What Will Our Financial Legacy Be?

Posted by admin in Finances, Guidance on February 2, 2010

Last week I had lunch with the leader of our weekly men’s group meeting. He has an amazing story. During his 30+ years of home building and developing in our area he’s been through some tough economic times. His experience is incredibly encouraging because it demonstrates God’s faithfulness to reward our obedience to Him.

During the savings-and-loan crisis of the late-1980s and early-1990s he ran into some serious financial difficulties. His accountant, banker, attorney — virtually everyone — told him to file bankruptcy. They said he “had no choice.”

He refused. Instead he worked through his debts over four years and eventually paid back everyone he owed… and ended up much better off than before his problems began.

The week of Oct. 19, 1987, following Black Monday, I experienced a financial crisis of my own, and I didn’t think my business would ever recover.

I had launched the newsletter, National & International Religion Report, at the beginning of the year, and the week before Black Monday I mailed a large number of promotional pieces to get new subscribers. I invested quite a bit with a marketing consultant and list broker. I printed thousands of brochures, letters and envelopes. And I paid postage to the U.S. Postal Service in advance of the mailing.

When my direct-mail pieces arrived during the week of Black Monday, no one was buying anything. The promotion was a total disaster, and the number of subscription orders we received was dismal. In all my years of publishing, I have never seen anything like it.

I was in way over my head. I had already borrowed from my bank and owed hundreds of thousands of dollars to suppliers. I didn’t have the cash to pay them back, or any hope in generating it. I had no place to turn. And like my developer friend, the sudden economic disaster affecting me was totally out of my control.

Drastic situations require drastic action.
I prayed and told my wife about our situation. She suggested we sell our house. (Just a few months before our financial crisis we had built our “dream home” — a cape cod on a hill overlooking the Blue Ridge Parkway in Virginia.) We agreed to do whatever was necessary. We sold our home, office building, boat — anything and everything we had worked to acquire in the previous 20 years. Within a year we were able to pay off our debts and get out of trouble.

Today, millions of people and corporations across the country are filing bankruptcy. I read a report last year in USA Today that said our nation had set a new record of more than 6,000 people per day filing bankruptcy.

When I was young there was a saying, “As goes GM, so goes the nation.” Since GM filed bankruptcy, I guess the federal government will, too. The President and Congress are preparing a new budget with plans to spend a trillion dollars more than they generate for years to come. Is this the example they should set for citizens to follow? If China tightens its monetary policy, or anything else goes wrong, the effect on our economy could be insurmountable. And even if nothing terrible happens, how will we pay the interest on all this debt?

When government prints money to pay its debt, inflation goes through the roof. If we continue on this path, the results will be devastating. The Jimmy Carter economic fiasco will look minor in comparison. The inflation rate could be as bad as Germany’s before World War II. Back then, people were being paid in cash, and a wheelbarrow full of money was barely enough to buy a loaf of bread.

When the economy is this bad, and the problems are completely beyond our control, what should we do? Here’s what I would tell my three sons…

Pray first.
Be joyful always; pray continually; give thanks in all circumstances, for this is God’s will for you in Christ Jesus.     – 1 Thes. 5:16-18

Sometimes it’s hard to be joyful when the future looks bleak, but it’s God’s will for us, no matter how bad our circumstances look. He tells us that His joy is our strength. And before we make any drastic changes, we need to talk to Him about it. Listen carefully to His “still small voice” in prayer. Jesus told us to “ask, seek and knock,” and a door will be opened.

Prepare for the worst.
A prudent man sees danger and takes refuge, but the simple keep going and suffer for it.      – Proverbs 22:3

Times like these call for frugality. So cut back — way back. Wherever possible, reduce or eliminate expenses. If and when things turn around, you’ll be in a better position coming out of the downturn. And if these economic problems continue for an extended period, you’ll be in the best possible position to ride it out.

Hope for the best.
Now may the God of hope fill you with all joy and peace in believing, so that you will abound in hope by the power of the Holy Spirit.     – Romans 15:13

Prayerfully consider how you would like your life to look in five years, ten years, and twenty years. Create a “big picture” plan and start working toward it. Make a to-do list of six things you must do to reach your goals and start to immediately knock them out. When you’ve eliminated the first six things on your list, create a new one, and continue working toward your goal. Be willing to give up short-term gratifications if the savings will help you reach your long-term goals.

Reduce your debt.
The rich rule over the poor, and the borrower is servant to the lender.     – Proverbs 22:7

One plan that I’ve heard for reducing debt made a lot of sense: Pay off your smallest debt or loan as quickly as possible, and make minimum payments on all the rest. When your smallest debt is completely paid, add the amount you were paying on it to your next smallest debt until it is paid off. Continue to do this until you have no debts.

Keep your commitments.
A fortune made by a lying tongue is a fleeting vapor and a deadly snare.     – Proverbs 21:6

Scripture is clear about keeping our word, and it doesn’t leave room for not paying our debts. Romans 13:8 says, “Let no debt remain outstanding, except the continuing debt to love one another….” I don’t like saying it during these times when so many are suffering and out of work, but anything less than paying what we have promised is the same as stealing. If we can’t pay now due to a job loss or other circumstances, we need to make arrangements to pay what we owe as soon as we possibly can. “Walking away” is not a biblical option.

Conclusion
Our nation has always come out of recessions and depressions in the past. But this time our government leaders are taking us into debt on a scale like never before. Only the Lord knows how much worse things will get before they get better.

I suppose we could be headed into the period mentioned in Revelation 6:6 when we’ll receive “a quart of wheat for a day’s wages and three quarts of barley for a day’s wages.” But even if we end up in bread lines, we should “be joyful always” and keep a smile on our faces, because we know that “He has given us … an inheritance that can never perish, spoil or fade — kept in heaven … ready to be revealed in the last time.”     – 1 Peter 1:3-5

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Hey, What’s That In Your Eye?

Posted by admin in Finances, More On Us on January 8, 2010

On Wednesday nights a bunch of guys from our church meet to study the book of Proverbs. That may sound pretty dry, but actually it’s a terrific time. I like the book of Proverbs and for many years I’ve tried to read a chapter a day. It’s truly mystical how I can read the same things over and over, and yet get good insight every single time. And I’m even more amazed by what I’m learning on Wednesday evenings.

Today’s the eighth day of the month, so this morning I read Proverbs chapter eight after I prayed about which mode of transportation I should take — the convertible or the motorcycle — and verses 12 and 13 really stood out for me…

I, wisdom, dwell together with prudence; I possess knowledge and discretion. To fear the LORD is to hate evil; I hate pride and arrogance, evil behavior and perverse speech.

Which words jumped off the page?
The words that stood out to me were prudence, discretion, and pride. so I looked them up in the dictionary. I really struggled with what I found. Under those words the dictionary mentioned things like good judgment, being frugal, responsible, skilled, cautious, reserved, conceited, arrogant, egotistical, and vain. I want to exercise good judgment and be cautious and reserved. But if I take those definitions to the limit, I’ll be driving my wife’s Subaru with all-wheel-drive and heated seats.

That would be fine with me, except that she doesn’t like driving a stick-shift anymore, and no matter what I say she won’t take the DMV test to get a motorcycle permit. So the Subaru is out.

I also want to be frugal, cautious and responsible. The convertible fits that fairly well. It gets good gas mileage and it’s paid for… But how do I avoid being prideful, vain, arrogant and egotistical while driving a bright red sports car? I guess I’ll just have to make sure I park it next to a Ferrari, Porsche, Rolls, or Lamborghini … or at least a BMW, Cadillac, Corvette or Mercedes.

Buick vs. Cadillac
This car-choice dilemma reminds me of an experience I had years ago with two friends. They knew each other well, but they had some problems in their business dealings with each other. As a result they didn’t get along and seldom spoke to each other.

One friend was determined to drive used cars that didn’t look too expensive. His most recent purchase at the time was a big used Buick. (This was back in the prehistoric days when Buicks were monstrous.) One day he made a comment to me about my other friend’s car. He wondered how my friend could drive a Cadillac with a clear conscience.

I explained that my friend with the Cadillac had purchased a slightly used Mercedes and then sold it for a considerable profit. Then he turned around and bought the Cadillac. I went on to tell him that the Cadillac actually cost my friend far less than the used Buick he was driving. That didn’t matter to him. It was “the appearance that mattered.”

Speck vs. Plank
So what do you think? Can a Christian drive a Cadillac? What about a Miata or a Hummer? Must we all drive a Prius or some other “green” car?

Do not judge, or you too will be judged. For in the same way you judge others, you will be judged, and with the measure you use, it will be measured to you. Why do you look at the speck of sawdust in your brother’s eye and pay no attention to the plank in your own eye?     – Matthew 7:1-3

Post Script
After thinking about the “appearance” vs. “stewardship” issue, I decided to keep the Miata for this project. Traveling in it will cost a lot less than finding another car. But in an effort to be “prudent” and ”responsible” I had some all-season tires installed at Jeff Fountain Tire Sales.

Two guys worked hard on my car. And when Miguel saw me taking pictures, he asked if I’d take one of him, too. (He’s the one with his hands in his pockets.)

The only thing left to do is get the oil changed, and then I’ll will be ready to go…

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When You Experience Money Problems…

Posted by admin in Finances on November 3, 2009

Years ago the Christianity Today offices where I worked were on the top floor of the Washington Building about a half-block from the White House. From the conference room window we could see the White House grounds where Richard Nixon said goodbye to his staff after his resignation, and took off in his helicopter.

I rode a bus each day to get downtown from my rented home in the Virginia suburbs. It cost about 90 cents each way. If I walked a couple of blocks up the hill to the bus stop near the shopping center, the fare dropped a dime.  If I didn’t have the correct change, I could put a dollar bill in the machine and get a ride. But I wouldn’t get change for the difference. Bus drivers had been robbed so many times that they stopped carrying change.

One day, when I was struggling financially — again — and walking to the bus stop near my home, I realized that I only had a dollar bill, and no change. If I put it in the machine, I’d lose ten cents. Since I had prayed that morning about my financial situation and made a commitment to be more careful about my spending, I decided to walk the extra 1/4-mile up the hill so I could get change at the gas station. And I realized that if I made the hike, I’d also save ten cents on my fare…

As I made the turn at the end of my street to walk up the hill, a car pulled onto the shoulder of the road behind me. The driver honked his horn. I turned back and saw it was my neighbor, so I opened the passenger door. He asked where I was headed… coincidently, he was going about a block away from my office that morning. I got in and rode with him in the HOV lanes. He dropped me off in front of my office.

I thought of that incident recently when I heard a talk by retired Marine Colonel Myrl Allinder. In his speech he said, ”You don’t have a money problem. You have a spending problem.” That’s been the problem for many of us — some of us longer than others. We think we don’t have enough money, but actually, it’s just a habit of spending more than we make.

I’m convinced that when we prayerfully work to get our spending in line, the Lord mulitplies the results.

 

Whoever can be trusted with very little can also be trusted with much….     – Luke 16:10

And he said to him, ‘Well done, good slave, because you have been faithful in a very little thing, you are to be in authority over ten cities.’     – Luke 19:17

Now he who supplies seed to the sower and bread for food will also supply and increase your store of seed and will enlarge the harvest of your righteousness.    – II Cor. 9:10

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God Will Meet All Your Needs

Posted by admin in Finances, More On Us on October 20, 2009

In those days we were struggling financially. The head shop wasn’t bringing in enough money to pay all the bills, and we barely had enough to cover rent and groceries.

One Friday morning my wife called me at the head shop. She was upset. The phone company had sent a notice that they were going to shut off our phone service if the $75 bill wasn’t paid by 9 a.m. Monday morning. I knew we couldn’t generate enough to pay it over the weekend, so I told her I was sorry, but all I knew to do was pray.

We said goodbye, hung up the phone, and prayed.

A few minutes later my dad called to say he had purchased a used car — a Corvair — and he wondered if he could put it on our parking lot over the weekend to sell it. He promised to give me $150 if it sold.

Before the weekend was over he sold the car and I had more than twice what I needed to pay the phone bill. Early Monday morning we dropped off the payment at the phone company’s office and our service was not interrupted.

And my God will meet all your needs according to his glorious riches in Christ Jesus.  – Phil. 4:19

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