my virtual pen

The Church and the Financially Distressed Christian

2010-10-10T06:28:00.000-07:00

In most, if not all the middle east countries, non-payment of a financial obligation like loans and credit card arrears is criminal in nature. It is not just a civil case. In fact, many Filipinos and Christians landed in jail.

A lot of Christian believers might be wondering whether or not Christian Churches and its leadership has done something to help these brethren who are in financial trouble? The sad fact is that many believers' mind are conditioned that the church and the brethren should dole out for the amount needed, especially if the Church is blessed financially.

For the sake of our further discussion about helping brethren who are in financial distress, let us first agree on two simple truths. If you will not agree, then do not read any further.

Firstly, the church is not a charitable institution; and secondly, money is not the person's real problem, as I have mentioned in my prior article "No, Money is Not the Real Problem."

If your eyes are still glued to these letters, then let me proceed.

Though caring for each other is a primordial function or task to be promoted inside the Church, dole out of cash to those in financial trouble, I believe is not one of them. Especially if the main reason why one has to be in the situation is his or her own misuse of money on unimportant things.

The Bible, specially in the new testament, as far as I could find (well anybody could point it out to me) mentioned the following as the items where the Church's fund should be appropriated:

To help the needy, not those that has the capacity to provide for themselves and their family. These brethren does not lack because his nothing is left of his salary after deducting the loan or credit card payments;
For the administrative costs like honorarium of the Church worker that includes the minister, secretary, clerks, and other volunteers, as well as rental payments for the venue of Church services;
To defray expenses incurred in the on-going Church activities and projects; and
To support for the missions.

Nothing could I found any verse that a Church giving or lending money to pay off debts of one of its members.

Instead, the best way the Church could care for its membership is to teach personal finance and stewardship. This is a very valuable help than the giving of money, for money is not the real problem. The real problem is the lack of education in terms of personal finance and stewardship.

It is now high time for the Churches to teach its membership to be faithful with their tithes (10% of their income), and the remaining (90%). After all, God owns everything we have.

"Just Say: No, Thank You"

2010-06-22T07:35:00.000-07:00

Early morning on June 20, 2010 at my office desk was an envelope from a bank, which is not my depository bank. Surprisingly, when I opened the envelope it contains a statement of account for a visa card. The sole entry is a charge for an annual membership fee.

I immediately dialed the bank's hotline, followed the voice prompt and finally was entertained by a customer service officer. After the standard identity verification, I immediately raised a complaint for charging me the membership. The charge, as I explained is arbitrary and whimsical. I had never activated, moreso used the card since it was given to me by the issuing bank.

The customer service officer explained their point. He said, with an arabic intonation that upon the issuance of the card in my name, it automatically enlist my name as a member. Being a member, they charge a membership fee, which in my case was waived during the first year. Now, this second year of membership, they will be charging the fee.

I agree their argument that anyone issued with a credit card by an issuing bank entitles one to be a member. However, I threw up these rebuttal questions to him: since i had not activated my card, am I not considered an inactive member? In any professional or socio-civic organization, can an organization compel an inactive member or any member for that matter to pay their membership dues?

Instead of directly answering my questions, he then proceeds to saying that this is a matter of their imposed policy. I need to pay the dues on or before July 4, 2010.

Calmly I then told him, no I will not pay. I know that this call has been recorded and now I will challenge you to forward my account to your recovery or legal department because I will not pay this membership due.

He then ask me if I really want to cancel my visa account to which I replied yes. I have not even activated my account despite repeated calls received from your bank insisting me to activate my card.

Finally, he told me that he had initiated a request to cancel my account with their bank. He further said that another person will call me in two or three days time, if none I may call back their hotline number on the fourth day, which is on June 24, 2010.

Today, June 22, 2010 I received a call from the bank. This time a lady. She again insisted me to activate my account with a promise that they will waive the membership fee. My instant reply is no. She then said that the waived membership fee plus the benefits the cardmember enjoys was just put to waste. She insisted that I am privileged to enough to have their card for free membership for the next 12 months.

I just calmly asked her that was it a lost opportunity for me or your bank's chance to earn from me? In the first place, I already promised myself to rid of any credit cards. I am a credit card free person right now.

End of conversation. Cancellation of my visa account becomes final.

I am sharing this experience to everyone thinking that I am not the only victim of this policy. All faithful readers of this blogs, your loved ones, or even friends had or may encounter the same situation.

Also, I would like to prove to everyone that we can all survive without that plastic money. All you need to do is to be content.

One of the advocacies for my blogposts is to teach everyone contentment. For the Bible says that contentment plus godliness is great gain.

God bless you all!!!

Not More, Not Less

2010-06-14T13:42:00.000-07:00

"...give me neither poverty nor riches; feed me with the food that is needful for me, lest I be full and deny you and say, "who is the Lord?" or lest I be poor and steal and profane the name of my God." -Prov. 30:8b-9-

From television shows to video messages and other blog on the internet, and even my observations of people around this past few days there is one subject that has impacted my devotional--getting rich and greed.

There was this television show that invited a speaker to speak about the way to amass wealth and so many things were being given as tips. People around me are busy engaging in activities that may augment their day job income. But, there were also messages that reminds me of how greed infiltrated the society that we are living in. I was even led to the aforementioned Bible verse.

Do not get me wrong. There is nothing wrong with earning extra or even amassing wealth. However, the motive of doing so or even the amount of time spent on such activities must be checked.

Let us delve first on the motive. Do you want to earn extra so you can live a luxurious lifestyle indulging in activities that are tagged by the society as for the "rich and famous?" Or you may just want your children or family to enjoy what are the latest trends in the society? Or you just want to amass more wealth for the future of your children?

If these are your motives, can you imagine how you may have been spending the 24-hour day that you have. These motives are noble on the surface as it is for the benefit for your family. The reality is that these motives ruin your personal and family life. No wonder that delinquents are increasing in number because parents are spending less time with their children.

This we have to reflect. Which one is more important your physical or spiritual satisfaction? We must at least balance both. As Jesus taught us by saying "man does not live by bread alone, but by every Word that comes from God." This means that we have to feed both the lust of our bodies for material things and the joy and peace--through the communion with God--that our spirit needs.

Ones motive then should be to share that wealth, if it exceeds your needs. However one must also be careful if the time you have been spending in wealth building should not come in the way of your activities that will feed your spirituality. The time that you fellowship with both your biological and spiritual families, as well as your personal communion with the Lord.

At the end of the day, what is paramount is to live a life in moderation and contentment. How do we determine what is moderate? Moderation is one where you will not be so rich that you may be enjoying the abundance of material things that you may feel you do not need God nor being too poor that you may profane the name of God by stealing. Having said that, contentment in life is the key.

The Boat is Sinking

2010-06-08T06:08:00.000-07:00

"The boat is sinking, group yourselves into..." there goes that famous line of one of those parlor games played at parties or any group or organizational activities. But the succeeding paragraphs you may read from hereunder is not all about the said game. Rather it is all about the present economic boat everyone riding in.

The last couple of days, there were a number of people whom I had conversation about this global economic situation. Two of these I know personally and some two others were strangers whom I met in a restaurant during lunch break and another one at the place where I wait for my car lift.

One common denominator in those conversations is about the sinking economic boat. All these guys whom I had good conversations with are in one accord as their gut feel led them to conclude that economy is worsening. With the news of Greece and other debt-laden countries, the economic boat has yet to reach the sea bed of recession.

As my share of the conversation, I agreed with them. They also concurred with my opinion that the main culprit of this sinking is overspending. Living beyond ones means led one to overspend, then to over-borrow until one day repayment terms is inevitably breached, hence the problem.

How can a country or the whole world fell into this problem of overspending and over-borrowing? The answer is so simple. Because most individuals, yes you and me and most of the political leaders are not living the principle of contentment that the Word of God taught. The same word written by Paul which states that "contentment with godliness is great gain."

You and me make up our family. Our families make up one community. Several communities make up cities, and cities a country. Several countries then make up the world. So what the world is into right now is a reflection of how you and me live our own lives.

Simply put, unless you and me would change our attitudes in handling our resources nothing will happen to our families. If our families are problematic, how can we contribute to the good of the community or our city or our country. If a number of countries, like what is happening today is in a problematic situation, it reflects the health of the world.

Therefore, it is time that churches around the world, and individuals who are gifted to teach the ways of God should do so. It is time for the people of God to rise and shine in this dark state of the world.

This is one of my motivation to keep on writing about things that teach people how to better handle their finances.

To all those who are following my blog posts, accept my sincerest apologies for my failure to keep it running for several weeks. I have been so busy with the graduation of my eldest daughter. The preparations for her going home to Philippines and some photography assignments kept me busy.

No matter how busy I am, I will try to keep this blog alive for those faithful readers. I will not allow that my blog will sink and be drowned to oblivion.

Convenience, How Much it Cost?

2010-04-13T06:06:00.000-07:00

Convenience is a word closely attached to modernization. It is something that most modern facilities, gadgets, or even activities are being attached with. The main objective of which is to save resources, e.i. time and money, or eliminate frustrations.

Look around us we can see convenience store, convenience foods (a.k.a. ready to eat or serve foods), or even marriage of convenience as common examples.

Convenience stores are one usually found in petrol stations selling grocery items, toiletries, magazines, foods, and many other small items and services. Instead of going to supermarkets inside malls where looking for parking and walking inside consumes a lot of time, motorists can conveniently picked the items at these stores attached to a petrol station on the way home. Of course, the time saved is paid with a premium via the higher price tags of all items sold at convenience stores.

Ready to eat or serve foods has its cost too. What can you expect in exchange for the time saved, especially for all busy buddies out there who wants to save time in cooking for their foods. The price tags for convenience food could be your health as these type of foods contain preservatives or other chemicals that could ruin our health.

Marriage for convenience. These are resorted to by some when they arrange marriage not for love or a purpose of establishing a family, but mostly for immigration. No need to discuss further the cost attached to this type of an arrangement.

What other convenience you could think of that ruins the life of many?

Yeah, you got it correctly. Those little plastic cards, the credit cards. Is it not convenience these plastics are being marketed for?

Convenience and safety of carrying plastics instead of money. Convenience in purchasing the gadgets and other items of luxury while paying it at a later date. Worse, convenient cash available in case of emergency.

Even worse, is how easy one can purchase unnecessary items for lack of mental exercise in making decisions for convenience overrules your mind to thinking if you can afford the things you are buying or not.

Before all these conveniences came to being, our forefathers lived. They lived without credit cards. They even cooked their food while walking for miles from one place to another for they do not have the same luxury and convenience of modern transportation. Yet, they are happy and free--free from debts.

If your life is controlled by these conveniences, think again. The cost it attached could be your life.

Remember, nothing instant in this world is worthwhile. Achieving things through hard-work and sacrifice lasts forever, especially the joy it brings when achieving these.

Understanding the Needs Rather than Feeling for the Wants

2010-04-06T22:18:00.000-07:00

By nature, man is a rational being. It means that he is designed to have brains that is supposed to be the central operating unit of his whole system. By analogy to the computer, it serves the function of the central processing unit, or the cpu.

The sad fact is that majority does not make use the full potential of the brain. Worse, many are controlled by their emotions, hence becoming irrational. Is it not a fact that when people are too emotional he tends to do crazy things?

Let us zoom in to the area of personal finance. People who are in financial problems are those that are being controlled by their emotions, especially in making spending decisions.

What do you think urges a person, an ordinary working class buying the latest model of a mobile phoe twice or even three times his salary? Is it not the "feel good" emotion while seen in public using an iphone, a blackberry, or any latest mobile phone?

One fine day when I was commuting in a public bus, a young kabayan in her late twenties was holding an iphone, a stark contrast to an ordinary motorolla phone I had for three years now. In the middle of the trip back to Al Ain from Dubai, this young kabayan tried to contact somebody using the shiny iphone. The funny thing occurred when I overheard from the loud voice coming out from the iphone speaker which goes "sorry, you do not have enough credits to complete the call..." At the back of my mind I was like bursting into laughter thinking that my 400 Dirham (or a little over $100) phone purchased three years ago is way better than this more than 2000 Dirham (around $600) iphone. My cheaper phone is more useful than the more expensive one.

If not ruled by that "feel good" emotion in your spending, you would intellectually decide which one is more useful and beneficial. Using our brains rather than our hearts in making decisions should be the most appropriate act.

A clich� that says "that is why your brain is placed higher than the heart so that it will rule over the latter" is very much applicable here.

Have you not noticed that in the book of Proverbs wisdom is very much emphasized? The book also contains a number of practical guides on handling our financial resources. Hence, God wants to emphasize that we should understand the need and avoid feeling for the wants as a practical guide to handling our money.

God bless!!!

Spend or Save?

2010-03-29T08:31:00.000-07:00

"The simple believes everything, but the prudent gives thought to his steps. One who is wise is cautious and turns away from evil, but a fool is reckless and careless." Proverbs 14:15-16(ESV)

When it comes to personal finance, every waking hours of our lives we have to deal this simple question of whether to spend or save? You may or may not like it, but you are doing it while you are living and awake.

Unfortunately, the world around us dictates the urge to decide on spending rather than saving. Can we blame this on multimedia, the smart and genius of marketing and advertising, man's innate egocentric physical character that tends to lust for the latest gadgets, the latest fashion and style, or anything that can make us feel and look good?

All of the above is a resounding answer. Hence, it is an uphill battle for one to save.

The first two factors mentioned are given. We can do nothing about it. These are outside our control. However, the third factor, which is man's egocentric physical character is under our control.

Man is a composition of the physical body, soul and spirit. Simply put, you and I should deal both our physical and spiritual components.

The control that we can do on the third factor relies more heavily on our regard with both the physical and spiritual. Jesus' rebuttal to the devil that goes "man does not live by bread alone, but on every word that comes out from the mouth of God" when asked to turn the stone into bread at the time He is fasting simply dictates us that man should also feed his spiritual hunger and thirst by the Word of God.

Being prudent and wise, especially on the way we deal with our finances needs wisdom, which comes from God. To do this, we should take care of our spirituality by constantly communing with God through prayers and devotional reading of the Bible.

If the physical is controlling, reckless and careless decisions shall be made. A decision to just spend, spend, and spend while completely disregarding to save for the rainy day is the way of life.

As part of our reflection this lenten season, we may examine our financial health. Have we overspent and not saved? Have we accumulated so much debt instead of savings? Only you and your God know your standing.

Anyone who is financial in bondage, is not spiritually free.

Be wise. Save.

"Which One?"

2010-03-23T06:13:00.000-07:00

"Eeny, meeny, miny, moe..." In our dialect (Cebuano, and I don't know with the rest of the Visayan) the version goes "butikaw, butikaw, ikaw..."

This rhymes are mostly uttered by kids when choosing who would be the "it" in the game they are playing. However, it has been observed that almost all adults may also be using this rhymes, especially at the cashier's counter. It has been observed that adults undergo a multiple choice question while at the cashier's counter.

The choices that adults have to pick are as follows: (a) pay in cash; (b) pay using debit card; or (c) pay using credit card.

If the choice is (a) or (b), in most likelihood that person can afford what he purchased. The payment mode is based on the available cash. In business terms, the person is liquid. While in layman's term the person has enough cash available.

If the choice is (c), there are two possible scenarios. The person is either a responsible credit card user, or a freak. Sadly, statistics show that majority of the credit card holders belong to the second one. That is the reason why credit card issuers are making good money for majority of the adults are freaks when it comes to usage of the credit cards.

And for the sake of discussion, after choosing (c) as their pick a further eeny, meeny, miny, moe occurs. The choices now are (a) visa, (b) mastercard, (c) diners club, (d) and many others. Statistics also reveals that in this modern day, people own at least two credit cards.

Every person who happens to read this write up must be familiar with the aforementioned story. It is now time for you to classify yourself as that of the first person picking (a) or (b), or the second one choosing (c) and further sings the eeny, meeny, miny, moe rhyme.

If you are that second person, be a responsible type. Do not be a freak.

Better yet, aim for that first person and be debt free. For it is said that "a borrower is a slave to the lender."

God bless!!!

The Real Score of the Economic Ouch

2010-02-09T03:22:00.000-08:00

Why is it that when uncle Sam's (referring to the country USA) economy is sick, the rest of the world's economy also crumbles? Somebody asked me this question.

My human chips inside my head started to process something. Searched a very important key point to start with my argument. Then pop the information that it is the biggest economy in the world. Most, if not all economies of the world are exporting to uncle Sam. Take Japan for example. How many cars and electronic gadgets are being exported for uncle Sam's consuming public? It is too much to count. And there were lots of other countries, which exports their products and agricultural produce to uncle Sam.

Now, if uncle Sam's economy becomes ill, the most logical result is, like any person who is also sick would lose his appetite. Otherwise stated, the consuming public spending will be affected, hence lesser consumption of those exports from the rest of the world.

But why has uncle Sam's economic health became sick lately? Now this same person followed up this question. And my quick answer is their dependence on credit.

The aspect of credit that, in my opinion has greatly affected uncle Sam's economy is the over-emphasis of the plastic money, in lieu of the the legal tender that it issued--the green bucks.

The reckless usage of credit cards and other consumer loans offered by financial institutions created a great deception as far as economic movement is concerned. This plastic money or any consumer loans allows anyone to spend more than he or she earns. It made spending easier and more difficult to track or even stop because it will just create a habit in most of us.

Uncle Sam's economy started with the saturation of the consumer loans defaults. The result then is an economic imbalance.

Now 1 Timothy 6:6 "godliness with contentment is great gain" should be seriously considered if you do not want to become part of that economic imbalance.

Some advise to live within your means. But, I say live below your means and set aside something for the rainy day.

Caveat: I am no economist. The above narration are my very own humble opinion. These may be inacurate, but I am confident that they made a very good sense.

God bless everyone!!!

Dangerous Quick Fix

2010-02-02T02:29:00.000-08:00

The last couple of weeks, I have been hearing people talking about debt problems. These same people are discussing on ways to just get by with the monthly payments.

One topic that caught my attention was the mention of consolidation of debts. This method is one where a debtor approaches one party (usually a financing company or bank) to which another indebtedness is applied for, the amount of which is more than enough to cover the total of a number of debts for the purpose that monthly payment is concentrated to one party.

Similar to how I advised people who approached me for counsel, I discouraged them to resort to debt consolidation. This is a quick fix. I believe that nothing instant is worthwhile.

The biggest danger that this debt consolidation can bring is the artificial facade it may create in the borrower's perception. After several installments paid for by the borrower, a sense of a reduced debt might be felt by the borrower, thereby signalling his emotions to again swipe those cards, or apply additional loans.

A slow and disciplined elimination of several loans is favored. Along the way to eliminating your loans, a very valuable lesson could be learned.

A very effective way is one that I learned from Dave Ramsey's Financial Peace University called debt snowballing. This procedure suggest that loans should be listed in an ascending order based on loan balances. Elimination starts from the loan with the least balance. Once the first one is paid off, the monthly payment that is used to pay for the eliminated loan will be added to the next loan in the list. The same procedure is being followed until everything in the list would have been totally eliminated.

The key to unlock the chains of debt is not how much cunning or calculating one is, but how one behave. It is not all brain, but behavior. Hence, any quick fix like debt consolidation, as the majority may calculate is not a healthy solution. A Slow, steady and disciplined way like snowballing is a very effective solution.

Patience and perseverance is one valuable virtue anyway.

Prosperty, Beyond the Eyes of this World

2010-01-11T20:21:00.000-08:00

A lot of well wishers are saying as a form of greeting anyone for the new year "a prosperous new year ahead." It may also be written all over the greeting cards or any other correspondences as of late.

Prosperity as this world views it pertains to economic abundance. It is always attached with monetary value. The volume of ones bank account. The total assets in ones possession. The networth of an individual. And the lack of narrated material items of value is the exact opposite.

Simply put, prosperity according how the world is attached to money or material wealth. More often than not, money is associated with greed. While greed is the main trigger point of any evil things one can do.

A man steal for want of something beyond his own means. Prostitution has been resorted to for want to earn the easy way. One may cheat his way up to accumulate wealth. A politician receives bribe for easy money and recover what was spent during the campaign period. The list could go on and on, and the bottom line of every possible list we could think of is greed.

Every item in the ten commandments of God is broken because of love of money. That is why Jesus is sternly warning us that we can not serve both God and money.

What the world missed therefore is the fact that prosperity is beyond wealth. Our health, both physical and spiritual should not be forgotten. What our senses can not see is far greater than anything else.

When we first came to this world we bring nothing. We were born naked and nothing of material value attached to us. To dust we will return with nothing on hand, everything left behind when we die.

This is not to say that saving is no longer an option because we may not bring this when we die. Saving is still paramount. The real spirit of the statement here is that of excessive accumulation of wealth as an indication of prosperity.

What is emphasized here then is to at least balance your material gain and the intangible aspect of your life, which is your health and your spiritual life. In fact, it is even highly recommended to give the paramount importance to the latter than the former.

As St. Paul encouraged Timothy in his letter saying, contentment with godliness is great gain. Therefore, with the economic situation for the year 2010 is still unpredictable, our battle cry is to be content, save and borrow no more, and nurture your spirits.

Budgeting vs. Emotions

2009-12-22T04:17:00.000-08:00

Personal or family budgeting is very simple, yet majority find it difficult to do. It is so simple that the only mathematical function that one may use are the addition (+) and subtraction (-). Multiplication or division is seldom used. Finding the square root or those advanced functions are never ever been useful in preparing your personal or family budget.

People find it difficult to follow not because they do not know how to add or subtract, nor they do not have the calculator. The main reason therein is that when speaking of the subject about money and spending, a great deal of emotion is involved.

Imagine for a moment that you receive from your employer a news that on or before the christmas eve you will receive a bonus equivalent to 200% of your salary. What do you think are the things that your mind will be processing? Think deeply and do this exercise for a few moment before you proceed to the succeeding paragraph...

...done with the exercise? I know it is difficult to imagine at this point of time of crisis as bonus are hardly given by every employer. But for the sake of this discussion, I am giving you a chance to really imagine and think seriously what really want to do with this bonus received?

More often than not, when people received a news like this the things that they will immediately think are new stuffs like camera, laptop, cellphone, clothes, and other items to spend for. Seldom people think of setting aside major portion of the amount for savings. Worst is that very less likely people think to set aside for giving.

Whether you agree with me or not, that is a fact. A very sad fact at that.

Everywhere you go commercial advertisements are abounding. Billboards on the streets, on the newspapers, televisions, radio stations, and every other medium these intelligent marketers could think of are being utilized. Some taxi cabs in Al Ain City are now being attached with an advertising board at the back and top.

These things that we continually see and hear every where gets into our subconciousness. Little did we know, our emotions are being hyped up to think of stuffs whenever we are anticipating receipt of any monetary value.

The emotion stirred up by this daily dose of commercial advertisements around us is the main reason why we could not even start to prepare and follow a personal or family budget. As simple as addition and subtraction are even so difficult to do when it is overshadowed by the emotions.

Overcome this emotions by being content. For Paul in his epistle to Timothy wrote that "contentment with godliness is great gain."

Saving for the Rainy Days

2009-12-15T02:28:00.000-08:00

Last weekend, the United Arab Emirates (UAE) experienced the heaviest downpour in its history. It rained for almost three consecutive days, though on and off.

The heavy downpour resulted in flooding of the main thoroughfares. The streets and most of the places were flooded and the waters will take days or even a week or two before it subsides, for the drainage system is not designed to accommodate so much volume of water as rain is a luxury in this place of the world.

Even most of the villas experienced leaks over its roof for these were not tested for water leaks when it was constructed. It seldom rains in this part of the world. Rain in this part of the world would only visit the place one to three times a year, in so far as I had been experiencing for the last five years. And it was not so heavy as, it was lately.

Who would have thought such a thing would happen? So you may ask or say. But, it happened.

Let me now drive to the importance of having an emergency fund set aside, using the recent event in the UAE that was just narrated in the preceding paragraphs as an analogy.

Even if rain seldom visits the desert, but still it will eventually visit. The same is true with our own lives. Bad things will eventually happen as long as your heart still beats. As long as you are still walking consciously, it is inevitable that one of these days there will come some emergency. From a breakdown of your car, home appliances to a sickness or death of loved ones.

As UAE has not provided enough provision for its drainage system, once it rained for a few minutes, streets are easily flooded and water would subside turtle pace. A heavy downpour that was just experienced recently made the municipality of Al Ain deploy trucks to siphon out water on the major thouroughfares, so that it would still be passable by motorists. If you had not set aside an emergency fund, and a heavy rain would visit you, then you are forced to take out of the ordinary course of actions like using your credit card or borrowing just to make your way out of the flood caused by the rain.

Finally, as a result of deploying those trucks on the streets posed dangers to motorist as it is blocking the way. So if you are using your credit card for emergency payments, then you are at risk of not paying it off for it is now blocking off some of the portions of your income. In other words, it caused a heavy strained on your budget.

If you already have set aside an emergency fund, it is suggested that you review it and see to it that the amount is approximately three to six months of your living expenses. Most financial advisers recommend that this amount is a comfortable level of emergency fund. And this fund should not be tied up in any other investment, where it is not readily available as cash when neeeded.

Now for those who do not have one as yet, this is the best time for you to meditate on its importance as laid down above. It is up to you to heed this advise for you to set up one. Like in my previous article, it is suggested as your first baby step to set up a 1,000 dirhams and build on this month after month until you reach your targeted amount.

As it rained heavily in the desert, so will come in your life too. Start saving for the rainy days.

Make It Simple and Cut Those Plastics in Two

2009-12-08T03:44:00.000-08:00

The past couple of weeks, the word "simple" keeps on bogging my head once in a while especially on my devotional time. It was confirmed last night with the illustration of Pastor Edward Barcial during his exhortation at our midweek service.

When he related to us one of the email messages he received from a friend, I recalled that sometime March 2009, I also received from my sister the same email message, though a Cebuano version. The story speaks of the simplicity of life for all that were born in the 1950's, 60's, 70's, and early 80's. It was such a detailed narration of how we, as I am one of those born during those years lived our life very simply without the inventions and innovations enjoyed by kids these days like internet, playstation, xbox, iphone, cellphones and other gadgets that most kids are enjoying in this new millennium.

To add to that simplicity of life, I could vividly recall that my parents and grandparents were living life without credit cards. My fraternal grandfather, to whom I consider as my first mentor in personal finance did not even have any form of major borrowing from any financial institutions as he vehemently discourages resorting to any form of borrowing.

Without credit cards or borrowing, I am proud to say that my grandfather acquired properties and other stuffs so precious in the 1970's such as television, refrigerator, or even a car. His main secret is save, save, and save. And the simple formula is to spend lesser than what you earn.

Let me now stress on one of those innovations that has been introduced to give convenience to the consuming public, the credit card. Major credit card providers are marketing this product to provide convenience as one can purchase cashless, easy payments, deferment of payments, and many other perks and rewards system. Behind those convenience and comfort, are the evils that it carries and are not disclosed. For this, everyone fairly knows what I am trying to say.

In the previous article, I made mention that my little gold cards have already undergone plastic surgery. I just decided to make my life simple, especially in the area of spending. Simply put, my family and I will only be spending on things that are on budget and on cash basis.

Aside from the fact that in 2010 the bank that issued my credit cards will start to impose a AED10 ($2.50 approximately) per month as charges, where it was marketed as free of membership and annual fees for life, I decided to cut these in order to show an example to my children. I am now walking my talk as I kept on reminding them the dangers of spending on credit cards and borrowing.

The following are the dangers of using credit cards:

There is a tendency to spend more than paying your purchases and other spending by cash. Swiping those plastics in lieu of cash takes away that physical sign that will signal you to stop spending. Spending now depends on the credit limit rather than the available cash.

Swiping those plastic money also tends you to pay more. Some establishments are adding up a percentage of amount billed, like the gasoline stations when paying with your credit card. And if your total spending exceeds your available cash, you may not be able to pay for the total amount billed, hence paying additional interest and other finance charges.

Depending on your credit card as a mode of payment, your purchasing decision is based on a synthetic value, rather than the true value of the item. Decision is now based on whether you can afford the monthly installment rather than the total value of the item.

It is very difficult for you to trace your spending and purchases if you are dependent of the plastic money. You will just be surprised one day, upon receipt of the monthly statement how much you had spent, and mostly on unnecessary items. Hence, your budget is already ruined.

Having narrated all these dangers, the only question I would leave here is: are you ready to make your life simple? If yes, cut those cards, claim the rewards points, and settle the full amount.

If your answer is not, good luck to a complicated life.

A Tool in Danger of Transcending To become Your Master

2009-12-01T02:02:00.000-08:00

"Debt is often necessary and useful tool..." a quote from an article entitled "Manage debt before it hurts you" by Richard Hextall and published in the Gulf News on November 28, 2009 under the "your money section" of the said daily newspaper. I am in agreement with all the statements and arguments presented in this article, but this one.

Before proceeding further on, let me make this clear. This piece is not a criticism, be it constructive or otherwise to the aforesaid Gulf News article. In fact, I admire the whole article that I find so insightful. I am just disturbed in the quoted statement, and this I am just presenting my own argument, why I am not accepting this statement as is.

Based on personal experience, readings (both the bible and other secular materials on personal finance), and learning from various preachings and seminars attended to, debt should not just be used indiscriminately as a handy tool to purchase on just anything, even including a car or a house. I should then say that it is not necessary and useful that one should often resort to.

I should be a hypocrite if I say I had not resorted to borrowing. I did. However, my wife and I vowed not to resort to borrowing, as best we could. We are in the process of pre-terminating our car loan soon. Credit cards were already cut-off and had already performed plastic surgery to my credit card, after receiving a letter from the provider that in 2010 a service fee will be collected. I just took the card for they promised a lifetime free dues and administrative charges (as opposed to financial charges and penalties). A detailed write-up on the reasons why a credit card should be cut-off will be published in the succeeding weeks.

God's warning in Proverbs 22:7 which expressly states that a borrower is a slave to the lender made a very great impact to the way I am handling my finances. For as for me and my household we want to serve the Lord as long as we live. And how can one serve the Lord if one is not financially free. I just want to be slave to the Lord and not the Lender.

The danger then, when one consider debt as a necessary and useful tool is its transcendental effect where the tool may later on becomes the master. One may wake up one day and realize that more and more time is now spent thinking and working for ways just to keep up with the payment of the loans. Quality time with the love ones, fellowship with the brethren, or the prayer and devotional time is now in danger of being compromised.

Ever wonder why people in a highly urbanized areas are always in a hurry? These people are always short of the 24 hours and are living a fast paced life. This is one evident effect that the world is controlling them. Most of these people are now becoming slave to earning more to pay off amortizations left and right.

And even if you are not living in the metropolis, but you are spending more and more time with extra work to earn extra income to payoff your monthly amortizations, you are in the brink of becoming a slave to the lender.

As a parting statement, let me quote Thomas Jefferson, the third president of the United States of America saying "do not spend your money until you have it." In this way, you will not have any chance of availing a loan.

Damn If You Do and Damn If You Don't

2009-11-24T03:45:00.000-08:00

"A man devoid of understanding shakes hands in a pledge, and becomes surety for his friend." Proverbs 17:18 (NKJV)

Juan applied for a loan in one of the financial institutions in the United Arab Emirates. As practiced, before the financial crisis, most financial institutions are lending at 10 to 20 times ones salary. As long as you have your payslip and your employer's certification you can avail of the loan. One more intriguing requirement to be submitted is a co-signatory of the loan.

Since Juan is now ready with the documentary requirements showing proof of employment and salary, he approached Pedro as his co-signor. Pedro, being a close friend of Juan openly agreed to become a co-signor or a surety to the loan applied for by Juan.

Many can relate to the aforesaid story. One could relate to either Juan or Pedro. And this piece is mainly dedicated to that of Pedro's case.

Statistics show that more often than not, the co-signor or the surety ends up paying for the loan of the principal. Financial institutions knew it as a statistical fact, thereby requiring somebody who will end up as a sacrificial lamb.

In the story of Juan and Pedro above, the latter had two options. He could say yes or no. If he says yes, then he could be included as part of the statistics and if it so happens, what do you think would happen to the relationship of the two gentlemen? It is simply ruined.

If Pedro says no, two things could happen. First, Juan's loan application would be denied outright unless he could look for another co-signor. Secondly, because of the denial by Pedro, the relationship would no longer be the same again. It would be strained as a logical consequence to Pedro's refusal to become a co-signor.

It seemed that, if one will put himself in the shoes of Pedro, he could be in a situation of damn if you do and damn if you don't. Either way, the relationship will never be the same again if you refuse to become a surety. And when you accepted to become a surety that later on turned out to be paying the principal's obligations, the relationship is ruined.

That explains why the Bible in Proverbs described a person who enters into becoming a surety as devoid of understanding. It is not only that he is inviting himself to become one of the statistics, but allowing a friend avail of a loan where he may not have the capacity to pay. In most cases, these loans are just spent unwisely.

The wisest thing to do then is to never co-sign a loan. Never. Never. Never...

"To Lend Or Not to Lend?"

2009-11-17T02:18:00.000-08:00

Have you been approached by a brethren, a friend, or a relative and asking you "can you lend me a few bucks?" How have you reacted? What was your response?

This scenario is not uncommon to most, if not all of us. In most cases, this type of a scenario ends bitterly as relationship has now shifted to one being a slave to the other. (Proverbs 22:7)

The three common reasons I have observed why a brethren, a friend or a relative borrows:

To pay-off a maturing obligation from credit cards, bank loan, or worst from loan sharks, while his or her cash will only be available in the next couple or so days.

To augment the available fund use to pay an item he or she purchased that accordingly is a discount purchase of something he or she thinks a necessity (in most cases are stuff that one can live without like a cellphone) while his or her salary or loan application will not be released until the next couple or so days.

To be used for a necessity, like an emergency that happens in a family such as, but not limited to purchase of medicine or for hospitalization.

The reasons could be numerous and varied, but will most likely revolve around these general cases. Whatever it falls into one should take extra caution in just pulling out your cash on the wallet and indiscriminately give it to your friend. You may putting friendship as more important than money as you empathized with the need.

However, you might consider another angle on this scenario. Have you not thought that in giving in with their request and lending them with your extra cash, you are just aggravating their problem.

The worst thing you would do is to borrow in order to lend to your friend. Or sign as a guarantor for your friend. But, these things will be discussed in a separate topic soon.

You may consider the following before lending your precious cash, again with the assumption that by doing so will not strain your own budget:

You are not teaching him or her to get out of debt and manage his or her finances wisely. As you lend to someone to pay off the maturing debts, and once his or her cash is already available your money could either be paid back as promised or payment postponed. If the former case happens, well and good, but remember there will always be next time until the amount borrowed will gradually increase. If the latter case happens, just pray and be ready for the event that such indebtedness will be forgotten due to its continued postponement of payment. In short, you have not dealt the problem, which is the mismanagement of your brethren, friend or relative's finances, worst you have taught him or her to even get into trouble.

If it is for purchase of a stuff, you are approving of his or her addiction to indiscriminate shopping. You are allowing him or her to purchase some luxurious items, that without it, he or she could still live. Instead, why not advise him or her the virtues of saving.

As for the third, you may double check on the claim that the money being borrowed is really for a legitimate need. There are a lot of people who are just making up stories for them just to get what they wanted. Your cash. Granting it is a legitimate need as claimed it to be, then by all means, provide help and not a loan. Make sure that the help you will provide will not strain your budget, no more no less.

The next time your brethren, friend or relative would approach you for a loan pause, gather enough information and ask: "to lend or not to lend?"

You may also remember this quote from William Shakespeare in his literary work Hamlet: "neither a borrower nor a lender be, for loan oft losses both itself and friend."

Nobody But YOU

2009-11-10T02:22:00.000-08:00

Hmmm...for those who knew the song might have already been singing the tune. I can even sense someone is dancing while singing the tune. What comes to your mind upon reading the title might be the famous danceable song by a Korean girl group, wonder girls.

I may have been singing and dancing with this song the last couple of days with my daughters and in front of my wife. However, a deeper meaning of the phrase kept bugging me for the past week.

I have been consistent with my articles on personal finance every week for quite sometime now. It have been a fixture in the daily newsletter of our church, Word International Ministries - Al Ain (WIN-Al Ain). Some online friends had even featured some of my articles in their weblogs. And a number of personal messages I have been receiving are very encouraging to continue on to come up with more articles about personal finance.

My articles, as well as those of the famous authors and bloggers out there are very encouraging. There are even a lot of books and other multi media materials available out there that will fix your financial woes--that will, as they say, reveal the secrets to become rich and being debt free. But, mind you, these are all inutile if these are only read and not taken to heart.

Taking to heart all these materials available means that you should realize that an overhaul of oneself is necessary to make these materials effective.

This piece you are reading right now is especially addressed to those who are deeply in debt. You may have been seeking for somebody whom you could ask for help, in terms of advice or financial help. There are so many people who are willing to help, but their efforts to help will only aggravate your situation if you will not address the real problem, YOU; and not the lack of money.

I may sound so mean here. But, let me pose these questions:

who caused you to be deeply in debt?
who used that plastic money called credit card?
who decided to buy a luxury car instead of an ordinary one that could still serve the same purpose?
who bought those unecessary and expensive stuffs that is way beyond one's income?
who went to some place as tourist using credit cards as the means of paying that luxurious vacation and having nothing in your account to payoff the bills after 45 days?

Those list could go on and on and the resounding answer is one and the same. And you answered it correctly. YOU.

The real source of the problem is your attitude towards money and the way you spend it. Hence, there will be no amount of advice, tips and techniques on how to free from debt to take effect without first dealing your attitude.

If you are in debt right now and badly needs help, be it counseling or financing, or a combination of both, please humble yourself and accept the fact that the real problem is not your debts. Not your neighbor. Not your brethren.

Then who? Nobody, but YOU.

Home, Your Best Training Ground

2009-10-26T07:44:00.000-07:00

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

- Proverbs 22: 6-7 -

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

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

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

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

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

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

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

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

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

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

God Bless!!!

The First Baby Step to a Lifetime of Financial Peace Journey

2009-10-19T07:06:00.000-07:00

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

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

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

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

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

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

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

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

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

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

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

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

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

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

God bless everyone.

Church's Role in a Believer's Financial Victory

2009-10-12T07:24:00.000-07:00

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

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

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

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

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

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

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

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

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

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

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

God bless everyone!!!

FPU

2009-10-08T10:45:00.000-07:00

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

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

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

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

I received this kit during the first meeting last Wednesday:

Here are the contents of the kit:

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

Natural and Financial Calamities

2009-10-04T05:49:00.000-07:00

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

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

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

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

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

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

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

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

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

God bless everyone!!!

Caution!!! Debt is Looming Ahead...

2009-09-21T03:18:00.000-07:00

God's perfect plan for His people is to be debt-free. As we are serving a jealous God, He only wants His people to serve nothing else except Him only. For how can one serve only Him if one is in shackle of indebtedness.

When a Christian confess with their mouth, and believing in their heart Jesus Christ as their personal Lord and Savior, it is tantamount to accepting God's offer of our redemption from the slavery to sin. In effect, the ownership of a Christian's life has changed hands from the prince of darkness and sin to God. As a new master, the slave is ought to serve Him alone.

Jesus even warned us sternly when He says that we can not serve both God and mammon. For how can you spiritually worship the master and sovereign God if you are financially in trouble with indebtedness.

Nevertheless, God is not short of giving us reminders of the dangers of debts. He provided us a number of practical principles and guides, through the Bible on how and why indebtedness is dangerous.

In this article, I am herewith giving three, as I call it the 3S. Here the are:

1. Speculates the future (Prov. 27:1)
2. Synthetic Decision (Prov. 21:5)
3. Stops God's will (wisdom and power) to work (2 Chron 16:9)

When one entered into a loan agreement, one commits himself to payments over a period of time, hence presuming that nothing untoward will happen such as loss employment and other unexpected expenses. Prov. 27:1 sternly warns us not to boast of the future for no one knows what tomorrow may bring.

A lot of expatriates in the UAE having hundreds of Dirhams of indebtedness got into trouble with banks and financial institutions because of termination from employment.

Secondly, synthetic rather than real life decisions are being made because of borrowing. This applies to installment purchases of an item. Because borrowing, one may decide to purchase based on whether he could afford the monthly installment rather than the total cost of such an item. Entering into a debt transaction makes it easy to say yes to low monthly installment s while ignoring the real cost of the item.

And lastly, debt could stop wisdom and power of God working in us. One may earnestly pray for some material blessing, but could not wait God to answer the prayers. Does not God taught us that patience is one of the virtues a Christian must posses? Resorting to debt in acquiring the item prayed for is like taking in advance the answer to your prayer, when you are not sure as yet as to how God will answer your prayer.

Presented herein are only 3 of those numerous teachings of the Bible in regards handling our finances and the dangers of debt. Read your Bible, take heed of its teachings, be obedient. For He who is obedient will not borrow, but will lend. He will be the head and not the tail, as the God promised.

Of Pyramids and Debt Note

2009-09-14T08:00:00.001-07:00

A pyramid is a famous structure. When you think of pyramids you think of Egypt.

Nevertheless, the pyramid that will be spoken of here will not be the physical structure, rather a concept that is also commonly known as the Ponzi scheme.

Ponzi, an Italian collects money from one person with an assurance of returning the same plus a profit or interest. But before it matures, he will collect from another person or persons for the same agreement. And as the previous batch or investment that was first collected matures, the new collections will be used to pay for this maturing investment. The same scheme goes on and on until the scheme will be uncovered as a scam.

This scheme is famously known as a pyramiding scheme.

Same thing is true with indebtedness. Have you known someone who borrows to pay off maturing obligations? And this same activity will be repeated month after month, week after week, day after day, until that person will come to realize that he is now in serious trouble. This is loan pyramiding.

When you know of somebody, hope it is not you, you are like signing your name to a "Debt Note."

A "Debt Note" that is derived from one Japanese anime movie I come to know a few years back entitled "Death Note." This death note, according to the movie is a book of the god of death that was lost and landed on the hand of a mortal. This mortal later on discovered that you whoever you write on the book and the form of death that person has to die, it will happen. If the mode of death is left blank, the name of that person written on the death note will die a heart attack.

If you one is not careful about their finances. If one spends more than he earns. If one is borrowing indiscriminately, without any regard of his capacity to repay, which later on lead to loan pyramiding. This person is likened to the mortal holding that book called the death note (this time it is aptly called the "Debt Note") writing his own name in it. The mode of death written is suffocation of debts.

Be wise with your finances. Be content. Be prayerful. Keep your self afloat by keeping yourself under the care of one true living God, Jesus Christ, our ultimate lifeguard.

God bless.