Home, Your Best Training Ground

" Train up a child in the way he should go,
And when he is old he will not depart from it.
The rich rules over the poor,
And the borrower is servant to the lender."

- Proverbs 22: 6-7 -

What a child sees and hears at home may shape his or her character and value system. Ever wonder why we almost always have a family of musicians, such as the Jackson's. In the Philippines we have the Cruz's, Manzanos / Santos and some other famous personalities of the showbiz industry.

It is no different with one handles his or her finances. The reason why the poor gets poorer or the rich gets richer is because the latter seldom speaks of how to properly handle money at home while the latter may have been teaching the proper way in handling the finances.

As keenly observed, most Filipino adults (or this may include all other nationalities) only a handful out of a hundred or maybe a thousand is privileged enough to have been trained by their parents about money, budget, spending and savings. Majority of the adults grew up and come to realized at a later stage of their life that money does not grow on trees, but it is something that one should earn and work for.

Children are often neglected by parents when it comes to discussions on family budget, spending, and savings. How then can you expect them to include their children for they too had been going through the same process.

Another good item that I picked up from the last session of the Financial Peace University is the suggested abolition of the "allowance" given to children. Instead, a commission or compensation is to be given them for every household chores or any activity agreed upon by the whole members of the family.

I see eyebrows raising on this one. You may be thinking that by giving them payouts for every household chores is like teaching them not to do their household obligations without monetary compensation. Of course not.

Aside from being a motivating factor, this monetary commission will teach them that it is how the system works outside of the household. No work no pay. In my own honest opinion, it is very important that a child should learn this principle of no work no pay as it will teach a child the true value of money. Since they work for it, they will also learn how to take care of it not to slip from their hands on unnecessary and useless spending.

What about the allowance? Is it not the parents' obligation to provide for their child's needs. Yes, it is. However, when you just plainly give money as in most parents do while coining it as "allowance" carries with it a negative connotation. The term "allowance" could easily be translated as dole outs or subsidy.

Do you want your child to grow up being dependent on dole outs? Or for the child grow up believing that dole outs from parents are but normal. This is a very severe problem among the Filipinos today, in my honest opinion.

For all the parents out there, take head of what the Lord says in Proverbs 22: 6-7. In verse 6, parents are instructed to teach your child the correct way for in verse 7, a very serious warning is given. Unless a child is trained properly, especially about money, he will surely not be a slave to the lender.

God Bless!!!

The First Baby Step to a Lifetime of Financial Peace Journey

"A journey to a thousand miles starts with a single step." -Lao Tzu-

No matter where you aim to go. No matter what endeavor you want to take. Whether it be a journey to a road less traveled, the first single step is necessary for without it you are fixed at where you are at. That is what the Chinese philosopher's message is driving at.

During our second meeting and the first session of the Financial Peace University (FPU), setting aside some money as an emergency fund is being emphasized. It is pointed out that this is not an option, but rather a must in one's journey to financial peace. The suggested target amount to be set aside should cover at least three to four months of living expenses.

In this first session, a lot has been taught that to some is not something new. Most attendees if not all knew all along the value of saving for the rainy day. However, that knowledge remains to be as such and was never put to practice.

Hence, the first baby step one who is aiming for the financial peace is to set aside $1,000 as an emergency fund. Of course the starting amount, or seed money as I would describe it could be lesser if one is earning lesser than the middle income earner. Everyone in our class is advised to do so, otherwise continuing on with the course is a useless undertaking.

Of course this emergency fund should not be touched unless for emergency purposes. What constitute emergency then? Emergency needs are those that arise from any negative financial event happening in your life. You may have been laid off from your employment. A sickness or accident not covered by any insurance protection. Or any event of such type. This fund serves as your protection as it covers you from this untoward incident that is bound to happen in one's life. For as long as your heart beats, the happening of this event is inevitable.

The concept of an emergency fund is even taught in the first book of the Bible. Remember when Joseph was given authority to rule over Egypt, second to pharaoh when he, by the knowledge and wisdom coming from God allowed him to interpret pharaoh's dreams. Everyone is familiar with this story of seven years of harvest and seven years of famine. The principle taught by God in this story of Joseph is to set aside something for the famine that is going to happen. We are simply reminded here that it sun does not shine year in year out. A rainy day will surely come.

Simply put, saving for a rainy day should be a way of life, not to be compromised if you want financial peace.

Not so long ago, in one of my articles I discussed about the danger of credit cards being used during times of emergency. Why should one resort to credit cards? It is because you have nothing set aside for this purpose.

I overheard a discussion of fellow kabayans in a planning session for an outing. One of the hot topics was the date the salary be released. That contribution for the outing should be deferred until the date salary would be credited to the respective bank accounts. This line of discussion led me to conclude that most of these people, if not all are cash challenged for they could not shell out a small contribution for a simple celebration for the birthdays of 3 or 4 people in the group.

Though the incident above is not a sort of an emergency, but the mere fact that most people are cash challenged even few days before the date of salary credit is something of a serious issue. How much more if we ask them if they have some savings set aside?

A personal observation made me believe that most working class citizens are living from paycheck to paycheck. This observation could be wrong, but that is what I perceive personally. You may judge this for yourself.

A final word of encouragement to those who want to take the lifetime journey to financial peace, begin with this baby step. Set aside $1,000 or any amount as your first baby step. From then on, make it a habit to set aside every payday a forced savings to this account until you amassed so much that may already cover three to six months of your living expeses.

This is just the first step. Keep coming back for future articles and other steps as I progress with my FPU class.

God bless everyone.

Church's Role in a Believer's Financial Victory

"In those days there was no king in Israel; every man did what was right in his own eyes." (Judges 21:25)

Take note that the above verse did not say that every man did what was wrong in his own eyes." These people, the Israelites did not intentionally try to do wrong. In fact, in this stage of the history of Israel these people were very determined to do right, but they were trying to do what was right in their own eyes. The things they see around and among them led them to do foolish things.

The above verse is also the last statement of the book of Judges. From beginning of the book until this last verse a pattern of defeat and victory goes on and on in full circles. The main culprit for this is that this generation has failed to destroy all there enemies, as God has commanded.

Same thing could happen to you and me. In whatever aspect of our lives, if we will not totally destroy those enemies--bad habits, beliefs, and/or cultural or social practices--and believe that God should take full control, chances are you will be like these people mentioned in the book of Judges.

Let me zoom in to the area of our life called finances or stewardship. If you have not set aside the world's view as regards loans, credit cards, and the way you spend your money, chances are you are still living from paycheck to paycheck. Money is controlling you instead of God being in control.

Romans 12:2 states that "Do not be conformed to this world, but be transformed by the renewal of your mind, that by testing you may discern what is the will of God, what is good and acceptable and perfect." I therefore urge everyone to set aside any worldly advise in regards money matters.

Churches on the other hand should arise and start teaching their congregation about stewardship and personal finance. I have learned from the Financial Peace University that according to survey an approximate 15% of the churches are teaching their congregation about personal finance. God spoke about stewardship more than a couple of thousand times. While Jesus parables and teachings greatly deals about money and stewardship.

To the leaders of every Christian churches, it is but time for us to defeat and crush to obsolescence the world's notion about money and personal finance. Let us not teach about tithing only for it is but 10% of our income. Let us not forget to teach the congregation of how to handle and take control of that 90%.

Thank God for raising people like Dave Ramsey, Dayton Howard, Chinkee Tan, Randell Tiongson, and other Christians who advocates the proper way to handle our finances, God's way, as oppose to the way in the eyes of man. For the eyes of man are focused to what were seen in the world.

Thank God also that our church Word International Ministries in Al Ain City is teaching the congregation about stewardship and personal finance.

Final word for those who stumble upon this article. Just be content. Spend within your means. Save. Take counsel from the Word through your daily devotion.

God bless everyone!!!

FPU

FPU stands for Financial Peace University. Dave Ramsey famous author and founder of the FPU.

Thanks God for bringing this to Al Ain, through the initiatives of our brethren from the English Evangelical Church. Thanks to Pastor Steve for providing the Word International Ministries - Al Ain a slot, actually increased to two for one from their church backed out the last minute.

It started last Wednesday, October 7, 2009 and will continue on the next 12 weeks. We started with the introduction of the course and the various modules. Of course the kit, which also serves as a ticket to a lifetime membership to the FPU where one can access all the resources in their website: http://www.daveramsey.com/fpu/home.

I am so blessed to have been given the chance to take the slot for our Church. The second slot that was made vacant will be filled in by our Senior Pastor.

I received this kit during the first meeting last Wednesday:

Here are the contents of the kit:


Thank you Lord for this opportunity to expand my knowledge with this training.

Natural and Financial Calamities

Typhoon. Flood. Earthquake. Tsunami. These are but some of the famous items in the news since the last week of September 2009. These are natural calamities.

Environmentalists say that this is the effect of global warming, or the result of man's wanton disregard to mother nature. Hence, these things are inevitable unless concerted efforts to take care of our planet is being implemented.

The Bible has foretold that these sort of things are bound to happen. This is what is commonly called the signs of the end times. The inevitable coming of back of Jesus. Yes, these calamities had happened long ago, but if you come to think of the frequency of the happening of one calamity over the other has become closer compared to decades or centuries ago.

In as much as these natural calamities are being foretold in the Bible, this Holy Book that I personally believe as the Word of God has also foretold of what will happen to a man should you not obey it. Obedience in all its teachings, including the wise and practical handling of the resources that God entrusted you and me.

The Bible is so rich in practical lessons on how you and I would steward the resources that God entrusted us. The Bible says that if you just obey you will not borrow, but instead you will lend. On the other hand, disobedience will result in you borrowing and going lower and lower in status. Obedience results to financial independence and disobedience results to bondage to debts. (Deuteronomy 28: 1-2, 12, 15, & 43-56)

Stewardship is the name of the game that God wants you and me to play perfectly well. The misconception of the many lies in the fact that God requires us to give the tithes (10%) of what we are earning. If we are faithful to do this, the windows of heaven will rain blessings on us that we can hardly contain.

Nevertheless, it has been observed that there were a number of faithful givers who are still struggling with their finances. I am not surprised by this fact, it has also been observed that as they are faithful with the 10%, they may have been spending in reckless abandon the remaining 90% of their income. Now which one has the bigger share of the pie of the resources God has entrusted us?

Does not God also commanded us to be content? As Paul wrote in his pastoral letter to Timothy (1 Tim 6:6) that godliness with contentment is great gain. In so many passages in the Bible, God has warned us of spending too much and incurring useless indebtedness.

A stern warning: upon learning that the flood of maturing bills has started to rise to knee deep and that the rain of your spending still continues to pour down on you, please go to higher grounds. Seek counsel before God and a financial counselor, be humble, and start to heed God's word before the waters will reach to your neck and its current could wash you away from your spiritual freedom.

God bless everyone!!!