How to Handle Financial Boom Times
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- Created: Thursday, 01 September 2005 18:39
- Written by Tom Lipp
Right now Alberta is rolling in money. We have never had it so good – financially. What should we do? Let’s take a lesson from the seven years of plenty and the seven years of famine described in Genesis 41. God gave Joseph the wisdom to recognize that conditions would not always be like this and to prepare for hard times ahead.
Now I cannot see anything on the horizon that would rain on our parade of prosperity. But, I’m sure that doesn’t mean that there is nothing just beyond the horizon.
Usually surprises are just that – unexpected. Many Egyptians likely thought Joseph was being needlessly frugal, especially after storing grain for years despite bumper crops. Imagine how some scoffed at him during the last few years of bumper crops. Then the eighth year came and the general population was caught unprepared. This account of economic cycles was written for our benefit. In spite of living in an open system with infinite resources available to us, God does not want us to be wasteful or foolish. For example, when Jesus multiplied the loaves and the fish with much left over, He did not leave the surplus to the birds and gophers to enjoy but told his disciples to “gather up the leftover fragments so that nothing may be lost.” (John 6:12 - ESV). Wise management is especially necessary when it seems we have unlimited resources available to us. So what should we Albertans do while we are in this apparent unending economic boom? Here are a few tips from a Biblical perspective:
1. Thank God for this time of financial prosperity and recognize that it comes from Him. He can take it away very quickly. How? I’d rather not even think about it but remember the Biblical accounts of instant financial ruin such as Sodom and Gomorrah or the story of Job. Let’s not go there.
2. DO NOT pursue a life of leisure and self indulgence even if you can afford to do so. This was the major financial error of the rich man described in Luke 12:16-20. He planned early retirement but his financial foolishness cost him his life that very day.
I am enjoying the book by Craig Hill and Earl Pitts, Wealth Riches and Money. They discuss the importance of living within a finite budget. In our consumer driven society it is very difficult to say NO to increased spending for more frills and bigger homes. It takes Holy Spirit power. Read this book.
3. Save assets using two basic techniques – the earth’s investment vehicles and heavenly investment vehicles. Earth’s financial tools include: High Interest Savings Accounts, Deferred Tax Savings (e.g. RRSPs, RESP, Universal Life Insurance, Individual Pension Plans, Corporate Class Mutual Funds). Lately the financial markets have been booming too, especially income trust funds based on Canadian resource companies.
“The problem is that many people want a job, but they don’t want to work.”Heavens financial tools include tithing and giving. Tithing (literally tenthing) means giving 10% of our income to Gods work. Based on my study and experience it should be directed to your local church. If you think your local church doesn’t deserve it then find one that does. Furthermore, generous giving should be directed to the poor, orphans, widows, missionaries and foreigners or those who are disadvantaged through no fault of their own. Don’t give to just anyone who asks for money. In our supercharged economy, I think there is work for anyone who wants it, but as my elderly friend Henry Esau once said, “The problem is that many people want a job, but they don’t want to work.”
4. Reduce debt, especially non tax-deductible debt, as much as possible. Interest rates will not always stay this low.
5. Familiarize yourself with the hazards of riches.
Remember to whom much is given (and that means Albertans now) from them much will be required.
