Free Money Finance

What Christians Believe about Giving

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why.

This piece on the relationship between the welfare state and Christianity contains some good stats on what Christians believe about giving. Here are some highlights:

In the study, 56 percent of all clergy say Christians are under a biblical mandate to tithe 10 percent of their income to the local church, while another 12 percent feel Christians are under this 10 percent mandate, but the gifts do not necessarily have to go to the local church.

Twenty percent believe there is a biblical mandate to give, but not any specific amount or percentage.

However, among the people who attend Protestant churches, only 36 percent feel there is a biblical command to tithe 10 percent to their local church, while another 23 percent believe there is a biblical mandate to tithe, but not necessarily to the local church.

Twenty-seven percent feel the Bible commands Christians to give, but not a set proportion or amount, while 10 percent believe Christians are under no mandate to give anything.

Very interesting indeed. Here's what I get out of these findings:

• 66% of clergy think that Christians are commanded by Scripture to tithe while 20% believe in what I call "generous giving." Does this mean that 14% believe that Christians shouldn't give anything?

• 59% of Christians (church members) think tithing is scriptural, though a greater percentage thinks it doesn't have to be to the church. Unfortunately, the study doesn't tell us what percentage believes in "giving generously" and what percentage doesn't believe in giving at all, so we're at a loss there. But we can say that a majority of Protestant church-goers believe in tithing over generous giving, a finding I found to be stunning based on how many actually tithe. More on that later.

Now on to the ever-popular "gross versus net" discussion:

Among people who do believe in tithing (whether to the local church specifically or to any type of organization), an ongoing debate is whether the 10 percent should be figured on gross income or on net income (after taxes).

Churchgoers who believe in tithing are equally split over this: Forty-eight percent believe the tithe should be figured on net income while fifty-two percent say it should be on gross income.

The snarky response is "do you want God to bless your gross income or your net income?", but to me the best argument for tithing on your gross income is from Proverbs 3:9-10 where it says:

Honor the LORD with your wealth, with the firstfruits of all your crops; then your barns will be filled to overflowing, and your vats will brim over with new wine.

"Firstfruits" means "before anything else" which includes taxes. Thus the tithe comes off the gross. Tithing on net income advocates say that many of the services the tithe was meant to pay for is now covered by our taxes, so we should tithe after taxes are deducted from our income. I'm not buying that argument.

So now that we've covered what Christians BELIEVE about tithing and giving generously, let's look at what the DO:

In a 2003 study, researchers discovered that the number of Americans who give ten percent of their income to the church "dropped by 62 percent in the past year, from 8 percent in 2001 to just 3 percent of adults during 2002," the Barna Research Group said.

And Roman Catholics were even worse than their Protestant brethren. Of Catholic respondents, none reported giving 10 percent of last year's (2002) income to his or her church.

Barna, study revealed that among born-again adults, 14 percent reported tithing in 2001, but only 6 percent said they did so in 2002. Among evangelicals, nearly 9 percent of those surveyed reported tithing.

A couple thoughts:

• Yikes!

• BIG gap between what people believe and what they do. I guess I shouldn't be surprised, that's how people act with their money in many different areas -- saving, spending, investing, etc. -- they know what they should do with it and yet they do the opposite (in many cases.) Reminds me of Romans 7:15:

I do not understand what I do. For what I want to do I do not do, but what I hate I do.

Is the Welfare State the Fault of Christians?

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why.

That title will get some attention, huh? ;-)

Anyway, let me state up front that this isn't meant to be a Christian-bashing post (why would I want to bash myself, anyway)? But it is meant to ask an honest question, namely "would the U.S. need all the government spending and programs we have if Christians simply followed the giving principles detailed in the Bible?"

This piece asks this question and has some good thoughts on it. It starts with a bit of a history lesson -- how the church used to help people:

The Church — the Body of Christ — continues its laxity in assisting the poor, the homeless, the diseased and the mentally ill in the United States. In the days before Franklin Delano Roosevelt's New Deal and Lyndon Baines Johnson's Great Society, it was the Christian church that provided food, clothing and shelter for the poor and destitute members of society.

For example, During The Great Depression and thereafter, the majority of "soup kitchens" and "shelters" were run by local churches. The homeless were provided a warm meal, a place to rest and a chance to hear the Good News of salvation through Jesus Christ. Christians in those days understood that in order to address the needs of the soul, it's best to first address the needs of the body.

But today, it appears that Christian leaders and church members have passed on the role of charity givers to the government — a government that prohibits even the mention of Jesus Christ within the public realm.

To put it succinctly, Christian men and women have changed from a people who literally give the shirts off their backs to cheapskates. And we have more than merely anecdotal evidence to back up that claim.

The article then goes on to detail a few studies showing that giving among Christians is way down over the past decade or so. It then gives these thoughts:

With such a shabby record of giving by churchgoers, it is difficult for churches — an important institution for community stabilization — to perform their Christian duties to feed, clothe, and shelter the poor, disabled, mentally ill and others in American society who depend on the charity of others.

With this lack of charity comes the unintended consequences of government programs that are intrusive and ineffective. For instance, public assistance, or welfare, has done more to destabilize the nuclear family than any other program in history. One of the stipulations for qualifying for public assistance is that a mother be alone in raising her children. So, in order to qualify, millions of women forgo marriage and create a single-parent home for their children. Another drawback is welfare payments being based on the number of children in the home. This further increases the number of children who grow up without a father.

Honest sociologists long ago realized the destructive nature of government-run "charity." Yet, conservatives — especially Christian conservatives — may find it difficult to condemn the welfare system without performing their Christian duty to be charitable.

Ok, so here's my take on the issue:

• If all Christians would tithe (or give generously, if you prefer) 10% of their income, think of the people that could be fed and housed, diseases that could be eliminated, lives that could be saved, and so on. Unfortunately, studies show that Christians give only 2-3% of their incomes, the same as non-Christians. For a group where a major part of the teaching is on giving to help others, this is surprising and disturbing.

• I'm not so sure many churches today would spend the money wisely even if they had it. Many seem more interested in building big buildings and keeping the flock comfortable and entertained than they are in helping the poor. Not that there's anything wrong with going to a service that's done in a nice place and with excellence, but so many have taken it to an extreme.

• I hang around Christians quite often and I can verify that most of them are against "big government." And yet their giving (as a group) could make the government much smaller. But they're (as a group) not willing to make the personal sacrifices required to give as they should. Kind of ironic, isn't it.

• All this said, Christians do give a ton of money, just look at giving dollars in the absolute. You'll see that "religious" giving is always at or near the top. All I'm saying is that if it was three or four times greater (the amount, on average, that it would be if every Christian tithed) and spent to help people, then government programs would be a lot smaller.

• This post isn't meant to be a debate on tithing, I've just used that amount to set a standard. I've written enough about tithing in other posts, so check those out and comment there if you have a beef with the concept.

Just because many Christians don't give as they should doesn't mean that all are cheapskates, of course. I'm not saying that, so don't accuse me of it (I know someone was thinking of it.) All I'm saying is that Christians have a mandate to help the poor and IMO we've fallen way short of the standard. As a result, government has had to step in to fill the void. Agree or disagree?

Who Should Know How Much a Pastor Makes?

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why.

After the discussion we had on my post titled Is It Ok for a Pastor to Earn $600k a Year?, I got to wondering:

Who should know how much a pastor earns in salary every year?

A couple thoughts from me to frame the conversation before you respond:

• On one side of the issue, you could say that "no one" (or at least not very many people -- maybe just the church administrator, the board, and the person cutting the checks) should know any pastor's annual salary. After all, it's a personal and private matter isn't it? And do Joe and Mary Member really need to be aware of what the pastor makes?

• On the other hand, the pastor's salary is paid from contributions from the members, so aren't those members entitled to know what the pastor earns? In addition, many non-profits make the salaries of their top executives known to the public, why shouldn't church pastors?

What's your take on the issue? Should everyone know what a pastor makes, very few know, or somewhere in between?

The Price of Faith, Being Christian

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why.

Here's a piece from CNN Money that discusses the price of faith, what Jews, Muslims, and Christians have to pay/spend related to their faiths. Here's how CNN Money describes the series:

To explore how religion affects the way people manage their money, we visited with three families of different faiths who are struggling to reconcile their spiritual beliefs with their wallets. Their stories, and our advice to them, follow. What all three households have in common: the desire to let faith guide their economic prospects, without undermining their family's security or long-term goals. As you'll see, that isn't always an easy task.

I'm highlighting this piece in three different posts and giving my comments along the way. Today we'll cover the costs associated with being Christian. Here's a summary of what this family spends as a result of their faith:

• $7,600 tithing, other donations

A few other highlights:

• Husband and wife are 41 and 40 years old.
• They make $117,000 a year.
• Their net worth is $108,000.

My take/comments:

1. This couple had an incorrect "Christians need to be poor" point-of-view that impacted their finances in a big way (negatively) for much of their lives.

2. Like the other couples in this piece, they don't tithe (give 10% of their income.) Couldn't CNN Money find someone that gave at least 1/10th of their income? Seems like it would be so easy to find someone that did.

3. They're "kinda" on track with their finances now. They're savings $8,000 a year in a retirement account, which is good, but they still don't have all their bad habits under control (they just bought a home for $320k that an advisor said shouldn't cost more than $285k. Ouch!)

4. I'm guessing their net worth is average for a couple their ages.

It's been interesting to see these three couples of faith over the past few weeks. My biggest surprise is that other than a few added expenses, these people's finances aren't really that influenced by their faiths. They have the same problems (like controlling spending) that everyone else has. I would have expected better performance from people of faith since I know (for Christians and Jews) and guess (for Muslims) that their holy books/teachings lead them to be better money managers (for a more detailed perspective on this, see The Bible Will Make You Rich.)

The Price of Faith, Being Muslim

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why.

Here's a piece from CNN Money that discusses the price of faith, what Jews, Muslims, and Christians have to pay/spend related to their faiths. Here's how CNN Money describes the series:

To explore how religion affects the way people manage their money, we visited with three families of different faiths who are struggling to reconcile their spiritual beliefs with their wallets. Their stories, and our advice to them, follow. What all three households have in common: the desire to let faith guide their economic prospects, without undermining their family's security or long-term goals. As you'll see, that isn't always an easy task.

I'm highlighting this piece in three different posts and giving my comments along the way. Today we'll cover the costs associated with being Muslim. Here's a summary of what they have to spend because of their faith:

• $10,000 charitable giving
• $1,800 extra cost of shari'a-compliant mortgage
• $11,800 Total

If you're wondering what the shari'a-compliant mortgage is, it's a mortgage that isn't officially a loan since Muslims aren't allowed to pay or earn interest. Some details on this issue from the piece:

Take the Muslim admonition against paying or earning interest. Strictly interpreted, the rules make it tough to buy a house (traditional mortgages are off-limits), finance a major purchase (no credit cards), or put together a diversified portfolio (no bonds). Investing in stocks is limited as well - companies involved in forbidden activities (such as lending, gambling, and serving or making alcohol) are prohibited.

A few other highlights:

• Husband and wife are 28 years old.
• They make $117,500 a year.
• Their net worth is $17,500.

My take/comments:

1. This couple is the most generous of the three profiled -- in terms of both percentage given as well as total amount given. This said, they aren't giving up to the tithe level (not that Muslims are commanded to do this, I'm just comparing it versus my frame of reference.)

2. The article says (or at least hints at) that the reason they can't save more is because they give so much away. But these people make a good income. You're telling me they can't save a good portion of it? BTW, this is a problem with all these couples -- they're spending way too much of their incomes.

3. Net worth is low, though it's probably average for a couple their age (but I'm guessing it's low for someone making their income.)

4. They also have a prohibition from investing in companies with "unacceptable businesses."  Fortunately, there are mutual funds that screen companies for their adherence to Islamic principles.

Any thoughts on this from Muslim readers or those more familiar with the Muslim faith?

The Price of Faith, Being Jewish

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why.

Here's a piece from CNN Money that discusses the price of faith, what Jews, Muslims, and Christians have to pay/spend related to their faiths. Here's how Cnn Money describes the series:

To explore how religion affects the way people manage their money, we visited with three families of different faiths who are struggling to reconcile their spiritual beliefs with their wallets. Their stories, and our advice to them, follow. What all three households have in common: the desire to let faith guide their economic prospects, without undermining their family's security or long-term goals. As you'll see, that isn't always an easy task.

I thought I'd highlight this piece in three different posts and give my comments along the way. Today we'll cover the costs associated with being Jewish (or at least Orthodox Jewish.) Here's a summary of what they have to spend because of their faith:

• $18,000 per year for religious school tuition
• $5,000 charitable giving
• $3,600 synagogue dues and events
• $2,000 extra cost for kosher food
• $28,600 Total

In addition, they bought a more expensive house because it was within a Jewish community that "permits certain activities" at a cost of $100,000 more than they would have paid for a similar home in a non-Orthodox neighborhood. Then they also spent $30k renovating the kitchen to help them keep kosher.

A few other highlights:

• Husband and wife are 36 and 33 years old.
• They make $135,000 a year.
• Their net worth is $234,000.
• They have $25,000 in credit card debt.

My take/comments:

1. These people claim to have a tough time making ends meet despite the fact that they have a great income (FYI, this is a theme you'll see with all three of these couples of faith.) It's mind-blowing that someone making $135k in Houston is having budget troubles.

2. That said, they have a decent net worth for their ages. I'm guessing they're ahead of the pack.

3. The credit card debt seems strange to me. Why do they even have it?

4. I was surprised that they didn't tithe. Even if they combined their synagogue dues and events dollars with their charitable giving, they aren't tithing. If Orthodox Jews don't tithe, who does?

5. Wow on the home costs. I never knew this was an issue, but that's a big, big faith-related expense.

Any thoughts on this from Jewish readers or those more familiar with the Jewish faith?

Review: Sound Mind Investing Website

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why.

Today, we have a guest post from ChristianPF. You can learn more about ChristianPF by subscribing to his RSS feed http://feedproxy.google.com/ChristianPF or by following him on Twitter.

Sound Mind Investing (SMI) is a Christian Investing newsletter that now has a full featured website as well. The paper subscription costs $79/year and the web only subscription goes for $8.95/month. This review is of the website and the services offered by it.

A few of the features offered on the SMI website

Articles by topic

One of the first things I noticed when using the site is the plethora of great and helpful articles divided by topic. They are written by a wide variety of authors, many of which are some of the most respected writers in the Christian Financial realms: Larry Burkett, Howard Dayton, Ron Blue, Austin Pryor and a lot more. These articles alone provide enough great reading material to fill up a couple books.

Back issues of the newsletter

As a web subscriber you have access to all of the back issues of the newsletter - back to 2006.

401k fund tracker

They have a tracking tool that allows you to plug in the funds contained within your 401k or other retirement account. Each month you can access the "Fund Performance Rankings" for each of your funds to be sure they are on par.

Recommended Funds List

They also have a list of funds that SMI recommends divided up by 5 Stock Risk categories that allow you to get some ideas for which funds to purchase.

Message Boards

The SMI message boards are also a wealth of information as well. They currently have over 10,000 members and it is a great place to get investing related questions answered.

The performance

Not having the privilege of using the SMI information for an extended period of time, I can't comment on the performance of their recommendations. However, from the stats they show, they do seem to be doing a nice job of beating the market.

In the graph below, you can see the performance of the last 10 years. The dark shaded area shows the the return received from following their Upgrading Portfolio. And the green area indicates the stock market average.

A few of the things I like about the SMI newsletter

Biblical Perspective

As a Christian I appreciate that everything they do is with the end goal of helping users become better stewards and give more. After all, what benefit is it to gain the whole world only to lose your soul? Matthew 16:26

Objectivity

They do not accept any paid advertising - which enables them to avoid the conflict of interest that advertising can play on recommendations. As they mention, "If we evaluate two competing mutual funds, do you want one of those funds to be paying our salary via advertising? Of course not. Sound Mind Investing does not accept any paid advertising."

Investment Returns

Using past performance as a guide, it does seem that if the SMI program is followed that returns will likely beat the market. Of course there are no guarantees, but the performance of the last 10 years has been a whole lot better than the S&P 500.

Is It Ok for a Pastor to Earn $600k a Year?

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why.

We've previously talked about how much a pastor should earn but here's a real-life situation to discuss. Check out this report:

Manhattan's Riverside Church - one of the country's most illustrious religious institutions - is paying its new senior pastor, the Rev. Brad Braxton, more than $600,000 in annual compensation.

Church sources say it includes:

• $250,000 in salary.
• $11,500 monthly housing allowance.
• Private school tuition for his child.
• A full-time maid.
• Entertainment, travel and "professional development" allowances.
• Pension and life insurance benefits.
• An equity allowance for Braxton to save up to buy a home.
• On top of that, Braxton immediately hired a new second in command at more than $300,000 a year. 

This piece says the church has 1,500 members.

The second article I found is about the same church and the numbers are a bit different -- the church claims the pastor's compensation tops out at $450,000. It also notes that the congregation is 2,700 people. There's a lawsuit (as you might imagine) and the new pastor seems like he's there to stay. Should be an interesting outcome.

Here are a few thoughts from me:

1. I don't think I could ever find it acceptable for a pastor to make $600k (or even $450k) in a year from the church. Even if it was a mega-church with 25,000 people, shouldn't the top salary be at least in the realm of reason? Maybe $200,000 or so? That's still a lot of money (all of which, btw, is from people's donations.)

2. That said, I'm completely fine with a pastor earning a huge amount if it's not a salary from the church. One example is from book royalties. Let's say a pastor made $50,000 from being a pastor but wrote a best-seller and earned $550,000 from the book for a total of $600k. I'm fine with that because most of the income is not from donations, he earned it by selling books.

3. For a church with 1,500 members, and especially on that focuses on social issues, this pay seems extremely large.

4. Then again, if he's increased attendance from 1,500 to 2,700 in one week, maybe he's worth it. ;-)

5. In the end, it's up to the leaders of the church. If they think the salary is fair, then it's fair. I just don't see how they could think that though.

6. If this was my church and I found out my pastor was earning $600k from the church, I'd probably move. Why? Because I'm not so sure I could trust the way my church was handling its funds.

Ok, so what do you think? Agree with me or am I off base?

Tithe Rap

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why.

I recently ran into a video on tithing that I thought was pretty funny. So today, I want to share it with you. This is my first shot at putting a YouTube video on my site, so I may mess it up. If so, you can click and see the video here. But hopefully, you can simply watch this:

And for those of you wanting more "meat" on a Sunday post, check out More Thoughts on Tithing and Giving for a related piece.

Is It Ok to Shop on Sunday?

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why.

Remember the Sabbath day by keeping it holy. Six days you shall labor and do all your work, but the seventh day is a Sabbath to the LORD your God. On it you shall not do any work, neither you, nor your son or daughter, nor your manservant or maidservant, nor your animals, nor the alien within your gates. For in six days the LORD made the heavens and the earth, the sea, and all that is in them, but he rested on the seventh day. Therefore the LORD blessed the Sabbath day and made it holy. Exodus 20:8-11, NIV

This is probably going to seem like a strange topic to many non-Christians, but since I know many who debate this issue and it's related to money, I'm bringing it up:

Do you think it's ok to shop on Sunday?

• The "no" camp uses the verses above as their rationale. They say that God created six days to work, which includes shopping. And since the Sabbath day is set apart for rest and honoring God, then it should not include shopping on Sunday.

• The "yes" camp says that: 1) shopping is not work (some people think it's fun) and hence it's ok for a Sabbath activity, 2) New Testament believers are free from the "law of the Sabbath", 3) our whole lives should be honoring God, not just one day, and 4) any day can be the "Sabbath" day of rest -- it doesn't need to be Sunday.

Personally, I side with the latter group. We try not to do any shopping on Sunday simply because we try to make that a day that the family is together doing other things. But if we need something for a particular reason, we are fine with getting it on Sunday.

Several years ago I worked for a business that catered to Christians. Through the businesses' lifetime, it had never been open on Sundays. Then the management team decided that it should be open on Sundays since Christians shopped on that day and what better day was there for a Christian-targeted operation to be open? As you might imagine, there were some very, very unhappy customers. Others didn't mind at all. In short, we saw both of the two opinions played out right in front of our eyes.

For those Christians out there that read this blog, what do you think about shopping on Sunday? Is it ok or not and why?

Saving Versus Hoarding

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why.

Recently, I had a reader leave the following question on my post titled The Story of Joseph:

The problem for me is not necessarily developing a surplus but recognizing when there is surplus surplus (i.e., I am hoarding more than I need and not giving generously). Any suggestions for finding that line and not crossing it?

I have some of my own thoughts on this (of course), but let's first hear from Howard Dayton on saving versus hoarding:

There is definitely a great difference between saving and hoarding. Actually, saving involves faith, but hoarding eliminates faith. So, it's best to ask God for the wisdom to understand the difference, and the willingness to be willing to honor Him by handling your money biblically.

In fact, that's a good description of "saving": Looking forward to a future need, then putting aside whatever is necessary to meet that upcoming requirement so you won't have to borrow.

Don't save just for the sake of saving something. Instead, have a plan and save with purpose.

The difference to me is simply this:

• Saving is when you are putting money aside for a specific purpose -- emergency fund, retirement, college costs, buy a new car, etc.

• Hoarding is when you're "saving" money for no specific purpose. In many cases, it involves people looking to their money for "protection" and "safety" (in other words, being obsessed with the fact that money will take care of you no matter what.)

For those of us who are savers, there can be a fine line between saving and hoarding. As long as we're sure to 1.) save with a purpose and 2.) keep our focus on God's provision, not on what our money does for us, then we should keep ourselves on the right side of the line.

How God Uses and Doesn't Use Money

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why.

Help, Hope, and Insight (part of Crown Financial Ministries) suggests eight ways God uses money and four ways He does not as follows, starting with the ways he does use it:

• God uses money to strengthen our trust in Him.

• God uses money to develop our trustworthiness.

• God uses money to prove His love.

• God uses money to demonstrate His faithfulness.

• God uses money to unite Christians in blessings.

• God uses money to provide direction.

• God uses money to cultivate self-control.

• God uses money to clarify spiritual maturity.

Now the four ways he does not use it:

• God never uses money to worry us.

• God never uses money to corrupt us.

• God never uses money to build egos.

• God never allows money to satisfy our personal whims or desires.

They provide their reasoning for listing each of these, so if you're interested, check out the article for yourself.

In my life the one issue I see come up again and again is #2 in the first list: God uses money to develop our trustworthiness.

In supporting the point above, the article notes that the Bible says "whoever can be trusted with very little, can also be trusted with much." (Luke 16:10) Just like we don't give a five-year-old $1,000 and turn him loose in a toy store but instead trust our kids with a little bit more over time as they prove they can handle it appropriately, God does this with us -- or at least He's done so in my life. If I had the salary and net worth when I was 20 that I have today, I KNOW I would have blown most of it. But through the years I've gotten better and better at handling the little bit extra that I received, and thus I was blessed with more.

Maybe this is one reason lottery winners often lose it all -- they haven't proven faithful with a little, so when they are trusted with a HUGE amount, it all evaporates quickly. It's a phenomenon I've seen happen again and again.

Obviously wisdom and maturity are big parts of the process. As we learn more over time and start to apply what we know, we become better at handling what we have. And it seems like it's just when we learn something new that God goes and provides a bit more finances for us to test our newfound principles.

Is this making sense to anyone or am I just rambling? Maybe I'm simply talking to myself?

Ever Get a Whacked-Out Appeal from a Televangelist?

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why.

Here's a piece from Crosswalk where the author talks about getting several "unusual" pieces from a televangelist:

Revell, editor of SBC Life, the journal of the Southern Baptist Convention's Executive Committee, was inspired to write the book after a few teenage boys in a discipleship group he leads pulled a prank and placed his name on the mailing list of a televangelist.

"Over the next 18 months, I received some of the most bizarre correspondence ever sent in the name of Christ," Revell said. "This man claimed that God had given him specific visions concerning me and my particular situation, and he promised all manner of physical and financial 'blessings' if I would only follow his outlandish instructions -- and send him money."

I know what he means. I'm on mailing lists (who knows how I got there) of a couple similar televangelists who do all sorts of things to get me to send them money. Of course, they promise me financial blessings if I give to them -- that goes without saying. But what bothers me the most is the gimmicks they use to get me to give -- a penny that will "reap a harvest" for me, a rubber band so I can "snap myself to attention", a piece of cloth to remind me of I can't remember what (but I can remember thinking "how cheesy.)

Now let me be clear -- I do believe that if you give to help others that you yourself will be blessed financially. Yes, it seems strange, but if you give more you get more. Furthermore, many of you know that I support charities with the profits from this blog. And I also believe that if you follow the Bible's teachings about money, you will become wealthy (it's simple math, after all.) But all that said, I can't stand people who try to manipulate and/or use gimmicks to get others to give. It boils my blood.

As someone who does fundraising for charities quite often, I simply lay out the vision and needs of the charity and then allow the person or group to decide whether or not they want to contribute. I don't pressure them, resort to making outlandish promises, or develop some sort of cheap gift that "encourages" them to give. To me these sorts of contrived actions are totally inappropriate, borderline dishonest, and just plain tacky. If ministries and charities are deserving, why don't they simply present the need? Why do they need to resort to such tactics? I know why, because they work (unfortunately), but it still really irks me to get such a solicitation.

How about you? Anyone out there received a fundraising appeal (of any sort -- mail, phone call, etc.) that has simply been over-the-top in one way or another?

The Story of Joseph

For those of you new to Free Money Finance, I post on The Bible and Money every 
Sunday. Here's why.

I've blogged a lot about spending less than you earn but lately have been talking a good 
deal about this concept's close cousin "save in times of plenty for times of want." In secular terms, this means "get an emergency fund." From a biblical standpoint, it means to take action on the wisdom of developing a surplus.

As I've addressed this issue on Sundays, several readers have commented about how the current economic times we're in reminds them of the story of Joseph. For those of you not familiar with this biblical story (found in Genesis 41), here are the highlights:

• Pharaoh (king of Egypt) has a dream -- none of the magicians and wise men of Egypt can interpret it.
• Pharaoh's chief cupbearer remembers a man from prison who could interpret dreams.
• Pharaoh send for this man (Joseph.)
• Joseph interprets the dream, saying that there will be seven years of plenty followed by seven years of famine.
• Joseph advises Pharaoh to appoint a wise man to store up in the years of plenty for the later seven years.
• Pharaoh notes that there's no one wiser than Joseph and makes him second in command.
• Joseph proceeds to devise a plan for storing a boatload of food up during the seven years of plenty.
• In the seven years of want, Joseph sells food to the citizens of Egypt and to neighbor countries, making Pharaoh massively wealthier than he was before.

FYI, if you want a rather comical version of this scenario -- though not biblically accurate 100% -- check out these two videos featuring a young Donny Osmond as Joseph here and here.

This story is a GREAT illustration of why you should save up in times of plenty -- because there WILL be less prosperous times, and you'll need your savings to help you manage. People who applied this wisdom over the past years aren't nearly having as tough a time these days as those people who spent all they had during the good times. And the key to it all? Spending less than you earn to create a surplus and using that surplus to create an emergency fund.

I know, I know. It's simple to say but not easy to implement. That said, if you want to have a solid financial foundation, it's vital you make the effort to create a surplus. Otherwise, you'll be left wanting when the years of famine arrive.

Review: Sound Mind Investing

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why.

I've written before about financial books that can change your life (which lists the top five financial books I recommend). One of the books that is not on that list but certainly could be is The Sound Mind Investing Handbook - A Step-By-Step Guide To Managing Your Money From A Biblical Perspective 5th Ed. It's a book I first read 15 years ago or so (it's now in its fifth edition) and I loved it. Since then I have recommended it to both Christians and non-Christians who are just getting started investing as well as those who have floundered and want a strategy that works. I have even purchased a few for friends and they always get rave reviews.

My quick summary of the book is that it's a Christian how-to-invest publication. I'll get into what that means a bit later on, but here's a bit more detail on the book from Amazon:

Many excellent books teach God's principles of finance. Perhaps one or more of them has helped you lay a strong biblical foundation for carrying out your money management responsibilities. But as you try to apply those principles to making real-life investing decisions, it's easy to feel overwhelmed by the jargon and the sheer number of investment possibilities.

Investment adviser Austin Pryor has carefully created the "next step" guide that helps you put Godly principles of finance into motion. Whether you're a beginner or an experienced investor, you'll benefit from stepping across this bridge between "theory" and "action". Each user-friendly lesson is written in everyday English and filled with helpful visual aids. In this revised and updated edition of The Sound Mind Investing Handbook, you'll learn

• What investing is and why it's actually quite simple
• Six characteristics of investing that glorifies God
• What important steps to take to prepare yourself financially before invest
• What mutual funds are and why they make investing easier than ever before
• How to use your personal investing "temperament" and present "season of life" to make decisions and limit your risk
• How to implement an investment strategy that's guaranteed to help you keep pace with the markets
• Tax-wise ways to invest for college, including the state-sponsored 529 savings plans
• The pros and cons of investing internationally
• The rules governing IRAs and 401(k)s and which should have the priority
• How to make the calculations needed to make sure your retirement countdown is on schedule

College professors have even used this book in their finance classes because of its easy to understand format. So, whether you invest a little or a lot, these biblical principles apply to you. In short, he's made learning about investing as painless as it's going to get.

This is exactly what the book is -- a simple, easy-to-understand guide to investing according to the wisdom of the Bible.

Here's a brief "what this book is about" summary from the book itself:

The foundation of every successful investment program begins with a clear understanding of one's motivation: "What's my purpose in investing?" For the Christian, the answer is two-fold: (1) to provide financially for the needs of your household, and (2) to increase your assets to serve God more fully. This book was written to help you do both.

For non-Christians, the book is a solid choice as well. You can simply ignore the "to serve God more fully" parts.

Here are the specific reasons I like this book so much:

• It's from a Christian perspective. Other investing books will tell you how to invest, but this one will include biblical back-up and references for what it advises.

• It's easy to understand. The book takes you through a step-by-step process for understanding and making investments. Even the most novice investor can "get" what this book is talking about. And yet it's detailed enough that more advanced investors will get something from it as well.

• Simple philosophies. Their various investment strategies are simple to understand and implement. Again, they make what can be a confusing subject very clear.

• Index fund option. Their "just-the-basics" strategy invests in index fund and is a strategy very similar to what I do personally.

• Other solid money advice. The book is full of great non-investment advice (usually in sidebars) with sections like "12 Warning Signs of Excessive Debt," "Big Savings through Mortgage Pre-Payments", and "Questions to Ask When Shopping for a Money Market Fund."

• Great results. In particular, their "fund upgrading" strategy has delivered superior results over the past ten years.

I'm sure many FMF readers have already read this book. If so, I'd be interested in your thoughts on it and if your takeaway was as positive as mine.

Giving Blessing Boxes

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why.

He who is kind to the poor lends to the LORD, and he will reward him for what he has done. Proverbs 19:17

Our desire is not that others might be relieved while you are hard pressed, but that there might be equality. At the present time your plenty will supply what they need, so that in turn their plenty will supply what you need. Then there will be equality, as it is written: "He who gathered much did not have too much, and he who gathered little did not have too little." 2 Corinthians 8:13-15

I've written in the past how we have a creative use for those gold $1 coins we've been buying -- putting them into a "treasure chest" and giving them as a wedding present. Now, we've taken that idea and twisted it a bit -- giving small wooden boxes (purchased cheaply at Hobby Lobby) with the gold coins to people we know who are in need. We call these "blessing boxes."

So far, we've only done this once (with another box planned to be given when we see a friend at the end of the month.) The father of the family (a really great family, I might add) was the sole breadwinner (they own their own business) and he hurt his knee and needed surgery. In addition to giving them some food to help them make it through his time off, we also gave them a blessing box. They LOVED it (thought they initially thought it was a box of those gold-wrapped chocolate coins.) ;-)

It's simply a unique way to give someone cash without making it boring (like giving cash) or putting limits on it (like giving a gift card that can only be used at a certain store.) Plus, the box itself is a nice little "extra" gift. And, of course, the coins themselves are very unique since many people haven't yet seen/used them.

In the future, we hope to start surprising more people with these -- people who are down-on-their-luck, in a tough situation, or simply those who need a bit of extra income to make it through these tough times. I'll keep you informed of how these go -- if there's anything unusual that happens along the way. But for now, let me encourage you to consider doing something similar. Look for people who are more needy than you are (they shouldn't be hard to find) and see how you can bless them with your time, expertise/skills, and/or money.

The Wisdom of a Surplus

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why.

Two principles the Bible discusses a few times are spending less than we earn (and having a surplus as a result) and saving in times of plenty for times of want. Here are two verses that specifically address these issues:

In the house of the wise are stores of choice food and oil, but a foolish man devours all he has. Proverbs 21:20

Go to the ant, you sluggard; consider its ways and be wise! It has no commander, no overseer or ruler, yet it stores its provisions in summer and gathers its food at harvest. Proverbs 6:6-8

In my post titled You Need to Plan for Bad Times During Good Times, a reader made the following comment that I thought was worth sharing with the rest of you:

Times like this always remind me of Joseph's Interpretation of Pharaoh’s Dream.

The interpretation and the knowing that 7 years of plenty would come but would be followed by 7 "lean hungry years" gave them the motivation to save 20% of all the crops from the 7 years of plenty that got them and neighboring nations through the 7 years of famine.

My response to this is that you don't need the dream. Has history not taught us that boom is always followed by bust? 7 years of plenty do come and they are followed by 7 years of famine.

You are exactly right and the story in the Bible of Joseph is a perfect analogy of how this is supposed to be handled.

We are now in the famine. Those who didn't prepare during the feast are now starving. It will always be this way. As Solomon said, "There is nothing new under the sun." And this is nothing new either, yet most people never seem to get it.

For reference, here's the story of Joseph interpreting pharaoh’s dream and the "nothing new under the sun" quote is from Ecclesiastes 1:9.

I thought both the reference to the story of Joseph and the following words were right on target. Plenty is almost always followed by want (or at least "not-so-good-times" always follow "good times.") In finances, this is why we all spend less than we earn and use the difference to create an emergency fund -- so when tough times occur, there's a bit extra around to help us weather the storm. Those that don't do this are playing with fire -- and setting themselves up for very tough times when things turn not-so-rosy. I think we're seeing a lot of these situations playing out in today's economy. Don't let this happen to you.

Contentment: Serving God Through Simple Living

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why. Today we have a guest post from Crackerjack Greenback.

Take a breath.

Every 3.6 seconds, about the time from one breath to the next, one person dies of starvation. Usually, it's a child under the age of 5.

About 1 out of every 7 people in the world lives in chronic hunger. That's more than the combined populations of the world's developed nations.

The average person living in chronic hunger eats on only 3 ounces of rice a day—a small handful.

In Matthew 25:34-36, Jesus says:

   ³⁴ “Then the King will say to those on his right, ‘Come, you who are blessed by my Father, inherit the Kingdom prepared for you from the creation of the world. ³⁵ For I was hungry, and you fed me. I was thirsty, and you gave me a drink. I was a stranger, and you invited me into your home. ³⁶ I was naked, and you gave me clothing. I was sick, and you cared for me. I was in prison, and you visited me.’ Matthew 25:34-36 (NLT)

What does any of this have to do with contentment? It sounds more like an appeal for giving.

Contentment Enables Generous Giving

When we chase after wealth, worry constantly about our material needs, or otherwise fall into the trap of consumerism, we separate ourselves from God and fail to see His generous blessings in our lives. When we aren't content, our mentality is such that we cannot give generously or cheerfully because we are wrapped up in our own needs. Our selfishness and greed prevent us from realizing how wealthy we are in Christ or fully trusting in God's Providence.

A lack of contentment in our Christian lives means that we are not fully trusting God. Instead, we are trusting in and serving money. We think that a bigger house, a higher income, or some new gadget is going to make us happier. We focus on saving up money for retirement as a way to protect ourselves as we age. We are trusting in money to give us a safe, secure, and satisfying life.

But the Bible tells us that the rich imagine their wealth to be an unscalable wall (Proverbs 18:11). While it seems that money can protect us or provide us with the things we desire, the truth is that it does not last and has no eternal reward. The current economy is clear proof of how quickly wealth can disappear. And the Bible has warned us about this as well in Proverbs 23:4-5.

When we give our hearts to Jesus and begin trusting in God, however, we can acquire wealth that will last for all eternity. Once we get this true wealth, we can experience contentment in any situation because God has promised He will never leave us (Hebrews 13:5-6). Nothing that happens to us on Earth can take away the richness of the eternal life we have in Christ.

Once we fully comprehend our wealth as Christians, we realize we don't need nearly as much as the World tells us we do. We can be content with just food and clothing (1 Timothy 6:6-8) because we realize that our ultimate reward and destination is in Heaven. The things of the world suddenly seem worth so little when we put them in the light of eternity.

This is where of the power of contentment in God really shines. When we are willing to live simpler lives because we realize we already have everything we need in Christ, we can become extremely generous givers. We won't need as much money to live on, leaving us free to give a substantial portion of our wealth or income to the poor. We can "live simply, so others can simply live."

This escape from materialism and consumerism through contentment allows us to serve God by feeding the hungry, giving water to the thirsty, clothing the naked, caring for the sick, and visiting those in prison. It takes our focus off of the treasures in this world and puts them on our heavenly treasures. Contentment is the means by which we "seek first the kingdom of God".

I encourage all Christians to seek God's contentment in their lives. If you'd like to learn more about contentment in the Bible, please download a free copy of the Contentment Is Wealth: A Bible Study on Contentment ebook now!

Church, Money, and Advice

Thought all of you Sunday readers would like this piece.

Managing Money for the Glory of God

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why.

Crosswalk suggests that we manage our money for the glory of God. What does this mean? Here is a summary of their thoughts:

Your financial decisions have the potential for life-changing blessings and eternal impact — for you, your loved ones, and those you minister to through your giving. Make better decisions and, like the faithful stewards in the parable of the talents, your efforts will bring a smile to the Master. Make indifferent or undisciplined decisions and you'll have wasted a lifetime of opportunities.

What kind of decisions am I talking about? Here's a starter list of common failures among young families:

• Failure to develop a spending plan that assures they end up with a monthly surplus rather than spending more than they earn.
• Failure to assign a high priority to giving generously to the Lord and His kingdom work.
• Failure to be responsible in the use of credit.
• Failure to drive a car or live in a home that's within their means.
• Failure to build a contingency fund.
• Failure to contribute strategically to an IRA or 401(k).
• Failure to learn the basics so you they invest wisely.

None of these tasks is particularly difficult, but all require self-discipline. They take effort and a degree of sacrifice. But the end result is worth it — not only because you will enjoy greater success in money matters, but more importantly, living up to your potential brings glory to our gracious God.

My take on this:

1, Agree with the over-riding conclusion -- how we handle the money God has entrusted to us can make a HUGE difference in many different ways and for many different people.

2. Back to the concept of "simple but not easy" huh? And, unfortunately for many, the d-word appears again.

3. Just knowing and applying the basics can make a tremendous in our finances -- the basics like spending less than we earn, budgeting, saving for the future, managing debt and so on. The consistent application of just a few basics can mean the difference between a successful financial life and one where you're just getting by.

Should Christians Have Life Insurance?

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why.

Here's an interesting question from Crosswalk -- should Christians have life insurance? After all, if they trust God for their provision, why do they need it?

The piece is written by a man who's associated with Sound Mind Investing (SMI), a Christian investment newsletter I've discussed in the past, and generally comes to the conclusion that life insurance is ok if the buyer's attitude is right -- if he sees it as a solid financial tool and doesn't look to it as his security (a place God should have alone.) The author also says that many times Christians make two mistakes when buying life insurance:

First, overbuying. When selecting an insurance amount, many times we provide an amount sufficient that the surviving spouse would never have to work again. In some cases, we insure for an even better standard of living than our family currently maintains. It may make sense to provide a level of insurance that would allow Mom to stay at home while children are young. But insuring to a lifetime "work-free" level wastes assets that would be better spent on what should be financial priorities (like debt repayment). And second, we transfer our confidence from God to insurance. The first is harmful, the latter fatal.

The piece ends with a couple thoughts on life insurance:

• God has committed to providing for his children (Matthew 6:26, 31-32).  He can use many methods—another mate, support of extended family, friends, church, scholarships and work-study programs, Social Security, and so on. Insurance is one of many tools He may use, but it is only one.

• Buying life insurance in a way that pleases God involves faith (Hebrews 11:6), not fear (Psalm 23:4, 91:5). For what are you trusting God in your life insurance planning?

Here's my take:

1. I agree that Christians should look to God as their source for provision (Deuteronomy 8:18).

2. That said, the Bible also says that we need to plan financially for the future (Proverbs 6:6-7). Life insurance is one way to do this. (FYI, Proverbs 13:22 also deals with this as well.)

3. Yes, you should buy the amount of life insurance you need, not an amount that is so over-the-top that it's the equivalent of winning the lottery if you die. If you're doing this, it's likely that you're spending way too much on life insurance. As we know, the odds are always stacked in favor of the insurance company (they make their living doing this, after all), so buying more life insurance than we need is a bad financial move.

4. You also need to buy the right kind of life insurance. Personally, I buy term and invest the difference.

Why the Bible Talks So Much About Money

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why.

Despite the fact that I write on the issue every Sunday, many people wonder if there's a real connection between the Bible and personal finances. So when I found this article that starts with the importance of money in the Bible, I just had to share it. Here's what they say about money and the Bible:

Money is such an important topic in the Bible that it is the main subject of nearly half of the parables Jesus told. In addition, one in every seven verses in the New Testament deals with this topic. The Bible offers 500 verses on prayer, fewer than 500 verses on faith, and more than 2,000 verses on money.

In fact, 15 percent of everything Jesus ever taught was on the topic of money and possessions-more than His teachings on heaven and hell combined.

Ok, so the Bible is full of verses about money. This begs the question "why?" Their answer:

[Because] there is a fundamental connection between our spiritual lives and how we think about and handle money.

I've often heard that you can get a good feel for someone's spiritual commitment by looking at two pieces of tangible evidence -- their dayplanner and their checkbook. While this may be a bit simplistic, it's certainly true that how we spend both our time and money is a good reflection of who we are. Give this, is it really so surprising that the Bible talks so much about financial issues?

Should You Care Where Your Tithe Money Goes?

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why.

Here's a very, very interesting point of discussion.

On one hand, there's a school of thought that you should make sure your tithe is spent as wisely as possible and, if it isn't, then you should take some sort of action (like maybe leaving the church, giving less, trying to ensure it's spent appropriately, etc.)

Then there's another school of thought that says you're not to worry what your church does with the money. You're actually giving it to God and when you give it to the church, your responsibility ends. How it is spent is the responsibility of the church's leaders. This line of thinking us summarized by this comment left on my post titled Ever "Buy" a Book on Sign Language from a Deaf Guy?:

I have been approached many times in many different ways. Sometimes I give. Sometimes I do not. I don't doubt that there are plenty of people who are consummate scam artists and there are plenty who are without public or private assistance in some way or another because of "red tape" or other complications. I don't know what the answer is. Jesus said that we would always have the poor and needy among us. I simply choose to err on the side of charity. I believe that God would approve a cheerful and loving action, even if the recipient is less than honorable.

While this comment doesn't deal with the tithe, it's that last sentence that states the thought that could be applied to the tithe -- that we give with a cheerful and loving action and that's it, that's all we need to be concerned about.

The first line of thinking emphasizes the fact that we are stewards of God's resources and need to act accordingly. It's summarized in these verses:

Who then is the faithful and wise servant, whom the master has put in charge of the servants in his household to give them their food at the proper time? It will be good for that servant whose master finds him doing so when he returns. I tell you the truth, he will put him in charge of all his possessions. Matthew 24:45-47

Then again, maybe cheerful giving is all that is required. Check out 2 Corinthians 9:7:

Each man should give what he has decided in his heart to give, not reluctantly or under compulsion, for God loves a cheerful giver.

Personally, I think there's room for both. I think cheerful giving is certainly required, but I also think we need to be wise about how our money is used. And if it's not used in a way we feel is appropriate, we need to take action.

What do you think?

Why "Give Cheerfully" Often Doesn't Work (And One Alternative)

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why.

Here's the last part of my thoughts on Christianity Today's piece on giving and the church. Like last time, I'll list some of their comments and my associated thoughts. IN this post, we'll address the "give cheerfully" philosophy of giving. Here's what the article has to say about it:

Offering money, many Christians believe, should be like Hollywood's version of romance: spontaneous, exuberant, and impulsive. Financial gifts should be joyful, we think, so we give only when the urge strikes. "Structured systems" such as annual pledges, write Smith, Emerson, and Snell, "seem to strike many American Christians as rigid, impersonal, legalistic, and even unspiritual."

This attitude translates to giving from our wallets instead of our paychecks. When the offering plate comes by, we dig into our purses or pockets and freely, joyfully give of what we find. Meanwhile, nearly all of our income is spoken for.

In other words, most Christians give from what's leftover in their wallets, a much smaller amount than they'd give if they planned their giving in advance from their incomes.

Then we get to the heart of the problem with "giving cheerfully" -- the concept has been twisted by (basically) selfish people preferring to spend on themselves rather than give to others:

One congregant put it this way: "God requires it, but … he also tells us that he doesn't want us to give if we don't want to." The proof text for this attitude is : "Each man should give what he has decided in his heart to give, not reluctantly or under compulsion, for God loves a cheerful giver."

The application, however, suggests that God prefers consumerism to generosity. If buying the bigger home or the larger car makes it more difficult to give cheerfully, we will cut back on the giving until it's cheerful.

Unfortunately, most Christians can give about $200 a year before their cheerfulness wears out. And here's what happens:

So we give our money like we spend it: haphazardly and without intention. "Most people are looking out no more than a week or a month on their spending," says Rusty Leonard, an investment manager and founder of MinistryWatch. Christians act no differently with their money than other Americans who don't save for retirement, buy houses they cannot afford, or invest only when stocks are rising. But, Leonard says, Christians are starting to pay more attention to financial issues, and their attention to issues such as debt is helping them be better givers as well.

This is the sentence that hit me the hardest in this entire piece: "Christians act no differently with their money than other Americans." Ouch.

Finally, the article offers a potential solution to this "give out of your wallet" problem:

And if there is one thing better than pledges, it's automatic withdrawals. Giving would never again be dependent on having cash in your purse or remembering your checkbook on the way out the door. This approach would make obedience independent of our various charitable impulses. It makes sense. Financial planners encourage families over and over to have their savings and retirement investments taken right out of their paychecks.

But is obedience that requires no effort, no thought, really obedience? Spiritual formation occurs when we, week after week, grab the checkbook, write a check, and drop it in the offering plate. We remember God's goodness, his continual care, as we build up a habit of giving.

Giving should be a matter of intentional obedience, a joyful expression of returning thanks to God. And there seems to be something sacred about physically collecting the offerings and blessing them during worship. Isn't something lost if it's left to church administrators sorting the daily mail?

On the other hand, the Bible warns often enough about money that perhaps we should be mistrustful of our ability to be impulsively generous week after week. A man's pocketbook, Martin Luther said, is the last piece of him to be converted. Money has a strange power, as the current economic crisis illustrates, that suggests humility and prudence are the appropriate attitudes toward it, not exuberance and impulsiveness.

Rather than being impersonal and legalistic, a steady, habitual, even automatic approach to giving can do more to form us spiritually than the give-only-out-of-joy approach. The decision to give a percentage of our income automatically and "off the top" can affect everything from the house we live in to the groceries we buy to a pizza delivery. When we pass on a purchase because we know the check to church or a sponsored child is going out that week, it forces us to prioritize. It places supremacy with someone or something other than us. Most importantly, and formatively, it reorients our life.

Ok, so I've blathered on for three weeks now about how little Christians give, why this is the case, and so on. I'm done. I'll let you all debate the issues a bit more as we've already done -- but in particular I'd like your thoughts on the "automatic" versus "spontaneous" giving options. After all, we often suggest that a good financial move is to put our savings and investing on "auto pilot" (it's the entire premise of a best-selling personal finance book), so why not do the same with giving? Your thoughts?

Why Christians Don't Give

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why.

Here's part 2 of my thoughts on Christianity Today's piece on giving and the church. Like last time, I'll list some of their comments and my associated thoughts. We continue with the indictment of American Christians' giving:

The average, regularly attending churchgoer gives 6 percent of after-tax income, but that's a mean skewed by a handful of very generous givers. The median annual giving for an American Christian is actually $200, just over half a percent of after-tax income. About 5 percent of American Christians provide 60 percent of the money churches and religious groups use to operate. (It's these people who skew the average.) "A small group of truly generous Christian givers," say Passing the Plate's authors, "are essentially 'covering' for the vast majority of Christians who give nothing or quite little."

Median giving is $200. Is this pathetic or what? But the facts get even more brutal:

In addition, America's biggest givers—as a percentage of their income—are its lowest income earners. "Americans who earn less than $10,000 gave 2.3 percent of their income to religious organizations," Smith, Emerson, and Snell write, "whereas those who earn $70,000 or more gave only 1.2 percent." While the actual percentages are slightly higher for Christians who regularly attend church, the pattern is similar. Households of committed Christians making less than $12,500 per year give away roughly 7 percent of their income, a figure no other income bracket beats until incomes rise above $90,000 (they give away 8.8 percent).

Well, at least there's a bit of brightness in there. It appears that the $90k+ incomes are being generous (on average.) I guess it's the vast majority of the middle-of-the-pack earners who give little to nothing.

So why are Christians not as generous as many of them could be? Quite simple -- they're spending what they have on themselves:

A major reason Christians don't give more is because many can't. Fixed costs in households have increased from 54 percent to 75 percent of family budgets since the early 1970s. "A mere two buying decisions—the purchases of homes and cars—are enough to lock household budgets into tight budgetary situations for decades," they say.

It doesn't get better with larger incomes, says Bill Walter, a financial planner for 35 years at Church Growth Services, a South Bend, Indiana-based consulting firm that helps churches raise money in capital campaigns. In fact, a high income often means more debt. "Oftentimes there's a misperception that if we have this really wealthy church in this well-heeled neighborhood, achieving the campaign goal ought to be a slam dunk." Instead, Walter says, "Many of the folks in the well-heeled neighborhoods driving Lexuses and going to their summer cottages are doing this all on credit."

So in other words, Christians, like non-Christians, first decide what they want to spend on themselves. Then, once those decisions are made, they see if there is anything left over. If there is, they might tip the church a bit. If not, they simply don't give.

Quite simply, they place their desires above those of the church. It's that simple.

Another part of the answer, the researchers found, is that some would-be donors don't trust how churches and religious organizations would use their donations. Only 9 percent of church-attending Christians say this is an important reason for their lack of giving—but majorities in several church families (Lutherans, Presbyterians, Baptists, and Catholics) say they don't have high levels of trust in their denomination's management and allocation of funds.

If this issue is a concern for anyone reading this, I suggest you find a new church. If you can't trust your church with "your" money, you can't trust them with much.

I'll cover more of this (depressing -- though insightful) piece next Sunday.

What Could Happen if All Christians Tithed

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why.

Here's a compelling (and long and pathetic) piece on giving and the church. I thought I'd list the points that stood out to me and comment on them. It may take me a few Sundays worth of posts to do this (there's so much here to comment on), but I think it's worthwhile. If you're a Christian or not, I think you'll find much of this data to be interesting. Here we go.

More than one out of four American Protestants give away no money at all—"not even a token $5 per year," say sociologists Christian Smith, Michael Emerson, and Patricia Snell in a new study on Christian giving.

Even the poorest of the poor Americans are much better off than about 99% of the rest of the world. Couldn't they afford at least a token amount? (And, BTW, the poor give a higher percentage on average than the wealthy -- more on that later.)

Of all Christian groups, evangelical Protestants score best: only 10 percent give nothing away. Evangelicals tend to be the most generous, but they do not outperform their peers enough to wear a badge of honor. Thirty-six percent report that they give away less than two percent of their income. Only about 27 percent tithe.

Ok, over one-third give away next to nothing and very few tithe. Guess the "give generously" philosophy isn't working as well as proponents seem to suggest Just another reason that tithing is -- at the least -- the minimum Christians should strive to give each year.

American Christians' lack of generosity might not be as shocking if it didn't contrast so starkly with their astounding wealth. Passing the Plate's researchers say committed American Christians—those who say their faith is very important to them and those who attend church at least twice a month—earn more than $2.5 trillion dollars every year. On their own, these Christians could be admitted to the G7, the group of the world's seven largest economies. Smith and his coauthors estimate that if these Christians gave away 10 percent of their after-tax earnings, they would add another $46 billion to ministry around the world.

Anyone feeling convicted yet? But wait, the amount that could be added is actually much more:

One early finding: That estimate of $46 billion in additional giving is unrealistic. Not because it's too big, but because it's too small. Estimating 10 percent giving for every committed Christian in the U.S. neglects two groups: those who truly can't afford to give 10 percent (due to illness or unemployment or similar reasons), and those who are already giving more than 10 percent (more on this group in a moment). If you calculate that 10 percent of Christians can't give because of their financial limitations, most of the rest give 10 percent, and a handful of generous givers continue their current generous giving pattern, committed American Christians could realistically increase their giving by $85.5 billion each year.

I've often heard it said that if all Christians simply tithed that it would radically change the world. Far fewer people would go hungry, far fewer children would have to live without parents, far less would have to be spent on government programs to help the needy, and so on.

As I read this piece, I was depressed to think how many people of faith are putting their own desires ahead of those of others -- really, how selfish many of us are. I hope this article stirs people to consider how they give in 2009 and challenges them to be more generous from here on out.

How Real People Grow Their Wealth

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why.

Here's a Bankrate piece that tells how real people grow their wealth (versus those who are born wealthy, get a large inheritance, etc.) They start by making this comment:

For most people, wealth does not come in a windfall but instead gathers gradually as a result of years of hard work and diligence.

How true. This is why "time" (and lots of it) is step #3 in my three steps to becoming rich. If you gather little by little and invest it over a long period of time, it eventually becomes a good amount of wealth and presto -- you're rich!

This piece made me think of the following from Proverbs 13:11:

Dishonest money dwindles away, but he who gathers money little by little makes it grow.

:-)

Just another suggestion from the Bible that, if followed, will help make you rich.

The Bible on Today's Economic Woes

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why.

Here's a piece that discusses the Bible and how it addresses many of the money woes we face today. In particular, I found these quotes to be compelling:

"If you are able-bodied, you need to work earnestly, avoid the slavery of debt and give freely to God and others."

"If you look at where we are as a nation, if we followed that biblical principle, we wouldn't be in this situation," he said.

Obviously it's a bit more complicated than that, but he does have a point. Think of how much better off so many people would be (and how much better off our nation would be), if we all simply worked hard (growing our careers), avoided debt, and gave as we should. Of course I'd add in spend less than you earn, which is also in agreement with the Bible.

These simple principles are why I say the Bible will make you rich. But, of course, you have to follow them. And not following basic money principles can put people in a tough financial situation -- a scene we're seeing played out over and over and over again these days.

A Christmas Sermon

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why. Today's piece is a guest post from Marotta Asset Management.

Christians celebrate the birth of Jesus on Christmas Day. But for too many of us, it's the season that unravels the careful financial planning of the previous 11 months. So this year, instead of trading your financial goals for a mountain of gifts and debt, take a moment to contemplate how a spiritual perspective can help you put your wealth in perspective.

In Christianity, my religious tradition, we are only stewards of our wealth. We are entrusted to use it wisely to meet the responsibilities we've been given. Thus our money belongs to God, and we must first ask ourselves, "What does God want us to do with his money?"

You may find a spiritual perspective on wealth either strange or presumptuous. But for all of us, money is an unconscious placeholder for what we value. The way each family uses money expresses their beliefs. Even when someone uses money hedonistically, it reveals their worldview. More commonly, our use of money negotiates a plethora of competing values such as education and recreation, security and travel, or children's needs and parents' needs.

Every spiritual tradition promotes certain actions and ideals as beautiful, virtuous and true and discourages others as ugly, sinful and false. Having a spiritual view of wealth management, whether based on the Judeo-Christian, Buddhist, Baha'i, or any other faith, helps us purposefully apply our values and use money to meet our goals.

The wisdom we gain from our spiritual traditions challenges us to consider our wealth from a new perspective. In the Christian tradition, the words directly attributed to Jesus, often marked in red in the Bible, have the highest authority. But whatever your religious faith, consider the words of Jesus as a prophet and spiritual leader. In the gospel of Matthew (23:23), Jesus says, "You give a tenth of your spices--mint, dill and cumin. But you have neglected the more important matters of the law--justice, mercy and faithfulness."

Giving a tenth of your income each year, or tithing, is a noble endeavor. Many people use this percentage as a benchmark of their generosity, but Jesus offers us a greater challenge and an important warning. He cites three values that are particularly germane when dealing with our perspectives toward wealth management: justice, mercy and faithfulness.

Justice, the first virtue, is acting fairly. The notion of justice seems to be instilled universally in the human mind and heart. We all recognize injustice, especially against ourselves! But the truth of justice is that all people, regardless of their wealth, have equal value in the eyes of God. Although most believe this to be true in the abstract, wealth can make people act otherwise.

We tend to treat those with power and wealth with more respect and deference than those without. And if we have acquired wealth, we may think ourselves better than others for having done so. But being more productive does not make us more valuable. True justice values every person. And its opposite is pride, believing ourselves better than others because we have wealth, status and power.

In the Christmas story, the wise men come bearing gifts for the baby Jesus. They bring him gold because he is a king. Some have cynically mocked the golden rule, misquoting, "He who has the gold makes the rules." The gift from the magi reminds us that Jesus has the gold, and with him as king, justice rules. Wealth need not make us prideful, and we can treat others with equity and humility.

Mercy, the second virtue that Jesus mentions, translates as kindness toward those in need. Mercy is also a universal virtue. Few would argue against being tenderhearted and compassionate. Although the goodness of mercy is universal, unfortunately the practice is not. Statistics show that the more money people possess, the smaller percentage they give to charity.

If mercy is the virtue, greed is the vice. Making progress toward our financial goals need not blind us to those struggling behind us. Part of our careful planning and budgeting should include cheerfully helping those charities and individuals in need. Jesus emphasizes that becoming generous and merciful is even more important than giving a fixed percentage of our income.

Frankincense, the second gift of the wise men, was used to offer prayers to God. It reminds us to have faith that a power greater than ourselves cares for us. Every person among us needs mercy.

The third virtue, faithfulness, involves a covenant relationship with God to trust ultimately in the spiritual, not the material. If we are not vigilant, the many things we buy with money can become the center of our lives. We can find ourselves literally worshipping material goods.

In his book "Mere Christianity," C.S. Lewis warns, "One of the dangers of having a lot of money is that you may be quite satisfied with the kinds of happiness money can give and so fail to realize your need for God. If everything seems to come simply by signing checks, you may forget that you are at every moment totally dependent on God."

The Old Testament law in Deuteronomy 8:11-18 makes this temptation even clearer: "Be careful that you do not forget the Lord your God. Otherwise, when you eat and are satisfied, when you build fine houses and settle down, and when your herds and flocks grow large and your silver and gold increase and all you have is multiplied, then your heart will become proud and you may say to yourself, 'My power and the strength of my hands have produced this wealth for me.' But remember the Lord your God, for it is he who gives you the ability to produce wealth, and so confirms his covenant."

The opposite of faithfulness is fear. We fear that God has forsaken us or is indifferent to our struggles. But fear can paralyze us. And if we do not take risks, we are unable to live and enjoy fully the life God has given us.

The final gift of the magi was myrrh, a bitter gum used in death and burial. In the Christian tradition, it reminds us that even at Jesus' birth, his death on our behalf is foreshadowed. As the apostle Paul writes in the letter to the Romans (8:32-34), "If God is for us, who is against us? He who did not spare His own Son, but delivered Him over for us all, how will He not also with Him freely give us all things? God is the one who justifies; Christ Jesus is He who died, yes, rather who was raised, who is at the right hand of God, He intercedes for us."

If God is for us, we can trust him, and take courage no matter how dark the future may appear. Look to integrate finances with your spiritual traditions to reflect the best of your values and live life holistically.

Seek to avoid pride, greed and fear is a common mantra in investment management. Jesus substitutes the positive virtues: justice, mercy and faithfulness. Don't think more highly of yourself if you have money. Be generous to those in need and trust that God cares for you. Remember these principles this Christmas season, and you will remember the one whose birth we celebrate.

Good Thoughts on Tithing

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why.

Here's a piece from Crosswalk that offers several good thoughts on tithing. In particular, it addresses:

1. The most common reasons people cite for NOT tithing: 1) Church leaders have used verses taken out of context. 2) Pastors have abused the teaching of the tithe to manipulate people to give. 3) The practice of a weekly collection is of relatively recent origin. 4) Tithing is a part of a legal system while believers are under grace. 5) Certain televangelists have used the tithe to fund their own extravagant lifestyle.

2. Jesus' teaching that tithing is a fundamental aspect of faith in Mathew 23:23.

3. A comprehensive view of stewardship -- not only money but our time and talents as well.

It's a great piece and I recommend it to both those who believe in tithing and those who don't.

As for me, I've written on the subject of tithing quite a bit including these pieces you may want to check out:

• The Purpose of Tithing

• Tithing Versus Giving Generously

• Tithe versus Offerings, What's the Right View?

• Dave Ramsey's Take on Tithing During Tough Times

• Calculating Your True Gross Pay for Tithing Purposes

• Questions about Tithing

• Tithing – A Plan for Grateful Giving

When Values and Profits Collide

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why.

This week we have a guest post from Jay Peroni. I realize that the issues of abortion, embryonic stem cell research, and the like are volatile, but the issues brought up in this piece are valid -- namely, are you spending/investing in companies/products that go against your personal beliefs (like an environmentalist buying a Hummer, a teacher investing in a company that outsources public school work, and so on). It's a valid question -- not only for Christians, but for everyone. So if any of the examples put you off, please move past those and concentrate on the thought behind them -- are your beliefs and your financial actions aligned?

Most Americans agree that both principles and values should come before any financial profits. If you, too, agree, then would it not be logical to assume that your investments ought to reflect the principles that you hold important in your daily life? This fundamental concept can be hard to follow in today’s society when it appears that so many of America’s most admired companies put profits before principles. Stories of greed, selfishness, and corruptness fill our TVs, radios, and newspapers and can pollute our perception of corporate America. For every bad story, there are also numerous good ones; you just have to be willing to look for them.

Many corporate leaders are faced with decisions in which values and profit collide. This is why it is valuable for you, the investor, to set your priorities. Let your principles and values guide you in accomplishing this task. To start, ask yourself this important question: Would I abandon my principles in favor of choosing a path of profit? Think long and hard about that very question.
 
Would You Take a Bullet for Your Faith?

Sometimes faith is built on a weak foundation—it is easy to move and quick to fall. Other times it is built on solid ground—unable to be swayed or moved. Where does your faith stand? Is your faith strong enough that you would let nothing detract you? Would you take a bullet for what you believe in? If push came to shove and you were forced to choose between your life and your faith in God, what would you choose?

One story from the Columbine High School tragedy involves Cassie Bernall, a student who was shot to death as she confirmed her belief in God. One Tuesday in April 1999, it was reported that Cassie was sitting in the school library studying when the unthinkable happened. A fellow student armed with a gun entered the library and opened fire on his classmates. He came across Cassie and asked: "Do you believe in God?" "Yes, I believe in God," she said. "Why?" the gunman asked. But he did not wait for an answer. He shot and killed Cassie.
 
Giving up your life for your faith is the ultimate sacrifice. I ask you, "How important is your faith in your financial life?" When it comes to your finances, does your faith in God guide your decision-making process or are you motivated solely by profit potential? Is your faith strong enough that you cling to your principles before analyzing what type of gain you may make? Will you take a strong stance, as Cassie did, and stand strong on your beliefs no matter what the consequences may be? Whether you are new to your faith or have a solid foundation, my goal with this book is to help you make a bigger difference with your money. By getting more, you will have more to give!
 
Shock and Awe: I Own What?

I met Hannah Stephenson in 2005. At the time, Hannah was working for a Catholic university. She had never put much thought into her retirement portfolio or the values it reflected. As she glanced at the list of stocks held in her mutual funds, she recognized a few familiar names. They appeared to be good companies with good products. However, as she progressed farther down the list, some names stood out like a sore thumb (names changed) . . .

• Cuties and Beauties, Incorporated—Producers of pornographic videos and magazines
• Extinction Corporation—Producers of abortion-related products
• We R God & Associates—A company involved in cloning and embryonic stem cell research
• No-Tell Hotels—Engaged in promoting pornographic video distribution  

Beyond the names Hannah recognized, there were probably many others she was unaware of that also violated her moral compass and contradicted the beliefs of her faith. Hannah had made conscious decisions not to support unfavorable companies that did not reflect her values. In spite of these conscious decisions in her consumer life, the end result showed that some of Hannah’s investment purchases had slipped through the cracks in her portfolio. She questioned whether she should be investing in companies she was so strongly opposed to. How could she do this with a clean conscious? If she did profit with her current investments, was it the moral and ethical thing to do?

Where to Draw the Line?

Hannah makes deliberate choices in her life each and every day. Such choices include, but are not limited to: where she works, where she spends her income, what charities and ministries she supports, and where she invests her savings.

• Work: Hannah wouldn’t work at an abortion clinic because she is pro-life.

• Spending: She wouldn’t purchase pornography.

• Giving: She wouldn’t donate money to fund embryonic stem cell research.

• Investing: Hannah did not even consider where she was investing. She unknowingly was investing in a mutual fund that bought the types of companies that were in conflict with her beliefs.

Disturbingly, upon reviewing her statements closely, Hannah found that she was supporting all of these areas with her investment dollars. Even though Hannah strives to support causes she believes in and avoids things she is opposed to, these factors were never considered in her investments. Each year her investment dollars were supporting values that blatantly contradicted her belief system. Bottom line, Hannah felt that she was working against herself.

The Fuel to Feed the Fire

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why. This week we have a guest post from Jay Peroni.

You may think, I cannot succeed financially; there are too many obstacles. You may not be able to succeed on your own, but with God by your side, anything is possible. He can make things happen that seem impossible. He can open doors that you never thought could be opened. Do you have faith that the Creator of life can supernaturally turn your financial life around? He can make a way for you even when the odds are stacked against you and there appears to be no way. Don’t see God as a small-sized God but rather a God who can help you accomplish anything.
 
Do you know people who are always negative? Even if something good happens to them, they still find something to complain about. You know the type: poor me, nothing good ever happens to me, this is just my luck, etc. It is hard to be blessed when you cannot recognize a blessing when it comes. Turn your negative thoughts into positive responses. Things can always be worse. With God by your side, you can get through whatever you face.
 
Ron was at rock bottom, in his late forties and about to lose everything: his family, his business, and his millions. The 1980s real-estate market downturn left Ron with highly leveraged real estate and wiped out his net worth in an instant. A "paper millionaire" no longer, he now owed more than his properties were worth. To top it off, he was three months behind on his personal residence mortgage payments and about to lose that as well. Here Ron was, bankrupt, a failing marriage, and considering ending his life. It was painful for him to wake up each day. This went on for months, then years. He hung in there, and his family stuck around despite his behavior.
 
Finally, a friend leveled with Ron. "I know you have been down in the dumps and keep focusing on the life you lost, but think about the living you still have left to do. God loves you and can still use you for His good. Focus on the good in your life and forget the bad." His friend then challenged him, "Ron, don’t you think God wants you to do more than you are doing? Don’t you think He has better things in store for you? You need to stop being so negative!"
Ron took the advice to heart and began waking each day with a new mind-set. He concentrated on the good things in his life and worked hard to turn things around. He leaned on God and fought his way out of depression into a life full of hope, promise, and a brighter future. He concentrated on restoring his broken relationships, building back his finances, and honoring God with his attitude.
 
When Ron turned to God, he found joy, a fresh vision, and a new sense of purpose. Life is a precious gift—every second, each breath, and the start of every new day. You may never get another opportunity to do the things that matter most. You may be so busy that life can pass you by. When you realize what’s important, and create a plan to make it happen, you will reap the greatest rewards. Having a plan is important, but you also need to have a personal connection—something that will keep you motivated. There needs to be fuel to light a fire under you.
 
Without knowing what is truly important to you, goals have little meaning. Like the dieter who says, "Yeah, I’d like to lose the love handles," as he eats two more doughnuts, chugs two beers, and watches another episode of Jerry Springer. His motivation is at zero. Now add some meaning to your goals and it’s a different ball game all together. Take, for example, a woman who has a burning desire to lose her post-pregnancy pounds and fit back into her pre-pregnancy wardrobe. She wakes at 6:00 a.m. every morning, does sixty minutes of cardio, and has been keeping track of her calories. Who do you think is more likely to stick with a diet: the Doughnut Dude or the Motivated Mama?

What Truly Matters, Part 3

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why.

Today we have another excerpt from chapter 4 of Money, Purpose, Joy: The Proven Path to Uncommon Financial Success. This is the last post in this series. Enjoy.

Don’t Be a Bystander in the Passion Game 

Some people cry while watching love stories. I cried while watching Walk the Line, the story of Johnny Cash. A number of scenes stirred my heart, but especially the concert Cash performed at Fulsom Prison toward the end of the movie. Just before going on stage, he saw something that reminded him of his brother, who died in an accident when he was very young. That memory kindled something in Cash—perhaps a mix of grief, anger, and maybe even a haunting question about whether he could have done something to prevent his brother’s death. It all poured out on stage. His performance was that of a man living life to the full, unable to hold anything back. The energy he brought to that performance overwhelmed me.

As the credits rolled and the lights came up, I felt embarrassed that my eyes were glistening with tears. But mostly, I was glad to be that moved. Something in me longed to live with the passion I saw before me.

A few weeks later I read this comment about Johnny Cash from the musician Don McLean: “One of the things I loved about him was he was a little frightening when you first heard him.”  Isn’t that great? Isn’t that exactly what it’s like when we see someone bringing all that they have to whatever they’re doing?

Performers don’t have the exclusive rights to passion. If you work at something you believe in, something that makes a difference in the world, something that’s an expression of who you are and what you were put here to do, won’t you do it with passion? Isn’t life far too short to settle for anything less?

Letting Contribution Lead

What contribution do you long to make with your life? When it’s all said and done, what difference will you want to have made? Maybe the off-road adventure you long to pursue is that vocational dream that comes to mind every time life gets quiet enough for you to notice, the one you keep trying to hush because of your financial obligations. What if you began using your money in a way that could make your dream job come true? What if you had enough savings to quit your current job or reduce your hours or go back to school in order to pursue the work you really want to do? Your employer might even pay for your schooling. The vast majority of large employers offer some type of educational assistance, yet fewer than 10 percent of eligible employees take advantage of such programs.  Does your employer offer tuition reimbursement? If so, why aren’t you taking advantage of it?

So what if saving money to pursue the work you were meant to do means vacationing a bit closer to home or wearing last year’s clothes another year? If those sacrifices enabled you to pursue more meaningful work, wouldn’t they be worth it? The ads promise that the seaside resort and this year’s fashions will make your life so much more exciting, but the truth is, doing what it takes to pursue more meaningful work will be the route to a far more satisfying adventure.

It’s all too easy to use money in a way that moves you further away from your longing to make a difference—further and further away from home. It’s all too easy to take on financial obligations that rob you of the flexibility to accept a job for less pay, even if that’s the one that resonates with your heart. So as you contemplate each of your many financial choices, ask yourself how your choices are likely to impact your ability to pursue the work you were meant to do. (If you are married, be sure to do this in partnership with your spouse.)

For example:

• How would remodeling the kitchen—along with the monthly payments on the home equity loan you plan to use to pay for it—impact your ability to pursue the work you long to do? Might it just chain you to your cubicle for the next five years?

• Would taking a promotion that’s been offered to you be the wisest choice or could the extra hours required by the job kill any chance of going back to school or of doing the volunteer work you want to do?

• Do you really need two cars, or would the ability to build a sabbatical fund make the inconveniences of living with just one worth the effort?

To be sure, these are not easy choices. It is not inherently wrong to opt for the new kitchen, the promotion, or the dual-car household. But if those choices diminish your ability to live a life of meaning and joy, are they really worth it? It’s important to at least consider such questions.

Our Greatest True Desire

As we have seen, two elements of what truly matters in life are having meaningful relationships and making a meaningful contribution. Both are part of our design; they’re part of who we are. When we make financial choices that strengthen our relationships and help us make a difference with our lives, we’re on the path toward home.

But within each of us is a third longing. In fact, it is the most important one, for when we understand this true desire, we see once and for all that we were never meant to settle for life as Consumers; we were meant to be so much more.

What to Remember

1. Two of our most important true desires are the desire for meaningful relationships and the desire to make a meaningful contribution with our lives.

2. Successful, joyful money management involves making financial choices that support these desires.

3. Such choices look different for different people, but we can stay on track by asking ourselves questions such as: Will buying a home with more space enhance our family relationships or could it hurt them if we stretch our finances too far in buying the home?

What to Do

1. Who are the most important people in your life? Take the time right now to write them down on a piece of paper or in your guidebook, but try to include no more than five. To make it easier, group some together. For example, if you have kids, don’t list each one separately; just write down “my children.” Do the same with your parents and other important groups of people in your life.

2. What contributions do you long to make with your life? Are there causes you’d like to support either with your volunteer time or with your money? What did you once long to do that you have given up on because there are bills to pay? Would you like to switch from full-time work to part-time work so you can spend more time with your children? Capture some of your thoughts on paper. Don’t worry about “how” just yet. We’ll get to that later. For now, just focus on “what.”

3. Now take a look at the list of financial goals you wrote down earlier. How might the pursuit and accomplishment of each goal impact your most valued relationships and your ability to make the difference with your life that you want to make? See if you can identify at least one way that the pursuit and accomplishment of each goal could be helpful and at least one way that it might be a hindrance. Write your answers on a piece of paper or in the guidebook. Are there any changes you’d like to make to your goals list?

What the Word Says

Love others as much as you love yourself. –Matthew 22:39 (CEV)

We are God’s workmanship, created in Christ Jesus to do good works, which God prepared in advance for us to do. –Ephesians 2:10

What Truly Matters, Part 2

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why.

Today we have another excerpt from chapter 4 of Money, Purpose, Joy: The Proven Path to Uncommon Financial Success. I'll be running the entire chapter over the next few Sundays. Enjoy.

Letting Relationships Lead

Who are some of the most important people in your life? If you are single, it might be your parents or siblings and your closest friends. If you’re married, your spouse is probably at the top of the list. If you have children, I’m sure they’re on the list as well. Who else? Get a clear picture in your mind of at least five people who are really important to you. Now ask yourself whether your use of money is strengthening these relationships or hindering them in some way. 

It’s all too easy to buy the house we want, even though it requires such a long commute that we have little time to spend with family or friends. It’s just as easy to spend so much on clothing or vacations that we go into debt or try to get by without savings, even if doing so adds stress to our relationships.

That’s why, whether single or married, it’s important to ask how your financial decisions are likely to impact your most significant relationships. For example: 

• Would that cross-country move that comes with a $10,000 raise be in your best interests, or could saying goodbye to your friends be too much to exchange for the higher pay?
• Would a house with more space best serve your family, or would living with more financial margin be a better choice?
• Do you really need to be able to tap the Internet, watch television, and check e-mail with your cell phone, or would the financial breathing space of a less expensive calling plan help you save for vacations with family or friends?

It’s not inherently wrong to relocate with your company, buy a bigger house, or opt for the latest cell phone services. But it’s important to ask and wrestle with such questions, because relationships matter more than we sometimes realize.

So does contribution.

Contribution Matters

In the opening scene from About Schmidt, Warren Schmidt, played by Jack Nicholson, is staring at a clock on the wall of his office, counting down the minutes before his final day at work will be over and his retirement will begin. He has spent his career working as an actuary for an insurance company, where he rose to the position of assistant vice-president. At the end of his last day Schmidt sits in the midst of his boxed belongings, watching the clock, waiting until 5:00 p.m. when the workday and his career will be over.

At a retirement dinner that evening a long-time colleague toasts him, telling Schmidt he should feel “rich” to have devoted his life to something so meaningful. The look on Schmidt’s face says he’s not so sure. He once dreamed of having his own business, but instead chose the security of a steady paycheck.

Shortly after Schmidt’s retirement, his wife dies. The sudden changes—retirement, the loss of his wife of over forty years—leave Schmidt wondering even more about the meaning of his life. “I know we're all pretty small in the big scheme of things,” he writes to Ndugu, a six-year-old Tanzanian orphan he sponsors in response to a television advertisement. “And I suppose the most you can hope for is to make some kind of difference, but what kind of difference have I made? What in the world is better because of me?”

Our culture would have us believe that life is about competition. It tells us that happiness is found in having more than we have now and more than others have. But as Nicholson’s character expresses so well, it’s contribution that we long for, a sense that we are making a difference with our lives. David Myers says that when our work adds purpose to our lives, when we view it as a calling, it adds mightily to the quality of our lives: “Happiness is loving what you do, and knowing it matters.”  Here again, psychology affirms the biblical teaching that we were designed to make a difference, that God “created us for a life of good deeds.”

The Money/Contribution Connection

We can experience a sense of calling in our paid work, our volunteer work, the work of parenting, and more. Martin Seligman, a psychology professor at the University of Pennsylvania, says for some people meaning is found simply in how they view their work. He tells of a hospital orderly who meticulously selected pictures for the walls of a room where a close friend of Seligman’s lay unconscious. The orderly explained, “I’m responsible for the health of all these patients. Take Mr. Miller here. He hasn’t woken up since they brought him in, but when he does, I want to make sure he sees beautiful things right away.”

This orderly viewed his work as integral to the healing of patients. Another orderly might think of his work as menial and meaningless. The first orderly sees his job as a calling; the second sees it as a source of income. The tasks are the same; only the perspective is different.

Other people find meaning in how they use the fruits of their labors. For as long as Michelle can remember, she has cared about the poor. When she was young, she considered a career in social work, but her father talked her into studying business and she became a certified public accountant. Then her brother persuaded her to go to law school, and she became a corporate attorney. It’s never been her dream job, but she excels at it and earns a good living. She has thought about leaving the corporate world to work in the non-profit sector, but she candidly acknowledges feeling fearful of leaving something she knows how to do so well. So, Michelle has found a way to make a meaningful contribution without leaving her day job.

For several years she has invested her skills and money with an organization that serves homeless people in Chicago. Michelle chooses to live a far less expensive lifestyle than many of her colleagues in order to give away a remarkable 35 percent of her income—some of it to her church, much of it to the homeless ministry. Soon the ministry will open a new youth and family center where neighborhood kids will receive after-school tutoring and take part in sports leagues and other programs designed to help them stay out of gangs and finish school. Michelle used her legal skills to help the organization complete a deal with the city of Chicago to purchase land for the center and her donations helped to fund it.

Michelle says that investing her money, time, and talents into the homeless ministry is one of the most rewarding parts of her life. “I know that this ministry is changing people’s lives. People are getting off drugs, getting back on their feet. Volunteers are mentoring kids who’ve never had positive role models in their lives. Being part of this helps me see a greater purpose for my career path.”

While Michelle’s use of her money and her talents enables her to make a meaningful contribution, other people’s use of money prevents them from doing so. For example, a heavy debt load keeps some folks from pursuing the vocation best suited to their gifts and passions because the work doesn’t pay enough to cover the bills they’ve incurred. Others have become so acclimated to their lifestyle that it seems unrealistic to go from full-time work to part-time work in order to pursue their true calling, which could be spending more time with their children.

As Po Bronson points out: “Failure’s hard, but success is far more dangerous. If you’re successful at the wrong thing, the mix of praise and money and opportunity can lock you in forever.”  It’s not easy to make a change, particularly when things are going well—you keep getting promoted, the money is plentiful, the slaps on the back frequent. In many ways, that was my story.

I was working a corporate job with a good salary and plenty of perks. The position enabled me to provide a comfortable life for my family. But I felt a growing sense of unease, a mounting conviction that there was something else I was meant to do. It wasn’t easy to push back from the corporate table, where the food was plentiful. And I took some flak from well-meaning people who questioned the timing of my decision to step down. They wondered whether it would be more responsible to wait until our kids were grown before following my dream to write and teach full-time. But I couldn’t ignore the disconnect between my career and my heart. I felt like I was “living divided,” and I just couldn’t do it any more.

I’m blessed that from the earliest days of our marriage my wife has shared my dream of one day being able to do this work full time. Together, we made decisions designed to help us save enough money for me to be able to walk away from my corporate job. We both worked at the start of our marriage, but we committed to living on one income so that we could give to causes we believe in, save aggressively, and be prepared to have Jude stay home with the children we hoped to have. When we bought our first home, a condo, it was in what realtors optimistically termed an “up and coming” Chicago neighborhood. Basically, that meant three things: there was no Starbucks down the block, the symbols that would often appear overnight on the corner mailbox were not meant to beautify the neighborhood, and we were able to live with plenty of margin. I drove the car I brought into our marriage until it had nearly 200,000 miles on it. Now I drive the car Jude brought into the marriage, and it has 160,000 miles. During my corporate career we could have easily bought a nice luxury car for cash, but the freedom to pursue this work mattered more, so we focused on building savings.

It’s all too easy to lose touch with our longing to make a meaningful contribution. Before you know it, the house payment, the car payment, and the hours you work to pay for it all can make any thought of pursuing more meaningful work seem unrealistic. Or it’s easy to succumb to fear. You think: How will I make it work if I choose a line of work that pays less? Even worse, What if I fail? But consider this: What if you never try? Wouldn’t that be the greater failure? If there’s an ache in your heart to do something else, pay attention to that ache; it’ll motivate you to do what it takes to pursue the work you were meant to do. And that will help you recapture some of the passion you once had.

What Truly Matters, Part 1

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why.

Today we have an excerpt from chapter 4 of Money, Purpose, Joy: The Proven Path to Uncommon Financial Success. I'll be running the entire chapter over the next few Sundays. Enjoy.

Love one another. –John 13:34

Joy can be real only if people look upon their life as a service, and have a definite object in life outside themselves and their personal happiness.  –Leo Tolstoy

More than one hundred years ago, sociologist Georg Simmel observed people’s use of money and concluded that, in many cases, it was leading them away from the sense of meaning and purpose they so desperately wanted. The reason, he felt, is that they simply didn’t know what makes for a meaningful, purposeful life: “The lack of something definite at the centre of the soul impels us to search for momentary satisfaction in ever-new stimulations, sensations and external activities.”

The path toward home will only come into view when we become clear about what truly matters, what really gives our lives meaning, purpose, and joy. As we saw in the last chapter, our culture has strong opinions about this. Researchers in the emerging field of positive psychology have had a lot to say on this topic as well, but their conclusions are quite different than those of our culture. And as we’ll see, the findings from psychology simply echo what the Bible has been teaching for thousands of years, beginning with our desire for meaningful relationships.

Relationships Matter

My parents passed away within twelve months of each other. The last year of my mother’s life and the year that followed, which led to my father’s death, was a time of much stress and sorrow. It was agonizing to see the pain that cancer inflicted on my mother and the debilitating effects of heart disease on my father. Making matters worse for my dad was the deep grief and loneliness he felt following the loss of my mother. They were married for nearly forty-seven years. But that period was also a time of rich moments spent in simple conversation. I will always remember my father telling me in the quiet of a hospital room late one evening how grateful he was that my mom “took a chance” on him and that being married to her was his greatest joy.

Living a little over an hour away from their house, I was able to spend a lot of time with them as their health declined, and it was one of my greatest honors to be at their side when they each drew their final breath. Throughout their illnesses I saw firsthand what I think we all know to be true: when our time here draws to a close, our hearts will not be filled with longings to redecorate the living room or take one more trip to Europe; we’ll simply want to be with the people we love. There’s something about knowing our time is short that helps us clarify what really matters.

Our culture encourages us to love money and what it can buy. Psychologists say if it’s a life of meaning, purpose, and joy we’re after, we’d be better off loving people. Social psychologist David Myers has reviewed hundreds of studies about happiness and concludes that, “Social support—feeling liked, affirmed, and encouraged by intimate friends and family—promotes both health and happiness.” He cites numerous studies showing that people in close relationships cope better with various stresses, including bereavement, job loss, and illness. In one study of 800 college graduates, those who preferred a high income, occupational success, and prestige to having close friends and a close marriage were twice as likely to describe themselves as “fairly” or “very” unhappy.

Of course, the research from psychology only affirms what the Bible teaches. Jesus taught that loving others is second only to loving God in importance.  And the Apostle Paul said, “No matter what I say, what I believe, and what I do, I’m bankrupt without love.”   We were made for relationships. It’s written throughout the pages of Scripture.

The Money/Relationships Connection

What does our true desire for meaningful relationships have to do with money? Quite a bit, for the way we use money can either enhance our relationships or detract from them.

My friend Tom provides a good example of how our use of money can build our relationships. He and his wife, Rachel, committed early in their marriage to live free of debt. Not just credit card debt, but automobile and even mortgage debt as well. They figured the freer they were from debt, the freer they would be to spend time with the children they hoped to have. When Tom and Rachel decided to buy a home, they looked for one that was large enough for the family they desired and affordable enough to pay it off in a short amount of time. They found just the home in a western suburb of Chicago. It had plenty of space and was located near a riverside trail, which appealed to their love of running and biking. It was also reasonably priced, partly because it had no garage. They were willing to make the trade-off: no garage in exchange for a house that, before long, would require no mortgage payments.

Rather than relying on the advice of realtors or mortgage brokers, who would have told them that they could afford a much more expensive home, Tom and Rachel made their decision based on what truly matters—their commitment to family relationships. By living well beneath their means, they paid off their house in just five years. That enabled Tom to reduce his hours at work and be content with the lower pay that came with the deal so he could spend more time at home, which is especially important now that they have five children.

Unfortunately, not every couple is so naturally in synch when it comes to finances, and this can put stress on the marriage relationship. A former co-worker once confided that he and his wife were having frequent arguments about money. They are “not on the same page” financially, he explained. She’d like to do some significant landscaping in their yard, and pay for it by taking out extra money when they refinance their home. He’s not comfortable taking on more debt.

As we talked more about it over lunch, it became clear that this couple did not see money management as a partnership. Although they had a budget, he kept the books, while she wondered why there wasn’t enough for the things she’d like.

I suggested that they begin holding monthly “board of directors” meetings. The purpose for the first couple of meetings would be to pray about, discuss, and develop a financial vision for their family. What is God calling them to do with the resources he has blessed them with? Do they have enough in an emergency fund? Should they plan to help their children pay for college? What do they see themselves doing in their later years? From that vision they can set specific goals, and those goals will make daily financial choices much clearer.

It may be that the decision to invest in making their backyard more inviting fits perfectly with a shared vision to spend more quality family time at home. And maybe they could move toward each other—agreeing to invest in the landscaping, but waiting until they have enough in savings to pay for it without going into debt. Or, they may find that the landscaping project would prevent them from accomplishing a more important goal. If that’s the case, saying no to the landscaping project is likely to become easier since they both agree that the other goal is a higher priority.

Bible and Money Roundup

I've been "collecting" articles on the Bible and Money and have been waiting for a Sunday to share them with you. Here are the pieces along with summary quotes from each:

• Churches are looking at hard times -- With the economy in crisis, congregations around the country are cutting expenses at the very moment many members need help with food, heating bills and gasoline. Some members of the clergy say their fundraising has remained steady despite the economic downturn, but how long that will last is unclear. Some are postponing building plans and delaying new programs just in case.

• Maybe We Should Blame God for the Subprime Mess -- Has the so-called Prosperity gospel turned its followers into some of the most willing participants — and hence, victims — of the current financial crisis? That's what a scholar of the fast-growing brand of Pentecostal Christianity believes. While researching a book on black televangelism, says Jonathan Walton, a religion professor at the University of California at Riverside, he realized that Prosperity's central promise — that God will "make a way" for poor people to enjoy the better things in life — had developed an additional, dangerous expression during the subprime-lending boom. Walton says that this encouraged congregants who got dicey mortgages to believe "God caused the bank to ignore my credit score and blessed me with my first house." The results, he says, "were disastrous, because they pretty much turned parishioners into prey for greedy brokers."

• Would God buy that stock? -- Socially responsible funds have begotten a subset of portfolios based on religious principles. Investors are guided by their beliefs, but how well do those translate into profit?

How You Handle a Little is How You'll Handle a Lot

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why.

About a month ago, I had a reader leave the following comment to my post titled How the Rich Go Broke:

I believe that if you can manage a small amount of money well you can also manage a large amount of money well. If you can't manage a small amount of money, having more money isn't going to solve your problems. It might just get you in over your head faster.

It made me think of this quote from the Bible:

"Whoever can be trusted with very little can also be trusted with much, and whoever is dishonest with very little will also be dishonest with much. So if you have not been trustworthy in handling worldly wealth, who will trust you with true riches? And if you have not been trustworthy with someone else's property, who will give you property of your own?" Luke 16:10-12

A couple thoughts on this:

• If you do handle your money right when you have a little, you will eventually have a lot. It's simple math. How can you do this? See my three steps to becoming rich.

• I've heard people say many times, "If I was well-off, I'd give money to help others," "When I'm rich, I'll give," or something similar. This may be true for a person here or there, but it's not true for most people. Having more money simply allows people to do more of what's already in their hearts. If they were really the giving kind, they'd be giving now -- even if it was only a little bit here and now. But if they're spending it all on themselves now, when they get more they'll do the same (spend it all on themselves). This is fine by me -- it's their money -- but they shouldn't fool themselves thinking they'll be generous at some future date when they're not generous now.

What are your thoughts on this issue?

Accountability Partners in Financial Matters

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why. This week we have a guest post from Mighty Bargain Hunter, one of my favorite personal finance blogs.

I'm on my church's benevolence committee, and as such we hear about people, often within the church, with financial problems.  People get into financial hardship for many reasons: job loss, medical issues, or sometimes by a pattern of living beyond their means.

When we get requests for money from people, they are usually up against a wall and will face fairly severe consequences without the help: their phone or electricity will be shut off, or they might be facing bankruptcy or foreclosure.  At this point in the game it's usually a bit too late to help them with the basics of personal finance to get them out of their current predicament, but after the crisis passes, we try to match the people up with someone who can help to hold them financially accountable.  The goal is to be compassionate and to help in the long run.  It is also a goal not to enable the person to spend themselves into a hole again and again.

The idea of accountability partners draws from addiction recovery like alcohol addiction, gambling addiction, etc.  The "weak" person is paired with someone "strong" and meets with them regularly to check in, have someone to talk with, and have someone to admonish them if they begin to fall into old habits, since the "strong" partner presumably has financial discipline and is not tempted by over-consumption or abuse of credit.

Of course, it's not necessary to wait until getting into trouble to have someone to help you stay on track!  Though it's certainly wise to get help if you're in trouble, it's wiser to get help when you sense that things are going downhill:  the checkbook balance has been decreasing for a few months, "gotcha" fees from your checking account are beginning to happen, or money is starting to disappear and you don't know where it's going.

Where can you find someone to help you remain accountable?  Well, church is a good place.  Work may be another option, or a civic organization that you participate in.  The person should be someone that you trust to delve into your finances and someone who manages money well themselves.

What if you're approached by someone who wants you to help them remain accountable with their finances?  The person probably didn't come to you out of the blue.  They either know you're good with your money, or someone told them you're good with your money.  This doesn't happen by accident.  God has probably gifted you with wisdom, and you're applying it to your finances.  By bringing this person to you, God is offering the opportunity for you to exercise your gift (Romans 12:6-8).

Faith-Based Investing: Do Faith and Money Mix?

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why. This week we have a guest post from Jay Peroni.

In the book of Mark, this question is posed: "What does it profit a man to gain the whole world, and forfeit his soul?" (8:36 nasb). Through the effort to find solutions to address the issues that go along with this question, faith-based investing was born. This movement seeks to align a person's faith, moral beliefs, and ultimately God's Word with the investment community.

There are now millions of religious investors attempting to align their morals and values with their investment portfolios. Religious concerns have long been a factor in the investment process because investors have wanted to avoid companies that contradict their belief system. This began with social screens such as alcohol and tobacco and has migrated to moral issues such as pornography and abortion.

There has also been a recent movement for investors to reassess their financial priorities in light of the corporate and mutual fund scandals that have surfaced over the last ten years. People are looking for more meaning in their lives and ultimately to make a more positive difference with their investments. This has led to the desire and ability to screen for more social and moral issues.

The rise in the number of faith-based mutual funds and money managers has opened the door to new avenues of investing. There also has been a surge in the level of sophistication in research available to advisors, money managers, and individual investors. As a result of this movement and awareness, millions now have the opportunity to put their money where their values are.

The appropriate starting point for any investment should include having a noble purpose as well as developing a process to maximize moral integrity. It is not just whether you should compare the harm of investing in one company vs. another company. It is more about trying to avoid the "blood money" that results when you invest in companies that are not in line with your beliefs. If you participate through your investment dollars in things you do not agree with, you are still enabling that activity. More important, when you send money into a mutual fund that invests in things that are objectionable to you, your moral integrity has been compromised.

The limitations of your knowledge should not blind you to the fact that there is a moral responsibility when you invest. If you look the other way when others are doing wrong, you are still morally responsible. So how do you invest in a manner that reflects your morals and values? This will be discussed at length throughout the book.

The first part of the process is to determine what is truly important to you. Is God a top priority in your life? Are you looking for balance and consistency? Doesn't it make sense to include your faith in all areas of your life - finances included?

Do You Really Want to Change Your Financial Future?

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why. This week we have a guest post from Jay Peroni.

When Charlie met Frank at a bowling league in November 1998, they hit it off instantly and became the best of friends. Charlie had always been a hard worker, sometimes working two or three jobs as a plumber and an electrician. He made a good living, but never seemed to save enough to get him closer to financial freedom. Now in his fifties, Charlie had the expectation that he would always have to work to make ends meet.

Frank, on the other hand, was a lifetime firefighter. Though he never had an income over $80,000 a year, he saved every month and socked away enough money to have financial freedom at the age of sixty. His idea of retirement was the ability to work by choice not requirement. Now that he has "retired," Frank is actually busier than ever-volunteering at a soup kitchen, helping with the children's ministry at his church, and helping lower-income fami¬lies complete home repairs they could never afford on their own.

Though ten years separate Frank and Charlie, they have a ton in common and spend many hours a month together fishing, hiking, going to ball games, and bowling. Charlie could not grasp how Frank was able to live so well in retirement. He often joked that he would never be able to retire and could never imagine the financial freedom that Frank has.

As long as you cannot imagine it, your dream will never come true. Self-defeating thoughts and self-imposed ceilings limit your financial progress. Your thoughts and attitudes will determine your success. If you have no strength to overcome this mind-set, you will fail to reach the potential God intended for your life. It is not a lack of resources or a shortage of talent that prevents you from achieving wealth; it is the barrier that resides inside your mind. Your thoughts can keep you from living the financial life God has prepared for you. You will never change your financial future until you change your thinking. Do you think God will want to provide you with new, exciting, and fresh ideas if you continue having negative thoughts and a bad attitude?

Envisioning your dreams coming true is a huge key to your success. Have you ever seen the movie Rudy?1 It is based on the true story of Daniel "Rudy" Ruettiger. He grew up in a mill town and dreamed of playing football at the University of Notre Dame, for his dad's favorite team. The obstacles facing Rudy were tremendous, to say the least. A few barriers included Rudy's poor grades and lack of money to attend Notre Dame, insufficient talent to play football, and not having the physical size (Rudy was 5' 7" and weighed 165 pounds) to play football for the Fighting Irish. Instead of chasing his dreams, Rudy takes a job at the local steel mill and settles for mediocrity until his best friend, Pete, is killed in an explosion at the mill.

It is then Rudy decides to make his dreams of attending Notre Dame and playing college football for the Fighting Irish a reality. He is ridiculed by friends and family for his idea and is even rejected by Notre Dame. He could have let bygones be bygones, but instead goes to a small junior college, hoping to qualify for a transfer to the university.

During his final semester of eligibility for transfer, he is granted admission to Notre Dame. After walking onto football practice tryouts, Rudy convinces the coach to give him a spot on the football practice team, where Rudy exhibits more drive and desire than some of his big-name varsity teammates.

Ultimately, it is this drive and determination that get Rudy to fully realize his dream-playing in a game. In the final game of the season, the coach is persuaded to insert Rudy (after all the players and later the fans chant, "Rudy . . . Rudy . . . Rudy . . ."). Rudy gets in the game and sacks the opposing quarterback to end the game. Rudy is then carried off the field by his teammates and becomes the last Notre Dame player to have such a distinction.

Tapping into God's Supernatural Assistance

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why. This week we have a guest post from Jay Peroni.

Do you believe just because you are a Christian and have a need, God will always intervene supernaturally? If so, this is an incorrect assumption.  Look at the world around us.  Many Christians are in need and go without help every day.  There is a line between what you can do on your own and what God can help you with.

After obeying God's principles and reaching the end of your abilities, God provides supernatural assistance apart from anything you could ever do on your own.  Even when we defy God's Word, He is a loving and graceful God that still intervenes as an act of mercy.  We should not expect this, but know that He is always there.

Are you struggling financially?   Are you finding it difficult to make ends meet in this troubled economy?  Have no fear, rely on God's strength.  His supernatural power can take you places you would never reach on your own.

Supernatural is that which occurs beyond what is natural.  This phenomenon is above natural laws and beyond verifiable measures.   This occurs once we have maximized natural laws - our abilities.  Many Christians pray for financial miracles, but instead should be praying for God to provide opportunities.   Miracles are not necessary in order to achieve natural success.  This form of success comes when you apply God's principles to your finances.   The supernatural is only necessary when you are limited in your natural abilities.  You can do more than you are currently doing.  Don't use God as a crutch, use Him to propel and maximize your strengths and help you overcome your weaknesses.

Remember when Jesus was faced with a dilemma of how to feed five thousand people with five loaves and two fish?  God supernaturally multiplies the loaves and the fish so that not only is everyone fed, but food is left over.  God intervenes when needed.   Is there anything in your financial life where you have done the best you can but your best is not enough and you want God to step in and perform a miracle for you?  This is a good time to trust Him for supernatural assistance.   How do you tap into God's supernatural assistance when it comes to your finances? 

The keys to tapping into God's supernatural assistance are:

1. Maximize your natural ability - Do all that you know to do.  Seek wise counsel when you get stuck.  If you lack knowledge, find someone who has experience and knowledge.  Do the best you can and trust God for what you cannot do.  Need financial help?  Seek a faith-based financial planner.  Go to www.kingdomadvisors.org or www.nacfc.com to find a qualified advisor.  Read The Faith-Based Millionaire.   Learn all you can about finances so you can become a wiser steward.
2. Live a life that glorifies God - How can you expect God to supernaturally assist you when your life contradicts His principles?
3. Obey God's instructions on giving - If you are not tithing and generous with money how do you expect God to show you mercy or bless you?
4. Pray and seek Him always - There are certain walls we hit that cannot be moved without a commitment to prayer and seeking God.  Prayer enables you to release everything to God and tap into His power.  He is able to help you beyond human comprehension.  Seeking Him and communicating with Him is essential.

Are you in need of a financial miracle?  Whatever your circumstances or situation, ensure that you are actively incorporating these four areas into your financial life.   Do all you can, seek wise counsel, and trust God for supernatural assistance to aid you in realizing the goals you trust Him with.

The Economic Earthquake of 2008; Implications, Vulnerabilities and Aftershocks

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why.

The following is a guest post from Chuck Bentley, CEO of Crown Financial Ministries. I've been a supporter of Crown for many years and can say that this ministry is the real deal. It helps families in financial difficulties get back on the right track by providing solid financial advice and accountability. If you're looking for a good charity to support, this is certainly a worthy ministry and one needed by so many people in these tough economic times.

In 1991, our late cofounder Larry Burkett wrote The Coming Economic Earthquake, warning of the dangers of the ever-growing appetite for debt by our society and federal government alike. Although a best seller and helpful to many who heeded his advice, he received harsh criticism for his failure to peg the event to a date certain. Many dismissed his work as “too simplistic” and unsubstantiated by economic models. Others painted him as a “doom and gloomer,” especially in light of the robust economic growth of the 90s. Larry remained humble towards his critics, stating he was not attempting to be a prophet but was only making Christians aware of their need to apply God’s Word. He said that even if the events he outlined in his book did not occur, the reader would be better off for following the advice that God gave for our benefit. 

Interestingly, Larry also warned in his 1998 best seller Business by the Book that 2008 could be a “horrendous year” for the economy as the baby boomers began to retire.1 At that time, he had no awareness of the toxic shock that would be brought about by the massive run-up of household debt through sub-prime mortgage loans.

The simple advice about borrowing that Larry referenced was based upon Proverbs 22:7, “Just as the rich rule the poor, so the borrower is servant to the lender.”  God’s Word has certainly proved to be true. Our recent economic woes have shouted loudly that biblical principles apply to individuals, families, Wall Street firms, and even governments.

Following a reduction of lending standards for the qualification of a home mortgage, millions of borrowers took on debt obligations they simply could not afford. These mortgages were packaged and sold throughout a massive, global network. A bubble of non-sustainable housing prices was created. This set the stage for some of the unthinkable events we have witnessed. Foreclosures escalated in 2006, 2007, and 2008, triggering a real economic earthquake, a financial tsunami, and a breathtaking, wild roller coaster ride as global financial stability teetered on the edge of a meltdown.

Here are the milestones of the most significant financial crisis the United States has faced since the Great Depression:

• March 16 - Bear Stearns, founded in 1923 and one of the world’s largest brokerage firms, collapsed.2

• July 11 - FDIC takes over mortgage lender IndyMac. FDIC will seek buyer. It may become the most expensive bank collapse ever.3

• September 7 - “The US government today announced the biggest financial bailout in the country’s history as it took troubled mortgage giants Freddie Mac and Fannie Mae into temporary public ownership to save them from collapse.”4

• September 14 - Merrill Lynch CEO John Thain, seeing the writing on the wall, arranges the sale of his company, founded in 1914, to Bank of America.5

• September 15 - Founded in 1850, and one of Wall Street’s most prestigious firms, Lehman Brothers, collapses and files for bankruptcy.6

• September 16 - “In a move that would have been unthinkable before the credit crisis began, the Fed arranges to lend $85 billion to AIG, the world’s largest insurance firm, in exchange for a 79.9% equity stake."7

• September 17 - The New York Times reports that Washington Mutual, the nation’s largest thrift, has put itself up for sale. The Dow plunges 449 points.8

• September 18 - U.S. government begins action on the hugest bailout of all, committing hundreds of billions of taxpayer dollars to buy troubled mortgage assets from beleaguered financial institutions. As word of the evolving plan spreads, stocks rally. The Dow closes up 410 points.9

• September 19 - Senate Banking Committee Chairman Chris Dodd says the United States may be “days away from a complete meltdown of our financial system, with all the implications here at home and around the globe.”10

• September 19 - Mr. Paulson [U.S. Treasury Secretary] announced plans to introduce new laws to buy hundreds of billions of dollars of bad debt from banks, debts he said were “clogging up” the financial system. “To restore confidence in our markets and our financial institutions, so they can fuel continued growth and prosperity, we must address the underlying problem,” he added. Reports said Mr. Paulson was looking into setting up something akin to the Resolution Trust Corp (RTC), which was formed after savings and loans banks collapsed in the 1980s. The RTC took over most of the smaller banks in the US at a cost of $400 billion - about $1 trillion in today's money - and then tried to sell off their assets. The cost of such a bailout would probably be higher this time, with bad mortgage debt believed to be around $2 trillion.11

The Markets Rally

Bloomberg reported on September 19th: “The U.S. stock market posted the steepest two-day rally since the aftermath of the 1987 crash as government efforts to bolster banks helped the Standard & Poor’s 500 Index rebound from its biggest losses in seven years.

“Government plans to purge banks of bad assets and curb bets on share declines sparked a 24 percent rally in lenders and brokerages in the final two trading sessions and left stocks little changed for the week.

“ ‘It's been a roller coaster, and the investors would like to get off the ride if they could,’ said Bruce McCain, the Cleveland-based chief investment strategist at Key Private Bank, which oversees about $30 billion. ‘Lehman may be gone, Merrill may be gone, but the government has taken a basic step to solve the crisis by being a buyer of last resort. That offers the hope we really will put this part of the crisis behind us.’ ”12

Postponing the Pain

BBC Business Editor Robert Peston said, “We can't afford to have a short-term fix and then in three or four years have an even bigger bubble explode.” He said that the taxpayer funded bailout “represents a massive humiliation for Wall Street and will severely dent the ability of the US to export its way of doing business to the rest of the world. But an even bigger risk could be a loss of confidence in the American government's balance sheet.

“This could ultimately undermine the dollar, push up inflation even more and raise the cost of servicing debt for the US authorities,” BBC’s business editor explained.13

The Real Earthquake Larry Warned About

The aftershocks of these historic events will soon follow. The world as we know it has changed. Europeans are mocking the American financial system and already, some Chinese are calling for a financial system that is “not dependent upon the United States.”14

“The eruption of the U.S. sub-prime crisis has exposed massive loopholes in the United States’ financial oversight and supervision,” writes the commentator, Shi Jianxun.

“The world urgently needs to create a diversified currency and financial system and fair and just financial order that is not dependent on the United States.”15

This level of uncertainty in the global marketplace gives rise to opportunities for new leadership. As economic philosophies and world order are being reevaluated, we should be watchful for the rise of any power that claims to hold the keys to peace and prosperity.

Echoing in our ears are those warnings from Larry that no one is exempt from the consequences of violating God’s principles. That point has been made painfully clear to the individuals and families who have lost their homes as well as the shocking loss of billions of dollars by the collapse of some of the oldest and most respected financial service firms in the world. 

We must now pray that our governing leaders can see that the U.S. federal, state, and local governments are also subject to biblical financial principles. They must manage the massive collective public debt (that we now each own) with care and prudence to move us back towards economic stability just as each of us must also do with our personal finances.

Failure to heed the principles God has plainly established for our own good will destroy the good faith and credit of the United States government. Should that day come, the consequences will be dire. Our entire economy will collapse with sudden speed, bringing mind-numbing consequences to world order. To avoid the pain, we can print more money, bringing on devastating hyperinflation, or seek to be bailed out by foreign governments and become subjected to slavery to our lenders, many of whom are not our allies. 

That is the economic earthquake that Larry warned about, and the events of this year, while extraordinary, may look mild in comparison if foreign sources decide to call our notes due. As you can see in the chart, we are now spiraling towards our highest levels of federal debt to GDP since WWII and now ranking among nations with much weaker economies.

As Joel Belz of World Magazine ominously wrote in January 2008, “Even now, the overdue Burkett prediction of an economic earthquake may or may not come true. But individuals, families, businesses, churches, and other organizations that put an emphasis during 2008 on reducing their debt rather than extending it will be wonderfully stronger for the effort. That bigger house, that snazzier car, that more exotic vacation—if it has to be put on a credit card or a second mortgage—then Larry Burkett's counsel is as timely as if you heard him say it again on the radio this morning.

“If the only thing that stimulates our national economy is the piling up of even more individual and corporate debt, then it’s not just Larry Burkett’s wisdom that we’re ignoring. It’s the age-old wisdom of the Bible itself. For such a society, in such a case, the experts won’t be emphasizing that the Burkett schedule was off by 10 or 12 years. They’ll be complaining instead that his term ‘earthquake’ was way too mild.”16

Going forward, we will provide a regular update with our views of this fragile and rapidly changing crisis. We want you to be informed of the vulnerabilities we face and support you to respond with faith, wisdom, and true hope in God’s loving care. It is time to be sober-minded and seek the wisdom of our God who can deliver us. 

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Sources
1 Burkett, L. (1998) Business by the Book (p. 173). Nelson Business Press. 

2 Sorkin, A. and Thomas, L. (March 16, 2008) JPMorgan Acts to Buy Ailing Bear Stearns at Huge Discount. The New York Times.

3 Clifford, C. and Isidore, C. (July 11, 2008). Regulators seize troubled IndyMac. CNNMoney.com.

4 Seager, A. (September 7, 2008). US mortgage giants Freddie Mac and Fannie Mae taken into public ownership. Guardian.co.uk.

5 Mintz, P. (September 19, 2008). Seven Days That Shook Wall Street. Businessweek.com.

6 The New York Times (September 24, 2008). Lehman Brothers Holdings Inc.

7 Mintz, P. (September 19, 2008). Seven Days That Shook Wall Street. Businessweek.com.

8 Stempel, J. and Davies, M. (September 17, 2008). Washington Mutual is for sale: sources. Reuters.com.

9 Mintz, P. (September 19, 2008). Seven Days That Shook Wall Street. Businessweek.com
 
10 Herszenhorn, D. (September 19, 2008) Congressional Leaders Stunned by Warnings. The New York Times. 

11 BBC News (September 19, 2008) Shares surge on US bail-out plan.

12 Martin, E. (September 20, 2008) U.S. Stocks Rise After Government Action Eases Banking Concerns. Bloomberg.com.

13 BBC News (September 19, 2008) Shares surge on US bail-out plan. 

14 Reuters.com (September 17, 2008) China paper urges new currency order after "financial tsunami". 

15 Rotella, S. and Stobart, J. (September 20, 2008) Europeans on left and right ridicule U.S. money meltdown. Los Angeles Times. 

16 Belz, J. (January 26, 2008). Shadow of Larry Burkett. Worldmag.com.

The Get to Give Manifesto: Why Having More is a Good Thing!

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why. This week we have a guest post from Jay Peroni.

Many people "give" to "get".  They choose to give money so they will be blessed.  This is backwards thinking and God sees through false intentions.  We as God's people should seek to "get" in order to "give".  Having a financial plan based on the proper intentions of your heart can allow you to pursue both God and wealth.  As long as He is your top priority and you are seeking wealth to be more generous, you can pursue Him and wealth.  It all begins with an assessment of your heart.

Your heart reveals who you are.  It reveals your desires, your motivation, and ultimately who you become. Matthew 6:21 says "For where your treasure is, there will your heart be also".  So I ask you what is YOUR treasure and where is YOUR heart?  How do you view money and how important is money to you?

Now you may be like many and say money does not matter to you.  You may even say that money is the root of all evil or that it's hard for the rich to enter heaven so you do not pursue wealth.  It's not your thing... You may even think that your money struggles and challenges are your sacrifice for God.  Often many people falsely identify riches as evil because of the Rich Young Ruler in Matthew Chapter 19. 

When you break God's Word down and look at God's most basic interest in you, he wants to know the intentions of your heart.  Your heart reveals how you view money. Are you in love with God or money?   It is "the love of money" that is the root of all evil, not the money itself.  Money is neither good nor evil.  It can be used for both good and evil purposes.  Most people I have observed who say money is not important, act otherwise. The words speak, but the actions speak louder.

A person who struggles with money is often a slave to money.  Many who say money is not important focus and desire money more than those who have abundance.  This is because those struggling are often up to their eyeballs in debt, are less likely to be able to "afford" to tithe, and choose jobs rather than callings to "pay the bills".  In other words, they let money control their choices - what they can and cannot afford to buy, whether they can or cannot give and where they work.   

This can be as dangerous as the person "in love" with money.  It can have the same power over you.  The Rich Young Ruler needed to get rid of his riches because the riches were first in his life - above God.  If you place God above riches, there is no reason to view money as evil.  In fact, it can be used for His purposes.

If you instead choose to have power over money, you can use money as a tool to advance God's kingdom - support ministries, build churches, save lives and souls for God's glory.  How you think about money and your relationship with money reflects your true intentions.  How you earn money and what you do is what matters most.  A desire to be wealthy so you can be more generous is not wrong.  However, a desire to be wealthy so you can be self indulgent is wrong.

I wrote The Faith-Based Millionaire to help people "get" more so they could "give" more. The "Get to Give Manifesto" involves Seven Commitments:

1. Commit to tithing (10 percent of your income and financial gains) and commit to offerings (additional gifts above your tithe).
2. Commit to having a larger vision of how you can help advance God's kingdom - your specific calling and how God can use your time, talents, and treasure.
3. Commit to change your perspective of wealth - it is a tool that is used to do more of God's work.
4. As a Christ follower - Commit to take more risks! Stop being so cautious all the time; stop seeking safety! God wants you to lay it on the line.
5. Commit to increase your assets so you have more to give.
6. Commit to become better educated about your finances - choose sound investments that complement your faith.
7. Commit to seek wise counsel - a team of professionals that share your faith.

Poverty does not spread the Gospel, it spreads hopelessness and despair.  It costs money to fund ministries, build churches, print tracts, and feed bodies and souls.  You can win at the money game and experience financial freedom that will fully allow God to use your time, talents, and treasure!  Learn how to truly "master" your money rather than being "enslaved" by it.  This is a choice - which path will you choose?

Is It Ok for a Church to Accept Credit Card Donations?

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why.

A couple weeks ago I asked if your church would accept a gift won from a lottery. One commenter left another compelling question in response:

I like your point that money is amoral (that is, neither immoral nor moral). However, the source of the money isn't necessarily amoral. I think it took a lot of strength and guts for the pastor to say, "No." It reminds me that I've heard of some churches accepting credit card tithes. Ouch. What's your take on that?

Personally, I don't have any problem with a church accepting credit card donations. Just like money is amoral, so are credit cards -- they are neither good nor bad in and of themselves. It's how they're used that matters.

As most of you know, I use credit cards quite frequently and I use them to maximize my annual cash back from them. I pay them off every month, don't charge anything that's not in my budget, never have any fees, and I don't believe they make me spend more. So why wouldn't I use them? And why would my church have a problem with it if I did?

My only concern with giving to a charity with a credit card was that they'd end up receiving less than the total amount as credit card fees are subtracted, but people who work for charities assured me that there were advantages for charities accepting credit cards that outweigh the costs. So I've given a few times online to charities -- and used my credit card in the process.

Now many of you are probably thinking that churches shouldn't accept credit card donations from people in debt. But how are they supposed to know who's using a credit card responsibly and who isn't? Is it their responsibility to do this anyway? If so, then it's probably their responsibility to verify ALL donations come from sources of which they approve. How could they do this? Answer: they can't, it's impossible.

And really, they shouldn't have to IMO. As I said, credit cards are neither good nor bad, it's just how they're used that makes them good or bad for the user. As such, I think it's completely ok for a church (or any charity for that matter) to accept a credit card.

What do you think? Agree or disagree?

Money in the Hand of a Fool

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why.

Of what use is money in the hand of a fool, since he has no desire to get wisdom? Proverbs 17:16 (NIV)

As I came upon this verse the other day, it made me think about some issues we've discussed here lately.

Specifically, I addressed a comment left by a reader detailing how some of our tax money is sometime misspent by people who aren't financially savvy. One of my suggestions to combat the problem was to help educate people in such situations -- so they would make the best use of both their and our (tax) money. But some commenters thought this would do little good. The main reason: many people don't have the desire to become educated on how to handle their money. So what's the result? There's little use for the money they're given versus what they could use it for.

Clearly, we have a responsibility to take care of the poor in our country. But what's the best way to do this? Is there a way to help those who have no desire for wisdom (in this case, how to best manage their money)?

I'm interested in hearing your thoughts on the issue. And if anyone has examples of how some churches are succeeding in helping/educating the poor, those would be especially compelling.

Would Your Church Accept a Gift Won from a Lottery?

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why.

Here's the story of a church that rejected a gift from a lottery winner. The summary:

After Robert Powell hit the Florida Lottery jackpot last month and took home more than $6 million, he thought of his church.

And he offered to drop his tithe, around $600,000, in the collection plate of First Baptist Orange Park.

But the church and Pastor David Tarkington politely declined and told Powell they will not accept the lottery winnings.

And then there's the counter-point:

Many churches do not approve of the lottery and gambling but on the other hand Pastor Dr. Lorenzo Hall of the El-Beth-El Divine Holiness Church says $600,000 can do a lot of good.

"I'm against the lottery, but if one of my members won the lottery, I wish and I hope he would give 10% to the church, we could do a lot of things with that money," says Hall.

As a Holiness minister, Dr. Hall says he does not ask where members get the money they decide to donate.

He said he would welcome Powell's donation to his inner city church anytime.

"We are in the process now of building a youth center, and you would be surprised at the people that can be helped with $600,000," says Hall.

I know what my church would do -- they'd take the money. Why? Because they love the lottery? No, because money is neutral, it's neither good nor bad. It can be used for good or bad purposes, but money itself is not good or evil. So while this money was acquired in a "bad" way (though not illegal), that doesn't make the money "bad." In fact, giving a portion to a worthy cause seems like a great way to used money that was acquired in any way.

What do you think? Is lottery money "tainted" and shouldn't be accepted by any sort of charity? Or is giving lottery money to charity a good idea?

The Plans of the Diligent

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why.

The plans of the diligent lead to profit as surely as haste leads to poverty. Proverbs 21:5

Ok, so if "plans" lead to profit, what does "plan" mean in financial terms? You got it -- having a budget.

This was my pastor's recent comment -- that you couldn't be successful financially without at least a simple budget. I have to agree (though I would say you need more planning than just a budget, but that's for another post.)

I had a budget for years and years. In my 20's, I developed a budget annually and updated it monthly. In my early 30's, I developed a budget annually and updated it quarterly. In my late 30's, I developed a budget annually and updated it semi-annually -- then moved to annual updates. And now that I'm in my 40's, I've gotten to the point where I don't use a budget.

I do track my spending the same way I've done for most of my life (through Quicken), but I don't go back over the expenses as much on a regular basis. That's the reward for years and years of budgeting -- that you eventually get to the place where you don't need to do it any longer, and yet your spending remains under control and you make progress in growing your net worth (FYI, I do look over my Quicken spending categories regularly to make sure they aren't getting out of whack.)

How about you -- do you budget?

For more budgeting tips, see It's Budgeting Time of the Year.

A Simple Bible-Based Budget

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why.

Recently my pastor shared what he considers a Bible-based budget. His breakdown:

• Give 10% of your income
• Save 10% of your income
• Live on 80% of your income

He noted that this budget wasn't stated explicitly in the Bible, but was a simplified budget compiled from the various teachings the Bible contains on money.

Personally, I think this is a very good STARTER budget. If someone is just beginning their budgeting, this seems like a great way to get them going. In fact, if you get to this point and never progress, you're probably better off than the vast majority of Americans. You'd certainly be among the top tier in both giving and saving if you put 10% towards each.

But as time goes on, I think you need to work to exceed the first two numbers and cut back on the third. We've been budgeting for almost two decades now, and we currently give way more than 10%, save way more than 10%, and live on way less than 80%. But it took time to get to this point. The keys: spending less than we earn (and not spending all of our pay raises) while working hard to maximize our income. It's that simple.

So, what do you think about the 10/10/80 plan -- good or bad idea? Any suggested improvements? 

A Biblical Response to Panhandlers

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why.

Consider this situation:

Timmerman recalled a young man who said he needed to get a bus ticket to North Carolina, where his brother had just died.

"You never know whether it's a real need or not," she said.

Not to keep you in suspense, here's how this lady handled the question:

She told him no to the money, but told him about dialing 211, a catch-all number for the United Way. Then she offered to pray.

The situation above is one that most of us have had to face at one time. We've discussed the issue before here at Free Money Finance and most people were against helping out panhandlers. But what's the proper biblical response to panhandlers when you consider scripture's command to help the poor? This piece attempts to address this issue and comes up with this solution:

The Rev. Dallas Lenear, executive pastor of New Hope Baptist Church, uses Jesus as his template.

"I don't recall a single time where Jesus helped someone who was drunk," he said. "He helped people who couldn't help themselves. He helped the lame, helped the blind, helped feed those who couldn't feed themselves.

"But Jesus was full of grace and truth and we have to try to discern when should grace be applied and when truth is the better medicine," Lenear continued. "If someone is hurting because of something beyond their control, you apply grace and if they're hurting because of destructive behavior, you apply truth as the better medicine."

Ok, so what does that mean exactly? What should I do if presented with this situation? We'll start with what experts suggest:

Experts say don't give money. Experts at dealing with the poor are adamant that a compassionate responder addresses the person's need but avoids giving money in almost every situation.

"Don't ever give money to panhandlers under any circumstances. The bulk of the people are going to use it for drugs or alcohol," said Don Tack, founder and executive director of Servants Center, an organization that reaches out to those who are homeless and mentally ill.

He rattled off a list of places where the hungry can get a square meal, and he advised anyone who is likely to be panhandled to have that list memorized, too.

In other words, one option is to send them to a place where they can get food.

Here's another solution -- giving them food:

She offers a McDonald's coupon for food, and offers them prayers for their situation.

Another option is to decline individual requests but to give to or volunteer for charities that help feed the poor.

My personal belief is that directing people to a place to find food or giving/buying them some food is the proper response. But I don't come in contact with panhandlers on a regular basis, so we focus our efforts on giving to organizations that help the needy

How about you? What do you think the proper biblical response is to panhandlers?

The Bible on Debt

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why. Today we have a guest post from CJ at Wise Money Matters.

The Bible is very clear about avoiding debt.

"Just as the rich rule the poor, so the borrower is servant to the lender."

Proverbs 22:7

I've never really thought of myself as a servant. This is America! Land of the free! Right? Wrong. We become servants to lenders all of the time. Don't believe me? Try not paying your house or car payment. I bet you that you'll be living on the streets and walking to work within a few months. Are YOU comfortable being a servant?

The Bible even refers to debt as a curse for not following God's commandments.

"If you do not obey the Lord your God, to observe to do all His commandments and His statutes with which I charge you today, that all these curses will come upon you and overtake you... The alien who is among you shall rise above you higher and higher, but you will go down lower and lower. He shall lend to you, but you will not lend to him; he shall be the head, and you will be the tail."

Deuteronomy 28:15,43,44

It's interesting that the Bible puts debt as a curse. However, earlier in this same book it talks about being the lender as being a blessing. Several thousand years ago, people still understood the importance of interest. Maybe if we looked at debt as a curse, we'd change some habits.

The Bible even discusses cosigning a debt.

"It is poor judgment to countersign another's note, to become responsible for his debts"

Proverb's 17:18

When I was just going into college, my parents took in two foster children who were friends of mine and had no family to live with due to unfortunate circumstances. They stayed with us through high school. My foster brother needed a car and so my father cosigned the loan on the vehicle as my foster brother had no credit. After he moved out of the house, he got involved in drugs and other things which took most of his money. We had lost contact with him and he stopped paying his car payment. The car was eventually repossessed and my father's credit score is now hurting because of it.

This example shows how even cosigning for family can be a bad idea. Why would anyone want to guarantee another person's debt? It just seems ridiculous yet Solomon understood the concept close to 3000 years ago.

The Bible's advice even predicts today's economy.

"Come now, you who say, 'Today or tomorrow, we shall go to such and such a city, and spend a year there and engage in business and make a profit.' Yet you do not know what your life will be like tomorrow."

James 4:13-14

I just talked to a friend who was looking back on an investment he made two years ago. He was deciding between the option of buying 120 acres of farmland in Iowa or purchasing a home in Flagstaff, AZ. Everyone was saying how the farmland was a waste of money and that property in Flagstaff never goes down in value. With the way real estate markets were at the time, they expected it would keep going up. So he invested in the Flagstaff property.

Two years later he is losing lots of money on the Flagstaff property and due to increase in food prices, the farmland has doubled in value. It goes to show us that we really don't know what the future will hold.

We might invest in Apple and tomorrow it goes out of business. We might put an investment in an Index Fund and have another Great Depression. We don't know what could happen so we need to prepare for such situations and not spend (read: get into debt) because we think we will have a consistent income which will cover our debts. Heck, you might not have your job tomorrow. Look at all of the foreclosures in the US as a great example of people not predicting the future.

The Bible, although written over 2000 years ago, already understood how dangerous debt can be. How is it that after such a long period of time, we still don't understand these principles? I guess history does repeat itself.