery or suspense here. We’ve already revealed the four principles of financial success and told you the ending of the story. The punch line came before the setup of the joke.

However, we hope you haven’t missed the paradox: these principles are easy to understand but they’re often hard to do. We’ve stated the principles but not yet helped you understand how you can begin doing them. In the coming chapters, we’ll explore these principles in greater detail. You’ll discover how to approach the future—any future—with financial peace of mind.

We realize that it’s not just a matter of doing four simple steps in a vacuum. You’re part of an overall economy. You can’t avoid feeling some of the effects of our nation’s economic downturn—but it doesn’t have to be as great as you fear. You hear things that make you anxious. Money issues carry with them emotions, baggage from the past, and uncertainty about the future. You probably don’t have a degree in financial management. When it comes to handling your own money, you’re probably in unfamiliar territory. So we’re going to begin by exploring what causes financial fears in our economy. Then you’ll identify your particular fears.

You can do this. You can learn to manage your finances wisely. It’s not too late. Reading financial how-to’s is like exercising or eating healthy food. You know you’re supposed to, but will you do it? You can. People with less education, less talent, less income than you have done it. Financial peace of mind can be more than just a future hope. It can be your expectation. In the pages ahead, you will learn how to take this expectation and make it a reality in your life.

What God did

Yesterday, we saw how Mike wrestled with giving some of his income to orphans.

Mike started sending money the orphanage every month and the raise at work didn’t come immediately. He’d kind of been expecting that or maybe a gift from a generous uncle.

Instead, he had to drive a little less because he didn’t always have enough money for gas. He started walking to work and that’s when he met Serena. She was walking to the shop where she worked, close to his job, and, after a few weeks of walking together, he invited her to his youth group.

Two months later, she responded to an invitation to follow Jesus.

When Jenny sent out a new e-mail trying to get ideas for Christmas gifts for the orphans, Mike got a bright idea. He sold his iPod – surprisingly, it sold fast and for top dollar – and financed a special party with treats and gifts for all the orphans.

The photos Jenny sent ended up on his screensaver so he could watch the delighted kids whenever he used his computer. A crayon-colored thank-you letter from one of the little girls at the orphanage was stuck up on his wall beside his desk. He really liked the part where she said God had been good to her.

After a year, Mike still didn’t have his new Xbox. But, oddly, he didn’t care so much.

“Because of the service by which you have proved yourselves, men will praise God for the obedience that accompanies your confession of the gospel of Christ, and for your generosity in sharing with them and with everyone else.” (2 Cor 9:13)

Saving up

Mike was expecting a raise at work. He’d done all they had asked but his boss told him that business was slow and he’d have to wait for a raise.

He was still stewing about how unfair this was when his older brother, Jeremy, called him. “Hey, bro’, just got an e-mail from Jenny.” Their cousin, Jenny, was working with an orphanage in Haiti.

“What’s up?” Mike asked.

“She’s trying to get a birthday club started for the kids there. She wants people to sign up to buy a birthday gift. I’m gonna sign up and I thought you’d want to know, too.”

“I can’t afford that,” Mike said. “The boss didn’t give me a raise. I got expenses, you know.”

“Hey, man, we’re rich compared to those kids. And you could send a little bit every month and never even notice it.”

Mike was silent. He’d already spent his raise in his mind, planning on saving for an Xbox 360 Elite. Now Jeremy wanted him to have less than he’d had before. This was going backwards.

But Mike had been reading in 2 Corinthians. And this verse popped into his head: “You will be made rich in every way so that you can be generous on every occasion, and through us your generosity will result in thanksgiving to God.” (2 Cor 9:11)

Was Jeremy right? Was he rich? Not according to what he wanted to buy. But he’d seen Jenny’s pictures of those kids. They owned nothing. Even their clothes weren’t their own but went back into the clothes box when they outgrew them.

Well, this would be a great chance to see if God could keep his promises, Mike thought. I am kinda rich, maybe, and I wonder what would happen if I was generous? What would God do?

“Hey, Jer,” Mike said. “E-mail me the info. I’ll give it a try.”

Tomorrow: what God did

Cheerfully?

Danette was a single working gal, paying her bills every month but not much more. But when a need came to her, she’d always pray: “God, if you want me to give to this, just send the money my way.”

She said it was surprising how often money came in from some unexpected source. And she always sent it on.

In his second letter to the church at Corinth, Paul described his plan to pick up an offering for the poor living in Jerusalem. The Corinthians had pledged to give and Paul wanted them to give cheerfully.

Each man should give what he has decided in his heart to give, not reluctantly or under compulsion, for God loves a cheerful giver. (2 Cor 9:7)

Why? What’s the big deal about giving cheerfully? Isn’t it enough to give? Do I have to enjoy it, too?

Paul makes it clear. Each person should give from his heart. Notice that Paul didn’t say, “each should give what he or she decided after looking at how much money he had left” or “each should give according to how much money he or she can earn in the next month.”

In other words, Paul wanted them to give as God had asked them to give. What did their heart tell them?

Danette gave to many worthy causes – joyfully. And we can have the same joy if we don't sweat our budget and instead let God lead our heart.

No big deal

Jim was part of a mission team going to Paraguay, needing to raise about $5000 in six months.

While his team members sent out letters and held car washes to help raise the funds, Jim put it off.

“It’s not a big deal,” he said. “If I need to, I’ll just take out a loan.”

That’s what he did, too, when the time for turning in money for the trip came. He was the first to have the full amount, because he’d just signed the loan papers and had the money in hand.

But three weeks before the team was to leave, their director got an interesting phone call. A donor wanted to finish out the funds for any members who didn’t yet have their full funds.

Most of the team members were close to having enough money for the trip and this donor gave them the rest of their funds.

Except Jim, who had chosen to get the money his own way. He got nothing from the donor.

Paul wrote, “And God is able to make all grace abound to you, so that in all things at all times, having all that you need, you will abound in every good work.” (2 Cor 9:8)

Think of what we miss when we do it our way.

Economic bites

Maybe gas prices have dipped a little but my grocery bill keeps going up. And it's not all because of a teenage son. That just makes the bite a little more vivid.

We all know that the economy is tight right now. Prices are up, personal financial worth down.

John Piper took an interesting tack on his blog, Desiring God. Bad economic times, he suggests, are good for missions.

Here are some of his reasons:

• During an economic downturn we are more dependent on God. That is the most fertile soil for creating missionaries.
• During an economic downturn unreached people around the world do not expect you to come, but to look out for yourself. So they may more likely see your risk as love rather than exploitation.
• During an economic downturn those who need Christ around the world may be less secure in earthly things and more ready to hear about eternal life.
• During an economic downturn people at home may be wakened to the brevity of life and the fragility of material things, and so may become more generous not less. And when they give under these circumstances, it will make Christ look all the more like the all-satisfying Treasure that he is.

Recently I heard a speaker point out the irony of what our money states: In God we trust. Do we trust the words or the paper they're written on?

Freedom Finances: an open palm

We’re shopping for a house. When the kids first heard, they panicked. “Are we moving?” We’re not moving.

But we’re looking for more passive income.

Passive income comes from places where I earn money without working. When I sock money into a savings account, I am earning passive income with the interest. (Barely, but that’s another topic.)

We’re looking for a rental property.

We’ve talked in Freedom Finances for several weeks about getting on the topside of interest. Instead of paying interest, earn it. Instead of spending every penny, save some.

More than once, Jesus spoke of investing money. The classic is the parable of the talents in Matthew 25. Although Jesus’ point was not investing, he didn’t condemn it but praised the two servants who invested while condemning the one who refused to invest.

For some Christians, making money through passive income seems vaguely wrong. Jesus didn’t have a savings account, did he?

No, he didn’t. But he had some finances. (Judas handled the ministry treasury.) And we know that some wealthy women followed him, suggesting they may have helped with the daily expenses. Certainly, wealthy people contributed to the apostles as they traveled throughout the civilized world spreading the gospel.

God needs followers in all financial classes. The issue for us as followers of Jesus isn’t accumulation of money, but how we use that money. If money is gathered just to make me comfortable and safe, then I’m wrong.

But if money is gathered so that missionaries can be financed, Bibles printed, widows assisted, then the riches are very helpful.

Investing isn’t wrong. God used investors to finance the outreach of the early church and to provide for Jesus’ followers.

Money, like all things, is not to be held in a clenched fist but in an open palm.

Freedom Finances: Save

My first savings account was seeded by the sale of a baby lamb. I was only 6 and had hand-raised the lamb from spring until fall, when it was sold.

“The money is for your college account,” my mother explained.

That was my first taste of savings accounts. Over the years, I watched my parents sock away every extra cent stoking their dream of ownership. We were farmers and so I had opportunity to raise many more animals over the years, funneling the income into my college account. I earned an English degree with the help of bottle calves.

“Treat your savings account like a bill,” my father told me many times. “Pay it with every other bill at the beginning of the month.”

Debbie commented last week on the value of a savings account. She called it an emergency account. I agree, although I might call it a dream account as well. Having a savings account prevents panic debt – that debt we incur because something new and unexpected hits us.

There’s freedom in planning ahead and setting aside. My parents bought their farm when I was 13 and had it paid off in 10 years. I went to college and came out with enough money to buy a new stereo system.

You can start now. Open the account and decide what you owe it each month. Pay that bill like any other, and consider it spent. It’s gone, no longer available to you except for pre-planned purposes.

Remember the ant from Proverbs:

yet it stores its provisions in summer
and gathers its food at harvest.

Prov 6:8

Freedom Finance: Refunds

Jerry is going to replace the window in the dining room when his comes in. Sherrie is going to buy new clothes and that cute purse she’s been admiring for months. Shortly, Dustin will replace the sound system in his car and Jessica will buy a new computer.

What are you going to do with your windfall from the government this year?

I'm talking about both your tax refund and the stimulus rebate.

If you’d like to experience freedom financially, here’s a question for you: why are you giving the government a free loan for a year? That’s what your tax refund amounts to. Throughout the year, you’ve allowed your employer to take more money for taxes than you really owe, giving you a large return every year.

But it’s money you’ve loaned to Uncle Sam interest-free all year.

It’s your money that you could use to pay for the higher cost of gas and groceries through out the year. You may not get that new sound system but you may manage better month to month without using credit, thus avoiding more debt.

Go over your withholding so that you get a larger paycheck and less refund.

Now, what should you do with the stimulus refund? First, tithe on it. Then, if you have credit card debt, pay it down. You will have instantly earned that debt’s interest rate – which is probably high on a credit card. Apply the refund to your highest-interest debt.

If you don’t have debt, invest this refund. Build up an emergency savings account or, if you already have that, add the money to an investment.

Or, if God so leads, consider donating this refund to a worthy ministry. There’s incredible freedom in opening your fist to give flight to the funds God provides you.

Once Jesus, in talking with money-loving Pharisees, told them, “What is highly valued among men is detestable in God's sight.”[1]

Manage your money so that you bring honor to God, not to the values of people.

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[1] Luke 16:15

Freedom Finance: First

Joshua’s final instructions before the battle tasted like ice cream with pepper sprinkled on top. He promised them victory but told them to leave the rewards behind.

The army was perched in enemy territory, vulnerable and untested, anxious for a victory over this fortress. The riches taken in battle would help the army pay for the food and provisions needed to complete the sweep.

But their general withheld those riches.

Instead, Joshua declared all the gold, silver, bronze and iron were for the Lord’s treasury. What if they ran short of food before the conquest? What if they couldn’t complete the maneuvers without provision? Joshua assured them the victory was the Lord’s – and so were the riches.

Through Joshua, God laid out a powerful principle: the first is his. That’s the tenet of tithing. I have friends who pay the bills and then see if there’s anything left for God. There usually isn’t.

God says, trust me. See if I’ll take care of you. To the Israelite army about to enter the Promised Land, the thought of forgoing those first riches in Jericho could have meant they wouldn’t have enough money for their month, so to speak.

But they obeyed. And there was enough food and provisions for the conquest.

Tithing is an attitude: do I trust God’s commands? Do I trust his provisions? Can I give over to him what he’s given to me anyway?

Freedom finances depend on my attitude more than my checkbook. Whom do I trust?

Pay your tithe first, right off the top, and see what God can do with an obedient submitted life.

Be strong and courageous. Do not be terrified; do not be discouraged, for the LORD your God will be with you wherever you go."

Josh 1:9

Freedom Finances: car loans

We needed a station wagon. I had an S-10 pickup and he had a battered old blue van. The station wagon was the compromise vehicle and we started reviewing our resources.

After some budget work, we decided we could afford a car payment. We sold the pickup for more than its loan value (because I had borrowed as little as possible when I bought it) and sold some other unused items.

We shopped for an older vehicle, waiting to buy for a couple of months until the one in our price range came available. Thanks to a Colorado hailstorm, it came on the market with some minor craters on the roof.

After some negotiating with the salesman, we walked away with an older station wagon and no car loan. That’s when we kicked in our new plan.

We made the car payments anyway. We treated that car payment just like any other bill and paid it promptly every month. Instead of paying out 8-10% interest, we were earning 2%. That’s a 10-12% difference – not bad return on investment.

So here’s the idea for you: keep your present vehicle as long as possible. Take good care of the maintenance, which will keep it running a little longer. When it’s paid off, put the car payments into a special account every month so that when it’s time for the next car, you won’t need to borrow as much. With that kind of plan, you will be paying cash for vehicles in a few years. And paying the interest to yourself instead of to a car dealership.

Debt is a form of slavery (take a look at Neh 5:4-5 to see its effect on families) and any steps we can take to ease that load brings us the light of freedom.

Freedom Finance: happy?

Even the envelope was professionally enthusiastic while the letter exuded energy, announcing that our credit card limit was now raised to $15,000 and we were eligible for instant cash. Sure enough, tucked in behind the sheet of paper was a large check made out to my husband for $10,000.

Easy street, right?

The fine print hid the interest rate of 18.9% plus the cash advance fee of another $35. That $10,000 instant cash would have cost us nearly $1,900 in interest the first year. Not so free.

My husband called the credit card company, told them to reduce the limit to $5,000 and turned the check into confetti.

Ours is a consumer economy, driven by purchases. The more you buy, the more the economy grows. It’s all built on sand, of course.

The average consumer in America has over $9000 in credit card debt and half pay only the minimum monthly payment. Americans pay over $50 billion in interest each year and 1.3 million credit card holders declared bankruptcy last year.

Last week we discussed contentment, because lusting after new possessions produces this kind of debt. If you find that you fill those emotional empty places with stuffed shopping bags, you may be familiar with credit card debt.

This week, notice your contentment level. How many items have you bought because you wanted them that instant or you gave in to an in-store advertising trick? How much stuff are you storing because you bought on a whim, thinking this purchase would be honey on the sore places of your soul?

Paul wrote, “I'm just as happy with little as with much, with much as with little.”[1]

And how did he learn that contentment?

“I can do everything through him who gives me strength.”[2]

So can we.

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[1] Phil 4:12

[2] Phil 4:13

Freedom Finances: contentment

A cold chill crept through Timothy as he read the letter. He’d expected encouragement and direction but this…..

“But if it's only money these leaders are after, they'll self-destruct in no time[1],” Paul had written.

Timothy understood that he couldn’t allow worship of money, but did Paul expect him to alienate these leaders? They came, put money in the offering plate, helped finance the ministries, helped pay his salary.

What did Paul want him to say?

“If we have bread on the table and shoes on our feet, that's enough,[2]” Paul wrote.

That’s enough? What about the TV and microwave? Those are basics, right? And then the second car and the health club membership and the pizza when I’m too tired to cook.

And then the kids need Ipods and cell phones.

How could bread and shoes be enough?

Don’t let legalism creep in here. Paul wasn’t attacking 20^th century way of life, but he did attack discontentment.

As we study financial freedom, this is the foundation. Can we be content with less? Can we resist the manipulation of advertising?

When discontentment wafts into our lives, do we shop or pray?

Your priorities show up in your checkbook – or credit card bill, in our culture.

The path to financial freedom starts with contentment. Jesus promised to provide for our daily bread. And Paul says if we have bread and shoes, we’re good to go.

“Lust for money brings trouble,[3]” Paul advised Timothy, who was trying to stay afloat among the wealth of Ephesus.

Trouble today is spelled D-E-B-T.

“But you…: Run for your life from all this. Pursue a righteous life— a life of wonder, faith, love, steadiness, courtesy. Run hard and fast in the faith.”

1 Tim 6:11-12

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[1] 1 Tim 6:9

[2] 1 Tim 6:8

[3] 1 Tim 6:10

Freedom finance

“So do you think we could hock the 14-year-old?” Lisa laughed as she pulled her credit card bill out of the mail box. “He’s been a little obnoxious anyway. Two birds with one stone and all that, you know?”

She winked at me and then gave the envelope another look, sighing. “I really wish I could quit my job but this keeps me going. I’d like to be home for the kids but we have bills to pay.”

As far as Lisa knows, she’ll work the rest of her life to pay the interest on her credit card debt. Although she loves her husband, his love of stuff keeps their credit cards maxed out. She works to keep them afloat but neither of them expects to ever get out of debt.

“I’d like do some volunteer work,” she confided. “I’d like to go to Mexico for a week with that team at church. But I can’t think that way. So I don’t!”

Finances are decidedly not romantic, yet how we handle our money affects how we handle our lives. Handling finances in a godly way can lead us to a place of freedom.

And God has a lot to say about finances. On Thursdays for a few weeks, we’re going to look at some of his advice regarding how to handle money. Jesus promised freedom. Does that include our finances? We’re going to dig into the Bible, to see how a follower of Jesus should handle money.

Next Thursday: Paul and Timothy talk money

Just enough

By the time we saw him, the man had already pushed his car up the driveway of the gas station. First, all the pumps were occupied so he guided the old car to the curb and waited. He leaned on an old tank of a car, faded and bent. Finally a spot cleared and he bowed hard into the front bumper. The car rolled silently up to the pump.

By this time, we were pretty sympathetic for this man who obviously had a touch of bad timing, running out of gas so close to the station. And then we got a laugh as he pumped $5 worth of gas into the car and drove away.

I’ve never lived that close to the end of the paycheck, but I do remember paying all the bills for the month and having $20 left. What I found interesting was how we had enough. It didn’t seem to matter if the heating bill was up or we used more electricity. I paid the bills and we’d have $20 left over. We bought $75 worth of groceries every month (this was 20 years ago) based on a menu plan, and never ran out of food. We took walks for entertainment and played board games. I cancelled the cable TV and we had time to tend our garden.

I wrote a tithe check every month, right along with the other obligations. The car never broke down that year and the shoes didn’t wear out.

“Test me in this," says the LORD Almighty.

We weren’t looking for riches that year, just survival. God stretched my paycheck. I couldn’t tell you exactly how, but we always had enough. We knew we were being cared for even though we couldn’t exactly see how.

After that year of squeezing, I don’t doubt God’s ability to care for my finances. I could have pumped $5 worth of gas, knowing that when I needed more, it would be there. God proved to be able and willing.

See if I will not throw open the floodgates of heaven and pour out so much blessing that you will not have room enough for it.

Mal 3:10