A listener asks his follow up question: I thought this was something that was useful to share but it is a little long. I hope it is worth the read because you might be wondering the same thing. Here is part I.

Question: Okay, hypothetically speaking, I took my money, did my homework, invested in what appeared to be a sound investment, and lost it. I pay tithes cheerfully; I gave and continue to give alms, why would God allow me to lose or any Christian for that matter? We lose, we gain, we lose, we gain, some lose all, some gain much.

That’s the risk we take with investing and no matter your intent. At the end of the day our intent is to gain money by hoping that the company you’ve invested in is productive. Sounds like luck to me, just on a long term scale. But what if that company is involved in some illegal activity that we can’t see on the surface and they eventually get caught and the stock tanks?

I see the scriptures pointed out above (in original reply) but I can’t see them being clear as to whether investing money in a hope that is risky is wise. I think our investments should go toward sound Christian organizations/companies etc. I think Christians should involve ourselves with a barter system so we won’t have to invest in the potential “ponzi” scams of the world. Although God has His hand on our lives, I think He may draw the line at investing in stock. I’m not absolute in that idea, I’m just thinking of how the chance to lose money is always present and if the chance is always present (no matter how much homework we do about the investment), then would God really consider that wise?

I’m really looking for solid answers. What keeps me at odds is this past economical crisis we’ve entered. I lost a lot, but when the market leveled off, I gained it back and a little more. How can I be confident that investing in the market is wise, especially if the risks do not decline?

What would I have been able to do? I was close to retirement and took a loss like that. Would I have been able to say, “that was a wise investment”? Forgive my rambling. I tend to type what I think without organization. But I think I’ve expressed the gist of my dilemma.

Answer: Very well thought out. Let me unpack this and keep it on a broader scale. First of all, it is important to keep God involved in all of our investments. We don’t make an investment without God’s peace.

Second, investing is going to be the best way that you ultimately take care of the future of your family. Third, and here is the missing piece I think that affects all investors, you have to learn how to invest in a bear market. We know how to invest in bull markets. What about bear markets? There is something no one is teaching the masses.

There are principles to learn so that you can indentify risk and know when to get out of an investment just like you knew why you invested in an investment. In other words, you need to learn how to protect God’s money just like you studied to invest God’s money. Believe it or not, you can make money in a bear market. You just need to learn the principles behind doing so. Unfortunately, the financial services industry doesn’t want you to attempt to manage your money. They would rather you just buy and hold.

There is a lot to learn about investing to do it the right way. I have been investing and managing since 1992 and still learn everyday. You never figure everything out. You just keep learning. It takes hard work and discipline. However, anything that God asks of us takes hard work and discipline. It is funny. I was just telling someone that I really wanted to write a book on this very subject. I hope that it is my next book project.

When we get frustrated with anything in our lives, it just means there is more that God wants us to learn. Why would God allow you to lose or any Christian for that matter? That is just life. God allows life to happen, wants us to live having total dependence on Him, and doesn’t allow anything to happen that He thinks we cannot handle. God blesses you for being faithful and tithing. The only caveat is that it is His choice how He will bless us.

Tags: Bob Brooks, Deceptive Money, discipline, gambling, God, hard work, Investing, money, Prudent Money, risk

“We are God’s partners in matters of life and death.”
President Barack Obama – August 20, 2009

A friend of mine sent me an e-mail with this quote and his reply – a new low. It came from this article. Everyday something unbelievable comes out of Washington. Let’s dissect this statement. We (you and I but mainly the Government) are partners (make decisions together – are equals) in matters (all situations) pertaining to life (killing babies) and death (determining who lives and who dies).

According to this article and many others that verify the statement, President Obama was on a phone conference with a group of rabbis yesterday morning. He was trying to get support for his healthcare plan. This is a frightening statement if he truly believes it.

Tags: Bob Brooks, death, Deceptive Money, God, Government, healthcare plan, life, President Barack Obama, Prudent Money, rabbis, Washington

Q: My husband and I have not been very good stewards with regards to our money in the past. At this point, I am planning to take over the finances in order to get us on a budget that includes covering monthly expenses, tithing, saving, and debt repayment. I also intend to bring my husband and I together on a regular basis in prayer with regards to our finances.

Please help me understand what the right thing to do is.

A: I appreciate your question on tithing. The great thing is that your heart is in the right place. Keep in mind that there are a lot of opinions on this topic. This is what I believe. God wants us giving back 10% of what we earn. Many will debate the 10% as an Old Testament commandment and not relevant to the New Testament church. However, I believe that we should tithe, which means a tenth. If you are not tithing, you might be in such a situation that you cannot just start giving 10%. This might be a gradual process to get a plan in place where you are giving a tenth.

I look at what we do with our paychecks each month from 3 different areas: God’s portion, non-negotiable items, and discretionary spending.

The non negotiable items are items that if not paid would cause you harm. That would be electricity, food, mortgage, debt payments, etc. If you don’t make these non-negotiable payments, things are turned off or taken away from you or you don’t survive.

Discretionary spending is spending money on everything else. These are all expenditures that we could do without.

I don’t believe that God ever wanted us to not live up to the responsibilities that we have created in our life. The goal is to decrease those responsibilities as much as possible. We have a responsibility to pay back debt, make car payments, pay mortgages, etc. So when you are just starting to tithe you have to look beyond the non-negotiable responsibilities to get the money to start. This can be a tough choice.

Keep in mind that discretionary spending is cable, telephone, kid’s expenses, and everything else that is not tied to a commitment.

Start building up to the 10% until you get it to that level. With every percent that you increase your tithe, make that non-negotiable.

Some say have faith and tithe 10% then trust God to take care of the mortgage and the debt payments. God gave us common sense not to put ourselves in harms way. Being diligent in this process will require a lot of faith. Just be honest with yourself and with God about what you are doing without in order to make the tithe. When starting out on this journey of obedience, you are going to have to sacrifice. If you start out giving $50 a month and you find it easy, I think that the point is being missed.

The good news is that God will bless you in ways you never dreamed…and no I am not specifically talking about money. It is enough that God will bless you and show you a part of your relationship with Him like never before.

We all make mistakes with money and it is easy to get ourselves in these situations. The steps that you take going forward are the ones that make the most difference. It is where your heart is today and tomorrow and not about where it was yesterday.

Tags: Bob Brooks, Debt, debt repayment, Deceptie Money, expenses, finances, God, income, money, New Testament, Old Testament, Prudent Money, sacrifice, saving, tithing

I have been studying the book of Isaiah using some commentaries for insight- Calvin and Brueggemann.

The Scriptures often speak to me in whatever circumstances I find myself in. I found Isaiah 7 particularly relevant to current events.

There is a sense of unease with many that I talk to about the economy. Our nation has experienced problems in the housing market and lending institutions that has threatened to put a lot of banks out of business. Credit is tight. Fear and pessimism are high.

Our federal government has announced a plan to stimulate the economy that could cost taxpayers billions. The byproducts of a poor economy are more government spending, higher budget deficits and higher inflation.

What does Isaiah say to the believer in God’s control over all things in this world during this time? Two verses:

Isaiah 7:4, “Say to him, ‘Be careful, be quiet, do not fear…’”

Isaiah 7:9, “If you are not firm in faith, you will not be firm at all.”

We have a choice: to walk in faith or fear. What a great opportunity for believers to demonstrate that our trust is in Christ and not the fickleness of world economies. It is also a good opportunity to show that biblically based financial planning works.

What are the basic principles of biblical finance?

1. Keep your lifestyle much lower than your income stream.

2. Save and give a significant percentage of your income.

3. Work hard- use your abilities to serve God and others.

4. Diversify your investment assets- have a plan to manage principal and inflation risk.

5. Be organized- don’t leave your family with an estate mess.

6. Act in faith, not fear. Pray for the prosperity of the city you live in and be active in seeking the renovation of creation for God’s purposes.

What has been formed by God has been deformed by sin and needs to be reformed by Christ.

For God’s Glory,

Ashley Hodge

Tags: Ashley Hodge, banks, Bob Brooks, budget deficits, Christ, credit, Deceptive Money, economy, federal government, God, government spending, housing market, income, inflation risk, Isaiah 7, lending institutions, Prudent Money, risk, stimulate, taxpayers

Traditional retirement planning focuses on these areas:

*Setting an expected date to retire

*Managing risk with investment assets to fund retirement

*Income projection from assets, pensions and social security

One neglected area of planning is honing your skills and abilities. A friend of mine who is also a financial advisor sent me a link to a Barron’s article: Next, The Retirement Bubble

The article expresses some thoughts that I have been blogging about for a while- although in harsher terms. The idea of retirement that is so prevalent in American thinking is pure fantasy for most people working today. And that is not a bad thing.

The biblical model is clearly a model of productivity for the Lord as long as there is breath in your lungs and blood pumping to your heart. Jesus expressed this in John 9:4, “We must work the works of Him who sent Me while it is day; night is coming, when no one can work.” This life on earth is day. Death is night. The works of God can mean many different things and it may not always be income generating.

But the truth is that most people are living longer. And assets are in decline overall due to the financial crises of the last nine years. Society cannot afford to pay people income for thirty plus years while they are not contributing to the growth of the economy.

If the trend continues, our economy will be in shambles. We would have a vicious cycle of large population blocks of active voters insisting on social security and medicare benefits that stay at the current levels or better. This would lead to unsustainable tax increases. That would lead to a sluggish economy and taxpayers fleeing the United States for economies that offer lower taxes and greater growth prospects.

The good news is that many forward thinkers on these issues believe that this outcome will be avoided. For example, the authors of The Fourth Turning- Strauss and Howe- believe that history is cyclical (a view I do not share entirely). In their view, the current crisis was caused by a 20-year cycle that was highlighted by apathy and addiction to leisure. This led to unsustainable levels of debt and a financial crisis.

Strauss and Howe believe that the next cycle will be one that values hard work and a return to productivity. This will lead to another cycle of prosperity down the road.

So what is the point of all this? Like the author of the article in Barron’s, I believe that we are facing a reality that most people are going to dramatically rethink the idea of retirement. I promote the strategy of never retiring to a life of leisure to anyone who will listen. I believe it is a less stressful, more fulfilling life.

But I agree with the article that most people should consider a 3-5 year sabbatical instead of traditional retirement. And this is where honing your skills comes in. We should be on a constant path of personal growth. The economy rewards flexibility and adaptation to change.

What this means to me is that I need to constantly hone my skills as a financial advisor so that I am at the top of profession in terms of knowledge and wisdom. But it also means having a diverse enough set of skills so that if Congress passed a law tomorrow that was devastating to the financial planning profession, I would be able to transition into another productive career within a short period of time.

The idea that you work for a company for 30 years and retire at age 55 into a life of leisure for 40 years is dead. It was never a healthy thing. Pray for God to reveal your gifts. Use those gifts for God-glorifying productive work. If you have recently lost a job or you are facing the dread of an uncertain future, stay encouraged.

If you are in Christ, you have the power of the Holy Spirit in you. You have innovation, courage and perseverance at your disposal. Here are a few resources that can help you hone your skills and work towards a position of greater financial flexibility so that your time will be freed up to spend as God directs.

For He who began a good work in you will bring it to completion at the day you meet Christ,

Ashley Hodge

Tags: Ashley Hodge, Bob Brooks, Deceptive Money, economy, God, pensions, personal growth, Prudent Money, retirement, retirement planning, Social Security, The Fourth Turning

I recently finished a book called The Fourth Turning that was written in 1997 after loosely discussing the theme of the book with a friend. The book is a pessimistic guess on what the American experience might look like from 2000 – 2020. It has gathered attention because some of the predictions have materialized to some degree: war on terror and global financial crisis.

You can read a brief summary of the book here. The authors- Strauss and Howe- lay out three views for history:

1. Chaotic time: history has no path. It is just a series of random, meaningless events.

2. Cyclical time: there is a pattern to history. Just like the seasons of Winter, Spring, Summer, Fall, history follows a process of renewal (high), awakening, unraveling, crisis.

3. Linear time: time is a progressive story with a beginning and an end. There will be struggles along the way but ultimately mankind is on an upwards, progressive path.

From my understanding of biblical revelation, I believe there is a fourth option that Christians would adhere to:

4. Combination of cyclical/linear time: God has created a natural order. There is certainly a cyclicality to this order as we see evidenced in the seasons. God has also revealed a progressive redemptive plan. Mankind starts in a pristine garden (Genesis). We end up in a restored city (Revelation). The biblical story of Creation, Fall, Redemption and Restoration has a definite linear quality to it.

Strauss and Howe take the view that history is cyclical. They propose the theory that the US will experience crisis every generation (80 years or so). They point to: the American Revolution in the 1770s; Civil War in the 1860s; Great Depression/World War II in the 1930s/1940s to make their point.

In their view, we are due for a life altering crisis that will redefine our nation. History may look at this period of 2000-2009 as a significant enough crisis to qualify for their gloomy view. However, Strauss/Howe believe things will get much worse. They see a period similar to the 1930s and 1940s in store for us. They think we will experience political upheaval, potential world wars, economic distress and the potential collapse of American society.

It is scary stuff. What should a Christian do about these type of predictions? Some things never change. God has a plan that He is unfolding. We are privy to the end result but not the process. We are called to live a biblical lifestyle in every economic period- a balance between pessimism about the nature of man and hopefulness centered on the goodness of God.

I have a quote on my desk by John Kenneth Galbraith, “The function of economic forecasting is to make astrology look respectable.” Only God knows the future. It is a good future for those who have been called according to His purpose. We must proceed in faith, wisdom, hope and love.

America is going through a natural economic cycle of reaping economic distress caused by the carelessness of consumers and the greed/stupidity of policymakers. The results have been worse than I saw coming. But there is hope that if we return to prudence, stewardship and sound financial principles that we will recover and build a stronger tomorrow for our children. We seem to be at a crucial moment in our country’s history. We need to pray for God’s favor and for leaders to be filled with wisdom in navigating these problems.

More than anything, we (I) need to be reminded of this truth. It is a trustworthy statement that deserves full attention, Christ came to save sinners of which I am the worst of them- I Timothy 1:15. At the root of our nation’s problems is the same culprit of every problem: sin. Greed, addiction to leisure, presuming on tomorrow, selfishness, laziness, lust and pride. These things don’t remain unchecked for long. We cannot sow bad seeds and pray every year for crop failure. It is time to sow seeds that produce good crops: love for God and neighbor, unselfishness, generosity, humility, courage and goodness.

Trusting in God’s Plan,

Ashley Hodge
http://stewardshipmandate.com

Tags: American Revolution, American Society, Ashley Hodge, Bob Brooks, Christians, Civil War, Deceptive Money, economic distress, financial principles, Genesis, global financial crisis, God, Great Depression, greed, Howe, policymakers, prudence, Prudent Money, Revelation, stewardship, Strauss, The Fourth Turning, World War II

Let’s face the reality of today’s environment.  There is a lot that a person could worry about given the events of today.  You could worry about losing your job.  You could worry about trying to find a job.  You could worry about your investments.  You could worry about the losses of the past year.  You could worry about the future direction of this country. I will admit that one stays on my mind.

Does it do us any good to worry?  Dr. Jim Dennison heads up a ministry called Informed Faith.  He writes a daily article called God Issues.  I would strongly encourage you to subscribe.  God has gifted him with amazing abilities and insight.  I don’t think that I have ever met a man with his knowledge of the Bible.

Years ago, he wrote a piece on worry.  It is one that I save and reread every time I get in a situation where I worry too much about what may or may not happen.   He writes about how worrying over the future is pointless.

A survey regarding worry revealed these facts: 40 percent of things most people worry about never happen; 30 percent of what we worry about has already happened and cannot be changed; 22 percent of what we worry about regards problems which are beyond our control; only eight percent of what we worry about are situations over which we have any influence.

Worrying is the byproduct of anxiety.  When you feel anxious about something that might happen or has happened, see the anxiety as an opportunity.  It is an opportunity to watch God work in your life.   When I worry, there are two verses that come to mind.

Don’t worry about anything; instead, pray about everything. Tell God what you need, and thank him for all he has done.  Philippians 4:6

Be still and know that I am God.  Psalm 46:10

Meditate on those verses a little and it will stop you dead in your tracks.  Pray about everything and let God direct your ways.  Pray and thank God for what He is going to do.  Why?  If you are within His will for your life, it all works out.  You do your part and KNOW that God will do His part.  God only has your ultimate happiness in mind.

I love the version of this verse in the Message. 

Don’t fret or worry. Instead of worrying, pray. Let petitions and praises shape your worries into prayers, letting God know your concerns. Before you know it, a sense of God’s wholeness, everything coming together for good, will come and settle you down. It’s wonderful what happens when Christ displaces worry at the center of your life.  Philippians 4:6-7

That really hits home.  Then there is the verse in the Psalms.  I remember meeting my wife and falling head over heels in love.  At the time, she didn’t feel the same way.  Through the struggle of trying to win her heart, God just spoke to me – be still and know that I am God.  To me it is a verse of power that says, “don’t worry, I have power over everything and I am in control.” 

I write this for all the people that send me their questions and I hear the worry that lies within what they write.  I write this for myself.  I have worried about some things lately that ended up not being anything to worry about. 

Live with a positive expectancy.  Refuse to worry.  I had a mentor of mine give me some great advice.  He said anytime that you feel like worrying, say to yourself cancel, cancel.  Shut down the noise in your mind by praying and giving your worries to God.  Believe it or not, He knows what to do with them.  There is nothing to worry about covered in God’s grace!

Tags: America, Bible, Bob Brooks, Deceptive Money, Dr. Jim Dennison, God, Informed Faith, investments, Philippians 4, Prudent Money, Psalm 46, Psalms, worry

Tags: Bob Brooks, Deceptive Money, God, Prudent Money, tithe, tithing

The plan states that “two out of every three families – 68% – have been noticeably affected by the financial setbacks in America. Nearly one out of every four (22%) said they have been impacted in a “major way,” almost four out of ten have been affected “only somewhat” and about one out of every twelve (8%) say they have not been affected too much.”

George Barna, who conducted the study, stated that “the giving patterns we’re witnessing suggest that churches, alone, will receive some $3 billion to $5 billion dollars less than expected during this fourth quarter. The average church can expect to see its revenues dip about 4% to 6% lower than would have been expected without the economic turmoil. We anticipate that other non-profit organizations will be hit even harder.”

This is a critical time in the life of the church for many reasons.  First, this financial crisis affords the greatest opportunity to get people who are not saved into the church.  You would be hard pressed to find a time better than this to show people Christ.

Second, the timing of this financial crisis has been especially serious.  The fourth quarter and in many cases December see the biggest percentages given to non-profits and churches   What doesn’t make its way to church budgets in December will cause programs to be cut and church employees to lose jobs.

Finally, giving is where people cut first.  The impact could be enormous.  

As Christians, what steps do we take?

It is important to realize that salaries, utilities, and expenses are paid through giving.  Churches have budgets of expenses just like any company.  They depend on church members to give.  Sadly, a small percentage of most church memberships actually tithe.  Additionally, a smaller percentage of most church memberships give sporadically.  

If you are not giving, give something to the church this December.  If you are facing tough times and are a regular tither and/or giver, I would encourage you to pray about finding ways to continue giving at this very critical point.

Don’t make the mistake of thinking that a small amount will not make a difference.  Small amounts given by the masses would make a huge difference.

For example, let’s say that you had a membership of 1,000.  Of that, 20% or 200 people gave faithfully.  Let’s assume that half of those who do not give gave $50 in December.  That would amount to $20,000 of giving to the church.  That could make up anywhere from 10 to 15% of a church budget.  Yes, the large numbers of people giving makes a difference.

Finally, if you just cannot give anymore or give at all, pray for your church.  Pray for the finances of the church.  Most importantly, pray that the church doesn’t miss one of the greatest opportunities of evangelism that this country has seen in decades.

Tags: Bob Brooks, church, Deceptive Money, finances, financial crisis, Prudent Money

The Thanksgiving season is one of my favorite times of the year.  Unfortunately, it is also a time of the year when it becomes more about the 3 F’s – food, family, and football.

It is easy to lose perspective on what is very important about this day.  I think that it is even tougher to be thankful when the stock market is down 50% or you might be facing a debt crisis or perhaps you have lost your job.  These are tough times for sure.

When thinking of these times and the meaning of Thanksgiving, what Paul writes in I Thessolians 5 comes to mind.  He writes:

 (16) Be joyful always; (17) pray continually; (18) give thanks in all circumstances, for this is God’s will for you in Christ Jesus.

I think that these verses really exemplify God’s call to handling crisis.  First, the verses say to be joyful always.  How can you be joyful in a time of economic crisis?  It is about being positively expectant of how God will use this time for His Kingdom.  It is about having positive expectations for how God will use anything difficult in your life to teach you more about a connected and fulfilled relationship with Him.  There is a lot to be joyful about.

Paul also writes pray continually.  If you are facing financial crisis in your life, are you really praying about it?  More importantly, are you praying with a sense of positive expectancy that God is still on the throne and is still holding you close?   When I think of someone praying continually, I think of diligent and committed prayer.  It is complete connection with God.  That is the only place you can be to position yourself to hear God’s guidance. 

I was telling someone the other day that I can give people suggestions and advice on how to handle economic crisis.  However, only God can give you specific direction and to get that direction, you have to be connected. 

Finally, Paul writes to give thanks in all circumstances.  As Christians I think there is a tendency to give thanks when things are going real good.  It is easy to do so.  When times are good, it is tough not to be thankful.  However, what do you do when facing tough financial times?  With the faith that God will protect you and guide you through these tough times, you have everything in the world to be thankful about.

When times are good, you know why you are thankful.  When times are tough, you don’t know what you will be thankful for.  You just need to know that God always gives us a reason to be thankful.

Dr. Jim Dennison, in his sermon last Sunday, summed it up perfectly.  

Be thankful for what God has done in your life.  Be thankful for what God is doing in your life.  Finally, be thankful for what God will do in your life.

So this Thanksgiving we have everything to be thankful for.  I encourage you to take the time and give thanks for all that is occurring and will occur in your life.

 And we know that all things work together for good to them that love God, to them who are the called according to his purpose. Romans 8:28

The key is to be connected and in a committed relationship with Christ.  There is not a safer place to be than in God’s perfect will for your life.  That in itself is reason to be thankful in everything. 

Tags: Bob Brooks, Deceptive Money, economic crisis, God, Prudent Money, Stock Market, Thanksgiving

Today’s blog was written by a guest contributor, Ashley Hodge. For more information, go to his website at www.stewardshipmandate.com.

I was reading Psalms 62 this morning. Psalms 62:1 states, “My soul finds rest in God alone.” That got me thinking that this verse probably inspired Saint Augustine’s famous words in Confessions, “My heart was restless until it came to rest in Thee, O Lord.”

I put together a list of quotes that I have found helpful in advising people on money issues- specifically investing. A well-timed quote can say a lot without having to rely on excessive words.
So here are some of my favorites. Some of these I have heard attributed to Warren Buffet. Some to John Templeton. But they probably borrowed many of them from their mentors. They are helpful reminders after the continued rash of bad economic news.

- Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria.
- There is no cure for high prices like high prices.
- You make your money in bear markets, you just don’t know it at the time.
- There are old pilots and bold pilots. But there are no old, bold pilots.
- Your money is like a bar of soap. The more you play with it, the smaller it gets.
- Gambling is investing for people who are extremely bad at math.
- You don’t know who is swimming naked until the tide rolls out.
- Economists have successfully predicted 14 of the last 3 recessions.
- The four most dangerous words in the English language: ‘this time is different’.
- Be fearful when others are greedy and greedy when others are fearful.
- Successful investing is anticipating the anticipation of others.

Perhaps the most important thing one needs to remember as it pertains to investing or anything in life- God is in control of all things in this world. Psalms 84:12, “O Lord Almighty, blessed is the man (or woman) who trusts in You.”

For His Glory,

Ashley Hodge

Tags: Ahsley Hodge, Bob Brooks, Deceptive Money, God, Investing, Prudent Money, Psalms

There are many people who are faced with the daunting situation of being overloaded with credit card payments, mortgage payments, and car payments. Well, we know the financial downside from walking away from a mortgage. You lose your house. We also know the downside for not making a car payment. You lose your way around. What about the downside to walking away from credit card debt? Since there is nothing held in collateral, is there really a downside?

We can talk in terms of money, obligations, contracts and everything else that could go into that answer. I want to look at the answer to that question from a Biblical perspective.

Let’s first take a look at what the Bible says about debt. There is one verse in particular that I like to turn to that I feel sums it all up.

Proverbs 22:7 says:

Just as the rich rule the poor, so the borrower is servant to the lender.

This verse really illustrates the point that the Bible makes about debt. God wants 100% of us. To put it in context of the verse, it is tough to be a servant to God and be a servant to a lender at the same time. When you are able to handle your debt comfortably without problems, there is no servant relationship. When you have a debt problem, you are a slave to your debt.

God wants us to have the freedom to answer His call and follow His direction. Debt can limit your freedom. Debt can preoccupy your life. Managing debt can create worry. It can force a person to work long hours just to make the payments. Debt can occupy a great deal of our minds.

A great deal of debt limits your ability to freely give of your time and money to those who are in need. Remember, one of our primary responsibilities as a Christian is to serve. Living a debt-filled life will interfere with the freedom to go and do whatever God wants of you. To be the type of servant that God wants requires a lot of freedom that debt ultimately takes away.

So, let’s say you are in a spot where you finally got that message. What do you do now?

1) Ask God to change your life so that you never get in this situation again
2) Commit that you will do everything possible to get out of debt
3) Pray and ask for those answers – It might be that you are forced to work extra hours for a period of a few years. It might be that you need to downsize. Maybe your possessions have become bigger than God in your life.

So, back to the original question, should you just walk away from your credit cards if the obligation has become too big? You have one of two options in that case. First, you could walk away. The problem is that energy and freedom zapping debt problem just became a bigger monster as you deal with debt collectors, bad credit scores, potential lawsuits, etc. Incidentally, walking away will always haunt you. You always owe the debt.

Second, you can do everything possible from getting an extra job to downsizing to cutting back and get out of debt once and for all. Yes, in the short-run, you limit your freedom. If the motivation from doing all of that is to get into a relationship with God where you can give 100%, God will honor those decisions. Plus you are doing the right thing by getting out of debt.

Getting into debt was fun and easy. It is the process of getting out of debt where you grow as an individual and most importantly grow in your relationship with God to levels you never thought possible.

In short, the Bible talks about the dangers of debt and highly discourages its use. At the same time, it does not call debt a sin. Anything to where we put our time, commitment, and attention on that interferes and or limits our relationship with God can become a sin. That is when debt becomes the problem.
Copyright © 2008 Prudent Money and Bob Brooks. All rights reserved.

Tags: Bible, Bob Brooks, car payments, credit card payments, Debt, debt collectors, Deceptive Money, God, Mortgage payments, Proverbs, Prudent Money, sin

From guest blogger Ashley Hodge. Please visit his website at http://www.stewardshipmandate.com/

These are difficult economic times. The economy is either in recession or likely to be in recession. There are some significant strains on the economy to work out – housing; credit; weak dollar; high commodity prices. But some things never change. God has His ways. His wisdom works in any economic environment.

What are some keys from God’s Word that help us focus our attention on Him and the plans that He has for us during economic uncertainty?

I have 3 keys from the Bible that never change. They work in times of recession and economic calamity. They work in times of great prosperity. If you practice them, you will have peace. If you neglect them, you will invite stress.

1. Simplify

Ecclesiastes 7:29 tells us that God has made us simple, yet we seek out our own complexities. The Scriptures encourage us to store our treasures in Heaven not earth- where moths, thieves and rust cannot destroy them (Matthew 6:20). We are told to pursue godly character and not riches – I Timothy 6:6-20. If money comes as a byproduct of pursuing godliness, so be it. But our focus should never be possessions.

He who dies with the most toys is not a winner in God’s economy. We are encouraged to travel light and to use things for our enjoyment and God’s purposes. But we are never to worship things by spending our time, money and energy on accumulating unneeded stuff. This is why it is easy for the Christian who shares a biblical worldview to scale down quickly in times of economic downturn.

2. Work Hard

Jesus declares in John 9:4, “We must work the works of Him who sent Me while it is day; night is coming, when no one can work.” Retirement is not a biblical concept. God gives each of us a unique gift set. Our job is to use, hone and refine our unique gifts towards work that is beneficial to mankind. If we are blessed enough to be in a position where working for pay is optional, we should still seek productivity.

I was watching an old Super Friends episode with my 3-year old son. These episodes required the combined talents of Superman, Aquaman, Batman, Robin, Wonder Woman and the Wonder Twins to thwart some evil force’s attempt to destroy the world. When faced with one dilemma Superman said, “Our motto is to always choose the course of action that produces the greatest good to the greatest amount of people.”

This is a good motto to live our lives by. Our time of permanent rest is not here. We have work to do. We want to burn out bright. As long as our minds and bodies are active, we should be engaged in useful, productive activities. This is a recession proof philosophy. Proverbs 10:3, “The Lord will not let the righteous go hungry.”

3. Be Hopeful

We should seek to be biblical progressives. What do I mean by that? Some Christians want to be thrown back to the good ol’ days before all the modern problems complicated our lives. The Amish are an example. They shun electricity, computers, washing machines, etc… because they believe in a return to the Garden of Eden before mankind ruined the earth.

But the problem is not modernization. The problem is sin. Computers are an invention that can be used to destroy lives by leading to pornography or enhance lives by allowing us to work more effectively any place, any time. When we waste our time or resources because of modernization, it is a problem. But the biblical story moves from an undeveloped pristine garden - Genesis - to a developed, complex city of God - Revelation.

God has called us into a stewardship relationship with the earth and all of its resources. We are given a mandate to be fruitful and multiply the resources that God brings our way – Genesis 1:28. This should give us great hope. Heaven will be a period of great mental and physical activity and unlimited prosperity.

But we won’t get tired like we do now. In the meantime, the story of humankind is one of progress and ingenuity as people fulfill God’s stewardship mandate. God will sort out the wasteful from the useful at the end of time. We should do this in our lives as well and spend our time on useful pursuits.

Economic cycles come and go. There are times of scarcity and times of plenty. But we can have peace if we follow God’s ways: live simple; work hard and be hopeful. We know how it all ends. Let’s make sure others can see Christ – our hope of glory – in the way we live.

Ashley Hodge, CFP®

Tags: Ashley Hodge, Bible, Bob Brooks, credit, Deceptive Money, Ecclesiastes, economic cycles, economy, glory, God, high commodity prices, housing, Jesus, Matthew, philosophy, Prudent Money, recession, stewardship, Timothy, weak dollar

Debt is a tough subject for most to discuss. I would suggest that it is the biggest financial challenge facing Americans today. So, where does the Bible stand on debt?

Since we talk a lot about debt here, I wanted to give you some Biblical views to consider today. We will talk about various ways to reduce the impact of debt or to negotiate debt that is in collections. We will often even discuss what happens if you walk away from debt. It is my role to answer your questions and give you the facts of the situation.

I have always felt that when people call in with these tough questions, they want straight facts and not an answer designed to make them feel guilty for their situation. If you are like me, it is easy to feel guilty without the help of someone else. I also don’t always give unsolicited opinions on their situation. It is not my role to pass judgment. Prudent Money should be a safe place for you to come and get information.

Having said all of that, I do want to take the time to share with you my views on debt from a spiritual perspective. In talking about twelve key Scriptural references in the Bible; these are my conclusions. It comes down to moral obligation, dependence, and freedom.

1) I believe that you should always pay back what you owe. Debt is a contractual and moral obligation that we make with someone. Whether or not we like the terms and conditions, at some point we did agree to them.
2) Paying back your debt takes your relationship with Christ to whole different level. Paying back debt brings us back to a level of dependence of Christ. It is the strength of that level of dependence that forms the foundation for a strong relationship. I have often said that it is debt that brings Christians to their knees and back to God.
3) If we are in debt, we are not free as we can be to serve. We want to be 100% free to serve in our relationship with Christ. If we are not in a place to where we can commit 100% of our time and attention to Christ, then we are a slave to man as it says in 1 Corinthians 7:23. We also want to be free to serve others as well.
4) Christ doesn’t want obligations above the relationship with Him. If you are in debt, you are completely obligated. Until you get out of debt, it is hard to be in a place where you can give 100% of yourself. Debt can become something that develops a life of its own.
5) Most debt problems are created due to not living a Matthew 6:24 life. There comes a time when we have allowed money to be a god. It is so easy to enjoy all of the immediate short-term gratification that debt can give. It can be powerful feeling from a powerful stimulant. The key is getting back into God’s financial will for your life. It is only there that you can start your road back to freedom.

So is debt a sin?

Money was written about more than anything else in the Bible. God knew that we needed instruction on dealing with money. He knew that it would get in the way. Debt is a powerful tool of commerce. If used correctly, it can be a good prudent strategy in how we handle His money.

The key is using debt the right way. If you are going to borrow money, know how you are going to pay it back. Know without a doubt you are not making a commitment that will not in any way get in the way of your relationship with Christ. If you have debt, commit to a game plan to where you can get out of it. Make the two objectives freedom from everything and dependence on Him.

The Bible does not specifically say that debt is a sin. There are many things in the bible that are not specifically mentioned as a sin. It is letting those things get out of control and get in the way of your relationship with Christ that becomes the problem.

That is the problem with debt. It can happen in an instant if we are not guarding our wallets and our hearts.

Copyright © 2008 Prudent Money and Bob Brooks. All rights reserved.

Tags: America, Bible, Bob Brooks, Debt, debt collections, Deceptive Money, Prudent Money, sin

I felt led to talk about financial crisis today on the radio show. I discussed point 1 of my 3 point plan that I feel is important to have as a foundation for the journey back to prudent stewardship. As a result of that topic, I heard some gut wrenching stories today. People are facing some tough situations. If you are one of them, follow along the next few days as I talk about this plan.

Some of this is going to sound obvious. However, it is the obvious that we many times miss.

Point 1 of 3 – The first and most important place to start is in prayer and a re-commitment to God’s financial will for your life. This is the starting place. It is very important to get back into the middle of God’s financial will for your life. The safest place for you to be is in God’s financial will.

Fortunately, it is a process that has simple beginning. James 4:8 perfectly illustrates the process.

“Come near to God and he will come near to you.”

It is that simple. The hardest part is to commit. Keep one thing in mind. You can go through this crisis in or outside of His perfect will. The crisis began when we attempted to do things outside of God’s financial will. At least I know that to be true for myself. I would suspect it is true for you as well. It is important to get back to that place of peace and relationship. From there, allow God to direct you through the journey.

That journey might have trails and challenges. Fortunately, that is not bad news. It is all workable because He is guiding you while you learn and grow and become closer to Him. As you stay obedient to Him and committed to his Will, there is nothing that you cannot get through.

It is the power of relationship, belief, and prayer that ultimately heals a financial crisis.

Tags: Bob Brooks, financial crisis, God, Prudent Money, prudent stewardship