March 1, 2011
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The federal deficit, and our own
From the Pulpit Where do you stand with debt in your personal life? How do your mortgage statements, credit card balances and payment practices compare with other Americans' bills? According to research by MSN Money here's where we stand. About 43 percent of American families spend more than they earn each year. Average households carry some $8,000 in credit card debt. Personal bankruptcies have doubled over the past decade. American consumers owe about $18,654 per household, a figure that does not include mortgage debt. The average American has 2.7 bank credit cards, 3.8 retail credit cards and 1.1 debit cards, for a total of 7.6 cards per cardholder. Might it be true that some people who yelp so loudly about the federal deficit are running a deficit in their own household? Lots of folks would go running to Clark Howard, Suze Orman, or Dave Ramsey for financial advice. But the best financial advice ever given came from King Solomon long ago. His advice can be found in the Bible's Book of Proverbs. First, put the brakes on your desire for more and more stuff, especially things you can't afford. Proverbs 23:4 states, “Do not wear yourself out to get rich; have the wisdom to show restraint.” The next verse gives the reason: “For they (riches) will surely sprout wings and fly off to the sky like an eagle.” If money and “things” become your goal, you will always be disappointed. Just when you think you have what you want, wealth, like an eagle, soars out of reach. Second, adjust your spending to a level below your income. “In the house of the wise are stores of choice food and oil, but a foolish man devours all he has” (Proverbs 21:20). Wise people know how to earn a living, but they also know how to make their earnings last by spending less than they make. This habit creates a surplus at the end of each month, and eliminates living paycheck to paycheck, or as Dave Ramsey calls it, “financial freedom.” Third, watch out for debt. I think one of the most convicting verses in the Bible is Proverbs 22:7: “The borrower is servant (slave) to the lender.” Have you ever been a slave to a credit card, car loan, or finance company? It's an awful feeling, isn't it? The problem with debt is that it allows you to falsely live beyond your means. You think you are doing OK when, in reality, you aren't. Fourth, set aside part of your income for emergencies. Sock away three to six months' living expenses. This money will relieve your anxiety when you're staring at major, unplanned expenses such as a car breakdown or a leaky roof. Proverbs 21:5 reminds us, “The plans of the diligent lead to profit.” A wise (diligent) family makes sure they have emergency savings on hand to cover urgent financial expenses. Fifth, save for the future. Ants are just tiny little creatures, but Proverbs 30:25 shows us “they store up their food in the summer.” Ants have a wise eye toward the future. Twenty-seven percent of Americans have no personal savings and 34 percent have no retirement savings, according to results of a recent Harris poll. Last, devote a portion of your income to the Lord and His work. Could Solomon have been any clearer when he stated, “Honor the Lord with your wealth” (Proverbs 3:9)? If someone wrote your biography on the basis of your checkbook or your income-tax return, what might it say about you, your loyalties, your focus, and about whom you serve? Gary Hardin is pastor of Enon Grove Baptist Church in Cedar Bluff. He and his wife, Linda, live in Centre. Comments can be sent to: garyhardin@tds.net.
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