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Biblical Principles of Economics & Government

 Is God a Republican or Democrat? Is he a Free-Market Economist or a Closet-Socialist? The Lord has strong ideals and commands about how government and the economy should function. We cannot push Him into our boxes, but must submit our plans and beliefs to the authoritive Word of God. His Truth is more important than all of our ideas.

We are going to look at 7 Biblical Principles that apply to both government and economics in the next few columns. I realize that this will take several months, but I think this time will be valuable. I want to talk about government too because in our times, the governnment affects and directs the economy in numerous ways.

I would ask you to examine your heart in this area. Are you loyal to a party or to human wisdom. Ask the Lord to renew your mind with His Truth. Once you know what our Heavenly Father has to say, I challenge you to vote according to His principles. Please use your money and run your business according to biblical principles also.

Compulsive Spending

"I need to buy a new pair of shoes," I whispered to my friend, Laura.

After several negative events in my life, the most recent had been the final straw. I was feeling discouraged, sad and angry. But, I knew that shopping would make me feel better. Or, at least I thought it would make me feel better.

The dangerous thing about shopping is that it can make you feel good, just as eating chocolate can cause a lift in your emotions. However, this is a temporary feeling. A compulsive shopper experiences this emotional lift over and over until they crave it. Eventually, shopping becomes addictive and cause problems in personal finances, which can lead to marriage problems and other relational break downs.

This is how shopping becomes compulsive, and before we know it, we cannot stop spending money even when we want to. Maybe you are compulsive in small ways. Maybe you have to shop at certain times, for specific items, or during crisis situations.

Coping with Compulsive Spending

There are several things that you can do to control your compulsive spending.

• Get rid of your credit cards and use cash only
• Keep track of all your spending and try to figure out why you spend when you do
• Avoid temptation
• Understand the real reasons behind why you shop

 Why You Spend

The problem with plans to cope with compulsive spending is that it doesn't deal with root of the problem. Compulsive spending is an addiction. Like all addictions, they are so hard to break free from because they seem to have a life of their own.

Addictions help to dull pain, usually emotional pain. Whether it's drug abuse, pornography or shopping, an addict finds temporary relief from pain by indulging in the addiction.

Going to College Debt-Free

 "I don't know why I got into so much debt," my friend, Mike confided in me when I asked him why he was so down lately. I am so discouraged. "I wish I could go back and do things differently."

"How much are we talking?" I asked.

"$60,000.00"

Gulp. I didn't know what to say. As we chatted, I realized that his student loan payment was bigger than my mortgage payment.

Make Choice to Go to College Debt-Free

"We will not borrow money to go to college. We will not borrow money to send our children to college." This has been a mutual decision my husband and I made when we were engaged. After 27 years of marriage, we have been committed to this plan. Mike has gotten his Masters of Divinity debt-free, our oldest daughters have graduated debt-free from a private university, and my oldest daughter got her master's degree debt-free. We do not make a lot of money and we have a houseful of people to provide for. So, how did we do it?

Our decision to not borrow money for education is based on the Bible, which calls debt foolishness. If God considers debt foolish, then we do too. We are convinced that if God wants us to do something, he will provide the money for it. We place a large responsibility to pay for tuition on the student, though we do help, financially, some.

Start Own Business

My third daughter gives voice lessons to earn money for college. My teenage son has started a lawn business to save money for college. Starting a business is a great way for young people to earn money for college. Brian was always being asked to fix computers, so he started a computer business, focusing on college students who desperately needed their computers in working order.

AP/Dual Enrollment

High school students in public, private, or home schools can dual-enroll. A student can take these college credit clases during the junior and senior year to earn high school and college credit at the same time. AP classes in high school can also provide college credit.

Slower Pace to Work

College education can be slowed down so that the student can work. My friend, Sarah, worked as a hair stylist while she got her bachelor's degree. It took her 7 years instead of 4 to do this, but she is debt-free! The length of time to complete a degree may not be perfect, but being debt-free sure is.

Tips for Frugal Traveling

 

Traveling is one of my favorite things. I love airplanes, trains, and fast cars! Though spending my time travelling around the world would be a dream, I lack the funds necessary to do so. So, I must learn to travel frugally which includes shopping around for the best travel bargains.

Research

Research is the first step to travelling on the cheap. Start by googling the destination site, adding the words "cheap" or "frugal" or "affordable." I love checking out travel books from the public library too. They are full of beautiful pictures and helpful information.

Before traveling anywhere, read up on the place you want to visit in books and online. And then list all the places you want to see, researching these places too.

Teaching Teens About Debt

 
"Soon you'll be driving a big, black truck," I said to my fourteen-year-old friend.

"Not a truck," he replied, grinning from ear to ear. "I'll be driving a Jeep."

"A Jeep?"

"Yeah, I'm going to buy a Jeep."

"But first you'll learn to drive in your daddy's truck, right?" I asked, certain this was his thinking.

"No. My mom's going to help me get a loan so I can learn to drive in the jeep," he assured me.

"Oh no! Don't go into debt!" and I went on to explain the perils of debt and the wisdom of living debt-free.''

The teenage years are a time of idealism and hope. Most teens believe that they will grow up to have lots of money to be able to enjoy all the things they want in life. This is because they don't realize how expensive life is and only expect their money situation to get better and better as they age.

The exact opposite is true.

Financial Record Keeping

"Where is Mommy's bank statement?" Patty asked her two-year old toddler who was too busy gnawing on a table leg to answer her question.

Though unorganized, her husband was even more so and had left managing the finances to her. To put it mildly, their financial filing system was a disaster. When Mike and I tried to help them get a handle on where their money was going, we discovered forgotten bank accounts and a self-directed IRA that Patty had opened while she was working for a mortgage company.

My husband, a careful and precise record keeper, was appalled. But I reminded him that most people don't know what financial records to keep and where to store them.

Let me give you a few tips on getting your financial records started, stored, and how to maintain them.

Financial records, like legal documents are important to be able to get to when you need them. My answer to everything administrative is to make a folder.

Record Storage

Store your file folders in a file cabinet or file folder tote. Label each folder clearly in large lettering. File folders alphabetically or in an order that makes sense to you. We find old file cabinets at garage sales and buy folders in bulk at Office Depot: inexpensive but very effective.

Filing System

I am going to recommend something that we do in our home. Group your folders in sections based on temporary, annual, permanent, and dead storage.

Temporary folders will contain 6 month warranties, short-term loans (3-9 months) from parents, or even coupons or rebates that will expire within 6 months. If you are making payments for tuition, you might have a Tuition Payment folder in your temporary file system.

Annual folders in our home are mostly related to taxes. We have folders where we store information we will need at tax time. There are also annual taxes, like property taxes, that we have to pay once a year. In Florida, we have to renew our homestead exemption once a year which involves another folder in the annual section. There are also taxes and registrations that we have to pay the government for our business- more folders in the annual folder system!

What Should I Do with My Tax Return?

"We are going out to Outback for dinner tonight," Sue mentioned cheerfully while we were working in the nursery together one Sunday morning.

I must have had a surprised look on my face because she quickly added, "We just got our tax return."

I pressed my lips together. Mike and I had done several financial counseling sessions with Sue, and her husband, Bob. They were constantly spending more money than they had, landing in debt to creditors and family members. Each year, I watched their tax return disappear in days, always going toward things I would consider frivolous.

But, how people spend their tax return is their own business, isn't it?

Maybe not. How we spend our money is always God's business too. So how can we honor the Lord by how we spend our tax return?

 How should I spend my tax return?

Your tax return should be spent as prayerfully and carefully as you spend the rest of your income. This is money you have paid the government, or your employer has paid the government for you, not a windfall of free money. As with all things financial, your tax return belongs to the Lord.

Should I tithe from my tax return?

That depends on whether you tithe from your gross or net income. Your gross income is the money you make before the U.S. government takes its cut through taxes. Net income is your income after taxes are paid. If you are self-employed, you are more likely to tithe from your gross income before you pay your taxes. The return you get has already been tithed from, but you might give an offering.

If you work for a company, you probably don't even see your gross income because the company pays the taxes you owe to the government before they write your paycheck. If you tithe from your net income, then you should tithe from your tax refund.

Should I pay off debt with my tax return?

This is a great way to spend your tax return. If you don't need to use this money to pay bills, you should pay off debt with your tax refund. You can throw a large chunk of money at debt, making a huge difference toward the process of becoming debt-free. If you are paying a mortgage on your home, consider putting some or all of your tax refund toward paying off you house. For many Christians, a mortgage is their only debt. What a great way to work toward being completely debt-free.

The Adversary in Advertising

"Just do it!" Nike shouts! Do what? you wonder, confused at their command. "I'm loving it!" Mc Donald's declares. But, loving what?  From billboards to glossy magazine pages, from sides of buses to television commercials, advertising slogans dazzle and repel us.

The Power of Advertising

We live in a culture heavily influenced by advertising. It drives our holiday celebrations, influences our standard of living and shapes our desires and dreams.

Advertising in America dictates when we decorate for Christmas, what foods we serve at Easter dinner, and what defines an acceptable St. Valentine's Day present. If "all kisses begin with Kay Jewelers," then does the poor husband get no kisses? If using Crest toothpaste will get us the gorgeous girl or guy, then should we even think about another brand?

New products entice us through their promotional ads. Suddenly, with a simple blurb of flash and color, we need something that up until this point, we didn't even know existed! 

Extravagant Living - Part 2

We talked about God's abundance in Extravagant Living -Part 1, and it is a reminder to us that God owns it all, He wants it all, and He is more than faithful. We also discussed letting Christ speak to us through provision and lack of provision.

Let's talk some more about enjoying the lavish blessings of the Lord. I want to enjoy extravagant living!

Stick with the Plan

"It would make more financial sense to let the bank foreclose on my house," my friend, Jack declared and went on to explain why.

"What do you think?" Amy asked, glancing at me when Jack was finished with his logical reasoning.

"It's a lack of integrity," I replied immediately. "Christians pay off their debts and keep their word."

Financial principles don't change with the times or economic cycles. They are consistent. God wants us to have integrity, keeping our word and commitments in all areas of life, and this includes our finances. If we borrow money, promising to pay it back, then we pay that money back. Our yes is yes!

God's methods of handling finances work! But, more importantly, they are His commands to be obeyed. Don't forget His principles for managing money.

• Tithe first
• Hard work is God's method of provision
• Give generously of time, resources, talent, and money
• Stick to a budget
• Be kind to the poor
• Save for the future
• Care for family's needs, including older relatives (not government's responsibility)
• Invest wisely

Extravagant Living - Part I

"Command those who are rich in this present world not to be arrogant nor to put their hope in wealth which is so uncertain, but to put their hope in God, who richly provides us with everything for our enjoyment," (I Timothy 6:17 NIV).

God Owns it All!

There are many times we look at our financial situation and think that a specific standard of living will make us happy. We pursue financial goals using biblical principles, we tithe, give, stick to a budget, and stay out of debt so that we can enjoy an affluent lifestyle. Then, when we struggle financially, this takes us by surprise and often makes us angry.

God has a different perspective than we do about this. He is more concerned about our character than our comfort because He is forming Christ within us. In His eyes, everything belongs to Him. We belong to Him, our money belongs to Him, and our stuff belongs to Him. His desire is to use these things for His glory.

God's heart also wants to bless us! He gives us things to richly enjoy and has the freedom to do what is best in our lives, without asking our permission. Our family's standard of living has remained consistent throughout our married life while our income has varied greatly. When there is more month at the end of the money, the Lord provides supernaturally.

God Wants it All!

Extravagant living begins with surrender. Acknowledge that everything you are and everything you own is His. He doesn not want competition in your heart. Fully surrender to His Lordship!

Extravagant living is not what we have, but what is in our hearts. And a heart that is surrendered to Him, bubbles with joy. 

Where to Invest Your Money - Part 2

Last time in Where to Invest Your Money - Part 1, we discussed investing in the Kingdom of God, your dreams, other people, and a home business. This time, we're going to talk about literal investments and where to place our money so it can grow.

Invest in Stocks

My grandparents invested in stocks and lived off stock dividends when they retired. My father  invested in some unknown companies in his younger years: Intel, Microsoft, and Home Depot. Those investments carried large returns for my parents.

Purchasing stock in a company is like buying a tiny part of the company. If the company is successful, you will get a portion of the profits in the form of dividends. Ideally, you want to buy low and sell high for short term. But even better, invest in stable companies for the long haul.

When you invest in stocks, you can go online to buy stocks directly or you can purchase them through a stockbroker. Either way, you will pay a small commission fee. Your stock portfolio (collection of stocks) should contain a variety of stocks from different business sectors. My portfolio contains oil, pharmaceuticals, technology, electric companies, retail, and transportation. I prefer good, solid companies, or new companies that hold promise for the future.

Where to Invest Your Money - Part I

God provides financial surplus so that we can save for the future, give to the needy around us and invest. The purpose of investing money is to grow your money or to produce an income. But, if we decide to invest our money, where should we allocate it?

Invest in the Kingdom of God

We are told by Jesus to seek first the Kingdom of God (Matthew 6:33) and that where we place our treasure reveals where our heart is too (Matthew 6:31). Since we should not serve money as a master, or seek to grow rich (I Timothy 6:10), but we can use money to serve the Lord by investing in the Kingdom of God: supporting missionaries, tithing to our local church, giving to the poor in Jesus' Name, supporting Christian ministries, and blessing Crisis Pregnancy Centers. These are all ways we can invest in the Kingdom of God.

When my husband, Mike was a young man planning to go to seminary to answer the call of God on his life, an older man invested in the Kingdom of God by investing in Mike. He gave him a sales job with a generous base pay and commission. This money paid tuition at seminary; the beginning of a lifetime of ministry. Not only was this man investing in the Kingdom of God, he was investing in my husband's dreams!

Invest in Your Dreams

We invested in my husband's dreams too. Before we had children, we both worked. But, Mike and I lived off of his income and saved mine. We put the money in savings, along with the extra money Mike earned, to use during our seminary years. We could have lived extravagantly during those early years of marriage, but instead we were very frugal so that we could invest in Mike's dream.

God puts dreams into our hearts. Invest in making those dreams come true. Do you have a dream to paint? Invest in painting lessons. Is it your ambition to write a book? Invest in software to help with the layout. Is your dream to fly a plane? Even though flying lessons are expensive, you can put a little aside each month until you have the money to invest in your aviation dream. We can invest in our dreams!

Getting out of Debt

Are you in debt?

It may simply be a mortgage on your home or a few medical bills. Or you may have several credit cards that are maxed out. Maybe you owe your parents or in-laws money.

Whatever it is, it's wise to get out of debt as quickly as you can.

"Let no debt remain outstanding except for the continuing debt to love one another" (Romans 13:8 NIV).

Here are some easy ways to get out of debt.

Cancel the Credit Card

Credit cards are so tempting. Yes, many people use them and pay them off each month. But, if you are in debt, then it is probably wiser cut your credit cards in half or freeze them, until you pay off the debt. Even better, make a call to the credit card company and cancel your card.