One of the books that I read this year was Dave Ramsey's Total Money Makeover. Generally, I don't read a lot of self help books. But I had heard a lot about this one and decided to give it a try. Our financial strategy is very much like how Amy describes in her How we did it series. If you are not currently reading it, I would strongly encourage you to read it.
I should start reviewing books with a disclaimer. I am not very good at remembering stuff, so if the review is not immediately after, I pretty much forget key points. But I will try and list a couple of things that stood out to me. One is the aspect of paying off debts and saving and the other is Credit cards.
This book approaches finances from an agressive get out of debt, help yourself before you help others perspective. I have mixed feelings about it. I believe that Bible teaches the New Testament believers to give, not tithe. It is not a 10% for God, 90% for you deal. We are asked to give cheerfully. Anyway, it all belongs to God and he can give and take as he pleases. So if we believe that we should not give until we have financial stability, when do we decide that we have achieved that stability? When we have food, shelter, and clothing? When we have that million dollar house paid for? And then there is the undeniable fact that the more we have, the harder it is to give. We can save and save until it comes out of our nose, but we will still be looking for savings.
On the other hand, there are people who use giving as a crutch, not to be financially responsible and making unwise choices. I know people like that in real life. I know pragmatism seems a whole less spiritual than saying "The Lord will provide for our needs." Yes, the Lord will provide, but he also gave us a brain to make wise choices.
I cannot say what should the best scenario for every family should be. That is between you and the Lord. For a practical example, let us say, I am in debt and am already supporting a ministry. What I would do is honor the commitment, but cut back in personal areas. Maybe I won't take additional commitments until the high interest debts are paid off. Becasue loans on which you have to pay interest (other than house) do not make sense. For example, if you buy a car for 20,000 and pay $400 monthly for 8 years, then you pay enough to buy 2 cars. It does not make sense. It is math. If we are unable to support with finances, we can support ministries and the local church with our time and effort, prayer etc. Giving should be joyfully from the heart, not a bill to be struck off from the list.
Next: Credit Cards and Dave
4 comments:
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I'm interested in your ongoing review on TMM. I haven't read Dave's book, though I feel like I have after reading a zillion book reviews and quotes from it. I was interested that you had mixed feelings -- my mixed feelings about what other people say is why I haven't read it. I briefly alluded to that in a recent post. Anyway, I've read 4 or 5 financial books this year. Don't need another one.
Randy Alcorn (Money, Possessions & Eternity) has a fascinating view on the tithe. I grew up under teaching that the tithe was not for believers because God we're not under law. I'm pondering it more thoroughly now. Alcorn suggested that we should all be giving 10% tithe, but it should be our starting point, not our ending point. In the OT people gave their 10% (I've read it worked out to more like 30%), but their freewill offerings were all above and beyond that percentage, as they desired to give. God loved cheerful givers even in the OT, you see. :) After 10% comes the cheerful, freewill giving from the heart. (Though by all means we should be freewill & cheerful about the 10%). Alcorn is of course much more eloquent and interesting than me in explaining his view.
It is a different view, and I'm thinking about it... I think I agree. I loved Alcorn's book because he has such a joyful spirit and encouraging focus on giving. It was a breath of fresh air after half a dozen books on how to take care of self and build up wealth for self. We may need specifics on how to care for self, but we need little to no encouragement in that department... :)
I have to read Money Posessions and Eternity yet. It is in my ever growing booklist *sigh* I am trying to read some books that I borrowed from a friend as she is moving from our town soon.
Anyway, about tithing. I grew up learning that you had to tithe 10% and they even preached about it. My parents always tithed even when their combined salary was less than $10 per month. And they also gave (and still give) liberally above and beyond that. They instilled in me giving and saving without them ever preaching about it. After I came under the teaching of giving vs tithing, now I don't do a calculation. We support kids, ministries, church etc. But I have also noticed that many months I forget to give (apart from that which is automatically deducted from the account), so it is a great idea to have a 10% guideline in place I think.
We save more than give at this point as we both want to go back to India in a few years and we have plans for working among the underprivileged (children) there so we need money for that. So I try and strike a balance so as not to to neglect the current needs while saving to serve a greater one.
I agree that we're no longer under the OT law of the tithe. But I have yet to attend a church that doesn't still preach it. ;-) However, I do strongly believe that everything we have is from God, so we shouldn't be stingy with our giving. (Not saying that anyone is stingy. Just a statement.)
We still abide by the 10% rule. My husband believes our tithe should go to our church, so that's where it goes. (And I don't disagree as we need money for our ministries, as well as for utilities and rent.) We have another ministry we like to support, but we don't have a lot of extra to send, unfortunately. I send them a little something every month, and when I work, I send the tithe from MY paycheck to it.
Another good Christian financial guy to read is Larry Burkett. Someone had given Steven one of his books back before we were married, and I remember running across it when helping him pack up his apartment the week of our wedding. I sat down and read it instead of packing. (I'm so easily distracted by books!) I liked his book better than TMM.
Larry Burkett's book The Economic Earthquake is another good one to read. But don't read it for a bedtime book because you won't be able to put it down. It scared the debt out of me and I stayed up til 4am one morning to read the whole book.
So glad you got around to reading Dave Ramsey's book! :) He definitely has an aggressive "get out of debt" plan. It works for me and I will have had 3 debts paid off by January 1st!! :)
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