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,

A few years ago there was a popular book by Richard Swenson entitled, Margin. Margin was defined as the distance between where you are on any measure and your absolute limit… the distance between where you are physically and total exhaustion; mentally and total mental breakdown; financially and bankruptcy; etc. His thesis was that margin is shrinking and that the thief of margin was progress - measured by more and faster.

Progress is, by definition, good - "to advance toward perfection." And it is generally agreed that over the last 50 years we have "progressed." But, asks Swenson, if we are progressing and progress is so good, how come so many of us are feeling so bad? (Witness the increases in depression, suicide, divorce etc.)

He suggests the answer is that progress builds by using the tools of economics, education and technology. Those are all good in themselves, but in the process, our social, emotional and spiritual relationships have suffered and we must begin to factor those into our definition of what is truly progress.

There is also the fact that progress is often synonymous with growth. Progress tends to be measured by how much more we produced this year over last. Progress and growth are always good in the spiritual and relational realm. However, in the material realm, while growth can be for the common good in times of need, it can have severe negative impact in times of surplus and glut.

The implications and opportunities for us as stewardship leaders are great. The outcome of our ministries - a biblically based lifestyle based on gratitude and contentment - can be the foundation for a new view of 'progress.' A view which doesn’t include continual growth in areas where there is already glut and a view which takes into account social, emotional and spiritual needs. Such a view would increase margin rather than decrease it.

Such macro changes in the way we think, act and feel are desperately needed in our world today. Major change occurs individual by individual. What if the vision of Good $ense, that it become normative for churches to teach and train their people in biblical stewardship, became reality? The millions of people impacted could create the 'tipping point' for a radical stewardship ethic that would have a major impact on the macro issues facing our country and world.

You are part of a revolution that needs more counterinsurgents! Keep up your good work and recruit others to join you. "Command those who are rich…" (ITim.17-19) and remember Jesus’ inaugural address in which He stated the reason He had been anointed (Lk. 4:18-19).

Grace and peace,

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Transforming Truths

"Now to him who is able to do immeasurably more than all we ask or imagine, according to his power that is at work within us, to him be glory in the church and in Christ Jesus throughout all generations, for ever and ever! Amen." - Ephesians 3:20-21

How do you view your work in stewardship ministry? Is it about teaching people God's Word as it relates to money? Is it about helping people get out of debt or learn how to use a budget? What if it was about more?

What if it was about introducing people to Christ? What if it was about helping people know how cherished they are apart from what type of stuff they own, and how secure they are apart from how much they have in the bank? What if it was about saving married couples from divorce? What if it was about releasing many, many more dollars for the spread of the Gospel and the alleviation of suffering, for reducing the staggering poverty-related daily death toll? What if it was about helping people make spending choices that reward companies for their fair treatment of workers, fair trade, and the responsible use of natural resources?

Wise, God-honoring financial practices can do all of this and much more. That's why stewardship courses should be standing room-only events. And yet the reality is that by some estimates just five percent of people in churches with stewardship ministries are reached by such ministries. Perhaps we need a larger vision for what our ministries are all about. Perhaps we need to be reminded of all the good this work can do. Perhaps we need to trust God to do immeasurably more than all we ask or imagine.

What are you trusting God for this year in your ministry?

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News You Can Use

Long View Makes Budgets More Accurate

For first-time budgeters, creating a spending plan involves a certain amount of guesswork. New research published in the Journal of Consumer Research provides helpful insights for making those plans more accurate. As reported in a recent New York Times article, the research found that people who tried to estimate their next month's expenses were much less accurate than people who tried to estimate their next year's expenses. The researchers explained that short-term budgeters tend to be overly optimistic whereas long-term budgeters assume they'll be off the mark so they tend to pad their estimates, making them more accurate.

Matt's View: As we have people develop spending plans for the year, perhaps we should have them estimate monthly spending, as we do now, but then encourage them to annualize their estimates to see if they still seem correct. Seeing annual estimates for each category may help them identify unrealistic expectations.

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Gen Xers Planning to Work Forever

More than two-thirds of Americans age 27 to 42—members of the so-called Generation X—don't think they'll ever be able to retire. According to a Reuters story about a new survey from Scottrade and BetterInvesting, more than one-third of Gen Xers say, ultimately, they would like to have between $1 million and $5 million saved. However, more than one-fifth have yet to begin saving for their later years. As one analyst put it, they are caught in "a retirement perfect storm" of high expectations, low savings, and doubt over the future solvency of the Social Security system.

Matt's View: At least Gen Xers' assumption of continued work may be grounded in reality, which is more than can be said for many workers. According to the Employee Benefit Retirement Institute's latest Retirement Confidence Survey, 61 percent of all workers have saved less than $50,000 for their retirement, and yet the same number feel confident that they'll have enough money to live comfortably throughout retirement.

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Teens Turning Thrifty

Teen spending is in what may be its worst slump in 17 years. As reported on ABCNews.com, teen retail stalwarts Abercrombie & Fitch, American Eagle Outfitters, and others are all reporting sluggish sales, prompting something of a countertrend: a growing frugality among teens. Ellegirl.com, a teen-targeted offshoot of Elle magazine, just launched a new feature called "Self-Made Girl," with instructions for making your own dresses and accessories. Meanwhile, secondhand clothing stores are reporting a surge in business as teens snap up deeply discounted, used versions of their favorite designer jeans and other clothing.

Matt's View: Predicting teen trends is risky business, but the current frugality may bode well for attracting younger people to church-based courses on wise money management.

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Gas Prices Are Top Economic Concern

With the cost of gas hovering around $4 per gallon in many parts of the country, it's no surprise that the price of fuel is most people's top economic concern. According to a Kaiser Family Foundation survey, as reported by the Associated Press, 44 percent of adults said paying for gas was a "serious problem" for them—ahead of concerns such as getting a good job (29 percent said that was a serious problem for them) or paying for health care or health insurance (28 percent).

Matt's View: One simple way that stewardship ministries could serve the people in our churches is to hand out a tip sheet for getting the most from a gallon of gas. A list of practical ideas can be found at www.fueleconomy.gov. I've also heard of some churches that are helping members form carpools for church and work—a great idea for saving a bit of money while fostering relationships.

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Spotlight

Making Sure There's Money When You Need It

Last month we began looking more closely at the lost art of saving money. I (Matt) suggested thinking of savings as falling into three broad categories: If, When and Why savings. Having dealt with If savings (an emergency fund) last month, now we'll turn our attention to When savings. More specifically, we'll look at the first of three types of When savings: near-term When savings.

Near-term When savings is for expenses and bills that usually come up less often than monthly, such as home and vehicle maintenance (when the car needs an oil change or the furnace needs a tune-up), various types of insurance (when the annual life insurance premium us due), property taxes, gifts (when Christmas arrives), and vacations. Technically these are expenses. However, since we usually don't spend money on these items every month, without planning ahead by saving for them many people end up having to pay for them on credit. A better approach is to take each item's annual cost, divide by 12, and automatically transfer that amount every month into a separate savings account. When the bill or expense comes due, the money can be transferred back to checking.

Appropriate places for near-term When savings are the same ones that make sense for If savings: a savings account at a traditional bank, online bank, or credit union, or a money market mutual fund. However, I recommend keeping this money in a separate account. Otherwise, it's too tempting to use the money for another purpose.

A hybrid approach is to keep some near-term When money in your checking account–perhaps for home and vehicle maintenance, since those expenses tend to come up at least every couple of months. But for bigger-ticket items, and especially those that occur only once or twice per year, such as property taxes or various insurance bills, maintaining a separate near-term When savings account helps make sure people have the money for such items when they need it.

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Market Indicators

Middle Class State of Mind

A little over half of all Americans consider themselves to be middle class. As shown in the first slide below, 53 percent put themselves squarely in the middle. However, social class seems to have less to do with objective measures, such as income, as it does with "a complex mix of attitudes, behaviors, and experiences," according to Pew researchers. As shown in the second slide, large numbers of people across the income spectrum think of themselves as middle class.

Lower income people that believe they are middle class tended to be younger and older Americans, people whose relatively low expenses may explain their associations with the middle class, according to researchers. People on the upper end of the income spectrum who believe they are middle class tended to have larger families and live in higher cost-of-living areas.

One of the most noteworthy findings from the study is that when asked about their ownership of a variety of items compared with their perceptions of most families' ownership of such things, across the board people believed others had more. For example, whereas 72 percent of self-reported middle class families have two cars, 90 percent believe that most families have two cars. And whereas 42 percent have a high-definition or flat-screen television, 63 percent believe that most families do.

Playing the comparison game, especially when you think others have more, is a sure-fire approach to discontentedness. One very powerful antidote is gratitude. As God's Word teaches, "Give thanks in all circumstances" (1 Thessalonians 5:18).

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Resources