Earn, Save, Give

Something to think about:

Nature of Evil

A friend wrote, I'm pondering - darkness doesn't exist, it's just the absence of light. There is no evil, just a lack of goodness. Hmmmm. If we were limited to logic, that could follow, good could be the absence of evil. The reality in history and experience however is that evil is real, intentional, personal and proactive.

[ read more ]

Finances

There is much about the economic context in which our families live and work that we cannot control, but there are others which we can and should take in hand.

Doing so can bring our family into financial health and bring unity in an area where many marriages struggle to find agreement on basic practices.

Here is a commentary expanding on principles we've taught our children (2008 photo) and suggestions you may find valuable....

Earn, Save, Give: Christians and Money Management

Commentary by Mark Earley (October 24, 2008):

"Hard times call for some hard thinking-and a re-examination of how all of us, as Christians, should manage our finances and plan for our futures. So let's do it.

The famous preacher John Wesley had the right recipe for Christian money management. It was quite simple: Earn all you can, save all you can, and give all you can.

Simple, yes. But quite profound. In fact, Wesley delivered a lengthy sermon on the topic. It's a sermon I would recommend you read. But let me warn you: Reading a Wesley sermon is not for the faint of heart. He had the gift of convicting his audience. You also need to know that Wesley's thoughts on how to use money are all grounded in the concept of stewardship. As he pointed out, you are not your own. You belong to God, and so then do your finances. You are not an owner, you are a steward.

So let's begin with earning all you can. Wesley was no fan of leisure. But he was huge on hard work. "Gain all you can by honest industry," Wesley said. "Use all possible diligence in your calling. Lose no time. If you understand yourself and your relation to God and man, you know you have none to spare." He was also quite clear what he meant about "honest industry." He urged his hearers not to take employment that would damage their health, compromise their religious principles, or harm others. Some jobs, for instance, cannot be performed "without cheating or lying, or conformity to some custom which is not consistent with a good conscience." These kinds of jobs, Wesley said, "are sacredly to be avoided . . . for to gain money we must not lose our souls."

On the topic of saving money, Wesley was uncompromising as well in a way that, I'm sure, made his audience squirm. "Do not waste any part of so precious a talent merely in gratifying the desires of the flesh," he said. He wanted to be sure his listeners got the point. When it came to fancy foods, the latest fashions, elegant furniture, he had this to say: "Cut off all this expense!" He even urged Christians not to overspend on the kids. "Why should you purchase for them more pride or lust, more vanity, or foolish and hurtful desires?" he said. "They do not want any more; they have enough already; nature has made ample provision for them." Now there's some tough talk in today's times.

As for "give all you can," Wesley again was blunt. You really haven't saved anything if you merely hoard your money, he argued. "You may as well throw your money into the sea, as bury it in the earth . . . or in the Bank of England." Not to use it toward a good end is to "throw it away." Indeed, according to Wesley, Christians are to use their money to ensure their own health and strength as well as the health and strength of their families, then to "do good to them that are of the household of God," and then, "to do good to all men."

Earn all you can, save all you can, give all you can. Simple yet profound advice in good times and in bad."

How?

I won't comment here on how to earn or save all you can. Let me share something important about "give all you can." It's this - you can find versions of the principle on the internet. The rate of return will vary but the principle remains the same:

The Power of Compound Returns

Ivan opens a tax-deferred retirement account at age 26. He invests $3,000 per year in this account for 40 consecutive years. Ivan stops contributing at age 65. His account grows at 9% per year.

Shalom opens a tax-deferred retirement account at age 18. She invests $3,000 per year in this account for eight consecutive years. After those eight years, she makes no more contributions to her retirement account. Her account grows at 9% per year.

The results of these two approaches are below... and they are extraordinary:

Robert						Sally
Age		Contribution		Year-End Value			Contribution				Year-End Value
16		$0		$0			$0				$0
17		$0		$0			$0				$0
18		$0		$0			$3,000				$3,270
19		$0		$0			$3,000				$6,834
20		$0		$0			$3,000				$10,719
21		$0		$0			$3,000				$14,954
22		$0		$0			$3,000				$19,570
23		$0		$0			$3,000				$24,601
24		$0		$0			$3,000				$30,085
25		$0		$0			$3,000				$36,063
26		$3,000		$3,270			$0				$39,309
27		$3,000		$6,834			$0				$42,847
28		$3,000		$10,719			$0				$46,703
29		$3,000		$14,954			$0				$50,906
30		$3,000		$19,570			$0				$55,488
31		$3,000		$24,601			$0				$60,481
32		$3,000		$30,085			$0				$65,925
33		$3,000		$36,063			$0				$71,858
34		$3,000		$42,579			$0				$78,325
35		$3,000		$49,681			$0				$85,374
36		$3,000		$57,422			$0				$93,058
37		$3,000		$65,860			$0				$101,433
38		$3,000		$75,058			$0				$110,562
39	$3,000		$85,083					$0		$120,513
40	$3,000		$96,010					$0		$131,359
41	$3,000		$107,921					$0		$143,182
42	$3,000		$120,904					$0		$156,068
43	$3,000		$135,055					$0		$170,114
44	$3,000		$150,480					$0		$185,424
45	$3,000		$167,294					$0		$202,112
46	$3,000		$185,620					$0		$220,303
47	$3,000		$205,596					$0		$240,130
48	$3,000		$227,369					$0		$261,742
49	$3,000		$251,103					$0		$285,298
50	$3,000		$276,972					$0		$310,975
51	$3,000		$305,169					$0		$338,963
52	$3,000		$335,905					$0		$369,470
53	$3,000		$369,406					$0		$402,722
54	$3,000		$405,923					$0		$438,967
55	$3,000		$445,726					$0		$478,474
56	$3,000		$489,111					$0		$521,536
57	$3,000		$536,401					$0		$568,475
58	$3,000		$587,947					$0		$619,637
59	$3,000		$644,132					$0		$675,405
60	$3,000		$705,374					$0		$736,191
61	$3,000		$772,128					$0		$802,448
62	$3,000		$844,889					$0		$874,669
63	$3,000		$924,199					$0		$953,389
64	$3,000		$1,010,647					$0		$1,039,194
65	$3,000		$1,104,876					$0		$1,132,721
Less Total Invested					-$120,000				-$24,000
Net Earnings					$984,876				$1,108,721
Return on Money					8-fold				46-fold

Who is in a position to give away more?

Shalom can give $3000/year more than can Ivan, and she can do so for 39 consecutive years.

What is required? Primarily a good long term goal, discipline and patience - and generosity all along the way!