Tag Archives: Money

Wayne Grudem explains what the Bible says about spending, saving and charity

Bible study that hits the spot
Bible study that hits the spot

A practical lecture on money – spending, saving, charitable giving – from famous pastor Wayne Grudem.

I like the way that Wayne Grudem navigates the Bible finding the passages that tell you who God is, so that you can make better decisions by analyzing alternatives and choosing the one that gives your Boss a maximum return on investment. He’s very practical.

The MP3 file is here.

The PDF outline is here.

Spending:

  • Christianity does not teach asceticism (= don’t enjoy anything in this world), Paul condemns it in 1 Timothy 4:1-5
  • When you buy nice things, even if it is a little more expensive, it’s an opportunity to be thankful for nice things that God has provided
  • Even being rich is OK, but don’t let it make you haughty and arrogant, and don’t set your hopes on your money (see 1 Tim 6:17)
  • It is important for you to earn money, and you are supposed to use it to support yourself and be independent
  • It is possible to overspend and live recklessly (Luke 15:13) and it’s also possible to overspend and live too luxuriously
  • Increasing your income through career progression is wise, because it allows you to give away more and save more
  • God gives us freedom to decide how much we spend, how much we give away, and how much we save
  • every choice a Christian makes with money will give him or her more or less reward in his or her afterlife
  • Do not spend more than you have – you should make every effort to get out of debt as quickly as possible

Saving:

  • Saving money is wise so you can help yourself and others, and have money in your old age when you will not be working
  • If you do not save your own money, you end up being dependent on others (e.g. – family or taxpayers)
  • Not saving money for the future is a way of “putting God to the test” (Matt 4:7)
  • You are to “be dependent on no one”, to the extent that you can (1 Thes 4:12)
  • We don’t know the future, that’s why we should prepare for an emergency, and buy insurance to guard (James 4:13-17)
  • It’s right for us to learn how to save to be able to buy bigger assets, like a car or a college education
  • Saving and investing in stocks and bonds lets people in business start and grow companies, creating jobs and new products
  • Don’t over-save, trusting too much in money more than you trust in God (Ps 62.10; Matt 6:19,24; Luke 12:15-21)

Giving:

  • it is required for the people of God to give something out of what they earn, but no percentage is specified (Deut 26:12-13)
  • you do not give money to become right with God, you can’t earn your salvation
  • a Christian gives to show God that you trust him to take care of you, and to experience trusting him through your giving
  • the quality of your resurrection life with God is affected by giving you do for the Kingdom (Phil 4, Matt 6:19-21; 1 Tim 6:18-19)
  • when you get involved in the lives of others and give to them, you have the joy of experiencing caring for others (Acts 20:35)
  • it’s possible to give too little, but it’s also possible to give too much – be careful about pride creeping in as well

The first part of this lecture made me think of my treat for the week, which is to get a double chicken burrito bowl after my weight lifting. It is very easy to say grace when you are hovering over a double chicken burrito bowl. It is good to have nice things especially when it makes you thankful for what you have.

I was so happy listening to this talk because he was condemning bad stewardship, which I see in a lot of young people these days. I was happy until he got to the part about trusting in your savings for your security, and then I thought – that’s what I do wrong! I save a lot but it’s not just for emergencies and to share with others, like he was saying – I want a sense of security. This was more of a temptation in my 20s than it is now in my 30s, though.

Charity should hurt

I can remember being in my first full-time job as a newly hired junior programmer when the 2001 recession struck. I would cry while signing checks to support William Lane Craig’s Reasonable Faith ministry, because I was so scared. I had no family or friends where I lived to help me if anything went wrong, and that’s been the story of my working life. If anything goes wrong, there is no backup. But it’s that experience of crying when I gave that allows me to say today “that’s when I became the man I am, that’s what a man does when he is a follower of Jesus”. If you are not doing the actions of charity, then you will not having the experience of trusting God and letting him lead you. There is more to the Christian life than just saying the right things – you have to do the right things.

Don’t follow your heart

If you’re scared about giving when you are young, then do what I did in my 20s: work 70-hour weeks, get promoted often, and save everything you earn. I volunteered every Saturday for 9 months in order to get my first white-collar part-time job when I was still in high-school. The faster you increase your savings, the easier it’s going to be to take a genuine interest in caring for the people around you. Read Phil 1 (fellowship), Phil 2 (concern for others), and Phil 4 (charity). Turn off your emotions and desires when it comes to choosing what to study and what work to do, and put Philippians into practice. Your freedom to give is very much tied to the quality of your decisions of what to study, where to work, how much you spend on entertainment, and so on. That’s why you need to turn off your feelings and desires and do what works, even it it’s not fun, and even if it involves responsibilities, expectations and obligations.

How can a successful writer who “is true to himself” end up poor?

My friend Lindsay sent me this article about a very successful writer who has trouble making ends meet.

The story appeared in left-leaning The Atlantic. I don’t want to rehash the whole thing, because I want to make a point.

So, first thing to quote, this guy looks like a success to others, even though he is actually really struggling:

The Fed asked respondents how they would pay for a $400 emergency. The answer: 47 percent of respondents said that either they would cover the expense by borrowing or selling something, or they would not be able to come up with the $400 at all. Four hundred dollars! Who knew?

Well, I knew. I knew because I am in that 47 percent.

[…]You wouldn’t know any of that to look at me. I like to think I appear reasonably prosperous. Nor would you know it to look at my résumé. I have had a passably good career as a writer—five books, hundreds of articles published, a number of awards and fellowships, and a small (very small) but respectable reputation. You wouldn’t even know it to look at my tax return. I am nowhere near rich, but I have typically made a solid middle- or even, at times, upper-middle-class income, which is about all a writer can expect, even a writer who also teaches and lectures and writes television scripts, as I do.

The thing I like about this guy is that he doesn’t blame anyone else but himself – he thinks that his own decisions led him to poverty. Rod Dreher has a nice list of the mistakes at American Conservative:

1) He chose to live in New York, which is one of the most expensive places to live in the country;
2) He chose to be a writer, not the most lucrative and stable career;
3) He and his wife chose to put their kids in private school, something they felt was necessary in their Brooklyn neighborhood, but an expense they could have avoided or dramatically lessened had they lived in another part of the country (they eventually moved to the Hamptons to get out of paying that tuition);
4) He and his wife believed their two children had “earned” the right to go to very expensive universities, and they spent everything they had, and the inheritance his parents planned to leave for him, on educating the girls;
5) They got caught in the housing crash and had to sell a Manhattan apartment they owned at fire sale prices;
6) Given the way his income as a writer is structured, taxes were a bitch (as a writer, trust me, this is true).

Pay close attention to 1 and 2. I would NEVER live in a garbage blue state like New York. I would rather be dead in a ditch than live in a state that is run by Democrats. I hate the high taxes and high spending of blue states. Blue states are great places to go if you want to work and have someone else steal all of your money to buy votes from lazy losers. I’m actually planning a move to a red state right now, and believe me, low taxes and low cost of live are high on my list of requirements. Oklahoma and Tennessee, I’m looking at you two, especially.

And as far as 2 goes, I don’t think that I need to repeat my warnings to everyone about non-STEM fields.

Well, OK, I will:

Starting and Mid-Career salaries by profession (click for larger image)
Starting and Mid-Career salaries by profession (click for larger image)

Regarding the housing crash that he mentioned, Democrats caused that, by forcing banks to loan money to people who couldn’t afford to pay it back. If he voted for the Democrats, then he screwed himself again.

Now, you might think that people end up poor because they want to do work that is fun and enjoyable. And that’s true, I’ve seen that. But this guy’s problem was that he just spent beyond his means. Why? Well, the writer explains that he is compelled to spend the money, because spending money defines who he is. He can’t say no, because he thinks that he has one life, and one chance to define himself. He can’t think about the future, because he has to spend every last dime today in order to be who he really wants to be.

Dreher comments:

He felt that to choose otherwise would have made him inauthentic, untrue to himself. He felt that he deserved the life he had, and could not choose otherwise without betraying himself. I think this must be an extraordinary thing, in terms of history: people who spend recklessly to give themselves the lives they think they deserve. If you think about it, though, our culture, which valorizes Authenticity, encourages this.

I have to tell you, I just don’t understand this. I define myself by Christian virtues – self-control, self-sacrifice, concern for others who I know personally and in my community. I’m not a spender. I am a saver by nature, and the older I get, the more grateful that I am closer to retirement than I was before. Working gets harder as you get older, even for jobs that don’t require physical labor.

If you plan ahead, you can get all your working and saving done before you’re 50. That was my approach. But I see other people who haven’t started working full-time by 30 and even by 35. Every day when you are in school instead of working full-time in your field is a wasted day. With few exceptions, you will learn more on the job than in the classroom. You want get out of school and get working as soon as possible, with an eye to getting married as soon as possible – since marriage is a wealth building engine. The faster you start investing, the more time your money has to grow through interest and dividends.

The bottom line is that my obligation as a Christian is not to be true to myself, or anything weird like that. My obligation is to make sure I don’t starve, and then to turn to the people around me and make sure that they don’t starve. Sometimes, that means giving them good advice. Sometimes, it means recognizing their achievements with little gifts. But the main thing is that the world isn’t safe enough for you to put off earning so that you can do what you feel is the “real you”. Being independent and then serving others is more important than being the “real you”.

Should a man go into full-time apologetics ministry if he intends to marry?

Congressional Budget Office: Debt to GDP ratio
Congressional Budget Office: Debt to GDP ratio

Lydia McGrew has a post up at What’s Wrong With the World blog that is just excellent.

Excerpt:

Apologetics is wonderful and incredibly important. It’s a wonderful thing that a revival of specifically evidentialist apologetics is happening in the United States and even, to some extent, in the Anglophone world at large.

Unfortunately, this revival of interest in apologetics and in being Christian philosophers is coming at a very bad time, economically. Even if you are a genius, your chances in 2013 and following of getting a stable job by the route of going to graduate school in philosophy (or almost any area of the humanities) are pretty darned slim. If you’re not a genius, fuhgetaboutit. Nor were there ever all that many jobs in philosophy. It was always an iffy proposition, but it’s much worse now than it was even twenty years ago.

As for starting ministries, a poor economy makes it extremely hard to do that, too, because people don’t have as much disposable income to donate. Moreover, even in a more robust economy, if all the eager young apologists were to flock to start apologetics and/or campus ministries, they would be competing among themselves for a finite number of available dollars from donors. So that’s not the best idea either.

Let me speak very bluntly here: In my opinion, God doesn’t need a whole raft of impractical idealists out there getting themselves into debt or half starving (or really starving) with no idea of how in the world they are ever going to support even themselves, much less a family, out at the other end of their education. That just burdens the church with a large number of able-bodied but needy Christians who are in a seemingly unending stage of transition, “getting an education for the kingdom” or “hoping to do work for the kingdom” without a viable plan in mind or any fiscal light at the end of the tunnel.

Instead, I believe that we need an army of tentmakers. If you have a job or a marketable skill, for heaven’s sake (literally), don’t quit that job and join the ranks of starving students. Keep your day job, but enrich your mind and prepare yourself to answer people’s questions about Christianity by studying on your own time. If you have entrepreneurial abilities and the capital, start a business. That will support not only yourself but others you employ, and if successful, you will have more money to give to Christian ministries.

But even if you aren’t the entrepreneurial type or don’t have that opportunity, at least make sure (to the extent that one can in today’s world) that you can pay the rent and put food on your own table as well as supporting whatever number of additional people you plan to take on. (In other words, if you are a guy who would like to get married and have children, bear that in mind.) This will inevitably mean spending time at all that distasteful stuff like networking and making a resume. Bookish types don’t enjoy that stuff, because it seems bogus, but it can’t be helped. It will undoubtedly mean, for most people, not being full-time students beyond the undergraduate level, especially not in the humanities, not trying to become full-time academics as a life work, and not going into full-time ministry, even if you would ideally like to do one or more of those three things.

In the end, if we can have this army of tentmakers, there will be (Lord willing) money to allow some people to work in full-time ministry. But it’s going to be quite a small proportion of those who are interested or would ideally like to do so.

[…]Inevitably, the course of action I am suggesting will mean a bifurcation for many between their day job and what they are most passionately interested in. So be it. Indeed, so it has ever been in the world. What proportion of people at any moment in human history have been blessed enough to spend most of their time working on what they are most passionately interested in? The question answers itself. So I think that bifurcation has to be accepted by a great many people and that doing so will lead to what I might call a healthier “Christian economy” among committed Christians than what we could otherwise end up with.

So let’s see her advice in bullet-point form:

  • The job market for philosophers is very bad
  • A bad economy means less support money is available
  • It’s important to have a plan to fund your  ministry
  • Leverage your full-time job to fund your ministry

So I want to make two comments.

Making bad decisions because you think God is telling you to

I often find that when I talk to Christians, there is this sort of hyper-spiritualized way of deciding what to do, and I’ve written about this in one of my favorite posts. Hyper-spiritual Christians read the Bible, which is good, but then they don’t tend to also look at practical things like economics, science and public policy when making their decisions. The Bible doesn’t say much about what to study or what job to get, but there is an example of Paul working at tent-making in order to fund his ministry. So there is precedent for the idea of learning a trade and working to earn enough money to support our families, our ministry and even other people’s ministries.

I think we have an obligation to take the Bible seriously when it tells us what we can do to please God, but coming up with a plan to please God most effectively is our job. We have to make the plans to serve God. Our plans must be within the bounds of Biblical morality, but they should also reflect our knowledge of how the world really works, too. We’ll be more successful with a good plan and some hard work. It’s very easy to be deceived by our feelings about what we would like to do with our lives. And many people who listen to their feelings and find other impractical people to echo and affirm those feelings make many mistakes in life. I would advise people to be very careful about calling their feelings the voice of God speaking to them, then getting into trouble when their lack of wisdom blows up in their faces.

Christian men who want marriage without having to get a job

So that brings me to the concern that I have that I’ve been thinking about for the last week or so. I have been thinking about a couple of Christian apologists I know who are interested in marriage, but unwilling to prepare themselves to prepare for a wife and children. They are both very unaware of the economic and political challenges that they are likely to face, which makes the need to prepare financially even more pressing.

One of the Christian men is getting a BA and is in his early 30s. He says that marriage would have to come second to his ministry. He has never worked a full-time job his entire life, and considers getting a full-time job to be beneath him. The other one is in his late 20s and is in a PhD program. He wants marriage right away, but he has never worked in a real job his entire life, either. Both of these Christian apologists are in debt – they have zero assets and negative net worth. How can it be that they can even be considering marriage? Don’t they realize what a man’s role in marriage is? He is the provider, and that means that he has to have a record of steady work, saving money and being generous at sharing with others. Neither of these men have shown any ability in those areas. Neither of them seems willing to get started on a regular, full-time, private sector job. And neither seems to want to take Lydia’s advice and finance their ministry / marriage from a regular, full-time job. Neither of these students can even afford a wedding or even a wedding ring. Do they even understand what a woman needs from her husband?

So what’s the problem? I talked this over with a wise friend and she said that feminism has become so widespread in this society that a lot of men think that they can contemplate marriage without having a record of earning and saving. They don’t see that men have any distinct “provider” role in a marriage. They sort of expect to get the benefits of marriage with none of the “provider” responsibilities. Many women have also been taken in by feminism, and cannot evaluate men to see which ones are able to work and save and provide, and which ones aren’t. I don’t think young people are being taught how to apply the Bible to the practical challenges of marriage, or how to recognize the challenges of the times we live in.

What did Goldman Sachs get in exchange for paying Hillary Clinton $200,000 an hour?

Hillary Clinton look bored about the deaths of 4 Americans who asked for her help
Hillary Clinton look bored about the deaths of 4 Americans who asked for her help

This article is from the Washington Free Beacon.

It says:

Hillary Clinton could not help but laugh Friday when a reporter asked her to release the transcripts from her high-priced Goldman Sachs speeches at a rope line in New Hampshire.

“Will you release the transcript of your paid speeches at Goldman Sachs?” a reporter from the Intercept asked Clinton at a campaign event, referring to the $675,000 she has earned in speaking fees from the bank.

Clinton looked directly at the reporter, and after a pause, laughed in his face. She then carried on greeting supporters.

“There’s a lot of controversy over those speeches,” the reporter said. “Secretary?”

Clinton continued to speak over the reporter, drowning him out.

“Hi! So glad to see you!” Clinton said.

“Is that a no?” the reporter persisted.

Clinton ignored his question and repeated a greeting to another supporter.

“I am so happy to see you,” Clinton said.

“Secretary Clinton, will you release the transcript of your Goldman Sachs speeches?” the reporter said again. Clinton ignored him.

Clinton has come under scrutiny for giving high-priced speeches, averaging $225,000 per gig, at big banks such as Goldman Sachs, all the while preaching about income inequality on the campaign trail. She and her husband have made more than $125 million in speaking fees since 2001.

Here is the video where she laughs at the questioner, and then ignores him, even after repeated attempts to get her to be accountable:

You might remember that Clinton often talks about how she is “dead broke”. Is she really “dead broke”?

$300,000 an hour for a speech
$300,000 an hour for a speech

Hillary Clinton’s speech fees

The Weekly Standard reports:

Disclosure forms filed with the Federal Election Commission by Hillary Clinton provide fascinating details of the remarkable money-making machine that is the once-and-possibly-future first couple. Between January 2014 and the filing of the forms on May 15, 2015 (up to and including a speech by Bill Clinton to the American Institute of Architects the day before the filing), the Clintons made about $30 million, approximately $25 million from speeches alone.

Both of the Clintons have given speeches regularly in the 16-month period covered in the filing with rarely more than a few weeks off in between engagements. Often events are crowded together during a period of several days, sometimes with more than one speech on the same day. On a single day last October, Bill and Hillary delivered a total of four speeches, taking home over $1 million. Those four speeches fell in the middle of a three-day blitz that brought in a total of $1,511,000. (Mrs. Clinton edged out her husband $786,000 to $725,000.)

[…]Although the audiences for the Clintons vary widely, the actual content and duration of the speeches is not always revealed. However, a YouTube video of Bill Clinton’s recent speech to the American Institute of Architects, apparently recorded by an attendee, shows that the $250,000 fee paid to Mr. Clinton purchased the group a 23 minute speech, an hourly rate of about $652,000.

On a per-hour basis, she makes more than all of the CEOs of the largest companies. Well, maybe not more than Donald Trump, though. New York values. Actually, Donald Trump donated at least $100,000 to the Clinton Foundation, so maybe he can tell us what people get for giving the Clinton’s exorbitant sums of money.

Donald Trump and his friends, the Clintons
Donald Trump and his friends, the Clintons

Meanwhile, Ted Cruz had to liquidate assets and take out loans against his investments in order to run for Senate. Which of these people is more like you and I?

Tad Hopp accumulates six figures of college debt, wants taxpayer bailout

Brain vs Heart, from: theawkwardyeti.com
Brain vs Heart, from: theawkwardyeti.com

Here’s an interesting editorial from a “Christian” left blog. (H/T Acton Institute via Lindsay)

The author, Tad Hopp is graduating a PCUSA seminary – an extremely liberal, left-wing denomination.

He writes:

I graduated college in 2007.

[…] I majored in English, not exactly what most people consider a ‘marketable’ or ‘practical’ degree…

[…]I went to a somewhat expensive private school…

[…]I did what many students in their last year of high school do: I went to the school where I felt I was being called…

[…]I do not regret my four years at my undergraduate institution one bit.

[….]When I graduated college, I owed nearly $50,000 in student loan debt and was unemployed for almost six months before I finally found a low-paying office job.

[…]“Can’t find a job? Well, you should have majored in something more ‘practical’, like economics or business or medicine.” Yeah, that would be great…if those were the subjects where my skills and passions lie. They’re not.

[…]I felt called to go to seminary.

[…]I will graduate seminary with close to six figures worth of student loan debt.

Let’s take stock of what he’s said so far:

  • he studied English, a language that he already spoke, which has one of the lowest employment rates
  • he was warned by people who knew something about earning and saving money not to study English
  • he went to a school he couldn’t afford to go to, and he graduated with $50,000 in debt
  • he went to seminary, another subject that doesn’t pay, and added another $50,000 or so of debt
  • he says that he doesn’t have to study subjects that lead to a career because he isn’t “passionate” about them
  • he “followed his heart” by going to the school that he had mystical, emotional, intuitions about = “calling”

My advice to Tad at this point would be for him to take the Bible seriously when it says this:

2 Thessalonians 3:10:

10 For even when we were with you, we used to give you this order: if anyone is not willing to work, then he is not to eat, either.

And 1 Timothy 5:8:

8 But if anyone does not provide for his own, and especially for those of his household, he has denied the faith and is worse than an unbeliever.

Now, for a Bible-believing Christian, these are inerrant and cannot be denied. But we have to go outside the Bible and learn how the world really works in order to figure out how to achieve those stated goals. Why should anyone hire us? What is working really about?

But even before looking at economics, Tad needs to push away all his friends who tell him to “follow his heart” and stick close by his friends who understand economics, who have jobs already, who have savings already, and so on. Don’t look for advice from dreamers, you look to advice from doers – people who can read the times, run the numbers and who have demonstrated the ability to create plans that work to achieve results that please God. When it comes to planning about the future, look at the past accomplishments. Weaving a happy narrative sounds nice, but judge future predictions based on past performance.

I would recommend that Tad read an economist like Thomas Sowell, especially on work, prices, etc., and realize that work means providing value to others. It then follows that he is obligated by the Bible to NOT “follow his heart”, but to instead do something that offers value to his fellow man. Prices are a way of determining what is most valued by your fellow man. And we know what careers have the highest starting salaries and mid-career salaries:

Starting and Mid-Career salaries by profession (click for larger image)
Starting and Mid-Career salaries by profession (click for larger image)

(Source)

Keep in mind that you also have to check to see what the unemployment rate for these fields is, but I think they are all very much in demand, hence the salaries.

I don’t mind if a woman studies English and seminary, but Tad is a man – he has the Biblical obligation to be the primary provider, as we saw in the verses above.

More Tad:

Is the PCUSA doing anything to address this crisis?

[…]What has our government done to address this issue?

[…]I, like so many in my generation, voted for Obama…

[…]It seems to me that we’ve bought into the lie that student loan debt is brought on by the individual person…

[…]You know what I think might stimulate the economy? Automatically cancelling every single outstanding student loan!

[…]If we can spend $640 billion dollars on defense spending, why can’t we find the money to better support public education?

It’s important to understand that an English degree and a seminary degree do not prepare a person to make statements on economics and government. Tad has never studied these things, has no experience in them. He cannot state what the impact of his suggestions would be to all groups, i.e. – he cannot answer “and then what happens?” for every impacted group. Thinking economically is a valuable skill, but as Tad’s personal life shows, it’s not an area he is really knowledgeable about. But he wants to shift money from defense spending (which he knows nothing about) so that he can have a personal bailout. I personally doubt that taxpayers would be better served by paying for his English degree and liberal seminary degree than they would be if a peace-loving democracy could project power abroad to deter aggression from countries like North Korea, Iran, Russia, China and Syria.

Here is the solution to Tad’s problems:

  • we need to put Tad to work in a minimum wage job and confiscate his entire salary, until his loans are paid off.
  • we need to put Tad on a watch list such that he is never allowed to borrow money from anyone ever again.
  • once Tad’s loans are paid off, he should be taxed on his future earnings at the top tax rate for the rest of his life. The money we tax from him can fund education – that’s what he said he wanted.
  • Tad and his household should all be barred from collecting any money for unemployment, welfare or other social programs.

That’s the only bailout Tad should get. It would actually be in his best interest that he encounter real life as quickly as possible, because the longer he waits, the harder it’s going to be for him to recover to independence. He needs to stop his crazy retreat from adult responsibilities, and start working and saving now. I would say that at this point, marriage and parenting is out of the question for him (in another post, he comes out as gay, so that also complicates things). And he can thank the politics of the secular left for marriage and family being less affordable now, thanks to laws like Obamacare, which raised the cost of health care by thousands of dollars. I found it interesting that he actually did work at some point but he mocked the job as a “dead-end job” – as if it was beneath him.

I know some of you will be thinking, “but God called him things and so of course God is going to bail him out with $100,000 for his student loans”. But the thing is, God doesn’t usually work like that. First, I don’t accept that he is a Christian at all. Second, just because you have feelings that your plan will work, that isn’t a calling. The truth is that you certainly can assess the feasibility of things that you feel “called” to do, and if the plan looks crazy, then don’t do it. If you find yourself at odds with wise, practical people when explaining your calling to them, then you’re probably doing it wrong.