Dollars,

Euros,

Pesos

Ron Smith

Dollars, Euros, Pesos

Copyright © 2004

Ron Smith

501 Blacktail Road

Lakeside, MT 59922 www.ronsmithbooks.com

All Scripture references taken from the Revised Standard Version unless noted.

ISBN 0-9641913-6-9

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means without the prior permission of the publisher.

Printed in the United States of America.

Dedicated to the memory

of Warren M. Pace

Table of Contents

Author’s Preface

Proverbs on Money

Introduction

Proverbs on Money

Chapter One

Unrighteous Alliances

Chapter Two

God Condemns Greed

Chapter Three

Giving First-Fruits and Generosity Bring Blessing

Chapter Four

Debt

Chapter Five

Pay Bills Promptly

Chapter Six

The Danger of Co-Signing

Chapter Seven

Remember the Poor

Chapter Eight

There is Wisdom in Saving and Investing

Chapter Nine

Bribery

Chapter Ten

Laziness

Conclusion

Money Reading List:

Author’s Preface

Proverbs on Money

Since 1990, I have read well over three hundred books about personal money management. The number “three hundred” understates the figure deliberately (possibly dangerously so). I give that figure so as not to exaggerate. The numbers could be two or three times the “three hundred money books” figure but certainly no less. Three hundred seems like a lot until we compare that with Charles Spurgeon. He reviewed two to three thousand volumes as he wrote a Bible commentary.

Our biggest family traveling argument is over how many books I can carry on. I am sitting in southern India as I write this. I brought twelve books with me on this two-week trip, and two of the twelve are about money. One book covers bankruptcy law; written by Harvard law professor Elizabeth Warren. The other book is the textbook required for becoming a registered investment advisor.

Book learning does not equal “street smarts,” but it is helpful. Hindsight produces 20/20 vision. I wish I knew in the past what I know now. Namely, I would write a book on money management. I read money books on virtually every related topic. They ranged from saving grocery store coupons to trading options and commodity futures.

Money books number into the thousands. Why should I write one? For many years I said I wouldn’t.

I walked through downtown Taipei, Taiwan, and I felt that God put into my mind to write about “Proverbs on Money.” Taiwan is a place where there is a mixture of wealth and superstition; foolishness and wisdom; frugality and gambling.

It is amazing how rich the Chinese are. Lee Kuan Yew’s autobiography, From Third World to First, chronicles the meteoric rise of ethnically Chinese Singapore to a place of world power in money. It is fitting that it was among the Chinese that I felt impelled to write. Few (if any) money books exist on this specific theme of the Bible book of Proverbs on money. So, I am compelled to write.

What if God said nothing about money? For those who think the Bible says little about money, this will be an eye-opener.

Why specifically “Proverbs on Money”? We know that the book of Proverbs is always right. The problem is interpreting it correctly. Remarkably, in my seminary class on the poets, I remember no mention of this money theme as we studied Proverbs.

Some might say we only need the Bible to teach us about money.  Others have no idea that there are many money books out there. Some think reading that much might be a waste of time. Solomon would have recommended only one book for money management—his own.

I suppose my personal “money history” is important for you to know from the beginning. As I think back, praying for college tuition money leaps to mind first of all. Every life tells a story, and mine is unique.

My parents worked as a classic post WWII nuclear family. My father taught high school and coached for thirty-five years. My mom “mothered” at home. Schoolteachers in Albuquerque, New Mexico made little during the 1950s and 1960s. My dad worked hard, and we lived frugally (extremely so) for a family of six. Mom mixed real and powdered milk to stretch it. My dad worked nights and summers apart from his regular contract to make ends meet. (Medoff, Warren, and others agree that people in the U.S. in 2004 cannot make it on only one income.) I worked summers and after school a little bit, off and on, through high school. I worked a lot through college and graduate school.

A high school teacher named Arnold Blech began my financial education while I was still in high school. Mr. Blech taught bookkeeping and accounting. I took two years of Accounting, two years of Bookkeeping and two years of General Business with him. He clapped his hands at the beginning of class many days. He often announced, “I guarantee that if you will listen to me, I will save you ten thousand dollars sometime during your lifetime.” I listened, and Arnold has saved me more than ten thousand dollars so far in my lifetime. (Later in the book you will see how he actually saved me more.)

Why did he care so much? He had seen too many financial shipwrecks. Mr. Blech hammered home the importance of thinking (constantly) in terms of compound interest. I remember him talking about newlyweds paying off their appliances, years after they were broken down, due to carrying loans on depreciating items. His piercing blue eyes twinkled as he drilled in to our high school heads “pay cash” and “keep timely books.” As tiring as high school can be, I learned a lot from Arnold Blech. I’ll bet we did twenty-five different kinds of Income Tax Returns during those two years in accounting.

I started my first business at age nineteen. I imported and exported small gifts and trinkets together with a friend. We closed it down within two years. Some of our friends thought we were dealing drugs, but the business was far less lucrative than that. We came to a point of decision in the business. Go to college and graduate school or devote full time to the business. My friend went to dental school; I became a Christian and went to seminary.

I managed to navigate my way through college with a small debt of two thousand dollars. By today’s standards, that loan was minute. “Monstrous” would be the term that Arnold Blech used. I felt like I was climbing Mt. Everest to get out. I received a double major in Spanish and Religion. I went to seminary in 1974, and decided to take no more loans for education. I gritted my teeth. What if I had a huge loan to pay off after Gordon-Conwell Theological Seminary? Trusting God, we somehow struggled through. Together, we graduated debt-free from seminary in 1978.

During the second year of seminary, at the age of twenty-five, we managed to pay off my undergraduate loans (totaling two thousand dollars). The arguments in favor of student loans are somewhat overpowering. Most money experts say that a college degree will add one million dollars of income over a lifetime to its holder.

We set a course for the rest of our lives right then and there. That course was to remain debt-free. How did it happen? Arnold Blech, George Muller, Hudson Taylor and D.L. Moody influenced us. I had not done a thorough study of the Scripture on debt yet.

In twenty-seven years of marriage, we have borrowed money four times: twice for one thousand dollars; once for five thousand dollars; once for ten thousand dollars. We own our home with no mortgage; our two cars with no payments (one is twelve years old, the other is two years old—both cars were gifts). Some would say mortgage debt is a good thing as we can write it off our income taxes. We have no debt and no salary.

We worked for a salary only three years since the age of twenty-five. Other than that, we have been faith missionaries without a salary for twenty four years. We have trusted God and the good will of people who have believed in what we do. Sometimes our faith has wavered, but God has been more than good to us. We have never asked anyone for financial support; this is an exception and not the norm for people in “non-salaried” Christian ministry. Some would suggest not even praying but decreeing money to come our way. Others would suggest don’t pray but give and you shall receive. Some would suggest a huge mailing list. In fact, God gave us two personal directives when we entered the missions ministry:

1.    Ask no one for money.

2.    Do not go into debt to do the ministry.

So far, we feel we have been faithful to those two things. People with salaries live by “faith” also. God leads people differently

We pay cash for stuff. Why? Because it is always cheaper that way. I understand that some people say I will pay with cheaper dollars in the future because of inflation, so go ahead and borrow. For many, this is “no-brainer” material. They have been taught by their church to “only pay cash.” To others, “paying cash” is extreme or even out of the question. Also, the future belongs to debt-free people and debt-free ministries. I remember hearing Harold Ockenga say that he paid cash for our piece of property in South Hamilton, Massachusetts to start Gordon-Conwell Seminary.

One hundred years from now, I suspect Gordon-Conwell Theological Seminary will still be there, just like the well-funded Ivy League schools right down the road. All of Moody’s schools continue debt-free. I studied the long-term sustainable ministries in church history. One of the consistent features is debt-freedom. Debt-laden ministries survive the short haul but not the long. Some ask, “How can a ministry expand with no debt?” We will talk more about all of this later.

After we married, my wife, Judy asked me why I preached so much about money. I answered, “Because the Bible talks so much about it.” I became one of those preachers “who always talk about money.” I was just like the ones I disliked as a young believer. Some of my money ideas from the Bible have changed through the years, but nothing from Proverbs has really changed. There are more Bible verses about money than about preaching, heaven or prayer. More than 35 percent of Jesus’ parables are about money. When we think about preaching about money, some preach only about giving; some about receiving; and some about debt freedom. The real extremes are those who believe the Bible really says very little about good money management, so they stay silent. Unfortunately, this is what most seminaries and Christian colleges leave as an impression for the students. They teach very little about money management.

My wife came from a family with a very interesting (money-wise) background. Her dad was a self-made business success. He paid very little interest for anything, but he earned a lot of interest on a lot of things. He started his own holding company. His company lent trainloads of money to many different enterprises (including churches). Churches weighed heavily on my father-in-law because they manage money so poorly. When he died, his pastor made mention of Mr. Pace’s business acumen at his funeral. Pop urged clients to get out of the stock market weeks before the crash of 1987.

Judy shares her father’s “down-home” money wisdom (which has blessed me greatly). I am one of those rare, blessed husbands who has to ask his wife to spend money when she goes to the mall. Yes, really! Of course, men shop for cheap stuff like boats, cars and golf clubs.

Looking back on our life together, things financial never came easy. I remember praying and fasting for a week, in October of 1981, for God to give us missionary support for the long haul if he wanted us to be career missionaries. What if it had been easier? Our chosen vocation as missionaries lends itself to poverty (at worst) and disciplined frugality on average. Some would say, “Nobody forced you to that life-style.” Some great missionaries receive very little support from local churches. Take Paul the apostle for example. I doubt naysayers would speak so quickly about him like that. The mission field yields few financial rewards (there are exceptions). This is not optimum, but life as we found it. God taught us through the difficult years to manage our money. Proverbs from the Bible provided the basic source of guidance. The Law of Moses has taught rich lessons also, but that is another book for another day. We have made our share of mistakes.

My undergraduate student loan exercised our discipline in the early days. Judy incurred no loans. Between the ages of twenty-five and twenty- seven, we made around one thousand dollars per month and saved five hundred dollars per month. We had no phone, no check book (we paid cash-literally) and had little in the refrigerator, but we had a vision of good money management. One friend constantly prayed for us because every time she visited, the refrigerator was empty. Lee Harvey Oswald ran to the street our pay phone was located on after he shot Kennedy. Looking back, I wonder if we should have bit the bullet and got a home phone.

We did all of this to pay off that student loan. We finally got it paid off. Paying cash for graduate school taught us the fine art of Biblical prayer and fasting. I remember quoting many Bible verses to God during those days, although the verses seemed to bounce off of the ceiling often.

As well, when we first married, I made far less than one thousand dollars per month (try twenty to thirty dollars per week). We covered everything with that. How did we do it? We lived in a free place. I pushed a broom and a mop at 5:00 a.m. to earn that money. It was dark and I never got used to getting up at 4:00 a.m. to get there. Maybe I should have looked for a better job.

When I pastored our church from 1978 until 1980 in New England, I received $225 per week. I agreed with the church board for this amount. Of course, the church was small. They missed paying me the full amount about 25 percent of the time, but they had good hearts. Some would suggest that I should have left when they didn’t pay me, but God told me to stay. I could have done a better job teaching the church on how to manage money.

In 1980, we went to Youth with a Mission; a faith-based missionary organization that pays nothing. We went by faith (“faith-based” means no salary). Before 1980, we lived by faith through seminary.

People enter missions after raising support (usually). We felt called by God and simply went. We learned a lot after that. Throughout college, I lived the same way, but never at the level of faith or with challenges as big as we have had in the last twenty-three years.  From 1980 until 1995 our income varied from year-to-year. We were usually below the poverty level of North America (about 95 percent of the time). We hitchhiked sixty miles to a wedding one time with Judy in a gorgeous Hawaiian dress. Why? We had no car. Some would say that’s a good thing so we could identify with the world’s poverty stricken people. We never felt poor, though, and we never missed payments, large or small, that I can remember.

The vast majority of the fifteen thousand YWAM’ers that preach around the world are living below the American poverty level (some far below). Many nations live much cheaper than America, though. I have interviewed many missionaries about their finances. Median income on the YWAM base I live on in the U.S. was right at ten thousand dollars per year (bankruptcies in America average around eighteen thousand dollars per year). Solomon wrote about the slow accumulation of wealth. Unfortunately, for some people it is super-slow.

From 1995 onward, our income rose above the poverty level. The average North American pastor makes a 40K/year package in 2003 (Barna). I know a few missionaries with that kind of income. Now our income is above average. All of this history speaks of God’s faithfulness, both in abounding and abasing.

Income tells little of the story; very little. God taught us things. God taught us that limiting expenses, budgeting, saving, investing and giving really make a difference. The vast majority of money management books teach the same things. People succeed by thinking more about spending than income. Most people think more about income.

Sir John Templeton, founder of the Templeton Mutual Funds, learned and lived the same thing as a young man with his new bride. Templeton invested or gave 50 percent of all income for many years. This shows that it is a mistake to wait until we have enough to start saving, investing and giving. He and his wife lived on only half of their income, year after year. Now he is worth hundreds of millions, if not several billion dollars. A hundred years from now, Templeton will still be known as a financial wizard; probably one of the ten greatest in financial history

In his biography, From Wall Street to Humility Theology, Robert Hermann writes about Templeton’s first automobile:

John always aware of the importance of thrift, had recognized a bargain in those two cars and, with the help of his friends had turned his dream into a reality, for only a twenty-dollar investment. As a matter of fact, the first five cars he owned were secondhand and none cost more than two hundred dollars. He never paid more for a car until his net worth exceeded 1/4 of a million dollars. Thrift and bargain hunting went hand-in-hand in every aspect of John’s life (p. 125).

Needless to say, this is not good news for car dealers. Stanley and Danko point out that the more hours a person invests in looking for automobiles, the less likely he is to be a millionaire. This made Templeton rich and disciplined. Christian Financial Planner Ron Blue writes that people become wealthy by living below their income for a long, long time. Blue wrote about cars also. He stated that after much study, he concluded that the cheapest car we can drive is the one we presently drive. This assumes people are not already in the debt dumpster before they start accumulating. Successful people invest the excess for a long time. Hopefully we can leave the same legacy for those who follow after us.

As I write this, the stock market has mauled millions of investors for the past three years. Living in Montana, the bear mauling metaphor is particularly striking. Grizzly bears are always in a bad mood. However, watching lions on the Discovery Channel is intimidating.

I have lost enough money for three lifetimes. Nevertheless, because of the lessons God taught us over the past twenty years, we survived this mauling and continue to thrive. I said over and over through that time, “I’m just glad our house is paid for.” It hurt badly but God helped us. Wisdom helps us survive storms; not always avoid them. Some people want their primary spiritual wisdom and advice to come from human leaders. The Bible is the primary counselor according to its own testimony (Psalm 119:47-49).

The book you hold in your hand, though, is not about my wife or me. This book is about wisdom from the Bible—specifically money wisdom. Wisdom is eternal. God decreed his wisdom before the ages (1 Corinthians 2:7). This wisdom outlives everybody; it will outlive me, the writer, and you the reader. God’s wisdom is in Proverbs. Solomon pleads over and over at the beginning of each of the first seven chapters of Proverbs: “Hear my son, listen, give heed.” Test the wisdom and see if it works. It is an error to view Proverbs as simply “good literature.”

God offers financial advice in Proverbs. The pressing question is, “Will we listen?” I wish I could say that my money management has always been balanced and correct. Sometimes I have been unbalanced. When I was younger, I went to an extreme that I do not recommend. I needed dental work for several years as both an undergraduate and graduate student. I avoided the dentist because I had no money to pay the large bills nor insurance to cover them. My teeth suffered terribly. Finally, I found a clinic for poor people at Tufts University. I paid ten dollars for each filling, and had all of my wisdom teeth pulled for ten dollars a tooth. In later years, my dentist has told me that my teeth “suffered abuse” because of that. Looking back, I suppose I should have either borrowed the money to go or told my church that I needed some help. It was pride, stupidity or misplaced presumption that God would protect me. At any rate, I have made some bad financial decisions. Financially, I came out well (dentally, not so well).

As well, we did not have health insurance or life insurance until our mid thirties—again for financial reasons. Now that’s dumb. Yes, it is also poor. A large percentage of people who make more than 50K/year have no health coverage. I don’t recommend this.

As I think back on my own history, I feel like a man who has lived two lifetimes; one poor and one not poor.

I face money issues with an admitted bias (everyone does). I take the Bible seriously and thus speak from that opinion. Others also take the Bible seriously but disagree with me. To those folks, I acknowledge your disagreement, but beg you to read on.

I remember early in my Christian experience usually feeling antipathy toward church offerings. I avoided church because I felt that all churches wanted was my money (I had none at the time anyway.) I did not know then what I know now. The Bible talks about money from cover to cover, and giving is only one of many topics that God addresses. It is a goal of mine, now, to allow no offering plate to go by without giving something to God. Solomon wrote that generosity is wise and not a losing proposition.

Various people have been exposed to my teaching on money with varied responses. I remember a student years ago showed my class notes to a Vice-President of the World Bank. His response startled me. He told my student-friend, “You know, if everyone did what this man says, the world would be a lot better off financially.” Think about how messed up the World Bank has been at times. I don’t know if that is a good endorsement or bad.

Non-Americans have dismissed some of my teaching, stating that this is merely an “American” or a “western” teaching. What if it is? My response is that I did not learn this from an American or from a westerner. I learned this from a Jew in the Middle East who was not even from our millennium. Of course, the thought of Jews and money send some people away. But consider this: 1/3 of all multi-millionaires in the United States are Jewish; $50,000 households are double non-Jews; households under $20,000 a year number (percentage-wise) only half that of non-Jews (The Jewish Phenomenon). We need to listen to Jews about money. Anti-Semitism is impoverishing (literally).

Now to the format and content of the book. I begin with an overview of wisdom literature and the wisdom movement of the Old Testament era. I will then move through Proverbs in a systematic way, studying various monetary issues in categories. I will give practical details and statistics in each category from scattered reading through the years. I will conclude the text with some practical insights I have gained through the years. I close with an appendix of recommended books, web sites, and other helpful resources.

God Bless You as you read this.

Ron Smith

May 2003

Introduction

Proverbs on Money

“And men came from all peoples to hear the wisdom of Solomon, and from all the kings of the earth, who had heard of his wisdom.”

1 Kings 4:34

Imagine that several people walk into your living room one day. They know money. They know money well-very well. The first three are very rich. Nobody wants to learn about money management from poor people. They have names like Bill Gates (the richest man in the United States), Warren Buffett (the most successful stock investor in history), and finally Sir John Templeton (first successful international mutual fund founder).

As well, there are some media whizzes to make it fun and interesting like Suze Orman, Dave Ramsey and Bob Brinker. Each of these six money wizards would give different advice. Gates would talk about the power of innovation. Buffett would talk about avoiding get rich quick schemes. Templeton urges investing in foreign companies. Suze Orman would speak about the emotions behind money. Dave Ramsey would cut up your credit cards and Bob Brinker would help keep your money safe.

The wonderful thing about their visit is that, they came to help you financially. Why would they want to help us anyway? Perhaps they are philanthropic. They came for free. We could not afford their time. They brought free copies of all of their books and newsletters for you to read.

I suspect we would all pay attention to whatever they told us to do. Their track records don’t lie. Imagine not listening to them. I also suspect we would be a little nervous around them for many reasons. These people demand respect at high prices and receive it everywhere they go. We get them for free and do not want to waste their time; they want their time respected as well.

It would be erroneous to think that money just fell out of the sky on these people. They do things differently than other people, that is why they are rich. The Bible would say they handle money wisely.

One man is missing from this visit. Who could that be? He dwarfs the wealth of all of these people put together. He rode a horse and not a Rolls Royce. His portraits would be etched in stone. His parents gave him two names at birth. One of his names was Jedidiah Ben David. By translation, his name meant, “Loved by the Lord.” His other name was Solomon. He became king of Israel. Solomon was known for his God- given wisdom, his wealth, and later in life for his fall.

We need to hear from Solomon about his wisdom concerning wealth and money management. The Scripture says he was the richest king who ever lived, and he had great and exceeding wisdom, far surpassing all the wise men of his own day. What if Scripture said he had no wisdom at all? Who would come to listen to him?

Seminaries and Christian colleges teach very few courses on money management. Trained pastors or leaders need Solomon’s advice as much as anyone else.

If Bill Gates suggested something, we would give it serious consideration before doing otherwise financially. If Warren Buffett or John Templeton speak about investing, we do well to listen. Solomon speaks over and over in Scripture; and we will do well to listen to him. He has every reason to help us as we could never rival his wealth anyway. Solomon was not simply a wise, rich king. The Bible tells us that God gave him the wisdom and the money. Solomon wrote most of the chapters in the book of Proverbs. We do well to pay strict attention to him. The real question is why we would think to not listen. Of course a Moslem or anti-Semitic Aryan would turn a deaf ear to Solomon.

Not believing the Bible’s inspiration would lead us to wrong conclusions about Solomon as well. One certain question would be, “Is his story really true?”

The Bible teaches that we receive wisdom by seeking it, following it, and by our attitude of respect for God. What if wisdom was unavailable? How lost would we be then? Attitude, often, rules in Scripture. Solomon writes that we should seek wisdom with all of our heart. His father David wrote in Psalm 119 that we should delight in God’s wisdom. Wisdom captures affections and should rule our behavior. To read of wisdom and disobey is foolishness. “O how I love thy law, it is my meditation all the day” (Psalm 119:91).

During Solomon’s lifetime, an international wisdom movement swept through palaces and places of importance worldwide. Kings wanted counsel. Three things distinguished this movement: literacy, instruction from parents, and counsel for good judgment. For example, Babylonian kings kept many counselors as the book of Daniel shows.

The Scriptures tell us,

“God gave Solomon wisdom and understanding beyond measure and largeness of mind like the sand on the seashore, so that Solomon’s wisdom surpassed the wisdom of all the people of the east and all the wisdom of Egypt. For he was wiser than all other men, wiser than Ethan the Ezrahite, and Heman, Calcol, and Darda, the son of Mahol and his fame was in all the nations round about…And men came to hear the wisdom of Solomon, and from the all the kings of the earth, who had heard of his wisdom” (1 Kings 4:29-34).

If we were ancient Egyptians or Ezrahites, we would be very impressed with Solomon’s wisdom. The Queen of Sheba traveled hundreds of miles to experience first hand Solomon’s wisdom. In some ways, we have to wonder what she wanted from Solomon. If she was simply seeking wisdom, she was much more zealous for wisdom than many Christians who won’t travel thirty minutes to a good Bible church. Her response was that Solomon’s wisdom surpassed his reputation. This wisdom taught skill in living. Later in life, Solomon forsook his wisdom and suffered for it.

Solomon told us at the beginning of the book about his purpose in recording the Proverbs. He stated that the reason for the Proverbs was, so that “men may know wisdom and instruction,…receive instruction in wise dealing, that prudence, knowledge and discretion.” Fools disregard him. Apparently, Solomon felt other people needed his wisdom.

Proverbs is a collection of sayings, mostly from Solomon but also from other wise and Holy Spirit inspired wise men. They are not unconditional promises from God but inspired observations based on experience in life. There are warnings and exhortations. Some Proverbs are eternally true where others commented on the culture of the Old Testament.

Proverbs speak truth in few words. They bore no one and sometimes entertain. A door turning on its hinge is compared to a lazy man rolling over in his bed. Solomon intended meditation and reflection to follow reading. Speed reading Proverbs defeats their purpose. Proverbs states that the wise man considers the pathway he is taking. It is difficult to do that in “speed reading” mode.

Wise and foolish people dominate the pages of Proverbs. Solomon and the other writers contrast them vividly. This sharp contrast focuses our minds on imitating wisdom. Wisdom is as wisdom does in Proverbs. Wisdom’s affection beckons the reader to obey by calling us “my son” or “my children.” Cold computer read outs and Volkswagen manuals are lifeless “how to do” manuals. Even the heartless Volkswagen repair manual proves helpful and readable to those desperate enough to read it. Could it be we are simply not desperate enough to consult Solomon’s wisdom on money? What if Proverbs was heartless? Proverbs reveals the beating heart behind the “how to do” statements. Over and over the writer says “my son” and “my child.” We find the love of the parent in Proverbs. Solomon contrasts mouths and ears throughout the book. He warns us about mouths and usually praises ears. Listen much and talk little says Solomon.

We posture ourselves for wisdom by posturing toward wisdom with our mouths shut and our ears open. Why would we want anything other than wisdom from God to guide us financially? Solomon writes, “He who walks with wise men becomes wise but the companion of fools will suffer harm.” We walk with and we listen to the wise men in Proverbs. We grow to be like them if we imitate their wisdom and follow it with action. We “become” and grow slowly. One hundred years from now, we would be glad that we did.

I was on a Hawaiian beach in 1982. The sun was shining, and the Pacific waves were gorgeous. I thought about ministry struggles for money that I had seen in my eleven years as a Christian. Ministries bought things and were enslaved by the payments. Being chained to a bank was not God’s idea of blessing (the bank is blessed, not the ministry). As I pondered many ministries I knew of, I began thinking, “There must be a better way than what I see here.” What if this is as good as it gets financially in the ministry? I struggled thinking about God’s answers for these great ministries. I thought there must be wisdom somewhere that would make a difference for these ministries. Another thought captured my mind, “The Bible’s wisdom is in the book of Proverbs.”

I decided then and there to study Proverbs thoroughly. I remember the early readings. I read the big old black Thompson Chain Reference Bible through Proverbs over and over again. I read through it many times. I noted various topics. I needed the truth. I saw that there were less than twenty key categories in Proverbs’ wisdom that addressed money specifically. I bunched all relevant verses under each category and began the slow process of meditation through them. That was 1982, it is now 2003. After all, Proverbs is a three thousand year old book. Twenty- one years is a pretty short time to meditate on Proverbs. Fortunately, God’s wisdom never changes. I continue to meditate on these categories.

Wisdom with money reminds me of a story told by legendary trader and Wall Street money master Victor Sperandeo. They call him “Trader Vic.” Looking at him reminds you of the old James Garner TV show, “Maverick.” It is a gambling story; please don’t disregard it because of that. The story is titled, “The Secret of the Gamboni”:

“Joe was a card player, a good one. He was so good, in fact, that he had to move from city to city and find games where he wasn’t known in order to play for high stakes. One afternoon, in a bar in the suburbs of Chicago, he’s shooting the breeze with the bartender and asks; ‘Say where can I find a good card game around here?’

‘What kind of stakes are you talking about?’

‘Big,’ Joe says, ‘the biggest game you know about.’ ‘Well now I hear there’s a game out in the farm country.

It’s a bit of a drive, but these particular farmers play for big money.

Let me make a call and see if it’s OK.’

So the bartender makes the call, and then gives Joe directions to the game.

That evening, after a long drive, Joe pulls up to this barn in the middle of nowhere. Tentatively, he walks inside, tiptoeing around the fetid pile on the floor. At the back of the barn, he spots a partially open door, with light and smoke pouring through the opening. The familiar rush of anticipation and energy sweeps through him as he enters the room and introduces himself.

Farmers in overalls sit around the table, chewing cigars and puffing their pipes. In a quick glance, Joe estimates the current pot to be about $40,000—perfect. So he sits down. ‘Ante up,’ says the farmer holding the deck of cards. And Joe begins to play.

About an hour later, Joe is holding his own. He is about even when he draws three aces and two queens—a full house. With a large pot already on the table, he raises $15,000. The next two guys fold, but the leather-faced farmer across the tables calls him and raises another $15,000, without so much as batting an eye. Joe, certain that the guy is bluffing, calls the bet and lays down his aces-high full house. The farmer lays down junk; three clubs and two diamonds of mixed-numbered cards. Joe, suppressing a smile, starts to rake in the pot.

‘Wait just a darn minute,’ says the farmer, a stern and reprimanding tone in his voice.

‘Whattaya mean, wait a minute,’ says Joe, ‘you got nothin’.’

‘Take a look at the sign over your right shoulder,’ smiles the farmer. Joe looks:

THREE CLUBS AND TWO DIAMONDS CONSTITUTE A GAMBONI, THE TOP WINNING HAND IN THIS ESTABLISHMENT

Joe is really angry, but after all, rules are rules, so he continues to play with what is left of his holdings. About an hour later, he draws three clubs and two diamonds…a Gamboni! He bets everything, and on the final round of betting with the same leather-faced farmer he has to throw in his solid gold Rolex to make the call. The farmer turns over his cards a queen-high spade flush. Joe turns over his Gamboni and starts to rake in the pot.

‘Hold it there, fella,’ says the farmer, his grin cutting deep lines in his cheeks.

‘But I got a Gamboni!’ cries an exasperated Joe.

‘Sure, nough, but look at the sign over there,’ and he points over Joe’s left shoulder.

Joe looks:

ONLY ONE GAMBONI WILL BE PERMITTED PER NIGHT IN THE ESTABLISHMENT

Joe, broke but thankful for the invention of credit cards, leaves the barn with dung on his shoes, and the leather-faced farmer drives his tractor home feeling the weight of a solid gold Rolex on his wrist.

So the secret of the Gamboni is this: If you want to win, you’ve got to know the rules (Methods of a Wall Street Master, Victor Sperandeo, p. 1,2, Wiley Press).

Joe failed even though the truth of the house rules were posted. Imagine if those farmers had somehow deceived him. I suspect they would have had a fight on their hands.

To succeed at money management (God’s way), we must know the house rules (the house of God that is). The writer of Proverbs states, “My mouth shall speak the truth…” Proverbs 8:7.

Chapter One

Unrighteous Alliances

“The partner of a thief hates his own life;

he hears the curse, but discloses nothing.”

Proverbs 29:24

Why would a Christian get involved in an unrighteous alliance anyway? Sometimes it is deliberate, sometimes out of ignorance.

The story of the great train robbery underlines this truth. It happened in Cheddington, England, August 8, 1963:

In a grand scheme, timed down to the second, twelve masked

Englishmen converged on a pre-selected site in two Land Rovers, a three ton army truck, two Jaguars, and a motorcycle. They quickly switched the railroad signals, and like clockwork, the Glasgow-to-London mail train ground to a halt before them. In less than forty-five minutes they fled with 7,368,715 dollars in cash. In spite of all their well-laid plans, the thieves blew the otherwise perfect crime when they failed to wipe off their fingerprints at a nearby drop house. They are now serving an aggregate sentence of about three hundred years. Less than one million dollars of the haul has thus far been recovered (The Book of Lists, David Wallechinsky, p. 54).

Proverbs goes further than talking about simple stealing and its dangers. Solomon begins his book, talking about companionship with evil people. If you have ever been the unwitting partner of thieves you know exactly where this chapter is going. That’s right—downhill fast.

Of course, the last thing a thief wants us to be told is what Solomon is telling us in Proverbs 1:10-18:

My son if sinners entice you, do not consent. If they say, ‘Come with us, let us lie in wait for blood, let us wantonly ambush the innocent; like Sheol let us swallow them alive and whole, like those who go down to the pit; we shall find all precious goods, we shall fill our houses with spoil; throw in your lot among us, we will all have one purse’-my son, do not walk in the way with them, hold back your foot from their paths; for their feet run to evil, and they make haste to shed blood. For in vain is a net spread in the sight of any bird; but these men lie in wait for their own blood, they set an ambush for their own lives. Such are the ways of all who get gain by violence; it takes away the life of its possessors.

Proverbs warns about grand and violent money schemes. God warns the reader to stay away from such schemes and such people. Scripture teaches that we are to blow the whistle against such schemes and such schemers.

Joseph’s brothers conspired and sold him into slavery. Judas schemed with the religious leaders of his day and sold Jesus to a violent death. Solomon explains the snares (money snares) of adulterous relationships. Christians would do well to heed this warning against adultery. Adultery can ruin a bank account. Years back, as one prominent ministry was exposed for adultery, I remember saying to a friend, “Watch what happens to his money.” Sure enough, soon after that, he was convicted of fraud and went to prison. His unrighteous money management attached itself to his adultery. Solomon writes in Proverbs 5:1-14:

My son, be attentive to my wisdom, incline your ear to my understanding; that you may keep discretion and your lips may guard knowledge. For the lips of a loose woman drip honey, and her speech is smoother than oil; but in the end she is bitter as wormwood, sharp as a two-edged sword.…Keep your way far from her, and do not go near the door of her house; …lest strangers take their fill of your wealth and your labors go to the house of an alien; and at the end of your life you groan, when your flesh and body are consumed.

Adultery causes divorces. Divorce is one of the five leading causes of bankruptcy in America. Harvard Law School professor Elizabeth Warren, and University of Texas Law School professors Teresa Sullivan and Jay Westbrook write, “It has been a durable finding among bankruptcy scholars that divorce is closely tied to bankruptcy” (The Fragile Middle Class, Americans in Debt, Sullivan, Westbrook, and Warren, p. 173). In addition, they found that 63% of bankrupt single people are divorced (Ibid., p. 184). The unfortunate thing is that both the innocent and guilty parties are often hurt financially in divorce. If you are divorced, I can hear the Amen.

These statistics preach as loud as the book of Proverbs about the absolute necessity for sexual faithfulness in a marriage.

Professors Thomas Stanley and William Danko found that the inverse of the above facts is also true. In 1996, Stanley and Danko wrote a wildly popular book, which perched atop the New York Times best- seller list for months. They titled their book The Millionaire Next Door. They studied more than a thousand millionaires across the United States during the mid 1990s. They came up with some startling conclusions. One conclusion was, “He has married once and remains married” (The Millionaire Next Door, Stanley and Danko, p. 3). I wonder how they would evaluate Solomon. I suppose that he gave earlier wise advice about money and later lived foolishly.

King Solomon wrote, long ago, that strangers would take their fill of the wealth of sexually unfaithful people. This warns us from hard life experience. Law professors Sullivan, Warren, and Westbrook confirm it from the bankruptcy courts. Danko and Stanley confirm it by studying rich people and how they live. Beware of an unrighteous alliance manifested in sexual unfaithfulness. This breaks the piggy bank.

We have to wonder what the financial implications will be for the American Episcopal church concerning ordaining a gay bishop. If I read Proverbs anywhere close to correctly, I predict the church will financially suffer.

The Bible teaches consistently that people hurt themselves by unrighteous alliances. Cover to cover we see this principle in operation. Let me give you a few of them: Jehoshaphat partnered with Ahaz in war, and God destroyed some of his wealth; Lot partnered with the King of Sodom and almost lost his life. Joshua partnered with the Gibeonites, and the nation of Israel paid for that mistake for centuries following, ending with a famine.

It seems that several ministries have recently partnered with unrighteousness and have harmed themselves. Sometimes they did this with knowledge sometimes ignorantly. Ministries lost hundreds of thousands of dollars by allowing an unrighteous investor to handle their money. How can we avoid that mistake? We look at character.

The Bible speaks of character consistently. We need to evaluate character to deal financially with people. If this is so, what should we look for? The Bible gives us several keys.

Faithfulness in small things points toward faithfulness in broader contexts. Jesus said it in Luke 16. This is plain common sense. Learn the ABCs before reading textbooks. Interestingly, the Pharisees scoffed at the importance Jesus put on money management.

To apply this practically, we could ask:

1.        “Does this person pay their utility bills on time?” I know some ministries who are always late.

2.        “Does this person give generously to the gospel?”

3.        “If there is a problem with a product, do they take it back happily and replace it at their own cost?”

4.        Do they tell the truth when describing a product for sale?

5.        If the product is a used product do they show the dents, flaws or scratches from natural wear and tear?

These questions may seem intrusive, but we are talking about character. Tony Robbins lost $750,000 by hiring a financially unrighteous business associate. He wrote that he had not done a character check before hiring him.

The first chapter of Proverbs sheds light on character and the exhortation to all of us is “do not walk in the way with them.” Stay clear of thieves.

The Scripture points out that trustworthy people require less oversight in money management. Josiah repaired the house of the Lord. He collected an offering from the people of God to pay the workers. In 1 Kings 22:7, Josiah instructs, “But no accounting shall be asked from them for the money which is delivered into their hand, for they deal honestly.”

Honesty breeds work efficiency (it’s no wonder that getting visas into corrupt nations takes forever). Josiah knew the people that he could trust and could allow them to get on with the job without unnecessary micromanagement. I did a $30,000 business deal with Living Bibles International on a handshake. Why? Because I felt they were trustworthy— and they were. Judas Iscariot performed opposite to Josiah’s day and lost eternally. Judas pilfered petty cash, and Jesus knew he was a betrayer.

Solomon points out that “having a common purse” with unrighteous people is dangerous. This means we need to know, and know well, the character of the people with whom we work in the ministry or conduct business. Paul instructs Timothy to test people before placing them in responsible positions (1 Timothy 2). Test them with little things before giving them more. Is Joe faithful to clean up the sanctuary after the worship service? Test him before giving him the key to the church bank vault.

How do we do this when dealing with the world? Watch them (closely). Ask around town about their past track record. Do not simply go on their own advertised statements. Ask the Better Business Bureau. Many people treat money management too lightly. Jesus said “Where your treasure is, that is where your heart is also.”

Go talk to the bank. You would be amazed at how much bankers know about the community. Often, they are right in the middle of everything happening. Why? The community borrows their money. I live in a town of less than two thousand people. I am astounded at how much the bank knows about the whole town. I’m sure bank employees are smiling as they read this. They know more than they want to know at times.

Tell the banker that you are thinking of doing some kind of business with a person or business, and you need an unofficial and confidential reference. Watch the banker’s immediate nonverbal response. If the banker lights up, things are probably OK. If he looks uncomfortable and hedges positive statements with “on the other hand” or similar statements, be careful. Bankers can function like the fourth person of the Godhead in some communities. They are all knowing, all seeing, all hearing, and definitely all-powerful. They hold the purse strings. Ask them for information.

Scriptures in Proverbs

on Unrighteous Alliances

Proverbs 1:10-19

“My son if sinners entice you, do not consent. If they say, ‘Come with us, let us lie in wait for blood, let us wantonly ambush the innocent; like Sheol let us swallow them alive and whole, like those who go down to the Pit; we shall find all precious goods, we shall fill our houses with spoil; throw in your lot among us, we will all have one purse’:—my son, do not walk in the way with them, hold back your foot from their paths; for their feet run to evil, and they make haste to shed blood. For in vain is a net spread in the sight of any bird; but these men lie in wait for their own blood, they set an ambush for their own lives. Such are the ways of all who get gain by violence; it takes away the life of its possessors.”

Proverbs 5:7-12

“And now, O sons, listen to me, and do not depart from the words of my mouth. Keep your way far from her, and do not go near the door of her house; lest you give your honor to others and your years to the merciless; lest strangers take their fill of your wealth, and your labors go to the house of an alien; and at the end of your life you groan when your flesh and body are consumed, and you say, ‘How I hated discipline, and my heart despised reproof!’”

Proverbs 29:24

“The partner of a thief hates his own life; he hears the curse, but discloses nothing.”

Chapter Two

God Condemns Greed

“A miserly man hastens after wealth,

and does not know that want will come upon him.”

Proverbs 28:22

“A greedy man brings trouble to his family,

but he who hates bribes will live.”

Proverbs 15:27

Greed destroys families and people. It may be difficult for you to link greed and the destruction of families together. I saw it firsthand as a pastor. George (not his first name) died in a tragic accident. He was very generous. His sons followed none of his generous ways. Within two weeks after his death, his widow wept at our door, telling us she would have to get a lawyer to divide up the estate as the money grab had begun among their children.

Researchers James Patterson and Peter Kim wrote The Day America Told Truth. They surveyed two thousand Americans, coast to coast, in 1992. They found disturbing attitudes.

The authors conclude the book with a chapter titled “Fifty-Four Revelations.” Revelation number fifty is, “The United States has become a greedier, meaner, colder, more selfish, and more uncaring place. This is no wild inferential speculation but, rather, the informed consensus of the American people” (Ibid., p. 238).

They asked the following question: “Would you be willing to do any of the following for ten million dollars. Of those surveyed, 2/3 of them would agree to at least one, some to several.

Would abandon their entire family (25 %)

Would abandon their church (25%)

Would be prostitutes for a week or more (23%)

Would give up American citizenship (16%)

Would leave their spouses (16%)

Would withhold testimony and allow a murderer to go free (10%)

Would kill a stranger (7%)

Would change their race (6%)

Would have a sex-change operation (4%)

Would put their children up for adoption (3%)

(Ibid., p. 66)

The Roman empire fell because of these kinds of attitudes. The prophet Jeremiah wrote that the heart is desperately wicked. We see this in the above survey. North American Christians respond correctly about money when surveyed. On one hand, money is not that important to them when surveyed. On the other hand, they actually live differently than how they responded in the survey. In fact, we do the same thing as the world with our money-except we give two percent of our income to the work of God (Boiling Point, George Barna). Jews in America gave four percent to charity (Silberger pp. 39-42).

Greed shows itself in unusual ways (through appetites for things). Greed, after all, is an attitude; an appetite. I believe it is a monster in our hearts, with us at birth.

Economics professor at Cornell University, Robert Frank, wrote Luxury Fever in 1999. He concludes, “We will keep on spending more and more money for nothing” (Ibid., p. 279). Among many disturbing and downright anger producing stories, Frank writes about the young millionaires in America whose appetites border on the surreal. He does not call for ascetic or poverty stricken living in his book. He raises awareness of attitudes among the nouveau rich.

Frank writes about “scrapers” (homes that people buy to simply tear down and build another on top). He states:

Brian Pinkerton was thirty-two years old and fresh out of the University of Washington when America Online, the Internet access provider, offered him an executive position in its Silicon Valley office, plus a payment of 1.4 million dollars and stock options for his unfinished Ph.D. thesis. He then bought and demolished a $600,000 scraper [a home] in the elite enclave of Atherton (outside San Francisco) so that he could build a house large enough to entertain his friends. ‘It was definitely livable,’ said Pinkerton of the house he tore down. ‘I just wanted something a little bigger.’ At a party to demolish a 1950s house on the site of Intuit co- founder Tom Proulx’s ten-acre estate, also in Atherton, ‘guests were issued hard-hats….The first thing we did’ Mrs. Proulx said, ‘was hit golf balls through the picture windows’ (Ibid., p.29).

As I write this, I am sitting at a window in southern India. Across the street people are building a house. For the past two hours, three Indian women have been breaking baseball-sized rocks into smaller ones. They make one dollar a day. Reading about driving golf balls through picture windows against the backdrop across the street reminds me of a Peter Fonda movie, I saw a long time ago, about a man who took LSD. The name of the movie was “The Trip.” Nothing is in context. Everything is bizarre and surreal.

With attitudes like this, who needs the ancient Roman emperors? I wonder how the founder of “Habitat for Humanity” would have felt at that party. A discussion between mother Teresa and these people would be interesting to hear.

Frank continues, “At a recent boat show in Ft. Lauderdale, Florida, the more than twenty boats offered at prices of eighteen million dollars and higher sold out in a mere five days” (Ibid., p.18). One is tempted to ask, What planet do these people come from?

In 1999, the wealthiest man in America, Bill Gates, had a net worth of eighty-five billion dollars. The median family net worth in 1999 was only one dollar for every 1.4 million dollars in Bill Gates’ wallet (Wealth and Democracy, Kevin Phillips, p. 38). Solomon emphasizes attitudes about wealth. The greed issue, which Solomon raises, is a heart issue. Do we own the possessions or do they own us? The apostle Paul wrote about greed in the New Testament. I don’t recall ever hearing a sermon entitled “Greed.” John Wesley and Jonathan Edwards wrote about it a lot in the 1700s. Paul wrote to Titus that a “bishop, as God’s steward, must be blameless; he must not be arrogant or quick-tempered or a drunkard or violent or greedy for gain..’(Titus 1:7). In 1 Timothy 1:7, he wrote that “deacons likewise…must not be greedy for gain.” Paul wrote in Colossians 3:5,6 that covetousness leads to the wrath of God.

In Proverbs, we read that greed leads to burnout. “Do not toil to acquire wealth; be wise enough to desist.” Economics professor at Harvard University, Juliet Schor, wrote two important books in the last decade; The Overworked American (1991) and The Overspent American (1998). I have read her work and find no ascetic tendencies. Schor is simply making some prudent and frugal observations. Some in the “simplicity movements” may be ascetic but not Schor. She writes about propping up unrealistic, greedy expectations. Americans hurt themselves (literally) to do this. The Japanese do too. The June 13, 1991 edition of the Herald Tribune ran an article by Hobart Rowen, titled “Taking it easier in Japan.” Japan suffers ten thousand Karoshi deaths a year - men who die of overwork. The word “Karoshi” was invented to describe this phenomenon.

Schor quoted one British shoe factory worker:

It was easy to find volunteers [to work] for Sundays as well. I’m sure that there were times when you could have asked them to work seven days out of seven for a whole year; they’d have done it, if they’d been pushed.…And there were people who worked after hours as well, cash in hand, as well as their split shift, either through alienation, or sometimes from necessity. You see, when you were working forty-eight hours a week, cash really became the thing you were after…A friend said to me, jokingly (but jokes always have a serious side): ‘Me when, I’m not working, I don’t know what to do, I’m bed stiff, I’m better off at work.’ Your factory is your life…you have a bit more money, you’ll buy as much electrical gadgetry as you can. You’ll chase after money, but it won’t do you much good in the end” (The Overworked American, p. 148).

As well, she writes that her second book is, “about why so many middle-class Americans feel materially dissatisfied; why they walk around with ever-present mental “wish lists” of things to buy or get. How even a six-figure income can seem inadequate…” (The Overspent American, p. 6). Professor Frank at Cornell writes that the dissatisfaction comes from trying to “keep up with the Jones.”

This drive for dough has produced The White-Collar Sweatshop in America. In 2001, Jill Andresky wrote the book by that name. She chronicles the devastating effects of greed in American mid-level managers. Some are impacted by greed, others would say they are simply trying to earn a living. She writes,

‘The whole theme of your book is my life’, one IBM veteran in her early forties told me during the first of a series of conversations we shared.

Catherine described to me her steady progression from a junior position at ‘Big Blue’ in the early 1980s through a fairly continual string of promotions into the ranks of management during the next decade. Early on, she had been identified as a strong performer and, as she put it, ‘placed on the management fast track.’ While still in her twenties, she worked twenty-hour days. ‘It was pretty unbelievable’ is the way she recalls it now.

One two-year assignment kept her on the road, visiting IBM’s customers, five days a week. ‘I’d only go home on the weekends. That was just accepted. It was part of the culture. You just did it-kept working and traveling at that kind of pace.’ Since her husband also worked for the company, he didn’t complain; fortunately, his travel schedule was lighter than hers, which allowed them to maintain a semblance of a home life.

Then she was promoted into a line-management position. The good news was, she was on her way up and no longer needed to maintain that relentless travel schedule. The bad news was, her responsibilities included a regular rotation during which she was placed ‘on call’ twenty-four hours a day, on a shift that lasted a week at a time.

To an outsider looking in, what was perhaps most remarkable about Catherine’s work and home life was just how unremarkable it all seemed to her and her colleagues. ‘A customer could get in touch with me anytime. If you were on call, that meant you were their first point of contact.’ She paused, then added, ‘At two o’clock in the morning, you would get calls from a customer. But you were still expected to be in the office by 8:00 a.m. I did it for two years. I’d come home at eight or nine at night,. In the midst of that, I had my first back operation. The pace was insane when you’d get home, you’d go for the wine. And then, pretty much crash and go to sleep’ (The White Collar Sweatshop, p. 18).

With a job like that, who needs slavery?

The Scriptures teach that we are all born as fallen sinners. Included in that fall is a little monster in all of our hearts; its name is “greed.” Imagine Gordon Gecko, lead character in the movie “Wall Street,” sitting in church reciting his now famous line, “Greed is good.” This monster talks to us, usually during church services. As well, he times his talk and synchronizes it to the offering time in the service. It goes like this:

The offering plate comes down my aisle. I place my money in the plate. As I do this, the monster shouts, “That’s too much, that’s too much!” I have learned through the years that you can’t pray this monster away, nor read your Bible, and he goes away. I have learned that I cannot be civilized toward this monster in my heart. I must deal violently with him. When I hear his ugly rasping voice during church, I have learned through the years what to do in response to him. I pull out the wallet a second time and extract another bill. My heart leans toward greed. The only way to counterbalance that leaning is to give when I feel inclined to be greedy. This reminds me of something Martin Luther said: “A man is converted in three stages: first his head, then his heart, and finally his wallet.”

Greed manifests itself in surprising people throughout the Bible. In 2 Kings 13:21, the text describes the result of one man’s greed. The verse reads, “And as a man was being buried, lo, a marauding band was seen and the man was cast into the grave of Elisha; and as soon as the man touched the bones of Elisha, he revived, and stood on his feet.” Have you ever read that verse and wondered what on earth is that talking about? This verse speaks of one man’s greed. To get the story, we must read this passage in context with the rest of Elisha’s life.

His mentor, Elijah, passed by Elisha and threw his mantel on Elisha. This indicated that Elisha was to succeed Elijah in the supernatural ministry of a prophet in Israel. Elisha faithfully learned his lessons. After the death of Elijah, people said the spirit and power of Elijah was on Elisha. He did the same miracles as Elijah only greater. Likewise, Elisha chose a young man named Gehazi to learn from him in the ministry. Elisha’s relationship with Gehazi mirrored Elisha’s relationship to Elijah. Gehazi failed where Elisha succeeded as a student.

God healed Naaman, a Syrian General. Naaman tried to pay Elisha for the miracle. Elisha refused the money. Gehazi deceptively went back to Naaman and lied to him, saying Elisha changed his mind and now wants the money. Gehazi hid the money in his own house. Elisha found out and Gehazi died a leper without the anointing of God on his life. Leprosy is a high price to pay for greed. (See 1 Kings 17; 2 Kings 13 for the greed story). Greed is really not worth losing a ministry. Disguised greed in the form of wanton appetites can also cost people a lot. I wonder what Elisha would have said to Gordon Gecko about greed. Elisha’s anointing went to the grave with him. The miracle power was in the grave with Elisha instead of on Gehazi his apprentice prophet. That is what 2 Kings 13:21 is about.

The apostle Paul wrote that greed invites the wrath of God. Ananias and Sapphira fell down dead at the apostle’s feet for lying to the Holy Spirit about money. Their greed-based lies led them down the route pioneered hundreds of years earlier by Gehazi. When Paul said greed invites the wrath of God, he was not simply talking theory. A good question to ask is, “How many ‘rip roaring sermons’ have you heard throughout your Christian experience condemning greed?” Probably very few.

I asked my wife that question. She has been a committed church goer/sermon-listener for over thirty years. She answered, “None.” One writer stated that Christians talk freely about the most intimate details of their sex lives but nothing about their financial lives. I have observed this as well through the years. Why? Jesus gives us the answers.

Jesus said that where our treasure is, there is our heart also. Money represents so much of who we are at our core level. Some people worship money. Paul wrote covetousness is idolatry. Money represents how we spend our time. Money represents what we count as important and valuable. Money represents freedom to do things. Money talks.

Error rules in parts of the church. Some believe “God wants you rich.” Others hold he idea that “God wants you poor.” Both teach error. Another error is the silence modeled in seminaries and Christian colleges about money. We conclude God has nothing to say or very little about money management. The poverty mentality has a longer history in the church. The monasteries and nunneries framed their existences on asceticism.

Some feel all that the church wants is money. I felt that way early in my Christian life. As far as I was concerned, all preachers spoke about was money.

If greed inhabited geography, total discomfort would dictate the weather. The land would be parched, the trees would be dead, the water would not be drinkable. The frustrating thing about this land is that, like a corrupt nation, potential for greatness would be there but untapped because of abuse.

If greed were an animal, the closest description would be a shark. Sharks are literal eating machines: Rows of teeth; eyes that roll back when they maul and mangle victims. What a frightening picture.

Greed only eats and produces nothing. Everything is a possible victim; everything is a possible target on the radar screen.

Scriptures in Proverbs about Greed:

Proverbs 15:27

“A greedy man brings trouble to his family, but he who hates bribes will live.”

Proverbs 28:22

“A miserly man hastens after wealth, and does not know that want will come upon him.”

Chapter Three

Giving First-Fruits and

Generosity Bring Blessing

“One man gives freely yet grows all the richer.”

Proverbs 11:24

“Honor the Lord with your substance and with the first fruits of all your produce; then your barns will be filled with plenty, and your vats will be bursting with wine.”

Proverbs 3;9, 10

Every book in the Bible demonstrates giving: Genesis details an offering Jacob promised; Exodus teaches about the sacrifice of animals (costing money) required for Passover; The first seven chapters of Leviticus teach about sacrifices and offerings; Numbers describes a burnt offering given to God as a pleasing odor to the Lord when the people went into the land; Deuteronomy teaches about tithing in chapters 14 and 26; Joshua mentioned offering burnt and meat offerings; Judges shows Samson’s parents offering a burnt offering to God; Ruth was given to Boaz as a wife; 1 and 2 Samuel describe burnt offerings; 1 and 2 Chronicles record the largest offering in history (five billion dollars in one day); 1 and 2 Kings showcase a gift given to Elisha by a rich couple for a room; Ezra describes freewill, sin and burnt offerings, along with a gift from a pagan king to God’s house; Nehemiah exhorts God’s people to resume giving; Esther illustrates the power of giving up food for a while to seek God; Job offered sacrifices to God regularly; Psalms repeatedly describes all kinds of giving to God; Proverbs details that giving can produce riches; Ecclesiastes instructs us on a heart of giving; Song of Solomon describes giving our heart to the one we love; Isaiah shows the self-giving of the Messiah; Jeremiah discusses peace offerings; Lamentations describes the sorrow produced by not having enough to give; Ezekiel mentions the drink offering, peace offering, burnt offering and more; Daniel refused the unrighteous offering of Belshazzar; Hosea mentions that the fruit of lips of praise are an offering; Joel both laments and rejoices over God’s offerings; Amos describes unrighteous burnt offerings; Jonah shows unbelievers offering offerings; Micah describes burnt offerings; Habakkuk chapter 1 shows people giving offerings to false gods; Haggai shakes the wealth of the nations for all of the money to come to God’s house; Zechariah writes about sacrifices given in the context of holiness to the Lord; Malachi encourages tithing; Matthew shows us how offerings should be given with clean hearts; Mark describes giving to parents; Luke shows the law of giving and receiving; John tells that God so loved the world that he gave; Acts describes the early church giving to each other and there were no poor among them; Romans exhorts givers to give; 1 Corinthians tells believers to give weekly; 2 Corinthians promises liberal reaping for liberal sowing; Galatians encourages giving to the poor; Ephesians exhorts the thief to stop stealing and give; Philippians is Paul’s thank you letter to them for supporting his ministry; In Colossians Paul exhorts them to give their letter to the Laodiceans and avoid greed that invites the wrath of God; 1 Thessalonians teaches us how Paul gave himself as well as his teaching to the saints there; 2 Thessalonians encourages prudent giving; 1 Timothy encourages the rich in the world to be rich in good deeds; 2 Timothy encourages practical aid in transporting things one to another; Titus encourages zeal for good deeds; Philemon teaches generosity in spirit; Hebrews teaches hospitality to strangers; James encourages practical giving to orphans and widows; 1 Peter exhorts service from a zealous heart; 2 Peter teaches us that God gives sinners time to repent; 1 John shows that true love is reflected in actions; 2 John forbids hospitality to false teachers; 3 John commands it for true teachers; Jude multiplies mercy, peace and love to believers; Revelation gives glory, honor and power to God.

It is evident that the Bible sings of giving, so why does the church not give more? Different people give different answers. It should not surprise us that there is something about giving in every book. In some ways, all the giving in the Bible is so subtle that you have to look for it in book after book.

Some cults require 10 percent tithing for membership. A few churches require it as well. It seems that many Christians preach it, but few practice. Worldwide, the church gives around 2 to 3 percent of its income. In the U.S. over twice that amount goes for recreation and entertainment.

As well, preachers lose their jobs for speaking too zealously about this topic. That makes sense because so few people enjoy or want to hear about giving. Guilt feelings don’t encourage large crowds. I remember when I pastored a church for two years in the 1970s, I preached about two hundred sermons. Less than five focused on money and giving. If I had it to do all over again, things would be significantly different. The church talks about sex and evangelism far easier than giving. We must ask “Why?” My answer is that our disobedience makes us uncomfortable in talking about it.

If that is correct, we are probably far more faithful sexually than we are financially. Most Christians have totally yielded their sex lives to the Lord. A proper question would be, “Have you given everything to the Lord?” After all, God says in Haggai, “The silver is mine and the gold is mine.”

I am not one of those “give your first ten percent to the local church” kinds of people. Scripture teaches us to financially support those who feed us spiritually. Many preachers claim that the church is the “store house” to which we should bring our first fruits.

Judy and I attended a church that preached this doctrine regularly and with great zeal. To their credit, they built their sanctuary with cash and gave 25 percent of yearly income to missions. When we were first married, I was a 10 percent tither, to the penny. If we made $111.00, I tithed $11.10 to God’s work. I developed this habit throughout college.

The “storehouse” in the Old Testament supplied orphans, widows and refugees with food and sustenance. As long as the local church does this, I agree. However, most local churches don’t do that. They build and they pay pastors, secretaries and youth directors. This is far from the Old Testament “store house.” The pastor, the secretary and the youth director eat also and must be fed. We miss God’s best by not feeding them and feeding them well. We mistake that provision for our pastors by calling it the equivalent of “the Old Testament tithe”.

Extreme examples abound. Some pastors live in relative opulence.  Others live in true poverty. Neither extreme paints an accurate picture of proper Christian giving.

I think of an expose on national TV about three ministries living in opulence. Of course, the church took a verbal pounding from the world that week. Next to that thought is a picture in my mind of a refugee church I preached at in southeastern Nepal. This church was a bamboo hut, and the preacher lived in a United Nation’s refugee camp with literal paper walls.

I have seen beautiful examples of generosity through thirty years of ministry. I have seen poverty stricken missionaries give away their last dime to build missions compounds and training facilities in other lands and send out other missionaries. My church postponed putting down a carpet in order to fund missionaries in Africa.

I have an admitted bias about giving. I find it very difficult to give to people I believe are bad stewards with money. I also find it difficult to give and continue giving to people who don’t express gratitude. This is a confession of a weakness and not testimony about a virtue. Jesus said to be perfect like our heavenly Father, who is kind to the ungrateful. I remember hearing Derek Prince speak about sowing seed in a good field to reap a harvest. I suppose I am saying the same thing.

My wife gave away her Canon camera in an offering once in the early 1980s. She prayed and felt that God said she could keep the flash attachment. We went without a camera for several years. Sometime after that, she was in Korea while I was in the U.S. taking up an offering for something else. A South African brother came to me during the offering and asked me a question. He said, “I feel like God told me to give you my camera, do you think God speaks like that?” I answered “Yes, it sounds like God to me.” He gave us his Minolta camera. The Canon flash fit the Minolta.

This offering occurred while Judy was in Korea. I don’t know whether it was serendipitous or some spiritual connection. She gave her camera to a Korean and we got one back while she was in Korea a few years later.

God lives in a totally different atmosphere for giving than we do. I am convinced of that. Two stories illustrate this from the Bible:

The first story is about King David, who ruled forty years in Israel. He collected the largest offering in history. The atmosphere must have crackled with electricity the day King David led in a national offering in 1 Chronicles 29. Sacrifices were going up around the clock, as well as, constant singing and praising. In 1 Chronicles 29:22, it says, “and they ate and drank before the Lord on that day with great gladness.” The scene was divine pandemonium as five billion dollars was raised for building Solomon’s temple.

The second story occurred in Mark chapter 12, when a nameless widow gave two pennies into the temple treasury. It was all she had. Jesus stated that she showed true marks of discipleship in doing that.

So how much giving is enough? The answer is not simple. The Old Testament teaches that “no one shall appear before the Lord with empty hands” (Exodus 23:15— about the feast of unleavened bread). I think this is a good Christian principle. Everybody needs to give something. For some people, only 2 or 3 percent is enough. For others, 20 or 30 percent is not enough. God leads people differently. I have thought about this for many years. I think the blanket 10 percent solution is practical, specific and generous. I also think it is not Scriptural.

Ten years ago, I wrote a book about Bible meditation. I stated this same thing in that book. I got more comments and questions about that than anything else in the book. The remarkable thing about that was tithing was only mentioned in about three paragraphs in the whole book. Some preach that God is that great “hit man in the sky” who will curse your house if you don’t tithe (Malachi 3:10). The Old Testament era was different than ours. The tithe was a tax. I believe that preaching a Christian obligation to give 10 percent to the church is as incorrect as giving nothing at all. They are both out of line with the New Testament.

In the Old Testament there were at least three different tithes, and we really can’t be sure how large each of these three tithes were— percentage wise. Maybe they were 10 percent and given yearly. Maybe they were 10 percent and given at alternate years. Maybe they were each 3 1/3 percent and given yearly. Maybe they were given in combination— different for different years. I say all of this because no one really knows for sure. We know the Jews were generous and gave.

God tests hearts, specifically in the offerings. In 1975, we attended Beverly Hills Baptist Church in Dallas. Howard Conatser was the pastor. He spoke about giving a suit to a beggar. He reached for an older one and God told him to give this beggar one of his two new suits. God asked him the rhetorical question, “Why are you going to give him your old one? Give him your best.” It makes sense as Jesus said, “What you did to the least of these my brethren, you did it to me.”  We show faith by giving. Jesus said that the giver receives. Solomon said that the generous man would prosper. Chronologically, the giving occurs first, then we receive. Again, we show faith when we give. Larry Burkett said that giving shows the difference between saying “I trust God” and really trusting God.

Paul writes, “If we sow [give] sparingly, we shall reap [receive] sparingly. If we sow bountifully we shall likewise reap bountifully.” There is a correspondence which God engineers; Sow nickels—reap nickels; sow quarters—reap quarters. We cannot get over specific with this or too exact. The Scripture teaches that generous people are blessed. This is undeniable. Harold Ockenga told us in chapel at Gordon-Conwell, “God will be no man’s debtor.” That is, you can never out-give God.

Could it be possible that Christians in need are reaping for sowing nickels instead of quarters? I ask this as a question—truly. I’m not sure that I have answers, but the Bible is plain. Christians lack material things, and this should be the exception and not the rule. I think percentages are important in giving.

In other words, if a millionaire gives away ten thousand dollars that is one thing. For a person with a net worth of twelve thousand dollars to give away ten thousand dollars is quite another. In the nickel and quarters illustration above, the millionaire gave away nickels, while the twelve- thousand-dollar person gave the quarters.

I have seen a lot of missionaries give quarters and reap quarters. I have also seen them reap nickels and I have wondered why. Part of the answer is raw disobedience in the church. The church hoards and gives little. The response is changed teaching and changed behavior. What God wants is overall life stewardship. What we presently have in the church is not working.

I wonder what Paul would write to the twenty-first century church in place of his thank you to the Philippians. Would he calibrate praise and couch it in the middle of severe rebuke for greed? I suspect he would surprise us.

I wonder how much we believe the Bible sometimes. Acts 20:35 describes Paul’s last words to the Ephesian elders. He quotes Jesus “It is more blessed to give than receive.”

I have sat through many miraculous testimonies where Christians describe receiving amazing provision from God. I remember one German girl testified to our missions training base. She found an old statue in the trash can on the street. She pulled the statue from the trash and took it to an art appraiser. The work was appraised as valuable. She sold it to an art dealer and paid for some of her missionary service overseas.

Another missionary needed train fare to northern Europe. She found the proper bill floating in midair right after she prayed for it.

These people were “blessed” by God. I believe God wants us to live in a condition of “more blessed.” How do we do that? By giving generously as God leads us. It is “more blessed” to give than to receive (Acts 20:35).

In 2 Corinthians 9:6, Paul writes about sowing (giving) “bountifully.” In Greek, the word translated “bountifully” is actually “blessedly.” We want to give to God under the term “blessedly.” The term “blessed” can be translated “hilariously happy.” Jesus said we can be “more blessed” by giving.

I like what Louisiana preacher Jesse DuPlantis says. He constantly preaches, “I am not trying to make a living—I’m trying to make a giving.” In Ephesians, Paul told the thief to steal no more, but, rather, work so as to help others. Don’t make a living; make a giving. If we make our goal to live for God and sow by giving, He will take care of the reaping and receiving. Of course, some teach that we give to get. That is an error that is based on a misinterpretation of a passage in 2 Corinthians.

Have you ever thought that you can actually celebrate the “more blessed” part of your life. In other words, we have control over the sowing and that is all we can control. Once the seed is sown, God Himself determines the harvest we reap. Paul writes about the process relative to the ministry in 1 Corinthians 3:6.

He writes, “I planted, Apollos watered, but God gave the growth.” Only God can make growth. Man can sow and water only.

Like the ministry of the Word, we can sow money into God’s kingdom, and we can water it with prayer. Only God can give us a big harvest. As Loren Cunningham says, “We must do the possible, God will do the impossible.”

This calls for discipline in two directions. We must be disciplined in our own giving so that we can live in the “more blessed” aspects of Acts 20:35. As well, we must be considerate of our brothers and sisters in their giving. God’s promise to them is the same as it is to us. When they wish to give to us, it is not right to move them out of the “more blessed” state by not receiving from them. If we insist on constantly paying for everything, we rob them of a blessing that God wants to give them. In fact, we rob them of “more blessing.” Come to think of it, I have never heard a sermon on Acts 20:35 either.

Scriptures in Proverbs about Generosity

Proverbs 3:9, 10

“Honor the Lord with your substance and with the first fruits of all your produce, then your barns will be filled with plenty, and your vats will be bursting with wine.”

Proverbs 11:24, 25

“One man gives freely, yet grows all the richer; another withholds what he should give, and only suffers want. A liberal man will be enriched, and one who waters will himself be watered.”

Proverbs 21:26

“All day long the wicked covets, but the righteous gives and does not hold back.”

Proverbs 22:9

“He who has a bountiful eye will be blessed, for he shares his bread with the poor.”

Chapter Four

Debt

“The rich rules the poor and the borrower is the slave of the lender.”

Proverbs 22:7

Have you ever noticed how serious people act in banks? I enjoy looking at people’s demeanor when I go into the bank. I like to go in as much as possible instead of going through the drive-thru. Look at the loan department dynamics, those are most instructive and at times, downright entertaining. The folks wanting the loan put their best foot forward, trying to shake loose some funds from the money tree. The loan officer is pensive but friendly—constantly evaluating the trustworthiness of the folks before him. Who has the power in this relationship? The bank, of course.

I have thought more about this topic than any other related to money management. Arnold Blech, my high school teacher, haunts me to this day as I think of his statements: “Keep good records; Pay cash; Stay out of debt.”

I have watched ministries struggle, individuals struggle, and businesses go bankrupt. I have read book after book on this topic as well. I have lectured untold hours on debt. In fact, I am quite sure that some of my friends have felt that I’m obsessed with this aspect of money management.

Debt relates to so many aspects of modern life. Two Harvard economists, Harless and Medoff, state that the bond markets rule the financial world. The bond market reflects the price of money for borrowing and lending. After many years of thought on this, I agree. Another Harvard Business School graduate, Andrew Tobias, stated that “interest” is the most important concept related to money management. Speaking of interest, a student asked me “Do you believe in interest?” I responded, “Yes, I believe in receiving it, but never paying it.”

I write this in May 2003. Three days ago the news reported that personal bankruptcies set records in the U.S. for the past twelve months at 1.5 million. No doubt, many of these bankruptcies were caused by honest errors in judgment. Debt-free people declare no bankruptcies.

Ministries puzzle me at times. I remember sitting in the pastor’s office of a spectacular American church facility on the east coast recently. The entry foyer was solid glass in every direction. “Gorgeous” is the correct word for that church. It was quite a view. As I waited for the evening service to begin, I looked at the bookshelf, filled with literature. One section of the bookshelf took me aback.

As I looked at the category on economics, it was large covering more than one large bookshelf. Many of the books were clearly university textbooks in macro and microeconomics etc. The staggering thought to me was that this church pays $100,000 per month mortgage for its gorgeous edifice. I spoke with one of the pastoral staff about it, and he grimaced. Each family in that church pays about $130 per month on the church mortgage—most of it is interest. I wondered what all those economics textbooks taught this well-educated pastor. A Ten million dollar loan totals twenty-five million dollars after thirty years of bank payments. How many missionaries could that extra fifteen million dollars in interest support?

Financial author and radio personality Larry Burkett stated repeatedly that personal debt is the number one strategy of Satan against Christians in North America. This personal debt arrives in many packages and delivery systems—often credit cards, car loans and mortgages.

Don’t get me wrong, the Bible says nowhere that debt is sin; neither is it necessarily wise. Scripture allows borrowing with constant warnings and caveats.

Christian colleges, Christian universities, and Christian high schools puzzle me about debt. Often, college counselors encourage heavy borrowing for Christian young people. The rule seems to be that education is worth it at any price—including their future. The difficulty is that student loans demand repayment in the future. I spoke with a young graduate of a prominent east-coast college about this recently. He wanted to go into missions, but also realized that his fifteen-thousand-dollar undergraduate loan could hold him back.

Doctors graduate with large loans from American medical schools, often measuring $100,000 or more. Again the standard operating rule is that the loan is “worth it.” Stanley and Danko point out inThe Millionaire Next Door that doctors are among the worst money managers of any professional group. Some doctors called to missions never go because of heavy medical school debt.

Stanley and Danko hold that medical earning power is so great that doctors simply never need to think about debt too seriously. They can make thousands in a day.

Many missions-minded young people deny a call to a foreign field of service. Why? Because of student loans. A friend of mine from Puerto Rico left the mission field less than a year ago, solely, to get her school loans paid off.

Whole nations cry for financial mercy. They drown in self-inflicted interest repayments either to the World Bank or to the IMF. Banks go under because of defaults on their loans. Many times, the banks are to blame as much as the borrowers. Why would a large international bank repeatedly lend to a nation that has repeatedly defaulted on loans worth billions of dollars? Brazil is a primary example of this, and is known as “the largest borrower in history” (See, The Money Lenders, Anthony Sampson, p. 258-261). Banks have done it in the past forty years and no doubt will do it again (talk about errors in judgment).

Medoff and Harless wrote The Indebted Society. They state that our century introduced a new concept for wealth assessment. We measure people financially, not by what they own, but by what they owe.

How long does it take to pay off a $2,500 credit card bill? Making minimum required monthly payments, it takes around thirty-four years.

Usually, when I begin my long tirade against debt, someone asks a legitimate question. “ What about buying a home? You just throw the money away renting.”

The rent argument holds little water for me, for two reasons.  1. “We throw away” mortgage money also for the first 40 to 50 percent of the life of the mortgage. On a thirty-year mortgage, early payments are 90 percent or more interest anyway (so much for equity). 2. Australian George Earl wrote the following about Australian home buyers which can be applied pretty much everywhere else:

‘Even if you occupy a house for life, it will take thirty years to reach the point where you are better off than traditional renting.’ Earl brings substantial industry background to the issue, with over twenty-five years in the building industry, and only lately as a lecturer. City dwellers are often the worst off, since such huge mortgages, relative to income, are necessary in order for people to buy a home. This ‘huge financial stress’ [Earl’s phrase] could be substantially reduced if people understood better the real cost of borrowing. There are many, however, who do not wish the real costs of borrowing to be known. Added to this is the inability of many to undertake the necessary calculations to determine at the practical level the real costs of borrowing.’

(The Bulletin, “The Great Australian Illusion” by Geoffrey Maslen, November 22, 1994, p. 36: Quoted in Making Sense of Your Dollars, Ian Hodge Ph.D. Ross House, p. 80)

There are several downsides around a mortgage payment.

1. Cash flow

2. Years held captive (mortgage is a combination of two French words - mort meaning “death,” gage meaning “grip”) Mortgage is a death grip. Have you ever heard of that before? (Our junior high French is good for something after all. Just as the multiplication tables teach us about calculating compound interest.)

The cash flow crunch is cash lost—to you. Can you sustain the present reduced cash flow forever? The banks hope so. This is so real to me that I keep a bank amortization statement stapled to the front of my personal diary. It is the repayment schedule on a thirty year mortgage. I keep it there as it reminds me of the ninety percent interest people pay during that first year of their loan.

My wife and I built our house with cash. (We had to borrow ten thousand dollars at the end because of a cost overrun. We paid the loan off in six months.)

For a lot of people, the idea of paying cash for a home sounds like a Star Trek voyage with Captain Kirk on the Starship Enterprise. It can be done with discipline, patience and the goodness of God . I was forty- nine and my wife was fifty when we bought our first and only house.

I concluded several things after building my house. First, I concluded that many Americans are in a house too big for them. They pay too much for the mortgage. I understand the 28 percent or 36 percent rates the government allows. If people are not overstretched on their mortgages then why is the next fact true?

Professors Sullivan, Westbrook, and Warren from the University of Texas and Harvard University Law Schools concluded five basic reasons for bankruptcies in America. Mortgages ranked in the top five reasons for bankruptcy. These professors seemed somewhat perplexed by their own findings. In fact, they wrote about it:

That these debtors could survive the most searching financial scrutiny most Americans will ever face only to find themselves in bankruptcy a few years later is a stark reminder that even solid financial security can be fleeting. The bankruptcies of these homeowners represent a stunning fall from a perch of seeming financial security that had been certified by a mortgage lender as within the government guidelines of financial security.

The irony of the homeowners’ fall into bankruptcy is sharp. Not only did many of them survive rigorous financial scrutiny, but even those who stretched beyond their capacity to buy and those who jumped into real estate markets they only dimly understood, were in some sense prudent people. When they bought their home, many of these debtors were people who were making an effort to save rather than to consume. They were not heedless grasshoppers who ran up credit card bills and waited until tomorrow to think about what to do.

(The Fragile Middle Class, Americans in Debt , Sullivan, Westbrook, & Warren, p. 209)

In 2003, Harvard professor Warren wrote another book on America’s struggle with debt titled,The Two-Income Trap (why middle- class mothers and fathers are going broke). She concludes that mortgages are one of the main current problems taking families into “financial disaster” (Ibid., book jacket). People are simply taking on mortgages too big for them.

Not surprisingly, Harvard’s Medoff and Harless concluded: “Debt is the underlying cause of the economic insecurity felt today by most Americans” (The Indebted Society, Medoff & Harless, p. 8).

These two Harvard economists concentrate on many financial variables. They think about income, taxes, prices, production, etc. They concluded “debt” is the central cause of American economic anxiety. As well, debt is found as the central cause for American financial pain and not a side issue. This leads to questions in a lot of people’s lives; in fact, Medoff and Harless say “most Americans.”

Their words blow a frosty wind across rosy-colored hopes for Christians (and unbelievers) living on borrowing. Their statement is cold and factual.

As well, Medoff and Harless’ statement that debt is “underlying” shows us that people might not see this problem at first glance. Debt can be a hidden problem. With broad strokes, these two wrote about the big picture way back in 1994. Things are actually worse now. They call this opinion their “argument” (Ibid., p. 8). They have conviction about this opinion.

The world’s economists live in a “debt filled” intellectual world, and this is simply an assumed part of economic life. Life without debt for the economist is a borderline ludicrous one indeed. Many economists see debt as not simply natural but an actual positive “good.” The bond markets show us that.

So why would Harvard’s Medoff and Harless write their book?  Because they see so many people caught in this trap.  They continue by posing this statement: “In our time, the most critical question is how much to consume” (Ibid., p. 6).

Ross Perot, Sir John Templeton, Mary Sprouse, Ron Blue, and others agree. To get ahead, these giants suggest that we should think first about consuming less rather than earning more. The further implied issue is how goods and services are paid for and when they are paid for.

For all of these money wizards, why is consumption the question? As verbalized by Medoff and Harless, there are really six answers to this consumption question.

First, overconsumption reduces personal (or corporate) cash flow. Buy something today and some money goes, some of it goes now and more (much more) goes later (i.e. if it is bought on credit). Think of a debt as a savings account in reverse. In this situation, interest works against us.

Second, interest on loans or credit cards eats into even more cash flow depleted by consumption.

Third, depreciation begins immediately on everything except real estate (and a few other rare commodities). The general rule, though, is that depreciation is a reflection of the law of entropy in the financial world.

Fourth, without money there is no capital to make any further interest capital gain.

Fifth, opportunities are lost for future investments, for growth, or giving when there is no cash.

Sixth, the difference between “needs and wants” dictates forethought prior to purchases. Harvard economist Juliet Schor has written extensively on how “wants” evolve into “needs” over time. Attitudes change, the more we have.

Speaking of planning and forethought, Harless and Medoff say, “Credit cards took away the element of forethought from borrowing transactions.”

When I run my credit card through the gas pump in my village, forethought exists but not in my brain. I simply swipe the card and pump the gas. In the old days, to borrow money required something. A person went to the banker every time money was borrowed. The banker interviewed the borrower and looked at credit worthiness for every individual loan. Credit cards changed all of that. We can borrow money for everything from Hallmark greeting cards to an anchovy pizza to a trip to a Greek Island. The ultimate grocery store mind-blower is to watch a lady pay for part of her bill with food stamps and the other part with a credit card. She makes no money but has a credit card! This happened in good old traditional Montana. All of this borrowing can happen without ever being interviewed by the bank except when they give you the card, sometimes “pre-approved” for credit.

Because there is so little forethought around credit card purchases, poor decisions rule the day. Lack of forethought makes us easy targets for the marketers. To show the power of this, answer this question. Let me ask the question again:How long will it take to pay off a $2,500 credit card bill paying only the minimum monthly payments? The answer— thirty-four years. How about home mortgages? The first five years of paying a mortgage are more than 80 percent interest payments and less than 20 percent principal. Consider the wealth of your average bank or mortgage lender.

Sullivan, Westbrook, and Warren demonstrate that overloaded credit card debt ranks in the top five reasons for bankruptcy in America. They write,

The ubiquity of credit card debt among the middle class may obscure the problems that the cards can engender. All-purpose credit card debt is the most frequently listed debt in the bankruptcy files. Nearly 60 percent of all the debtors list some all-purpose credit card debt”

(Sullivan, Westbrook & Warren, Ibid., p. 119, 120).

It is also true that student credit card debt produces slavery, poor grades, and (in the worst case) suicide. The book entitled Credit Card Nation reminds me of the title of another work Prozac Nation. In Credit Card Nation, Robert Manning writes,

Janne O’Donnell described the despair of her twenty- two-year-old son, Sean, a National merit finalist and a liberal arts “letters” major, who succumbed to the temptations of easy money: ‘A week before Sean killed himself [we] had a long talk about his debts and his future. He told me he had no idea how to get out of his financial mess and didn’t see much of a future for himself. He had wanted to go to law school but didn’t think he could get a loan to pay tuition because he owed so much on his cards…Sean tried to pay off his debts. He went through credit counseling but fell further behind…and moved [from the University of Dallas] back home with us to attend the University of Oklahoma. He was working two jobs while attending OU. Still he couldn’t make ends meet…By the time he died he had twelve cards including one Master Card, two Visas, Neiman-Marcus, Saks 5th Avenue, Macy’s Marshall Fields, Conoco, and Discover. How those companies can justify giving credit to a person making $5.15 an hour is beyond me.…Credit must be based on the applicant’s present income-not on potential to earn. There simply has to be some limits set on credit card companies before more students end up in bankruptcy or dead (p. 160).

Westbrook and Warren describe an amazing credit card story in their legal text on bankruptcy. A certain Dixie Dorsey ran up $106,000 on seven credit cards before declaring bankruptcy. She had two small children as a widowed mother. She also had a regular income of $480 from Social Security due to her widowed state. Jimmy Jones, her boyfriend, gave her between $2,500 and $6,000 per month to live on.  She traveled to all the nations of west central Europe and a side trip to the Greek Islands. When she filed for bankruptcy, she listed $106,922.39 in credit card debt. American Express had issued her a “personal card,” a “green card,” a “gold card,” (each with a credit limit) and an “optima card” (apparently without a limit at all).” There were others as well.

Among other things on her European trip, she purchased $784.21 worth of perfume. When questioned in bankruptcy court about the European trip, Warren and Westbrook write that Dixie “stated with some pride, that she had a grand time on her trip and enjoyed every minute of it” (Warren & Westbrook, p. 282). In ruling, the judge stated that American Express’ actions were “absolutely appalling” and he termed the action “astounding.”

As well, one of the hot new credit card markets is among the mentally handicapped.

A financial planner in Seoul, Korea said to me that the credit card revolution has “become a social problem.” Manning writes that Koreans are the primary target of American credit card marketers.

Moses’ law and the wisdom literature of the Bible issue warnings around borrowing and lending. The Scripture states nowhere that borrowing is sin; neither is it wise. As well, Moses warned God’s people not to charge interest from fellow Hebrews. It’s as if God warned prophetically about a “social problem” resulting from unwise borrowing. In Exodus 22:25, God states, “If you lend money to any of my people with you who is poor…you shall not exact interest from him” (Deuteronomy 15:6; 28:12, 13). Nehemiah condemned Israel for charging mortgage interest of one another.

In the Old Testament, the borrower pledged collateral to the lender. This collateral encouraged repayment by the borrower. God warned the lender to receive no life-sustaining pledge for collateral. Also, God required the lender to respect the borrower’s domicile. The lender could not enter the home of the borrower to demand collateral (Exodus 24:10-13). God said this would be righteousness for the lender.

King David writes that he “who does not put out his money at interest” shall ascend the hill of the Lord in Psalm 15:5. Moses paralleled this thought in Leviticus 25:36, stating that the fear of God is displayed in not accepting interest from poor people among Israel.

The College of Financial Planning textbook talks about debt and investment strategy. The text on “Investments” describes the use of “financial leverage.” This is “the use of borrowed funds to acquire the asset” (p. 426). The college states, “By successfully using debt financing, management can increase the return to the owners, the common stockholders.” To do this business one must be careful not to acquire too much debt relative to equity. As well, total debt as a percentage of total assets must be managed.

With most financial professionals, “debt-financing” is both acceptable and normal for a business. Total debt freedom militates against possible bond financing (a legitimate accepted market capital function).

Analyzing companies’ debt to equity or asset ratios parallels analyzing personal financial management. In other words, how much of that company’s stuff really belongs to them and how much does the bank lend money on? Americans carry large debt to equity personally (as much as 50 percent). Many Christian teachers allow debt for companies and urge total personal debt freedom.

It tempts us as we look at the Bible to throw all debt out. I confess that God has worked so strongly in me about this that I really don’t even enjoy discussing it with people. Christians abuse debt so much. I think this is why I usually despise it. God called it a “curse.” How much stronger language is humanly (or divinely) possible? Saints often borrow when they should wait for God to give them provision.

Scripture leaves the door cracked open for some legitimate loans and borrowing. God expects good judgment on our part, and so He does not even define a legitimate reason for borrowing money. There are no Bible verses related to “borrowing for a house or car only.” Having left that door open, borrowing should be only a short-term exception in Scripture. Scripture allows seven-year loans. Every seven years, all debt in Israel was to be forgiven.

Instead of exceptional borrowing, debt rules church methods for financing big projects. One church defaulted on their loan and the bank insisted on placing a bank officer on the church board. This is far from Titus’ and 1 Timothy’s statements about qualification for church leadership. As well, the banker insisted that the bank hold priority position in cash flow payout from the church. In essence, the bank ran the church financially and literally. The bank runs the church in many parts of the world, (although through far less strong armed and overt tactics).  One author calls debt the eight hundred pound gorilla that demands to be fed at every church service and every board meeting.

Our culture sets the church against Scripture in this area of borrowing. The standard procedure in borrowing for projects hinders faith for the really big things. As well, this bias creates reactionaries and extremists in the other direction. Balance becomes almost impossible relative to debt.

As well, short-term thinking begins to dominate the church financially. We think more about the monthly payment than the large principal amount borrowed. The credit card vendors and mortgage companies want us to think in those short and small terms. This debt attitude creates disciples. The pastor and board members teach their families and admiring disciples. Unfortunately, the lesson is often narrow in scope, counterproductive and not scriptural.

Ron Blue, financial advisor in Atlanta, wrote that thinking in long-term dimensions almost always produces better financial decisions. So wisdom dictates, “When in doubt, think long term.” Which means, “Don’t think about the monthly payment, but constantly think about the total principal of the loan.” I believe if more people thought this way, there would be much less borrowing. Thinking about $250,000 is much more painful than thinking about $1,700 per month payments.

I wonder how Solomon would fare in the average church board meetings of today. Solomon says, “The borrower is the slave of the lender.” Most churches function as if debt is God’s twenty-first century blessing to their building and parking lot programs. This is error. I fear Solomon would be shouted down and ostracized by many (if not most) church boards today.

Larry Burkett described the businessman who came to him with an interesting proposal. The businessman’s church wished to build a new youth hall for $250,000. The businessman wanted to pay for it. The hitch was that the pastor and church leaders wished to borrow to build it. The businessman told Burkett that he would buy the whole thing if the pastor agreed not to borrow the money. As well, the generous businessman forbade Burkett from telling the pastor that he would pay for it. In other words, the principle was the issue.

The pastor insisted on borrowing to build, despite Burkett’s urging. Principal became the issue (the loan principal of $250,000 that is). The pastor lost a gift for a quarter of a million because he insisted on borrowing to build. I wonder how often things like this happen with no one knowing it.

What do Ross Perot, John Templeton, and Warren Buffett have in common besides their wealth? They all think Americans are in too much debt and that debt diminishes financial strength.

Scriptures in Proverbs on Debt

Proverbs 22:7

“The rich rules the poor and the borrower is the slave of the lender.”

Chapter Five

Pay Bills Promptly

Do not withhold good from those to whom it is due,

when it is in your power to do it.

Do not say to your neighbor, ‘Go, and come again,

tomorrow I will give it’ when you have it with you.

Do not plan harm against your neighbor

who lives trustingly beside you.

Do not quarrel with anyone without cause,

when no harm has been done to you.

Proverbs 3:27-30

This passage encourages us to pay promptly. “Go and come again tomorrow I will pay it” is an illegitimate attitude and statement. Wisdom dictates prompt payment. Short-term pain of letting go of the twenty-dollar bill is deemed “wisdom.” Paying promptly, frugality and paying cash for things seem to go hand in hand.

I remember reading a business book written by a prominent Jewish businessman. He described doing business with Billy Graham. He went on and on about the wonderful way the Billy Graham Evangelistic Association treated him. Often, the evangelist paid this manufacturer in advance for services to be rendered. This is a wonderful witness for Christ. Scripture claims this behavior is wise. It is also out of context for some ministries around the world who are either late or “no pays.”

Wisdom protects its possessor. “Prize her highly, and she will exalt you” (4:8). “He who misses” wisdom “injures himself” (8:36).

Why is it wise to pay our bills promptly? Record keeping is easier and simpler for those who pay when they receive a bill. Record keeping is crucial to on-going prosperity. Stanley and Danko describe millionaire behavior in their book The Millionaire Next Door. Millionaires, by a rate of 2 to 1, track expenses monthly. You have to wonder how, as a specific financial grouping, they all learned this frugal and responsible practice. They got rich by being different financially than most people. Only 30 percent of everyone else tracks his or her expenses. Paying bills quickly makes it easier to record.

As well, prompt payment encourages budgeting, forethought, and frugality. Frugality speaks of holding opulent and hedonist appetites restrained.

I grimace financially when I watch young athletes fly around in their own private jets. I grimace further as I listen to preachers describe their flights on their private jets. This is a million miles from the Templetons and Buffetts of the world. Deca-millionaire Templeton flies coach class on commercial airlines.

Imagine a conversation between Templeton and some young hot shot professional golfer about his private jet flights. Templeton would immediately speak about compound interest for the long term. The young, long-hitting professional would talk about long lines, autograph seekers, and lost golf clubs on the baggage racks. Templeton would say something like a single ten-thousand-dollar plane flight at age twenty-five would be worth $160,000 at age sixty-five, compounded at 8 percent per year. Those are expensive autographs to avoid.

Templeton’s life points the way forward for both prompt payment and frugality. Templeton paid less than two hundred dollars for every automobile he owned until his net worth was 1/4 million dollars. As well, he traveled the world as a pauper sending American express traveler’s checks ahead so he could promptly pay cash everywhere he went. He purchased furniture to place in his house for less than one hundred dollars. Value rules for Templeton.

In his biography, From Wall Street to Humility Theology, Templeton’s statement challenges modern twenty-first century thinking about interest. He stated that he always paid cash. Then Templeton gives the reason, “so that we would always receive and never pay interest.” Wisdom pushed Templeton to pay cash (promptly) for things and never pay interest. I read nowhere in his biography that he got this from Proverbs, even though he is a Christian. His biographers describe Templeton calculating compound interest rates in his spare time during his youth.

Templeton later described cash as an employee when it is invested. Cash borrowed becomes both a friend and a foe when interest accrues, and the lender must be repaid. Templeton paid cash for his homes. Interestingly, Money Magazine interviewed Templeton recently and highlighted his borrowing-resistant attitude. The chief highlight was that he never paid a mortgage. Templeton, worth hundreds of millions, pays promptly. As well, his frugality is legendary.

Warren Buffett makes billions by investing in the stock market. Buffett, like Templeton, lives a frugal life-style. Buffett purchased a home for $32,000 over thirty years ago. He lives in that same home to this day. Admittedly, $32,000 was more back then than it is today, but Buffett has never “upgraded.” He is content with his “paid for” old house.

As well, Warren Buffett flew commercial jets throughout his business career. Becoming the most successful investor in history did not diminish Buffett’s frugality. Flying a private jet is expensive and, for Buffett, unjustifiable. All of that changed later in his career. He began flying private jets—only after he purchased the whole corporate jet company. He receives payments from all of the other executives who fly in his private jets. Buffett pays nothing and writes off his private flights as a business expense.

This is a far cry from twenty-year-old athletes jetting around the world not thinking frugally.

H. Ross Perot, Texas billionaire, thinks frugally and promptly pays cash for everything. As Perot worked as President of Electronic Data System for years, he drove a Volkswagen to work. He walked away from majority ownership of Home Depot when the Home Depot company executive wanted Home Depot “to assume the lease payments on his Cadillac.” Perot’s response at the negotiating table was, “My people don’t drive Cadillacs: My guys at EDS drive Chevrolets” (The Jewish Phenomenon, Silberger, p. 133).

Instead of expensive lunches out in exclusive restaurants, Perot drove a Volkswagen and took a brown-bag lunch to work, year after year. Perot has often spoken about government waste, fraud, and opulence.

I remember watching frugal Perot on TV as he discussed the President flying around in a 747. Perot said, he could accomplish the same thing on a Gulf Stream, a Lear, or a Citation.

Perot learned this frugality as a boy. He learned to pay promptly at the same time. He wanted a bicycle as a young boy. His father drove him through the slums describing their life-styles of credit and non-prompt payments. His father said, “always pay cash, and you will own everything you use.” Perot continues to live the prompt payment and frugal life-style even as an old man.

Steven Silberger writes that adopting the following suggestions at the age of twenty-one and holding them through the age of sixty-seven could save you a lot of money if you invest the difference, receiving 8 percent interest on the investment:

1. Buy a moderately priced car and drive it a long time ($1 million)

2. Brown bag lunch one a week ($174,000)

3. Use $5.00 in coupons per week ($108,000)

4. Eat at home more frequently ($100,000)

5. Skip expensive coffee and daily junk food ($200,000)

6. Avoid cigarettes ($400,000)

7. Buy term life insurance ($209,000)

All of the above practices undercut the hyper-marketing bombardment we all receive on a daily basis.

When I became a pastor, I learned to my horror that the church had not paid some of its bills on time. I visited several vendors apologizing and vowing to pay and change things.

Prompt payment surprises vendors. I remember paying off my student loan in advance. The girl who worked at the finance window said the most startling thing. She turned to her supervisor, “We have a guy at the window that wants to pay off the whole thing. What do I do now?” This contrasts with the high number of “no-pays” and loan defaults at that time in the student loan program.

I often ask my students, “What is the best way to tell a business man to go to hell?” I suppose, one could simply walk into his store and say “Go to hell.” A far more effective way exists: March into his shop with a big, forty-seven-pound Bible and a cross around your neck. Take his goods and services and don’t pay him. This effectively tells him to go to hell. His friends and business associates will hear that this is the way Christians treat people financially. His friends also can go to hell because they will want to have nothing to do with anyone in the church. Wisdom says, “Pay promptly.”

Harold Ockenga spoke about difficult business relationships. He mentioned to our seminary students that he had never had a good relationship with any Christian businessman who prominently displayed his Bible on his office desk.

It is pretty amazing to even think seriously about Christians not paying their bills promptly. I travel a lot. I have been financially mistreated in all of these years by only one travel agent - a very verbal Christian. I wrote off the four hundred dollars as a business loss on my income taxes. Remarkably enough, he preaches now. This is a testimony to God’s grace in his life. A national magazine featured him and his ministry as a model to be followed (ten years after the incident). However, he has still owed me four hundred dollars for the past ten years.

Most vendors that issue credit prefer payment slowly and not promptly. Why? They make more money that way. The credit card companies want slow pay also. What does this mean? It means that many vendors will discourage us from acting Scripturally. We will also go into debt, pay interest, and ultimately grow poorer. The vendors will get richer. Pay promptly; it is counter cultural.

I remember buying our car two years ago. I spent a few hours haggling with the sales manager at our local shop. Finally, I told him I was going to pay cash. He responded “That is not helping me.” I responded, “I know, but I do business that way.” He still sold me the car, even though he got no interest payment from me.

Credit card companies have special terms of scorn for people who pay their bills every month with no interest added. They call these people “freeloaders.” Rather than being pleased with timely payments, a bogus replacement name suffices for the frugal.

I played golf with the local Chevy used car dealer a few years back. I asked him, “How many people pay cash for their cars—used cars?” He answered “Less than 10 percent.” Of course, the car lot or bank imitates bandits when that happens.” They make a lot on the slow, month-by-month interest payments. Prompt payment, by its sheer atmosphere, argues against buying everything slowly (like cars, houses, or church buildings).

One of my friends, a builder, told me an interesting story about slow payment. He built a casino and a boat dock for one of the wealthiest people in the world, worth hundreds of millions of dollars. His client paid late constantly. As well, she argued over small five- dollar and ten-dollar items. My friend walked off the job one day because of the abuse. They begged him to come back because of his quality work, but he said, “No way.” I suppose it shouldn’t surprise us, after all, it was a casino he built.

One of the most discouraging times in our ministry occurred around this principle. We allowed a student to complete two semesters in our School of Biblical Studies, trusting her character to repay us as soon as she left school and got a job. The most amazing thing happened. She wrote a letter to the leadership of our institution. In this letter, she misquoted Scripture after Scripture. She justified her slow pay by using Bible verses. Not only was she a “slow pay” she was a “no pay.”

You can imagine how stunned I was later, seeing her in a new red convertible and carrying her grocery bag full of beer and pretzels. We wrote her bill off as a bad debt to the school. We changed our policy after that experience.

Prompt payments divulge character and frugality. I read an article about college students spending money in the WSJ. Duke University students spend well over five hundred dollars per month for fun stuff (difficult to believe, but true). No doubt mom and dad’s plastic covers their beer, pizza, and spring break in Cancun. Prompt payment and character development fades in the light of this kind of cavalier spending. This is no criticism of Duke and their students. It is simply reality as we find it.

Prompt payment relates to the first category we discussed “unrighteous alliances.” We should watch our friend’s and loved one’s attitudes toward prompt payments. This is especially important for couples that are engaged. Fiancés should observe their future spouse’s payment practices for goods and services. Do they abuse vendors? If so, they may abuse our marital relationship. Over 50 percent of divorces occur because of money arguments.

As well, people watch the church. Our payment delinquency speaks far louder than our words about Jehovah-Jireh, our provider.

Think of the whole world behaving simultaneously this way: No one pays on time; Everyone is either delinquent or in debt; After a while, the whole world grinds to a halt (what a mess); Few of the vendors really want to do business anymore; They are losing money; Their families are getting hungry. It is like a science project gone bad.

Each of us creates a legacy. Imagine your eulogy. Your closest friend stands to honor you, “One thing I can say for Joe was that he never paid his bills on time.” None of us want that to follow us.

I remember being involved in a large ministry years ago. A rather curious reputation developed around it. This ministry owed over one hundred local vendors for goods and services. The ministry registered as delinquent for all of these vendors. Dare we say, “Go to hell” vendors? Remarkably, the ministry paid all of these bills off and flourishes today in the same location. No doubt some of the one hundred vendors praise everything but God when they think of this group. I wonder what Ross Perot would say about these people.

Ministries justify their actions for late-payment. “We must reach the whole world.” “We spend our money for that.” “We must pay the mortgage first.” “We know they will understand and give us a break since we are their biggest customer” (also biggest headaches). I remember hearing a TV preacher say that “for every ninety cents that we receive, we have one dollar in expenses to pay.” He was later humiliated in a nationwide scandal. Let’s recite that as a financial mandate shall we?

Maybe some people never learned this lesson when they were young. Perhaps simple teaching will take care of the problem. It is difficult to think of Christians growing up and thinking that it is unnecessary to pay promptly. Unfortunately, I have learned otherwise having been in the ministry for thirty years. The incredible thing is when people actually believe that God is leading them not to pay (as in the example of my former student). The surreal experience is when people believe that “God gave them a different date due for payment.” Yes people think (and unfortunately act) that way.

For some people the central problem is a lack of self-discipline in their spending. Frugality wanes small in their minds and behavior. Probably, the best thing these people could learn would be to observe poverty— real poverty (Nepali or Bengali style). Professor Frank at Cornell did just that. He wrote Luxury Fever which describes the appetites for luxury among the new rich in America. They would learn that it is possible to live without the latest consumer urge or fad. Christians find themselves nonexempt from advertiser’s impulsive bombardments. Overconsumption produces slow payments. I am not suggesting a monkish, ascetic life- style. Anyone who knows me well understands that. I simply preach frugality.

For some people, a fast from spending and buying might be the best solution. In other words, just say “No!” Act on it as well. Yes it is painful to break an addiction. Addicts shake, sweat and writhe in pain as they break the habit cold turkey. For some “consumption” and “slow pay” junkies, this solution only avoids the problem. Spiritual surgery could remove over-consumptive appetites from these people. Appetites are the problem. Of course, then there are those with the problem who don’t know they have the problem. That is “not good” underlined.

Scriptures in Proverbs about paying bills promptly

Proverbs 3:27-30

“Do not withhold good from those to whom it is due, when it is in your power to do it. Do not say to your neighbor, ‘Go, and come again, tomorrow I will give it.’ Do not plan evil against your neighbor who dwells trustingly beside you. Do not contend with a man for no reason, when he has done you no harm.”

Chapter Six

The Danger of Co-Signing

Through the 1980s, I taught regularly on money

management to my classes and to others as well.

This is what I teach now and taught then.

Co-signing is an understandable emotional demonstration of love, commitment and affection, but Proverbs 6:1-5 states that the co-signer on a note is “snared.” He has come “into his neighbor’s power.” In other words, this is dangerous. The co-signer has become responsible for the payment or nonpayment of bills. This divides families and can end friendships.

I traveled to Mongolia two years ago and found that house fellowships, prayer meetings and Bible studies divided over failure to repay loans among friends and family members in the church.

Solomon warns that the direst consequences can result. He instructs us in that we should not be one of those who becomes a co- signer. Then he rhetorically asks, “Why should your bed be taken out from under you.” The real error is to think, “it can’t happen to me.” Solomon says it can, so don’t do it.

The Bible does not teach us “how to get rich.” It teaches us to protect what we have. In other words, Proverbs is a book inspired by the Great Shepherd to protect His sheep.

About five years ago I lectured on this topic to our students in Montana. We had a guest in class that day. Later at lunch she told me that she previously worked for a debt collection agency. Her job was to actually knock on delinquent doors and demand payment. She told me the most sobering statistic. Two-thirds of the doors she knocked on were co-signers for other people.

In some places in the U.S. the vendor is not even required to contact the purchaser for payment of bad debt. They can go straight to the co-signer (it seems to me this should discourage anyone from co- signing). The former collection lady spoke to me about the devastation wreaked on people’s lives from this practice and the pain she saw.

The temptation is greatest in families. Kids want their cars. Dad must co-sign for the note. This overlooks completely whether a person should even buy a car with a loan. That discussion aside, tens of thousands of parents do this co-signing to their peril. Studies show that family loans of any kind are rarely repaid.

As well, if there is delinquency or slow pay on a loan, this shows up in the co-signer’s credit report. It is amazing what a living hell that can be. Through the years, someone is usually present in the classroom who has co-signed for someone else and been hurt by it.

Years ago, I lectured on this topic in Hawaii. One student, Bob (not his real name) faithfully completed the course. I grieved to learn that he had disregarded Solomon’s instruction on this to his own hurt. He went into business with a friend and co-signed on a loan for well over $100,000. He is out of the ministry today because of that and has had to work to repay for his friend’s lack of payment.

Imagine the conversation that went on between Bob and his delinquent, business friend. I’ll bet it was hot.

I have written several paragraphs without defining the process of co-signing. Let’s think hypothetically.

I want a new Lincoln Navigator for sixty thousand dollars. I simply can’t qualify for a loan that big without someone else promising to pay the large monthly payment if I miss one. I go to my friend Frank, knowing that he has loads of cash. I ask him, “Frank, our friendship is strong enough for me to ask you to co-sign for this Navigator.” My income allows me to cover the monthly payments. We have known each other for several years and our friendship is tight. Solomon’s call to Frank is to spare his own life and say “No” to me about this. Frank, against his wife’s better judgment, signs for me. I then get real sick and lose my job. Frank is stuck. He has to hit his savings account to make the payments until the car can be sold and the difference between the value of the car and the sale can be made.

In the U.S. many business loans require co-signing. This is true for the standard short-term loans, levies of credit and credit cards.

To be brief and blunt, Solomon says, “It’s foolish.”

Scriptures in Proverbs about co-signing

Proverbs 6:1-5

“My son if you have become surety for your neighbor, have given your pledge for a stranger; if you are snared in the utterance of your lips, caught in the words of your mouth; then do this, my son, and save yourself, for you have come into your neighbor’s power: go, hasten, and importune your neighbor; Give your eyes no sleep and your eyelids no slumber; save yourself like a gazelle from the hunter, like a bird from the hand of the fowler.”

Chapter Seven

Remember the Poor

Solomon and the writers of Proverbs write more about this category of money management than any other. It is intriguing that such a rich king would concern himself with the poor. I think he may have learned it from David’s kind treatment of crippled Mephibosheth. Moses proclaimed in Deuteronomy 15 that there would be no poor people among God’s people —if they obeyed God. The early church in Acts 4 experienced that. Luke writes that there was not a needy person among the early church in Jerusalem. That changed only a few years later in and around 1st century Israel. Jesus said we would always have the poor with us. Jesus must have concluded from Deuteronomy 15 that God’s people were disobedient around this law.

Over and over in Proverbs, God identifies with the poor. To mistreat the poor is to insult God. Imagine a world without poverty. It is virtually impossible to do that. Over a billion people go to bed hungry every night. So when the Bible describes poverty, God thinks of truly poor people without access to sustenance. Homeless people sleeping on grates in Washington D.C. are not God’s idea of “poor people.” They may be hungry but that is unnecessary in America. Think of a God who avoids telling his people about caring for the poor. How heartless would that God be? Worse yet, how heartless would God’s people be?

Two years ago I went to Nepal to preach. I visited three U.N. refugee camps in the southeastern part of the nation. These refugees were exiled from Bhutan. Christianity or their family names earned them a ticket out of their homeland and into the U.N. refugee camp. I remember sitting in a small house eating with a family. Their walls were literally made of paper. In fact, the living room wall was made up partly from my lecture notes on the book of Titus. Their “house” was probably 15 feet by 15 feet. The world hardly knows about this quarter of a million people. The U.N. showcases nothing of their plight so few even know about them. These Bhutanese people lost everything when they were exiled. They have no access really to sustenance. These people are poor—Biblically.

It is amazing that Solomon stressed this so much. Proverbs testifies to its own inspiration this way. The Bible from cover to cover highlights it as well: In Genesis, God destroyed Sodom. If you only see Moses’ account of why God destroyed Sodom, you miss an important part of the story. In Ezekiel 16, it describes Sodom’s doom. Among other things he wrote that Sodom had a large surplus of food but cared little for the poor they could have helped. God rained sulfur and brimstone on them the size of Volkswagens for that hard heartedness; In Exodus, God warns the people not to oppress the poor but to give liberally or lend expecting no profit from the loan. God said that if they disobey him in this he would judge them; Leviticus provided gleanings—the edge of fields and those fruits not harvested from the vines or trees. As well, God declares the jubilee year—every fifty years. All debt was released, all land went back to its original “God given” owners; Deuteronomy repeated that; Ruth demonstrates the mercy of God to a poor widow through gleaning and redemption; In 1 Kings, Ahab oppressed his neighbor Naboth and took his only possession, his field, for himself. God judged Ahab and Jezebel for that; Nehemiah rebuked the nation for charging interest and creating slaves among God’s people; Isaiah described the righteous fast in chapter 58. He writes to clothe the naked, shelter the homeless, and feed the hungry is the fast that God delights in; Jeremiah predicted captivity for Judah because of their oppression and robbery of the poor; Ezekiel condemned the nation for the same thing and compared them to Sodom in the process; Amos rebuked the Northern Kingdom and doomed them to extinction for it. Rich real estate moguls added field to field and ran roughshod over the poor; Micah prophesied it the same time as Isaiah, rebuking the nation, for the priests and prophets, themselves, oppress the poor; Zephaniah described the future promise of restoration for Judah’s poor; Malachi promised God’s people that provision would reveal their tithing to the poor, widow, orphan and refugee; In Matthew, the poor receive the good news; In Luke the poor are blessed; In Mark a poor widow shows true discipleship by giving; In John, Judas shows false concern for the poor though he was a thief; In Acts, people are impoverished from a famine; In 2 Corinthians Jesus became poor so we could be rich; In Galatians, the elders in Jerusalem wanted Paul to remember the poor which “very thing” he was “eager to do”; In Ephesians thieves stop stealing in order to give to those in need; In Philippians, Paul describes his ministry as “abasing” at times; In 1 & 2 Thessalonians, Paul separates the truly poor from the lazy. He who does “not work, shall not eat.” This is consistent with the Old Testament. Poor people worked to receive generosity from the community; Titus 3:13,14 urges the Cretan saints to perform good deeds and help cases of urgent need; James describes true godliness as caring for the poor, widow and orphan and to keep oneself “unspotted” from the world; 1 John urges us to love in deeds and truth if another person is in need of the world’s goods.

Derek Prince declared that God comes to us in various disguises. He comes disguised as “the poor, the widow, the orphan and the refugee.” I respond to Brother Prince’s statement by saying, “We do not want to miss him when he comes to us.” Derek Prince remarked further that what distinguished the early church from the rest of the world was the value Christians saw in people. No one else cared about people like the poor.

I lived in Hong Kong in the summer of 1990. The Vietnamese and Cambodian refugees overflowed the U.N. camps that summer. I was stunned by the hard-heartedness of the world. News came out that Vitamin C was lacking in their diets. Jackie Pullinger stepped in to help. She pledged an orange a day for every refugee in Hong Kong. The U.N. balked at her offer. Sarcastically, they told her that they did not want the typical Christian bleeding heart uproar only to stop soon after starting. Jackie insisted that they would continue until the crisis was over. Finally the U.N. relented. She fulfilled her word. When she promised to help, her organization had no money to do it. God met every need.

I remember being in the Dominican Republic several years ago. A large ministry invited me to teach. Doctors and nurses contributed a large part of their ministry to the poor nations of the world. The school leader who invited me went to a large soccer stadium one day. The doctors and nurses were evaluating whom they could adequately help and treat in medical acts of mercy. My friend, Bret, came back to the ministry center crying. He said that he simply could not handle what he saw among those poor people who could not afford adequate personal medical care. The poor cannot afford any kind of fair medical treatment.

I marvel at the opulence of some American ministries. Often they can be local pastors of large or medium-large churches. Often they are Pentecostal or Evangelical. It is a rebuke to Evangelical and Pentecostal Christians that the phrase “social gospel” does not receive kudos from our midst. Instead, a liberal theologian gets credited with the “social gospel”. One of the things that angers me is the ease with which they accommodate to the American culture. I spoke to an average Pentecostal church. Afterwards, the pastor said to a friend that he felt he had been “set up.” I spoke frankly about missions and money. He liked little to nothing of what I said.

I marvel further at the wholesale acceptance of North American cultural and financial values in the church. In other words, if the culture decrees something to be poverty then the church and the pastors agree. How bizarre is that? Larry Burkett and others have stated that the church manages money parallel to the culture except that we give 2 percent of our money to God’s work. The poor cry, but we don’t respond because we are blinded by our cultural perceptions. Speaking of poverty, I remember being in Korea in 1981. Korea was poor then. We were in Pusan, way down in the south. Judy and I participated in an evangelism team of about four hundred Korean University students. For ten days we evangelized Haeundae Beach (one million people per day on that beach in the summer). I remember walking into the kitchen early one morning. Our Swiss cook was killing rats. They ran across the water pipes and he shot them with a BB gun. We ate rice, kimchi and chicken around the clock. One chicken for four hundred people —that is poor. Over 10 percent of the world’s population make less than one hundred dollars per month. Have we thought about that from God’s perspective?

A friend visited our house about ten years ago. He testified about how God provided him and his family a home with a separate bedroom for each of his children. My wife, Judy, responded curiously. She began to pray and asked God if he provides houses for poor people also. That night she got into bed and opened a Christian magazine. She found an ad that night. A ministry builds houses for poor people in third-world locations. She had her answer and we sent money to that ministry. God cares for the poor.

I remember the first time I went to India in 1980. I flew to Bombay. I grimaced as I saw people living in cardboard boxes. I took a taxi between the international and domestic airports. Poor kids shoved their hands into the window of the taxi begging for money. I had started an orphanage with my wife and some friends. I had money but it was for our orphans.

Eight years ago I sat in a restaurant in East Kenya - in Mombasa. I was eating pizza with a friend. In the middle of the meal the most amazing thing happened (we were sitting at a table next to the sidewalk). A hand appeared through the window and grabbed a piece of our pizza. That is poverty.

My friend, Johan, succeeded in many businesses in South Africa. He traveled to the nation of Malawi to take Bibles. There he met people so poor they could not afford clothing. Pastors hid behind trees out of shame to receive Bibles. They had not clothes. That is poverty. God commands us to take care of such men. I wonder what these naked Malawi pastors would do with their own private yacht. (Possibly sell it to clothe their congregations).

So what do you think of when you think about poverty. Do you think about people without food? Do you think of those children in the World Vision or Compassion ads with haunting eyes? Maybe you were raised in poverty relative to the rest of folks around you; My father was. I am really not sure when I first encountered poverty. I suppose when I went to Mexico for the first time.

The Scripture talks about prejudice against poor people. We read about a wise man in Ecclesiastes who was poor. No one listened to his wisdom. The implication in the Bible is that it was because he was poor.

We read in Proverbs that wealth brings many new friends and poverty can even drive away family members. As well, Proverbs 22:7 says that the rich rule over the poor. This speaks of political powerlessness of poor people. We don’t have to look far around the world to see the truth of that fact.

Various things cause poverty. Corrupt governments steal from the poor and enrich themselves. Imelda Marcos could be the poster girl for such opulence. Some African dictators of the late 20th century are even worse but received less press than the shoe mover.

Laziness produces poverty. Solomon wrote that “a slack hand produces poverty” and “a little sleep and little slumber and poverty will come on you like an armed man.”

Moses wrote that blatant disobedience to God produces poverty (Deuteronomy 28). In other words, for Moses, poverty was a curse.

The experience of living in a fallen world can produce poverty. Just as the fall can produce sickness with no apparent disobedience on the part of the sick person—so also, the fall produces poverty. There are a lot of poor Christians out there truly poor. For example, in Africa, as I write, 300 million Christians have no Bible. That is poverty. Maybe we should send them Bibles.

Solomon instructs us that we hold the responsibility to care for the poor. Of course, there are so many of them that we cannot care for all of them. We have some responsibility to care for some of them with the compassion of God.

The difficulty we wrestle with is balance. God desires no ascetics. He looks for compassionate saints to share his bounty.

I was preaching in a Korean church near Seattle recently. The pastor’s grandfather was martyred in the Korean War, his uncle also. This particular church gives 70 percent of its budget to missions. That is what I call compassionate sharing of the wealth.

My mind reels, thinking of the gadgetry in some North American churches. It reels doubly as I compare it with the bamboo church I preached in on the border of Nepal/Bhutan. God gave us the gadgets. Maybe we ought to share some of them with the impoverished church.

Because real poverty is so far away from us in North America, we can be numbed into forgetting that poverty really exists.

At first glance, it seems that every Christian would be concerned about the poor. George Barna tells us that Christians handle their money just like unbelievers. The difference is that Christians give about 2 percent of their income to the work of the church. That number has been going down steadily in the past few years.

As well, the scripture teaches us that people are not inclined to take poor people seriously. We read in Ecclesiastes about the poor wise man that no one listened to. Solomon often goes unheeded as well.

As we think of conversations between poor people and rich Christians, these encounters could get discouraging. Imagine the poor man asking the average western Christian why he allowed him to starve. The answer, “Because I needed to make a monthly payment on my boat” really does not persuade.

Amazingly, to write this to beggars on the streets of Calcutta would be merely writing their biographies and I would meet a disinterested look saying, “of course this is what life is like here.”

There are two equal lies that we must avoid. The lie is that we can solve poverty individually; the second lie is that we can do nothing. Both speak falsely.

It reminds me of the story of the starfish. A little boy walked the beach throwing stranded starfish back into the ocean. There were starfish everywhere. An old man came up to the young boy and said, “There are so many you can’t really make a dent in the problem.” The young boy picked up another starfish and threw it into the water. He turned to the old man and said, “That impacted that one didn’t it?” We can impact one (maybe more).

Scriptures in Proverbs about the poor

Proverbs 10:4

“A slack hand causes poverty, but the hand of the diligent makes rich.

Proverbs 10:15

“A rich man’s wealth is his strong city, the poverty of the poor is their ruin.”

Proverbs 13:7

“One man pretends to be rich, yet has nothing; another pretends to be poor, yet has great wealth.”

Proverbs 13:8

“The ransom of a man’s life is his wealth, but a poor man has no means of redemption.”

Proverbs 13:23

“The fallow ground of the poor yields much food, but is swept away through injustice.”

Proverbs 14:20

“The poor is disliked even by his neighbor, but the rich has many friends.”

Proverbs 14:21

“He who despises his neighbor is a sinner, but happy is he who is kind to the poor.”

Proverbs 14:31

“He who oppresses a poor man insults his Maker, but he who is kind to the needy honors Him.”

Proverbs 17:5

“He who mocks the poor insults his Maker; he who is glad at calamity will not go unpunished.”

Proverbs 21:13

“He who closes his ear to the cry of the poor will himself cry out and not be heard.”

Proverbs 21:17

“He who loves pleasure will be a poor man; he who loves wine and oil will not be rich.”

Proverbs 22:2

“The rich and the poor meet together; the Lord is the maker of them all.”

Chapter Eight

There is Wisdom in

Saving and Investing

“Go to the ant, o sluggard; consider her ways, and be wise. Without having any chief or ruler, she prepares her food in summer, and gathers her sustenance in harvest.”

Proverbs 6:6-8

Consider the life of Joseph. This young man spared the whole world by a prudent plan of saving.

Solomon instructs us to consider the ant. No one tells the ant what to do or when to do it. This is similar to our need to be diligent in saving when the Lord tells us to save or invest. Saving and investing are discretionary money practices, and Solomon deems both practices as wise.

The ant prepares ahead of time for the winter. She carries a future orientation in saving. God expects us to be the same. Investing manifests this future orientation. We manage the present with the future in focus.

As well, Proverbs 22:3 states that the wise man sees danger and hides himself. Saving and investing “hide” us from possible “down drafts’ in the future.

What are some basic principles for investing. The first is to start when you are young—the sooner the better. In some ways, time is as powerful as money for investing in the future. Let’s look at the following hypothesis.

Assume you are twenty-two years old and so is your friend. You invest two thousand dollars per year for only six years (until age twenty- eight) and invest no more. Your friend waits until age twenty-eight to invest two thousand dollars per year. Your friend invests yearly until age sixty-five. You both have the same amount of money for retirement at age sixty-five.

Stock market veterans say the same thing repeatedly. Dr. Robert Goodman earned his Ph.D. in economics and worked at the Federal Reserve Bank and at Citibank. He eventually became the Managing Director and Senior Economic Advisor at Putnam Investments in 1989. He appears regularly on financial news programs.

Goodman wrote Independently Wealthy in 1997. He states, “Discipline and patience are two characteristics shared by all successful long-term investors. These traits are not genetically transferred from generation to generation; they are learned. And given the likelihood that all Americans will be required to provide a larger share of their retirement income in the future, the best time to begin the learning process is now” (Independently Wealthy, Robert Goodman, p. 88).

Mary Farrell is the Managing Director and Investment Strategist at Paine Webber. She opens chapter 2 in her book Beyond the Basics this way: “The key to successful investing is a simple one: time” (Beyond the Basics, p. 25). Reading Mary Farrell reminded me of Warren Buffett. He is the most successful stock investor in history. Buffett buys and holds stocks for a long, long time. Someone asked Buffett, “When is the right time to sell stock?” Buffett responded after some pensive reflection, “Never.”

Mary Farrell gives a rather amazing chart showing the necessity of staying invested all the time and not pulling money in and out of the market. Between January 1, 1989 and December 31, 1998 there were 2,528 trading days in the stock market. The person who invested and remained invested for the whole time, their percentage return was 16 percent. The person who pulled their money out of the ten best days during those years, got only 11.8 percent. Pulling out the twenty best days—9 percent, thirty best days— 6.6 percent, forty best days —4.5 percent. Her point was to be patient and stay invested, weathering the ups and downs of the market. So the first key for successful investing is to stay invested.

A second key that money wizards insist on is diversification. “Diversification” is related to the word, “diverse” which means different. You find this investment principle in Ecclesiastes 11:1-8 as well. Grandma’s way of saying this is: “Don’t put all your eggs in one basket.”

In Storm Shelter, Ron Blue details several different types of diversification. He develops six sequential steps for diversifying investments.

1.    Class and Category (Stocks, Bonds, Real Estate etc.)

2.    Investment style, (Value, Growth, small cap etc.)

3.    Different money managers

4.    Time (specifically related to stocks and bonds)

5.    Geography (international, domestic etc.)

6.    Specific investments (Ibid, p. 201 ff.)

Blue suggests we consider these in the order listed above. The bottom line is—mix ‘em up. Invest in different categories, different styles, different times, and different geographical locations.

Market Wizard Norman Fosback illustrates the mathematical power of diversifying into different types of stocks. He details how much risk we can eliminate by simply buying different stocks and doing what Grandma said, “Don’t put all your eggs in one basket.” This would come under category six for Blue.

Fosback writes in Stock Market Logic (p. 254):

Number of stocks in portfolio:

Percent of risk eliminated:

2

46%

4

72%

8

81%

16

93%

Fosback’s numbers show the power of Grandma’s statement and the wisdom of the Bible. We spread them out for safety. Stay invested in the market through ups and downs. Stay invested forever and diversify.

Of course, when we fail to save money, all of the advice from experts becomes mere theory. Investment guru, John Wasik wrote The Late Start Investor in 1998. He proposed advice for people thinking about retirement age.

Wasik writes,

When the clock struck midnight on January 1, 1997, every seven seconds baby boomers born in 1946 started turning fifty. Most of these first waves of 77 million people facing their sixth decade, however, are dreading the future. According to a Merrill- Lynch survey, most of them have less than three thousand dollars saved for their retirement.…

In addition to the ticking time bomb of baby boomers unprepared for retirement, there are those who haven’t saved anything at all, according to the Merrill Lynch poll. In a survey conducted recently, the most popular response as to the amount being saved for employees forty-five to sixty-four was zero according to the Employers Council on Flexible Compensation. All told, the average amount saved was a measly $720 per year (The Late Start Investor, John Wasik, p. 6,7).

Wasik found that only 30 percent of the work force were confident they would have enough money at retirement to live comfortably. People are retiring earlier and almost half were forced to retire before they had planned. As well, he notes that 60 percent of Americans have no pension plan.

In addition, Sullivan, Westbrook, and Warren state, “The reality, nevertheless, is that the American middle class is running hard to stay in place…The declining savings rate spoke of how much closer many families had moved to the margin. For some families, negative savings-debt- became the mechanism of adjustment” (The Fragile Middle Class, p. 31). They conclude this paragraph ominously, “In late 1998, for the first time since the depression, the American people as a whole went into an overall ‘negative saving’ rate; that is, we collectively didn’t save a dime” (Ibid., p. 32).

In contrast to the U.S., consider Singapore. The government put mandatory savings of over 30 percent on the populace since the beginning of the nation in 1965. Employers had to contribute half.

The father of the nation, Lee KuanYew, titled the second volume of his autobiography, The Singapore Story: From Third World to First. This is what happened. Singaporeans have more cash to spend than any other nation in the world (including Switzerland). As well, over 60 percent of Swiss people rent their homes while over 70 percent of Singaporeans own their apartment/condo. This adds to net worth.

Singaporeans are 70 percent Chinese. This adds to the money genius there. However, a disciplined, enforceable plan made all the difference for them. This is a far cry from America in 2004.

Millionaires save in America. Stanley and Danko describe them in the first person, “We are fastidious investors. On average we invest nearly 20 percent of our household realized income each year. Most of us invest at least 15 percent while 79 percent of us have at least one account with a brokerage company” (The Millionaire Next Door, p. 10).

The temptation is to think that these people can do that because they have the money to do it. Well, that is probably more skewed than correct. John Templeton and his wife saved 50 percent of their income when they were young and did not have much. They continued this practice for twenty years into their marriage.

Gary Belsky and Thomas Gilovich wrote Why Smart people Make Big Money Mistakes in 1999. They wrote about warning signs are:

1.    You don’t think you’re a reckless spender, but you have trouble saving

2.    You have savings in the bank and revolving balances on your credit cards

3.    You’re more likely to splurge with a tax refund than with savings

4.    You seem to spend more when you use credit cards than when you use cash

(Ibid., p. 45)

Jonathan Pond describes the proverbial statement bantered about by eastern European immigrants to the United States in an earlier era. “The poor person earns a dollar and spends $1.01 while the rich person earns a dollar and spends 99 cents” (Your Money Matters, p. 1).

We need patience to save. The Bible describes it in Proverbs 13:11; “Wealth hastily gotten will dwindle, but he who gathers little by little will increase it.” The challenge we face in saving is patience—a fruit of the Spirit.

Scriptures in Proverbs about Saving and Investing

Proverbs 6:6-8

“Go to the ant, O sluggard; consider her ways, and be wise. Without having any chief, officer or ruler, she prepares her food in summer, and gathers her sustenance in harvest.”

Chapter Nine

Bribery

I have traveled to many nations. I often teach about money management to audiences and schools in those nations. One consistent “hot topic” in developing nations is corruption and bribery. I deliberately have chosen not to mention specific nations in this part of the book. I intend to embarrass no one and to point fingers at no one.

These are nations in the world where bribery and corruption rule the business world. A friend named John (fictitious name) told me that in his country, bribery prevails over everything. He told me a very disturbing story.

John’s friend, Fred, graduated number one in his university class. Fred attended the top university in his nation and looked for a job after graduation. Fred wanted to pilot large commercial jets for his national airline. He applied for the job.

The officials at the airline interviewed him and liked what they heard and read on his resume. They were willing to hire him on the condition that he would pay off all the airline officials involved in the hiring process. Fred refused and as a result, the airline refused to hire him.

My friend, John, told me that this is typical in his nation. The airline runs on corruption, not on merit.

So, we can assume the hypothetical case that instead of number one flying the plane, number two flies because he pays the bribes. The public receives second-class safety that is pretty sobering.

I made some major decisions after that communication with John fifteen years ago. I decided not to fly national airlines where bribery and corruption are the common cultural practice. The problem is that some of the nations to which I fly, only the corrupt national airline flies there.

Bribery buys many things. Proverbs states that a bribe is like a magic stone in the sense that wherever it turns it succeeds.

Bribery works. Bribes buy airline pilots as well as government officials measuring fitness standards, measuring instruments in the cockpits, etc. Bribes buy government officials charged with keeping unsafe airplanes out of the sky.

I paid a bribe once and did not know I was doing it. I paid a conductor to bump me up to 1st class on an eastern European train in the early 1980s. I got the 1st class sleeping berth and slept well that night. It wasn’t until afterwards that I realized that this was illegitimate.

In that same country, I taught on money management. When I came to speaking about bribery and corruption, one of the pastors raised his hand and spoke indignantly, “There is no way to do anything in our country without paying people off.” The Scripture condemns corruption consistently in business and in government.

The Reformation lights Luther and Calvin taught harshly against bribes and corruption.

My wife and I had the great privilege of living in Singapore for one year. We started a Bible school there. While in Singapore, I learned the history of that great city/state. I read the autobiography of the father/ patriarch of the nation, Lee Kuan Yew.

Lee Kuan Yew wrote that his first official decree as leader of the nation was to outlaw bribery and corruption in government positions. A long jail term awaits corrupt governors for bribery in Singapore.

Interestingly enough, Singapore ranks as the richest nation in the world (per capita). Singaporeans pay cash for things. Over 70 percent of them own their own home/apartment. It is amazing that in Switzerland, about 60 percent of people rent their dwellings. Swiss people are rich, but Singaporeans are richer.

Interestingly, rich nations are exceedingly honest. Switzerland (because of the Reformation) and Singapore (because of the ethical and historical genius raised by Methodist missionaries leading the nation).

I received an e-mail from an attorney in Singapore describing corruption. He states:

Singapore has about the strictest corruption/bribery laws in the world. Very clear that both persons initiating the bribe and the receiver are equally liable. The penalty ranges from hefty fines and restitution of the money received, to jail sentences. Singapore has a separate department in the Police dealing with crimes of corruption. The department is accountable and answerable directly to the Prime Minister’s office.

When Prime Minister Lee Kuan Yew inherited the British civil services and vowed to stamp out corruption, the British laughed at him and said it was an impossibility. He enacted the anticorruption laws and vigorously implemented it even against his government colleagues. It was applied to top officials right down to the clerks and hospital attendants and rubbish collectors and traffic police. Now even the foreign business community knows that doing business in Singapore will require a clean-hands approach or risk being prosecuted. Of course, Singapore and India or any other part of Asia are worlds apart, but I believe God has blessed Singapore to be what it is in apart for upholding the Biblical principles against bribery/extortion and corruption.

(E-mail from my Singaporean attorney friend)

He continued in another e-mail:

Ron, I’m still thinking about bribery. You are right about equal culpability for paying and receiving bribes. A habit of paying bribes will develop a culture of expecting to receive bribes. If Christians are willing to pay bribes, the society will soon believe that they can be bought, just like they have bought others.

Hagar project in Cambodia has consistently refused to pay any bribes, even for simple immigration matters and instead endured the frustration of delays and repeated applications. However, when there is a genuine need for the government to establish a social project with government involvement in providing land or facilities, Hagar has gained favor over other organizations because the government knows that corrupt officials cannot buy them. Hagar reciprocates the favor by providing genuine services that will benefit the people or government. Some of us are involved with providing courses on basic accounting and bookkeeping or computer courses for officials from Min of Social Welfare.

(E-mail from that same friend)

Harvard economist David Landes stated that the Christian Reformation ethic of the 1500s produced the prosperity of the west.  What was the Reformation ethic on bribery and corruption? “Justice and only justice shall you practice” (Leviticus 19:15).

Dan, a good friend of mine, worked in a nation where bribery and corruption are the norm. We spoke about corruption and bribery. He said to me that after studying the Bible, he feels that missionaries and others who are coerced to pay off various business and government officials are actually victims of theft and extortion. They pay bribes unwillingly. My suspicion is that most businesses operating in these nations also pay bribes unwillingly. They pay them nevertheless.  Rousas Rushdoony writes,

Biblical law has no penalties for offering bribes. This is a point that troubles many Christians.

The fact is, however, that Scripture sees the problem very realistically. The judge or public official is the person in a position of power. In my travels back and forth across the country and in my conversations with people from abroad, a clear pattern emerges with respect to bribery.

First, the official in power normally solicits the bribe. It is the standard means of doing business with him. If contracts are to be issued, none are granted without a payoff. If a decision is to be rendered, a bribe is a prerequisite to my kind of fair consideration. Granted that many who offer bribes are themselves corrupt, the fact remains that all who offer bribes would, on the whole, prefer to do business with civil authorities, their courts, and their agencies, without the payoff. It adds very substantially to their cost of operation; it leaves them open to legal reprisals, and more people giving them than those receiving them are sentenced for bribery. Recently, even while several manufacturers and producers were convicted for giving bribes, other politicians were busy collecting more.

This already makes clear a second aspect of bribery. The cost of bribery is born by the one offering it; it is an unpleasant tax on him, which he feels he must pay. (More than a few businessmen regard bribes as another form of taxation, and actual rates are fixed as in taxation.) The real profit in bribery is on the side of the receiver. The giver often wants justice, and he resents the partiality involved, and the corruption. If the giver of the bribe has an inferior product and is succeeding only because of his bribery, he is still a creature of the politician, and is sacrificed when necessary. All over the world, bribery is standard operating procedure on the part of civil governments. This corrupt tax leads often to the creation of criminal groups whose function becomes the sale of inferior goods at high prices, with large bribes, to civil authorities at the connivance of those authorities.

In most cases to punish the one who bribes is analogous to punishing a rape victim rather than the rapist. True, the briber is not always under a like coercion, but often the coercion is very real so that bribery becomes close to being a form of theft. It involves a monetary theft and also a theft of justice. One man who began work for the state and then found that his payments would be withheld, his work condemned, and that he would be wiped out financially, if he did not make a payoff said bitterly of bribery, ‘There’s no other way to do business with the government.’ Bribery must be condemned, but in terms of Scripture.

(Law and Society, Rushdoony. Ross Books P.O. Box 67 Vallecito, CA. 95251 1982, pp 697,698)

A president of a small nation in Africa invited another friend of mine to address his cabinet officers. My friend told them that the prescription for poverty is corruption and bribery in high places. In order to grow a nation economically, other nations must be able to trust them. Where bribery rules, poverty rules as well.

I have observed an interesting phenomenon in the currency of nations. Where bribery and corruption rule, currency is weak. Why? None of the other nations trust the government of that nation.

All currency is a faith statement by the peoples of the world. Currency is a document stating that a government can be trusted. Trustworthy governments have strong currencies.

Why are the U.S. Dollars and Swiss Francs so strong? Both governments can be trusted financially. The U.S. government has paid every debt it has ever owed. Why are some others different and corrupt? They incur huge debts and then default as a nation. No one wants their corrupt money, not even their own people.

I remember flying through Paris, France once as I was returning to the United States from a far away land. I had no American money, but I possessed a lot of the other nation’s currency. I pushed the stack of bills across the banker’s desk asking for French Francs or Dollars. The French teller scoffed and shoved them back my way stating, “We don’t accept this currency in this bank.”

I have often thought about the cultural destruction that bribery and corruption bring. We experienced this in a big way recently in the American Stock Market. Remember Enron?

Enron sold oil and natural gas. When investors discovered that Enron deceived them, the stock markets and governments worldwide reacted in a knee jerking fashion.

I encourage missionaries that paying bribes contributes to cultural demise in the country to which they go. People may feel exhorted, but if they pay bribes they must realize the destruction they are encouraging.

Proverbs addresses justice and the legal system as it addresses bribery and corruption. Proverbs says, “A bribe blinds the eyes of the wise.” Unfortunately in some nations, the people receive the best [and most corrupt] judgment that money can buy. Judges need to be paid enough to live on so they do not need bribes. Singapore judges are the highest paid in the world. They are also clean. Throughout the law of Moses, judges needed two character traits. They had to fear God and hate bribes (Exodus 18:21).

Imagine a world set up on corruption and bribery. There is no structure, no security and no consistency in decision-making. In a world like that, one thinks of Mel Gibson’s early movie Mad Max. One thinks of George Lucas’ movies or Steven Spielberg’s surreal offerings for normalcy.

Right and wrong in a world like that are non-issues. The issue in a corrupt world is “Who has the most money?” and “Who can best feed selfishness?” A corrupt world is ego-centered. Concern and love for ones neighbor see the light of day only slightly in a corrupt world.

Scriptures in Proverbs on Bribery

Proverbs15:27

“He who is greedy for unjust gain makes trouble for his house hold, but he who hates bribes will live.”

Proverbs 17:8

“A bribe is like a magic stone in the eyes of him who gives it; wherever he turns he prospers.”

Proverbs 21:14

“A gift in secret averts anger; and a bribe in the bosom, strong wrath”.

Chapter Ten

Laziness

My political science and history teacher in college was named Sam. He was raised in southeastern Texas, attended Baylor University, and did extremely well there. Sam gave some valuable advice about marriage to the women in our fellowship.

He quipped, “Do you want to be poor your whole life? If so, marry a lazy man.” Poverty is guaranteed to laziness.

Solomon writes: “The sluggard buries his hand in the dish and refuses to lift his hand to his mouth.”

Solomon teaches us to observe the ant. He writes that although the ant has no leader or director telling him what to do, he works during the summer to save food for the winter. Poverty marks lazy people in Proverbs. Solomon describes a man so lazy that he refuses to feed himself. He buries his hands in the food dish and refuses to lift his hand to his mouth.

The Scripture contrasts laziness with diligence. Diligence produces prosperity in the Scriptures. Diligence makes leaders.

Two nations leap to my mind as I think of diligence—Japan and Korea. I remember the first time I flew into Japan. The industry stunned me. I recall thinking as the plane was landing in Tokyo, “I understand why the Japanese thought they could conquer the world in 1941.” These people work hard and Japan became a rich nation after the war with the help of the U.S. and other allied nations.

I was even more impressed by the diligence of Korea. In the early 1970s, Korea was truly a third world nation struggling to rebuild after the Korean War. By the turn of the century, Korea ranked number thirteen in the world’s economies. How did this happen? Hard work.

The first time I was there, the military ruled the nation by national law and fiat. The expatriate community watched the Korean work ethic in wonder.

The nation closed down at midnight each night and reopened for business at 4:30 a.m. for the early morning prayer meetings of the Christians. The joke among the foreigners was “Why did the military impose martial law? So that the nation would sleep four and a half hours a day.”

The Proverbs teach us that patience in accumulating wealth and diligence in saving produces increase. This strikes across the grain in the casino culture of “get rich quick” in our nation. Americans spent more money on gambling than we spend for household staples. What is the root cause of this desire for wealth without work? Laziness and a lack of character.

Korea gambles but not like America. They also work as hard, if not harder than America. My wife and I revisited Korea in 2000 after a ten-year hiatus of absence. Both of us marveled at the progress made in Korea since we had been there in the late 1980s. I remember remarking to Judy as I looked at miles of bumper-to-bumper traffic outside the airport, going into Seoul, “This place has become the United States.”

Laziness parallels disorder. Disorder speaks of slovenliness. Solomon writes,

I passed by the field of a sluggard, by the vineyard of a man without sense, and lo, it was all overgrown with thorns; the ground was covered with nettles, and its stone was broken down. Then I saw and considered it; I looked and received instruction. A little sleep and a little slumber and a little folding of the hands to rest, and poverty will come upon you like a robber and want like an armed man.

(Proverbs 24:30-34)

During the 1980s, my wife and I led a missionary training facility. We trained young people usually between eighteen and twenty years of age. Sometimes they were older or younger people there but usually between eighteen and twenty in age.

One of my co-workers led a discipleship school. His lecture detailed the importance of hearing God’s voice. One student constantly overslept for his early morning class. One day the director woke him up and wrestled him out of bed. The young man protested that “God told him to stay in bed that morning and not go to class.” I thought, “he will not make it in the ministry nor will he ever be rich.”

I often think of 2 Chronicles 27 when I consider diligence and laziness. It says, “Jotham became mighty because he ordered his ways” before the Lord. I believe people can become mighty financially because they order their ways.

The Millionaire Next Door chronicled the frugal habits of millionaires in America. One of the side-points they make is that 65 percent of American millionaires keep regular daily receipts of all purchases. They record monthly where the money went.

What about everyone else in America? Only 30 percent of non-millionaire Americans keep close records of their expenditures. Record keeping takes work. Laziness keeps no records and laziness does not get rich.

It should not surprise us that the Bible condemns laziness as a sure route to poverty. Ask any small business owner. Lazy employees cost money. Late arrivals, no-shows and lackadasia produce less on the balance sheet. Somebody new must be hired, mistakes must be corrected and people must be retrained.

Employers favor diligent over lazy workers. The diligent will get richer while the lazy stay poor with more menial jobs.

Imagine a world run by laziness: No plane would ever fly on time; No meal would ever be served hot; All deliveries by post would be late; Paychecks would constantly arrive a week to ten days late; Weddings would always be late; Funerals would always be late as some of the pallbearers would not show up because they are too lazy to carry the casket; Banks would post all transactions a day or two late and money would never be transferred properly; Confusion would reign.

Conclusion

I think of the true story I read in the legal textbook, The Law of Debtors and Creditors. Leading bankruptcy and Harvard law professor, Elizabeth Warren, coauthored this text with Jay Westbrook, who is a bankruptcy expert at the University of Texas.

They open their text with the following true story:

Richmond, Texas - The body of a man who died Friday was dumped on his son’s doorstep by a funeral home on Monday evening because the son had been unable to pay the full price of cremation.

The bizarre episode, in this town thirty miles southwest of Houston, began Saturday morning when the body of George Bojarski, who had died of esophageal cancer at the age of sixty- six, was picked up by the Evans Mortuary.

Mr. Bojarski’s son, Larry, paid the funeral home $299 of the $683 cremation fee and was told that if he failed to pay the balance, the body would be returned.

Gary Glick, the justice of the peace in Fort Bend County, quoted Larry Bojarski today as saying that he had not had the money to pay the balance and that he had not believed that the funeral home would follow through on it’s threat...

But on Monday evening, George Bojarski’s body, covered only by a sheet, was found at the door of his son’s apartment.”

(From New York Times, Oct. 14, 1993, A16, col.1 quoted in The Law of Debtors and Creditors, by Elizabeth Warren and Jay Westbrook, published by Aspen Publishers, Inc. 1996)

As we consider money management in America, bizarre findings accrue. America does not corner the market on financial strangeness. Other nations also mismanage money with weird results. People sell wives to pay gambling debts in some nations.

The church follows the culture in lock step financially. There is a 2 percent difference in charitable contributions from the church. We are slightly more generous than our surrounding culture.

It seems to be that there are several topics we could bring to the fore in our conclusions.

First, I would raise the issue of old-fashioned frugality. I read a story about famous money managers and advisers on Wall Street. This article addressed frugality in the lives of these Wall Street Titans. John Bogle, founder of the mythical Vanguard group of mutual funds, is often known as St. John in the industry spoken of. The writer asked him if he ever splurged on anything. He responded that he drank an eighteen- dollar bottle of wine recently; that is eighteen dollars per gallon (a far cry from the bottles mentioned in Wine Spectator magazine recently which went for four thousand dollars a bottle). Bogle probably could have purchased everyone’s estate at the auction and all of the wine without batting an eye, instead he drinks the cheap stuff.

I also think of Warren Buffett, the second richest man in the world and a multi-billionaire. Buffett still lives in his $32,000 house he purchased years ago. Another interesting side-note is to remind us that Buffett never flew in a private jet until he owned his own airline company.

Speaking of flying, I immediately think of frugal Sir John Templeton. Templeton made his huge fortune investing in international stocks. No one really knows how much Templeton is worth (hundreds of millions), but the question is how many hundreds of millions. Templeton flies coach class everywhere he goes. He states that the back of the plane gets there just as quickly as the front. Also, Templeton spent no more than $200 for a car until his net worth was one quarter of a million dollars. That is frugality by anyone’s standards.

Then there is Texas billionaire H. Ross Perot. He drove his Volkswagen and took a bag lunch to work all throughout the formative years of EDS. Instead of 747s, Perot thinks the President of the U.S. should flying a smaller citation jet to save the taxpayers money.

All of these financial giants point us away from the rock stars and professional athletes flying around in their private jets. Financial role models abound if we look for them. As we think of frugality in the life of a Christian we think of God himself.

In the Old Testament, God told his conquering people to spare the trees around the cities they besieged. As well, Jesus encouraged salvaging the bread scraps after miraculously feeding thousands. There really is no waste with God. He is economical in what he does.

As we think of frugality, our minds wander to thinking about interest. Compound interest is powerful. I remember a student asking me if I believed in interest. I responded, “Yes, absolutely I believe in receiving interest and never paying it.”

Financial radio personality, Bob Brinker described paying his house off in advance. He paid his thirty-year loan off in fifteen years, and he exulted in the amount of interest he saved. Both John Templeton and Ross Perot learned about the power of interest when they were young.

Templeton’s biographer, Robert Hermann, describes a typically leisure activity for Templeton’s youth. He spent hour after hour calculating compound interest problems and solving them. As well, he purchased everything with cash from early in his marriage onward. Templeton himself described why: “So we would always be receivers of interest and never paying interest.” Money magazine called Templeton “debt-averse” at the age of ninety, mentioning that Templeton had never carried a mortgage.

H. Ross Perot learned about staying out of debt from his father when only a boy. Perot wanted a bicycle and his father took him for a ride through the slums of his city. His dad described the indebtedness and lack everywhere apparent to young Ross. He then turned and said to his son, “Only buy something when you can pay cash for it.” Perot rings the alarm regularly over the indebtedness of the American public.

Stock market genius Warren Buffett gave investment advice to University of Nebraska students. His first comment was about credit cards. Buffett strongly decried the current credit card culture in America. People awash in credit card payments cannot get wealthy in the stock market.

The flip side of the interest equation is the lack of savings in the estate and thus the inability to capitalize on interest income. Harvard economists Harless & Medoff have underlined this dynamic in The Indebted Society. They point out that as American debt has skyrocketed, savings and investment plummeted. In 2003, savings rates were below 2 percent per capita. Again, this is a million miles from successful role models.

Templeton and his wife lived on 50 percent of their income for many years and invested or gave the rest away. Most financial gurus recommend consistent savings of 10 percent of all income.

Proverbs 6 takes us back to the ant. The ant saves for the future. Solomon calls this wise. This wise activity produces what Einstein called the “8th wonder of the world” which is compound interest. That is interest on interest on interest.

If ten thousand dollars was invested at 10 percent interest at the signing of the Declaration of Independence, that figure would have grown to be more than all money in existence worldwide in the year 2000. If the stock market grows at only 5 percent per year during the century, by the year 2100, the Dow will be over a million, it is presently at 9,700. That is the power of compounding.

Ethics guide us three ways financially. We must consider work ethic, ethics of right and wrong and a giving ethic.

Solomon tells us over and over that laziness produces lack. David Landes, Professor Emeritus of Economics at Harvard has stated repeatedly in The Wealth and Poverty of Nations that the lack of honesty in some Asian, African and Middle Eastern countries hamstring their competitiveness internationally. Jesus and Solomon, both, discussed the financial wisdom in generosity.

We can keep George Bojarski’s dead body off of our financial front door by being frugal, staying out of debt and being ethical.

Money Reading List

I include a list of books that are a part of the large group I have read over the past several years. I do not endorse everything in these books but reading them would you give you a rather broad comprehension of what is out there. This list is by no means comprehensive or complete but representative.

Christian Books:

1. Storm Shelter, Ron Blue

2. Debt-Free Living, Larry Burkett

3. Your Finances in Changing Times, Larry Burkett

4. The Debt-Free Church, Jeff Berg and Jim Burgess

5. The Debt-Squeeze, Ron Blue

6. From Wall Street to Humility Theology, Robert Hermann

7. Exploding the Doomsday Myths, Sherman Smith

8. Investing for the Future, Larry Burkett

9. God in the Pits, Mark Ritchie

10. Making Sense of Your Dollars, Ian Hodge

11. Tiptionary, Mary Hunt

12. How to Increase giving in Your Church, George Barna

13. Tithing and the Church, Gary North

14. Tithing and Dominion, Edward Powell and Rousas Rushdoony

15. The Word on Finances, Larry Burkett

16. Puritan Economic Experiments, Gary North

17. That You May Prosper, Ray Sutton

General Market Money Books on Various Topics:

1. Grow Rich Slowly, Merrill Lynch, Underwood and Brown

2. The Overspent American, Juliet Schor

3. The Millionaire Next Door, Thomas Stanley and William Danko

4. The Only Investment Guide You Will Ever Need, Andrew Tobias

5. Stock Market Logic, Norman Fosback

6. The Banker’s Secret, Mark Eisensohn

7. Penny Pinching, Lee and Barbara Simmons

8. The Money Lenders, Anthony Sampson

9. Two Incomes and Still Broke, Linda Kelley

10. Get a Financial Life, Linda Kobliner

11. Secure Your Future, Price Waterhouse

12. Sooner Than You Think, Gordon Williamson

13. Feathering Your Nest, Lisa Berger

14. Ninety Days to Financial Fitness, Don and Joan German

15. Investing for a Lifetime, Paul Merriman

16. Super Saver, Janet Lowe

17. Wealth on Minimal Wage, James Steamer

18. Free Lunch on Wall Street, Charles Carlson

19. Portfolio Selection, Harry Markowitz

20. Benjamin Graham on Value Investing, Janet Lowe

21. Sylvia Porter’s Money Book, vol. 2, Sylvia Porter

22. The Wealthy Barber, David Chilton

23. 1001 Ways to Cut Your Expenses, Jonathan Pond

24. Life Without Debt, Bob Hammond

25. If Time is Money, No Wonder I’m Not Rich, Mary Sprouse

26. What They Don’t Teach You at Harvard Business School, Mark McCormack

27. Methods of a Wall Street Master, Victor Sperandeo

28. Charge It! Terry Galanoy

29. Manias, Panics and Crashes, Charles Kindleberger

Web Sites:

www.stewards4missions.com

www.crown.org

Visit us on the web at

www.ronsmithbooks.com

Ron Smith is the author of several other books. You can see and purchase all of them at our website. As well, you can get in contact with the author on that website as well.

Other Books by Ron Smith

Grace Simply Grace (co-authored with Rob Penner)

Dear Paul, Am I on the Right Track? (with Rob Penner)

Hooked on the Word (Changing Your Life through Bible Meditation)

Under the Mosquito Net (An Inside Look at Missions)

Born Already Ruined (The Doctrine of Original Sin)

Read to Lead (Seven Examples in History)

I Don’t Read My Bible Enough

Cover Design by Neubauer Design Visit Neubauer Design at

www.neubauerdesign.com

Table of Contents

Author’s Preface

Introduction

Chapter One Unrighteous Alliances

Chapter Two God Condemns Greed

Chapter Three Giving First-Fruits and Generosity Bring Blessing

Chapter Four Debt

Chapter Five Pay Bills Promptly

Chapter Six The Danger of Co-Signing

Chapter Seven Remember the Poor

Chapter Eight There is Wisdom in Saving and Investing

Chapter Nine Bribery

Chapter Ten Laziness

Conclusion

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