Pastoral Thoughts on the Economy

"Let your character be free from the love of money, being content with what you have; for He Himself has said, 'I will never desert you, nor will I ever forsake you,' so that we confidently say, “The Lord is my helper, I will not be afraid" (Hebrews 13:5-6)

"Besides You, I desire nothing on earth" (Psalm 73:25)

As a nation, we are facing difficult economic times. In fact, some would suggest that we are facing economic crisis in our country.

While I don't think fear mongering is very helpful, I do know that a lot of people are experiencing a lot of stress and fear and anxiety over the current economic environment.

Some are worried about losing their job while others are looking towards graduation and wondering if they will be able to get a job.

Some are looking forward to winter and wondering how they are going to keep their homes heated and food on the table, while others are looking back at the last few weeks and seeing that their retirement fund is losing significant net worth.

All of us are facing higher prices and less buying power in our pay checks.

So what should we do? What does this mean for us? Our families? Our community?

A good friend of mine who works in financial planning had these suggestions:

1. Keep Giving--or even increase your giving if you are not giving a tithe. Remember that this is your acknowledgment that it all belongs to God and that you are dependent on Him.

2. Pay yourself first (save some portion of your income) for both retirement and emergency savings. Even if it is only 1% of your income.

3. Have a goal to accumulate 3 months living expenses in a safe, liquid account that is paying a reasonable rate of return (at least 2%) set aside an amount that you can live without each month and put it into savings. This money is not to be touched except in an EMERGENCY. A great way to start is by trying to come up with a $1000 mini emergency fund. Almost everyone I know can do this in a month or less. Sell stuff, cut back on Starbucks, work a few extra hours.

4. Identify the latte factor. Where are spending money that you could save? Examples: Bring lunch to work rather than buy it (save the difference); if you are mechanical, do your own oil changes on your car (save the difference), bring coffee from home rather than stopping at Dunkin Donuts (save the difference)

5. Check your insurance coverages to make sure that your assets including your earning power are insured appropriately.

6. Be well diversified with your investments and stay the course if you have a long time (5+ years until you need the money).

7. Do what you can to pay off debt early; and DO NOT take on any new debt!

Perhaps the most important thing to remember is that GOD IS STILL IN CONTROL. And this should be a real reminder and challenge to us to take seriously God's wisdom when it comes to money:

EARN

Then GIVE

Then SAVE

And only then SPEND.

One last thought... if you find yourself in serious financial trouble do two things:

1. Focus on the basics -- make sure your house/rent is paid, heat/utilities is paid, food is on the table, and you have safe/reliable transportation. Do this before paying off credit cards, etc.

2. Ask for help -- get into our Financial Peace University group! We can also connect you with a financial counselor! But don;t be afraid to ask for help!