In This Issue:
Dick's Column | Transforming Truths | News You Can Use | Your Point of View
Spotlight | Market Indicators | Ministry Builders | Resources

Dick's Column

Dear G$ Friends and Colleagues,

I wonder if you view the whole subprime debacle as a mess or a ministry opportunity? No question that it is a mess – and just how much of one remains yet to be determined. It's a mess created by messy stuff - greed, duplicity, lack of judgment.

But I suggest that mess is also a tremendous ministry opportunity. In this month's issue of Fast Company Magazine (if you don't read it, do) some new and counter-intuitive research suggests that trends occur not because influential people start them but because of how susceptible the society is overall to the trend.

The current concern about the economy presents a "susceptibility opportunity" to teach and train and encourage folks who are likely to be in a more receptive frame of mind to receive what you have to offer than has been the case for decades.

Don't miss the opportunity to reach out to folks within your congregation and in the community at large. G$ budget counselors provide the immediate relief to those in difficulty and the Budget Course provides the long term remedy for those at all points along the economic continuum.

And as you teach and train, remember that our goal is not to just change what people do, but what they believe – because in fact, what they believe ultimately determines what they do. .

I was reminded of that as I reread the following in Divine Conspiracy by Dallas Willard:

"What has to be done, instead of trying to drive people to do what we think they are supposed to do, is to be honest about what [they] really believe. Then, by inquiry, teaching, example, prayer and reliance upon the spirit of God (emphasis mine) we can work to change the beliefs that are contrary to the way of Jesus."

In Good $ense we make the statement, "It's about more than just money. It's about who you are (ie. what you believe) and who you are becoming." As leaders and teachers let's not focus simply on external behavior change but on heart change. Remember the G$ byline, "Transformational stewardship for the local church."

Your colleague in stewardship ministry,

[ top of page ]

Transforming Truths

"I am not ashamed of the gospel." – Romans 1:16a

We usually think of our consumer culture as a force that "pulls" us toward the false promises of more happiness, more acceptance if we buy this or that. But perhaps there's a bit of a "push" involved as well—a push away from shame.

We're surrounded by messages telling us that in order to be somebody, we have to own the right stuff. The new stuff. The expensive stuff. The stuff with the right logo on prominent display. If we don't own this stuff we might as well hang our heads in shame.

But Paul's words in this month's Transforming Truth boldly remind us that there's no shame in making choices based on our faith.

Perhaps you drive an older car. You're not self-righteous about it; you don't think of yourself as a high-mileage martyr. The decision simply flows from a God-honoring desire to have the margin to be generous. You've probably never thought of it this way, but your choice of cars is a bold expression that you are not ashamed of the gospel.

Maybe you live in a house that's far less expensive than mortgage industry calculators say you could afford. You're not suffering; you don't think of living in a split-level as part of the sanctification process. You simply want the freedom to follow God's call instead of being bound to an expensive mortgage. It probably never occurred to you, but your choice of houses is a bold expression that you are not ashamed of the gospel.

I wonder if more people would make better financial choices if they viewed such choices in light of the gospel. Is their debt the result of believing the lie that they are unworthy without the stuff they really can't afford? Or are they unashamedly willing to accept the truth that God loves them no matter what brand of clothing they wear, and that their lives do not consist of what they own? Is their lack of giving the result of believing the lie that they can't afford to give? Or are they unashamedly willing to accept the promise that God will meet all of their needs if they make his kingdom their first priority?

Take a good look at your financial situation and ask yourself, "Are my financial choices those of one who is not ashamed to be a consumer? Or are they the choices of one who is not ashamed of the gospel? As the rest of this month's verse teaches us, the gospel is "the power of God for the salvation of everyone who believes." It is also the power of God to free us from the lie that we are what we own.

[ top of page ]

News You Can Use

McDonald's Pulls Report Card Ads

Here's an update to a story reported here last month. Bowing to public pressure, McDonald's has cancelled plans to advertise on the cover of report cards issued to 27,000 Florida students. According to Adage.com, the mother of one of those students brought the planned promotion to the attention of Campaign for a Commercial-Free Childhood a group that works to "counter the harmful effects of marketing to children." That led to more than 2,000 calls of protest and the ad campaign flunked out.

Matt's View: Good for the parent who spoke up. It shows that one person really can have an impact.

[ top of page ]

Quicken Goes Online

With budget tool upstarts Mint.com, Geezeo, and Wasabe are generating lots of buzz, Quicken has entered the online space with new version of its popular budget software. However, the list of what Quicken's own web site says the online version cannot do is almost as long as the list of what it can do. It cannot transfer data to or from other versions of Quicken; it cannot track investments with many brokerage houses; it cannot split transactions, allocating portions of an expense to more than one spending category; and it cannot track cash expenses.

Matt's View: So far, all of the so-called online financial aggregators have significant limitations. Several do not allow you to split transactions. So, if you spend $50 at a mass merchandise retailer with $10 going toward groceries, $20 toward a music CD, and $20 toward clothing, you'd have to lump all of those expenses into one spending category. And none allow you to enter cash expenses.

One of the prime benefits of these online expense tracking sites is the ability to share money-saving ideas with others through the blogs and forums they offer. However, I (Matt) believe the best electronic tools for budgeting are still the traditional version of Quicken (the one I use) and Microsoft Money. They offer the best combination of comprehensiveness and affordability (Mvelopes is more expensive). What's your preferred budget method? Drop me a line and let me know (matt@moneypurposejoy.com).

[ top of page ]

Paying as We Go

More Americans must live within their means. That's the conclusion of a recent New York Times article (shocking, huh?). It said a tight job market, falling house prices, and growing debt levels are leaving many people with no other choice. The article said some analysts believe we are at a "cultural inflection point." In an economy that has become increasingly dependent on consumer spending, consumers are finally getting tapped out.

Matt's View: The article's author said that, "envy has become a prime engine of economic growth," and easy access to credit has warped the distinction between necessity and desire. For an article about economic trends from a secular publication, those are rare insights ripe with spiritual implications.

[ top of page ]

Preying on the Least of These

Payday lenders are increasingly targeting elderly and disabled people who are dependent on Social Security benefits, according to an article in the Wall Street Journal. The evidence comes from dozens of legal-aid attorneys and credit counselors who report seeing "more and more clients on Social Security struggling with multiple payday loans." And it's backed up by research showing payday lenders clustered around government-subsidized housing for seniors and the disabled. The appeal for payday lenders is that Social Security income may not amount to much, but it's very reliable. Such tactics are helping the payday loan industry prosper, with loan volume of about $48 billion per year—up from just under $14 billion in the 1990s.

Matt's View: If your church is in an area where there are payday lenders, you could do members a great favor by developing a brochure that warns against the use of such loans. The Consumer Federation of America has a good background paper on the payday loan industry here.

[ top of page ]

Spotlight

Bankruptcy and the Christian

If someone sought your advice about filing for bankruptcy, what would you say? Would you tell them the Bible prohibits bankruptcy? Would you tell them it's a reasonable option for someone in their situation? As bankruptcies continue to grow (see this month's Market Indicators), it's likely that you'll have to address that question, perhaps sometime soon.

As explained in an excellent position paper on bankruptcy prepared by Perimeter Church in Atlanta here and click on "Position Paper on Bankruptcy"), the Bible does not directly address bankruptcy. There was no such thing in biblical times. If people could not pay their bills, their possessions were taken, they were sometimes placed in prison, or their children were sold into slavery. But those were not God's responses to people in financial difficulty; they were man's responses. In fact, there are several examples of God showing compassion and even miraculously intervening in the lives of those who were unable to meet their financial obligations (see Nehemiah 5:1-12 and 2 Kings 4:1-7).

So, our response to people considering bankruptcy should be compassion and guidance. Here are some recommended action steps for people in that situation:

1. Pray. Encourage them read and take encouragement from 2 Kings 4:1-7. Have them pray for wisdom, patience, and even deliverance from their debts. Discuss what they believe about God. Do they believe that the Creator of the universe could help them with their debts? Have they sought to understand God's plan regarding their debt—perhaps the work he wants to do in their lives as they pay off their debts. Perhaps they have never committed their lives to Christ and their financial difficulties are what God is using to draw them into a relationship with him.

2. Develop a budget. If they are going to evaluate their ability to repay their debts, it's essential that they know where their money is going. Plus, that will help you suggest places where they may be able to spend more effectively to free up money for their debts.

3. Consider what is within their power to repay. Proverbs 3:27-28 says: "Do not withhold good from those who deserve it, when it is in your power to act. Do not say to your neighbor, Come back later; I'll give it tomorrow'—when you now have it with you." The person you're working with may feel as if they have pared every expense. But could a possession be sold to raise money to repay debts? And not just some unused item gathering dust in the basement. Encourage the person to think the unthinkable. Could they sell a car? Could they move to a less expensive home? Have them consider what is truly "in their power" to do about their debts.

4. Teach them the step-by-step process of getting out of debt contained in the Good $ense debt course.

5. Have them contact their creditors. More than half of people who call their credit card companies to request a lower rate are successful. Their best chance for success will be if they have been a long-time cardholder, have a history of paying their bills on time, are not at their maximum credit limit, and have received lower-rate offers from other card companies.

6. Make their needs known to other Christians. 1 John 3:17 teaches, "If anyone has material possessions and sees is brother in need but has no pity on him, how can the love of God be in him?" And the model of the early church was to share so that other believers were not in need (Acts 4:32-35).

7. Contact a credit counselor. If they've tried everything—they've developed a budget, considered what possessions could be sold, requested lower interest rates on credit card debts, sought help from other believers—and they still can't meet their minimum monthly payments, now may be the time to contact a credit counselor to look into a debt management program. It would be good for your ministry to have done some pre-screening of local credit counseling offices. Look for one that is accredited through the National Foundation for Credit Counseling. Ask about fees. A set up fee of approximately $50 and monthly fees of approximately $30 are reasonable. However, some unscrupulous players have entered the industry and charge much higher fees. The Federal Trade Commission offers additional guidance here.

8. Consider bankruptcy as an absolute last resort. There are extreme cases where credit counseling agencies say that even they cannot help. Perhaps the person is having wages garnished, making it impossible to pay creditors and still provide for their family. There simply may be no other alternative. It would be good if your ministry knew of a Christian bankruptcy attorney to whom you could refer people in this situation. If the person takes this step, encourage them to prayerfully consider committing to still repay their debts. Even if that process cannot begin for several years, and even if only a little can be repaid at a time, doing so will stand as a remarkable testimony to their faith and will eventually serve as a source of great satisfaction for the individual.

[ top of page ]

Market Indicators

Bankruptcy Filings on the Rise

[ top of page ]

Resources