Save for the Future

In Proverbs and Ecclesiastes Solomon lays out God's Four Foundations of Financial Freedom. The second one is found in Proverbs 21:20, "The wise man saves for the future, but the foolish man spends whatever he gets." 

Solomon, the wisest and wealthiest man of his time, says here: You want to be in debt? Make it a habit to live paycheck to paycheck. When money comes in just spend all of it, not saving anything - and you’ll be in debt in no time at all. Why is this the case? Why does NOT saving lead to debt? Because if we don’t save when things are good, we’ll never be ready for when things go bad. We all know that the car is going to need a repair, the AC unit is going to break, and the baby bill is going to be $1,000 or more.

When times are good we need to be saving for the things we know we’re going to need in the future. If we don’t, we’ll end up in debt because when the AC unit breaks, we won’t have the money to replace it, so we’ll have to put it on the credit card or take a loan out from the bank. And that’s a problem because then you’ll pay crazy amounts of interest, which means you’ll pay more for the item than it’s worth, which will only exacerbate your debt dilemma.

So Solomon says: Don’t be foolish! Save for the future. In another verse, Proverbs 6:6-8 Solomon says, “Take a lesson from the ants, you lazybones. Learn from their ways and become wise! Though they have no prince or governor or ruler to make them work, they labor hard all summer, gathering food for the winter.” What would happen if the ant didn’t prepare for the winter he knew was coming? He or she would be in trouble, right? That would spell disaster for the ant, right? Well, in the same way, if we don’t prepare financially for expenses we know are coming, we’re going to be in trouble. To not save is to invite financial disaster. It’s how you will most certainly end up in debt. Solomon’s saying: Even an ant with such a tiny brain realizes the need to save - how much more so should we!!!

Why don't we save? Well, we have a heart issue. Our culture calls it “keeping up with the Joneses”. The Bible calls it “envy”. We look around on Facebook and Instagram and see what other people have and we think, “I want that!” so we go after it and try to get it too. We spend every bit of what we could be saving to keep up with our friends and neighbors and co-workers. This is what some call “The Envy Monster”. The envy monster stalks everywhere, never satisfied, always craving more of what other people have. In malls, neighborhoods, schools and offices people compare themselves with others and invariably fall short. But can I tell you the truth about the people you’re envying? They are in more debt than you! The “Joneses” are on the verge of declaring bankruptcy! We’ve got to stop envying others if we’re ever going to start saving.

Listen to me - the more you have the more it costs. Envying others and then trying to get what they have will always lead you closer to debt (or deeper into debt) because the more you have the more it costs. The more you have the more it costs in insurance. The more it costs to maintain it. The more it costs of your time to use it and care for it. So stop envying “the Joneses”. If anything, you should pity them, for God says they’re fools for not saving.

Did you know God measures how wise we are in part by how much we save? The verse we read earlier said “The wise man saves for the future.” So in God’s eyes, how wise are we? The statistics show that we need to grow and make some drastic changes in this area. I read this week that…

• The average family in Japan saves about 20% of their income. 
• The average family in Europe saves about 18% of their income. 
• In America the average family saves nothing. 

In fact, 55% are living paycheck to paycheck. One third don’t even have a savings account. And the average American household is now spending 136% of their household income. That is, for every dollar they make, the average American spends $1.36. This is why the average balance on peoples credit cards is almost $15,000 (and rising).

We’ve got to make the decision today to be wise by God’s standards. Culture says “Spend it. You deserve it!” God says “Save it! If you can’t afford it don’t buy it!” Who are you going to listen to? Culture or God? If you’ve been doing it culture’s way and you’re in a financial mess, maybe today is the day to start doing your finances God’s way. Just a thought.

Plan Your Spending

In Proverbs & Ecclesiastes Solomon lays out God's Four Foundations of Financial Freedom. The first one is found in Proverbs 21:5, which says "Good planning and hard work lead to prosperity, but hasty shortcuts lead to poverty."

Solomon, one of the wisest and wealthiest men to ever have lived, says here that financial planning = prosperity. Not planning = poverty. If Solomon lived today he might say: Financial planning helps you to stay in the black. If you don’t plan you will surely find yourself in the red.

What Solomon called planning, we (today) call budgeting. I know some of you think budget is a curse word - I assure you it’s not. A budget by definition is planned spending. And the purpose of a budget is to tell your money where to go so you don’t have to wonder where it went. Some say “money talks”. No it doesn’t! It just walks away quietly. But a budget will prevent this from happening.

Now from the Bible we learn three areas we need to budget for.

1. We need to budget our giving: When we get paid we need to budget the first 10% for God. The Bible calls this the tithe and we’ll talk about it more later in the message. 
2. We need to budget our savings: After you pay God, you need to pay yourself. How much? Experts in the field recommend 10%. So you give God 10%, then you save 10%. 
3. We need to budget our spending: After you pay God and pay yourself, you use the rest wisely - being a good steward of however much God has entrusted you with. 

Solomon says: If you plan (or budget) your money this way, it will lead to prosperity, not poverty.

If you don’t have a budget, you’re either already in debt or are headed there. Here’s why: Our yearnings will always exceed our earnings. And without a budget we’ll say “yes” too often, which in time leads to debt. The value of a budget is that it informs us when to say “yes” and when to say “no”. For example…

• When considering how much to spend when purchasing a home you ask yourself: After budgeting 10% for God and 10% for savings, can I afford this home? Your budget will tell you “yes” or “no”. 
• Or when considering how much to spend when purchasing a car you ask yourself: After budgeting 10% for God and 10% for savings, can I afford this car? Your budget will tell you “yes” or “no”.
• You might want the latest and greatest iPhone 5s for $400, but your budget might inform you that you need to get the iPhone 5c, which only costs $50 at Target right now. 
• You might see something at the mall that you want and be tempted to make an impulse purchase - but budgeting will help curb impulse purchases. Impulse buying is based on emotion, not what you have in the bank. A budget protects us from this. When your emotions say “I want it and have to have it right now!” your budget can calmly state “No. You can’t afford it. Don’t buy it.” 

Now even though we all ought to be using a budget, most of us don’t because we don’t like anyone or anything telling us “no”. We live in a culture that says “You deserve it - even if you can’t afford it.” And it’s because of this unbiblical mentality that as individuals and a nation we are steeped in debt. But each of us has to decide: Will we live by what culture says or by what God says? God tells us, through Solomon, that good planning (budgeting) leads to prosperity, while failing to budget leads to debt.

In the House of the Wise

Proverbs 21:20 says "In the house of the wise are stores of choice food and oil. But the fool devours everything he has." Today we'd call devouring everything we have "living paycheck to paycheck." Here's the danger in doing that. If we have no reserves we'll be unprepared for when emergencies arise.

Let me be transparent. This past April (2013) when I talked with my tax guy, I found out he had estimated what tax I would owe based on someone else's salary! Long story short, I had $15,000 of income that hadn't been taxed!!! So I unexpectedly had to catch up on over $1,600 of federal and state tax. About the same time this happened I had another unexpected bill that set me back another $2,000!!! Then last month (May) just as it started heating up, the condenser unit for my AC blew up! Replacing it cost another $2,800!!! Let's do some math real quick...

    $1,600
    $2,000
+  $2,800
    $6,400 of unexpected expenses!!!

If I was living paycheck to paycheck this would've been disastrous!!! But thank God, Kristin and I had some reserves and paid for everything cash. No debt. No credit cards (we don't have any). We paid cash. The Bible is clear: We're to live below our means so we can build reserves for 1) emergencies, 2) purchases and 3) the future. 

Debt is the opposite of reserves. When we live below our means we have reserves. When we live above our means, we have debt. Are you living below your means or above? Don't be like the average American who spends $1.36 for every dollar he/she earns. What baby step can you take today to begin growing your reserves? 

Recommended resource: The Total Money Makeover by Dave Ramsey. I'd also recommend you listen to our Financial Fitness teaching series online at www.newdaychurch.cc/financialfitness 

Five Shocking Statistics on Debt

Here's some debt stats that were shared in week two of our Financial Fitness teaching series.

• The average American is now spending $1.36 for every dollar they make. That means Americans are living on 136% of their income. 

• For those carrying a balance on their credit card(s), the average is $14,517. 

• The average 21 year old owes $12,000. By 28 they owe $78,000. 

• 55% of American households are living paycheck to paycheck. 

• In 1970 only 15% of Americans had credit cards. As of 2013 77% now have credit cards. 

If you find yourself steeped in debt, New Day can help. To start, visit our www.newdaychurch.cc/financialfitness and listen to our message on DEBT. 

Ten Thought Provoking Questions on Debt

As Andrew spoke on debt today it reminded me of ten thought provoking questions from Randy Alcorn's book Money, Possession and Eternity.

1) Is debt our means of short-circuiting the God-created means of acquisition - including work, saving, planning, self-discipline, patience, and waiting for divine provision?

2) Is not having enough resources to pay cash for what I want God's way of telling me it isn't his willfor me to buy it?

3) Debt often results in financial pressures strong enough to break up marriages. Would borrowing create financial pressure of any kind in my life?

4) I believe the government should limit spending to available revenues. Is it right to hold myself to a different standard?

5) Romans 13:8 says "Owe nothing to anyone except to love one another..." (NASB) Does this verse prohibit debt?

6) Nehemiah 5:3-5 describes being in debt as NOT a good thing. In a time of famine, the ultimate act of despair was to mortgage fields, vineyards and homes. Should such things take place under normal circumstances? According to the Bible, is debt reserved for desperate situations or everyday use?

7) Is the money I will be obligated to repay, and the bondage it will create, worth the value I'll receive by getting the money or possessions now?

8) Is debt a vicious cycle? Once I pay off the debt, what new needs and wants will I have?

9) Is debt a way of getting around depending on God? Would NOT borrowing create a greater dependence on God and allow God to show his faithfulness in my life?

10) Does debt tempt us and allow us to pursue what God hasn't provided and doesn't intend for us?

To hear Andrew's message on debt visit www.newdaychurch.cc/financialfitness 

Debt and the Church

Will New Day save until we have the money we need for the things we need and want to buy? Or will we use debt as a means to get the things we need and want for the ministry? That's the decision I'm facing right now. Below are some of my thoughts after reading the chapter on debt from Money Possessions and Eternity by Randy Alcorn. I'm 100% undecided at this moment (although I'm leaning towards not going into debt).

1. I teach my kids that "money comes from work." I don't teach that "money comes from borrowing." Would going into debt set a bad example for my kids? Is debt our means of short-circuiting the God-created means of acquisition - including work, saving, planning, self-discipline, patience, and waiting for divine provision.

2. I teach my church that "debt is not a sin, but it is usually unwise." Would going into debt set a bad example for my church?

3. As a Christian I believe that where God guides, God provides. If the provision isn't there, is God really guiding? Is not having enough resources to pay cash for what I want God's way of telling me it isn't his will for me to buy it?

4. Debt often results in financial pressures strong enough to break up marriages. Would borrowing create financial pressure of any kind in my life? Stress experts say that the bigger a person's mortgage (or any debt), the bigger the stress. Debt is a serious enemy of mental health.

5. I believe the government should limit spending to available revenues. Is it right to hold New Day Church to a different standard?

6. Proverbs 22:7 says "...the borrower is servant to the lender." And 1 Corinthians 7:23 says "...do not become slaves of men." Do I want to be servant to the bank or servant to the Lord? Do I want to be my creditors slave or Christ's slave?

7. Romans 13:8 says "Owe nothing to anyone except to love one another..." (NASB) Does this verse prohibit debt? The NIV reads "Let no debt remain outstanding..." which allows debt but only under conditions that it be paid off. However, if going into debt is always sin it's difficult to understand why Scripture gives guidelines about lending and even encourages it under certain circumstances. If debt is always sin, then lending is aiding and abetting sin, and God would never encourage it.

8. Because of the interest you pay when you go in debt, if New Day went into debt we would have to pay a certain amount of money in addition to what the items cost. For example, if I wanted to buy $15,000 of equipment valued at $15,000 - but had to pay 15% interest on the loan, then I would be paying an additional $2,250 for the equipment. Am I a good steward when I pay several thousand dollars more than something is worth just so that I can have it before I can afford it?

9. Being a borrower is listed among the curses that would come upon the children of Israel if they disobeyed God (Deuteronomy 28:44-45).

10. Nehemiah 5:3-5 describes being in debt as NOT a good thing. In a time of famine, the ultimate act of despair was to mortgage fields, vineyards and homes. Should such things take place under normal circumstances? According to the Bible, is debt reserved for desperate situations or everyday use?

11. The Old Testament shows a strong connection between debtors and slaves. Both debts and slavery were canceled in the year of Jubilee. More often than not, the person was a slave because he was a debtor (Deuteronomy 15:2,12). Unable to pay back debts, he was sold into slavery.

12. In the Year of Jubilee debts were cancelled. If debts were a good thing, why would God establish a time where people could become debt free? I don't know that this means debt is always wrong, but I do think it at the least puts debt in a negative light (in my opinion).

13. Is the money I will be obligated to repay, and the bondage it will create, worth the value I'll receive by getting the money or possessions now?

14. Is debt a vicious cycle? Once I pay off the debt, what new needs and wants will I have? Having used debt to get what I need and want for the church, will I be tempted to use debt again as a means to get what I want? Would this violate the principle from Nehemiah that debt is for dire circumstances?

15. Do we believe God knows best what our needs are? Debt spends money we don't have. So isn't our decision to go into debt proof that we believe we need more than God has given us?

16. If we don't have the resources to buy something, and if we feel such need for it that we're borrowing to get it, are we saying God has failed to meet our needs? Is going into debt saying "God has failed to provide for our needs, so I'll just take matters into my own hands"?

17. Is debt presuming upon the future finances of the church? It's one thing to trust God to provide for our present needs (Matthew 6:33). It's another to presume upon him by dictating (via a decision to incur debt) the terms of his future provision. Is going into debt an act of faith or presumption?

18. Is debt our way of getting around depending on God?

19. James 4:14 warns that we cannot know what will happen tomorrow. And if we don't know and cannot control all that the future holds, how can we be sure that we can pay off new debts? We can be certain that God will provide for our basic material needs if we seek first his kingdom (Matthew 6:25-34), but where does the Bible promise that God will provide for all the debts we incur through our own impatience or presumption?

20. Scripture mentions three major building programs. Each was financed directly by up-front giving. There were no tabernacle bonds, no borrowing, no pledges - just straightforward giving. People gave more than enough and had to be restrained from giving to the tabernacle (Exodus 36:6-7). In each of these three building projects (the tabernacle, the temple, the rebuilding of the temple) the work didn't begin until it was obvious that the project could be completed without borrowing.

21. In Luke 14:28-30 it wouldn't be a stretch to say that Jesus taught that a project should only be undertaken with the certainty of having sufficient funds for completion (i.e. Suppose one of you wants to build a tower. Will he not first sit down and estimate the cost to see if he has enough money to complete it?).

22. In the Old Testament building projects, future ministry was paid for with present money. But churches that borrow pay for present ministry with future money. Which philosophy is God in favor of?

23. Would NOT borrowing create a greater dependence on God and allow God to show his faithfulness to our church?

24. If we sang hymns at New Day (we usually don't) would we be able to sing this one if we went into debt: "All I have needed Thy hand hath provided - Great is Thy faithfulness, Lord, unto me!"

25. Does debt tempt us and allow us to pursue what God hasn't provided and doesn't intend for us?

I don't have answers to all these questions, but I'll be thinking about and praying for insight as to the best path for New Day to take. Debt or no debt? Any thoughts? Please pass them along!