A Great Life Plan

This morning, I was reading through a verse that I have read dozens of times and has had a lot of impact on me over the years. But this time as I was reading it, I realized that this verse lines out an amazing plan for your life.

Every year Jenny and I spend some time asking God what He has for us in this new season. But it doesn't take me too long before I begin to ask the questions, "what's new... what's next."

I've realized that I'm not the only person asking those questions. People everyday are wanting to climb the next mountain or move on to the greener grass. Life just doesn't seem as much fun anymore in this plot of land we have been given.

When you get to those times, Psalm 37:3-9 is a great place to come back to. Take a few minutes and just chew through this verse and let it quiet your heart.

³Trust in the LORD and do good;
         Dwell in the land and cultivate faithfulness.
    ⁴Delight yourself in the LORD;
         And He will give you the desires of your heart.
    ⁵Commit your way to the LORD,
         Trust also in Him, and He will do it.
    ⁶He will bring forth our righteousness as the light
         And your judgment as the noonday.
    ⁷Rest in the LORD and wait patiently for Him;
         Do not fret because of him who prospers in his way,
         Because of the man who carries out wicked schemes.
    ⁸Cease from anger and forsake wrath;
         Do not fret; it leads only to evildoing.
    ⁹For evildoers will be cut off,
         But those who wait for the LORD, they will inherit the land.

The beauty of this passage is the balance between action and rest. We often get in trouble when we take too much pride in our own grand ideas and forget to trust God and rest in His timing and His plan.

Monday Book Review- The Shortest Book Ever On Saving for Retirement- James O'Donnell

Before our trip to Jackson Hole, Wyoming, I picked out a couple of books that I wanted to get through during the trip. About a day into the trip I was already done with one, which is aptly names, "The Shortest Book Ever On Saving for Retirement."

When you get into the topic of investing for retirement, people usually tend to go two different directions. Either they will admit their inferiority on the subject matter and simply point you towards the nearest investment advisor, or they will overwhelm you with investment jargon.

James O’Donnell does a wonderful job of doing neither. He has the wealth of knowledge one needs to give proper guidance, but at the same time he has a grace to guide you through all of the 401(k)’s and 403(b)’s.

This book is fresh and to the point. It is also in my opinion solid financial advice. I have a rule of thumb when it comes to investments and if I can’t explain what I’m investing in and how it works in less than 2 minutes, then I need to stay away.

For those who have no idea where to start when it comes to investing, this book is a great place to start. Spend a weekend reading through it and then put together a plan of action to follow through on this author’s solid advice. You will not be sorry if you do.

Somebody Save Me!

One of the most important financial decisions you can make on a daily and monthly basis is to save money. But in our society saving is often an afterthought, if that. People become so focused on the demands of today that they forget to save for the demands of the future.

The wisest man who ever lived, Solomon, believed so much in savings that he communicates emphatically in Proverbs 6 to, "Go to the ant, you sluggard! Consider her ways and be wise, Which, having no captain, Overseer or ruler, Provides her supplies in the summer, And gathers her food in the harvest.  How long will you slumber, O sluggard? When will you rise from your sleep? A little sleep, a little slumber, a little folding of the hands to sleep— So shall your poverty come on you like a prowler, And your need like an armed man."

And later on in chapter 30 he says, "There are four things which are little on the earth, But they are exceedingly wise: The ants are a people not strong, Yet they prepare their food in the summer."

Solomon was amazed by the wisdom of the ant who could barely see above a blade of grass, yet had enough foreknowledge to set aside provisions for the winter to come.

But there lies the problem for many of us. We get caught up in our own "blades of grass" that we forget that the winter does come, it always comes.

To be honest, I'm not always thinking about what I need to be saving for that is a year out or five years out. So I need some help. One amazing tool that I have started using is a website called http://www.smartypig.com/.

This website allows you to establish savings goals and then it automatically drafts whatever amount you choose out of your account each month. So if I want to save $1200 for Christmas, I set up a Christmas savings account and then it automatically pulls out $100 on whatever day I choose.

This way I have no choice. It doesn't matter if I forget or if I don't really feel like savings, I have to because SmartyPig makes me. There are several other bonuses like money market-ish interest and the ability to earn cashback on purchases. But I just use it to keep me disciplined with savings.

So no matter what format you use, you need to save. You have to save! Your financial health depends on it.

A few practical points to leave you with:

1. Save with a Purpose
• Don't just throw money back because something might happen, have specific savings goals-  i.e. college, car fix-up, house fix-up
2. Save Consistently
• Do it every month. Do it every paycheck.
3. Save Now!
• Even if it is just fifty cents. Put it in a piggy bank and save all the change you get.
4. Save Today...so you can say no to your credit card later
• When you choose to spend instead of save it will always catch up with you
5. Save Second
• After you pay your tithes, it's best to pay yourself. Otherwise Ronald McDonald always seems to get to it before the month is over.  

So go ahead and start saving today. Make a choice and put something back.

What Does the Bible Say About Buying a House?

Well, the short answer is absolutely nothing (at least explicitly). The Bible never comes out and says, "In order to love the Lord your God with all your heart and soul, you shall have a house that is no larger that 2,500 square feet and with mortgage payments no more than 34% of your income."

 

Honestly, if you looked long enough you could probably cherry-pick a verse or two that would suit whichever side you lean on when it comes to buying a house.

But if you look at the main theme of the Bible - "it's all about Jesus" - and then proceed through the home buying process, you will be a lot safer and more focused on Jesus and eternity. The main question you need to be asking is not "how much house can I afford" but”is this what God has for me right now."


Whenever people ask me if they think they should buy a house, I am usually a cynic because I have seen the bad and the ugly side of buying a home. I have met with people going through foreclosure, or they are so house-poor that they can't even buy furniture for their house.


Buying a home can be a great investment, but all too often people buy a home too quickly and don't count all the costs. So below we’ve listed some tough questions to ask yourself before you buy a home.


Heart Questions to Ask:

1. Am I content with where I currently live? 
• Be honest with yourself about how much media and what others have is affecting your desire for a new place
2. Will buying a home put unneeded pressure on your family, marriage, or financial life?
• Finances are the number one cause of stress and tension in a marriage- Now just throw in there the largest financial decision of your life
3. How much house do I really need?
• Versus how much house do I want (remember that God often loves to give extravagantly to us).
4. Is this the right timing for us to buy a home?
• Even though it might be realistic for you to purchase a home, sometimes it might not be the best time

Financial Questions to Ask:

1. Do I have an emergency fund in place?
• What happens when the washer goes out? What happens when the car's transmission goes out? You need to have some type of fund in place for when the "unexpected expected" happens.
2. Am I including all of the costs of owning a home in my budget? 
• Purchase price, closing costs, house maintenance costs, increasing property taxes
• When buying a home there are hidden costs that you don't have to pay when you are renting
3. Can I rent for a period of time while saving, so that I will be at a more secure place financially?
• While you are not having to pay all the expenses to upkeep your own house, put this money aside into a savings account
4. Can I actually afford this? 
• We encourage people to keep their house payments anywhere from 25% to 35%
• Also, pay as large of a down payment as possible- with a goal of 20% or more (while still retaining an emergency fund)
• Have enough money to pay for the closing costs and fees with cash- otherwise you will be paying this out over 15 or 30 years with interest
• The purchase price should be no more than two-and-a-half times the family's gross annual income- but using only the main breadwinner's income

Remember when looking to buy a home: don't go at it alone. Proverbs 24:6 says, "for waging war you need guidance, and for victory many advisors." You need the input of a handful of people whose wisdom you can trust and who have your best interest in mind (not including a real estate agent or mortgage lender).