Financial Friday 2/28/20

Several years ago I swore to myself and God above that we would never again purchase a big ticket item on a credit card with “deferred interest.” Maybe you know the concept. It sounds good and I guess it can possibly be not too disastrous. In fact, we had made a few purchases over the years with deferred interest sometimes lasting up to 3 years. The plan is that you won’t get charged interest as long as you have the item paid off in the timeframe you agree to. And as long as you pay it by that date, you will have paid for…let’s say some furniture…over time with no interest. Never mind that the furniture is now broken down and looks like it’s twenty years old! Congrats–you did it! But ,as you might know, the catch is that during those three years the interest on that ratty furniture has been “accruing” at about 26% annual percentage rate. And if you do not pay the card off in its entirety in those three years the accrued interest will be adding right onto your credit card. And it’s usually a lot of money.

And we did that successfully a few times as I was obsessively focused on paying it off on time to avoid the interest. Of course, we were the exception. This is a highly lucrative way for stores and credit card companies to bilk us out of millions of dollars. They know that chances are if a person can’t afford a $1,500 sofa now they won’t be able to in three years. And during those three years, the minimum payments don’t even come close to paying off whatever it is. But we did it, as I said. Boy were we smart. Until we almost got slimed.

Take a look at the picture above. I love this picture. In case you can’t recognize it, the car is a Toyota Prius I believe. Evidently, on a nice July day in 2017 this car was tooling along highway 101 near Depot Bay, Oregon. I don’t know the exact sequence of events, but at some point this Toyota got too close to a flat bed truck that was carrying many tanks of Slime Eels, or Pacific Hagfish. At some point the truck overturned and dumped hundreds of these creatures on the road near this poor Prius and its occupant. Not only are these things a delicacy to eat, but they are also one of the most fascinating creatures in God’s world. These little eels, when they are threatened or whatever, produce this slimy substance at an enormous rate in enormous quantities to immobilize predators–like sharks or Toyota Priuses. This slime actually just keeps multiplying. Isn’t that awesome?!

That’s the picture I get when I think of the interest that accrues on purchases with which we’ll get slimed if we don’t pay the balance off. It just grows and grows and multiplies and multiplies exponentially.

And so after successfully doing this for a few purchases I almost got slimed several years ago.

We had bought some furniture with 2 years no interest. We successfully made the monthly payments and even more than the minimum most months. And I had my eye like a hawk on that date that we needed to have it paid off or else we would get slimed with an accrued interest totaling …are you ready for this…$1,700! That’s just accrued interest! This would be added to the balance still owed of like $1,100. It was no problem to pay that balance we still owed of $1,100. I even had it scheduled to pay 3 days before it was due on June 24. I checked it and rechecked it to make sure that all was well. And yet, somehow, I almost blew it. I checked it one day and somehow I had scheduled the payment 2 days after June 24th. As I said was obsessive about avoiding the accrued interest. And, yet, somehow, I nearly got slimed with interest and would have ended up paying interest on interest probably. And it would have grown and grown and multiplied and multiplied.

That’s the day I decided never again to buy anything with deferred interest. Don’t do this. No matter how tempting or how good of a deal it may seem. It’s a bad deal. Just ask that Prius.

Financial Friday 2/7/20

When most people think of Vincent van Gogh, they think about a crazy artist who cut his ear off and ended his own life at only 37. He did suffer from mental illness, he did cut off an ear, and he did take his own life. Yet there is so much more to understand about this Christian whose faith as well as disillusionment with institutional Christianity prominently affected his art. Though not successful as an artist during his lifetime, he is now rightly considered a genius whose painting style, use of color, and themes continue to inspire artists well beyond his own “post-impressionist” period of the mid to late 19th century. The above painting, “Starry Night,” is my favorite and is considered a masterpiece. Yet, as author Skye Jethani oints out in his excellent book, “The Divine Commodity,” there was much more going on in van Gogh’s paintings. He was brought up by a Christian family and aspired to be a missionary. His faith was not perfect, but he sincerely desired to follow Christ. However, he became deeply disillusioned by the institutional church of his day, and this is seen in his paintings, especially “Starry Night.”

If you look closely at the painting above you can see that Van Gogh’s use of color is amazing. Particularly the yellow that he uses for the stars and the lights from the buildings below. This yellow color, for him, represented God and goodness and holiness. So the stars and the lights in the village below the night sky are painted with this brilliant yellow light. This yellow light floods out of all the buildings, except for one–the church. If you look closely you’ll see that the windows of the church are all dark. This was Van Gogh’s commentary on the cold, sterile, hypocrisy of the institutional church. The factors in his life that led to this are many and varied but at the bottom of it all was his belief that the church and Christians did not reflect the Christ whose name they claimed. And who of us does not feel that same way at times–about others as well as ourselves. Too often, we are, at best, dim reflections of who Christ calls us to be.

So with this in mind, the painting below is one among many parodies of Starry Night. In this one, Ron English, replaces the French village with the architecture of consumerism with fast food joints and Hollywood icons. The church steeple is crowned with McDonald’s Golden Arches and King Kong straddles the roof. Interestingly, the church in the parody painting below is not dark, but has light coming from its windows. But it’s not the sacred yellow light of the stars. No. The light coming from the church windows is the same electric, fluorescent white light of all the other franchised McStores around it. This is the church of consumerism.

As Skye Jethani states in “The Divine Commodity:” “In 1889 Van Gogh’s struggle was with a church more focused on earthly power than heavenly glory.” English’s painting recognizes the church’s captivity to consumer values. As former chaplain of the United States Senate, Richard Halverson, once put it:

“In the beginning the church was a fellowship of men and women centered on living in Christ. Then the church moved to Greece, where it became a philosophy. Then it moved to Rome, where it became an institution. Next, it moved to Europe, where it became a culture. And, finally, [the church] moved to America, where it became an enterprise.”

Richard Halverson

Skye Jethani observes in a recent post in his devotional, With God Daily (withgoddaily.com): “…there is a difference between living in a consumer society and adopting a consumer worldview. Our faithful Christian predecessors lived within the Roman Empire, but their minds and hearts were not beholden to Caesar. Their ultimate citizenship and loyalty were not to Rome. Likewise, we must learn to exist in a consumer culture but not forfeit our souls at its alter.”

So what in the world does all this have to do with our personal finances on Financial Friday?

Simply this: As those who have been born and raised in a deeply consumeristic culture, Christians need to realize that we have been affected by this mentality as have our churches. It’s the air we breath. It’s all most of us have ever known. I love this country and believe that democracy and free market capitalism is capable of the greatest good as far as earthly governments go. But make no mistake-Jesus calls us as believers to be more concerned with a Kingdom economy marked by things like justice, contentment, true needs, generosity, and the like. Think about it: What would happen if every Christian (or every person) in America immediately become content with what we have. And this contentment caused us to reduce our spending by just half? If enough people did this, our economy which is predicated on consumers buying new stuff all the time would come to a screeching halt. All I am saying is that as Christians we need to really discern the difference between our true needs and our perceived wants. Though our advertising driven, consumer culture is all pervasive we need not be constantly seduced by it. Worshipping at the Church of Consumerism will keep us from true contentment and thoughtful, intentional biblical stewardship of what God gives to us.

Financial Friday 1/31/20

So it’s been a while since the last Financial Friday. I apologize for that, but I’m back to doing them every Friday (or almost every Friday:). The last time we looked at a formula for being good stewards of our money from the book “Too Much: Living with Less in the Land of More” by Gary Johnson. In the book (which is one of THE best books on a balance biblical view of money) his formula is simple:

4 Principles (gratitude, contentment, trust, humility) + 4 Practices (debt-free living, saving, budgeting, giving = REAL PROFIT

And I talked about the first part of that equation last time. On the other side of the equation are the practices of debt-free living, saving, budgeting, and giving. I and a few others are getting schooled very well on those topics every Monday night in the Financial Peace University class that Tim and Heidi Caswell and doing a great job leading. It’s a great class that I wish I’d have taken 30 years ago if it existed. But it’s never too late. Most of you know of Dave Ramsey through his radio show, podcast, books, or if you attend First Church of Christ you’ve heard me talk about him. It’s just a great class and as I have been listening to his daily podcasts I am getting all “Ramseyfied.” I told my wife (who isn’t able to take the class with me this round) that the other day as we prepared to discuss our finances.

“What does that mean?” she asked me. I said it means getting mad at things like debt and not saving. It means doing everything possible to do those 4 practices above. You see, Ramsey’s principles aren’t really just his. And Gary Johnson’s formula isn’t just his. It’s all straight from the Bible and God’s plan for how to be faithful with money. But the thing about Dave Ramsey’s books and material and FPU is just the motivation couple with the knowledge that gets me “Ramseyfied.” And in the class what he calls Baby Steps (1-7) all involve those four practices above.

Nearly every day on Ramsey’s podcast he has families on the show who travel many miles to do their “debt free scream.” He does the show from Tennessee, but the other day there was a family from Macomb MI who travelled to TN just to do their debt free scream on his show. They tell their story of how following these simple, biblical principles Dave teaches allowed them to radically change their lives through getting rid of debt. The stories are pretty motivating and keep me focused on doing better with what God has entrusted to us to manage for His glory. So today I would really encourage you to subscribe to Dave Ramsey podcast, pick up one of his books, and take Financial Peace University at the earliest possible time. We’ll be offering it again next January for sure at our church. But don’t wait until then! It’s never too soon to get “Ramseyfied”!

Financial Friday 12/13/19

Last Friday we looked at the formula for financial success and faithfulness from Gary Johnson’s book, Too Much: Living With Less in The Land of More. If you’ll recall the equation looks like this:

4 Principles: Gratitude, Contentment, Trust, Humility PLUS 4 Practices: Debt Free, Savings, Budgeting, Giving EQUALS Real Profit

I’m going to take the next few weeks and discuss some of these elements. Today let’s tackle the one that I most often struggle with: Contentment. Over about the last 5 years I have been in a battle over being content with what I have. The specific issue is…well, it’s just that…I want a new TV. Specifically, I want a bigger one! So about 11 years ago we bought a new, pretty expensive Sony flat TV. Whereas they had some bigger ones back then, we bought a 40″ TV and this was considered big. I’m not even going to tell you what it cost, because compared to what they cost today it was an exorbitant amount. But I can truly say that we were justified in getting it for many reasons.

The problem with our current TV is this: It’s 40 inches. Because of the advances in them today we could fit a considerably bigger one in our entertainment center. And the price of good TVs has come down so much that we could get one. But here’s the thing-just because we could doesn’t mean we should. Ours still has a great picture. It’s HiDef though not the resolution today’s TVs have. I mean have you been to Costco or Best Buy and seen the new ones? Seriously, they are amazing. When I look at them I begin to become discontent and want one of them and think up reasons to get one. But, yet, when I sit in my house and watch something on our 10 year old, 40 inch Sony I think to myself “That’s a great picture! How awesome that a TV that’s nearly 11 years old has such a great picture and has caused us no trouble in all those years.” So contentment has been winning the new TV battle so far.

Now I am not criticizing anyone who has the latest 60 or 80 inch Samsung with 8k resolution (which probably cost half of what I paid for ours 10 years ago!). I am not always so victorious in the contentment department! It’s just that there is no reason in the world why we should spend a few hundred dollars on a new TV. Just because we could doesn’t mean we should.

The Bible of course has much to say about this. The apostle Paul wrote “I have learned the secret of being content.” The writer of Hebrews simply exhorts “be content with what you have.” Why does God want us to be content? Because our contentment leads to gain. 1 Timothy 6:6 reads “godliness with contentment is great gain.” That’s what God wants for us-great gain.

So the question is how do we know when, to use a 1st world problem example, we should buy a new TV, or a bigger house, or a new car, or whatever? I think the answer to that question is really pretty simple and viewed through this lens can usually be quickly deduced. Andy Stanley wrote a great book a few years ago in which he talks about “The Best Question Ever.” This question can be used in any situation, especially relating to our finances. The question is simply this: What is the wisest decision? What is the wisest decision. Hmmm. I have to say that figuring out what we should do is pretty simple for Christians. What is the wisest thing? The Bible is full of wisdom on many subjects. But also, I think that deep down we usually know what the wisest thing is.

So if it is pretty simple to know what is wisest then why do we so often do the exact opposite? There are a lot of reasons. We are pretty good at convincing ourselves of something even though deep down inside we know that it’s not the wisest, best thing to do. And our entire economy is geared to make us discontent so we’ll keep buying more stuff we don’t really need. Can you imagine what would happen if all of the sudden every American decided to practice contentment and not spend money as often or freely? The market would be in a free fall! So the question is “What is the wisest decision?” Not “what do I really want,” or “what do I really deserve,” or “what is impressive to neighbors or friends,” or any other reasons we come up with. Ask “what is the wisest decision?” Choosing contentment is the wisest decision far more often than we think it is. This I know. It’s pretty clear. Yet, too often we choose a path other than wisdom. And when we do that on a regular basis our financial situation deteriorates and the equation leads to loss not gain.

So a few years ago I got it in my head that I needed a bigger motorcycle. I had a great Honda VTX with a 1300cc engine. That’s a pretty big engine and I loved it. It fit me perfectly. But I came up with many, many reasons why I needed a bigger one. I had my eyes set on a very lightly used Victory with an 1800cc engine. The store had it at a discount because it was a couple years old, yet it had only a few hundred miles on it. It was a bargain! It was such a great deal! Probably never again for the rest of my life will I have the chance to get such a great bike at this price! I really couldn’t afford not to get it! And on and on went the “logic.”

I had cleared it with Lori and I was ready to do the deal and get it. Now almost never do dealers let you test ride motorcycles. It’s not like cars. And so I was ready to buy it when, at the last minute, the guy at the dealership asked me if I wanted to take it for a test ride. I said sure! So before I signed on the dotted line I took it for a spin. I’m glad I did because I absolutely HATED it. It just was so different from mine and handled so differently I couldn’t wait to get off it. Before I rode it I knew in my heart what the wise decision was–keep riding the bike I loved and that was paid off. But I was about to make an unwise decision that I would have regretted so much. I was saved from the costly consequences of an unwise purchase (thank you God!) and continued to ride my Honda for a couple more years before selling it. It really was a great bike. I had put about 40,000 miles on it and had nary a problem with it in 10 years. My decision to stop riding a couple years ago was the result of pondering the best question ever and deciding it was not the wisest for me to continue riding…but that’s a whole other story.

What is the wisest decision? I think it probably is the best question ever. I believe really getting honest about that question will help you practice contentment. It’s not always easy to do the wisest thing, but the question is pretty simple and, again, deep down we usually know the answer.

Financial Friday 12/6/19

“Hey, you look like you could use a lifesaver.”

This was the tagline for many years on commercials for LifeSavers. LifeSavers, one of America’s favorite candies (love the butter rum!), were created back in 1912 as a “summer candy” that wouldn’t melt in the heat of summer. Its name is derived from its shape, which happens to be a life preserver thrown to people who have fallen into the water. We see these life-rings on ships, beside swimming pools and hanging on lifeguard stands at the beach. In the commercials I remember from many years ago, there were usually two people, one of whom was facing some terrible situation (like missing the game winning shot or getting dumped by a girlfriend). So their friend would pull out a roll of the candy and say “you look like you could use a LifeSaver.”

There is no worse feeling of hopelessness and helplessness than drowning in debt or being swept out to sea by the riptide of financial problems. Unfortunately, in these situations we become desperate for someone to throw us a life saver. And so we are tempted to grasp at anything that looks like it might bring relief even if the life saver is more like a noose pulling us further adrift. I strongly believe in the old adage “If it sounds too good to be true, it usually is.” There is no easy, quick way to get out of debt. It takes time, wisdom, discipline, humility, hard work, and usually help from someone and something.

One the best books written recently to help with all aspects of financial management and especially debt is called “TOO MUCH: LIVING WITH LESS IN THE LAND OF MORE.” The book was written by my friend, Gary Johnson, who recently retired from pastoring The Creek church in Indianapolis. It’s just a great book and can be a real LifeSaver for you. I have several copies of the book for sale for $5. Just let me know you want one and I’ll get it to you.

In this book he boils down all the Bible has to say into a simple formula:

4 Principles: Gratitude, Contentment, Trust, Humility PLUS

4 Practices: Debt free, Savings, Budgeting, Giving = REAL PROFIT

Usually we think more in terms of the mechanics of money management: Saving, Spending, budgeting, eliminating debt. And, yet, the real battle is first having the right MIND about money. Things like gratitude, contentment, trust, humility. Right thinking about money leads to right actions with money. His contention in the book is that we as Christians simply need to live with less and spend less. We need to learn contentment in a nation built on and fueled by consumerism and discontentment. This is no easy thing to do. But contentment is truly the real lifesaver. And as the apostle Paul wrote, we need to learn the secret of being content in all situations.