In This Issue:
Dick's Column | Transforming Truths | News You Can Use | Your Point of View
Spotlight | Market Indicators | Ministry Builders | Resources

Dick's Column

Dear G$ Friends and Colleagues,

This past month has been a quite full one for me. It began with our annual Gathering of G$ leaders from around the country for three days of fellowship, sharing, encouraging and building into one another. Few things are more encouraging to me than to be in the company of like-minded stewardship leaders who feel called by God to make a difference - and are doing it!

Days after that event I went on one of my annual Canadian wilderness canoe trips and for 8 days lived the "simple life" - full of stewardship lessons. As one author put it:

"Surplus, the engine that drives civilization, gains little traction in the wilds…Life defined by simple needs promotes equally simple wants. When a mere tent satisfies the need for shelter, the desire is for a flat space. When an open fire provides the element of heat, the desire is for a sturdy hearth and dry wood. When a canoe and paddle are the primary means of transport, the desire is for smooth water and favorable winds. When feet are drenched in mud and water, the desire is for socks that are dry."

And the day I returned from Canada, Sibyl and I began a week volunteering at a camp for children in the foster care system… truly some of the "least of these" about which Jesus was so concerned. It was totally funded and staffed by Christians who felt called to give of resources and time to create a life-changing experience for 75 kids… a true expression of stewardship in action.

So my cup overflows - with encouragement from fellow leaders; with physical, emotional and spiritual renewal from being in God's creation; and with a new burst of compassion for those less fortunate.

May these summer months provide you with similar opportunities for personal fulfillment and growth. And may the new "church year" starting in September be one in which your stewardship ministry grows exponentially in its impact - our culture is crying out for the answers which your ministry holds.

P.S. Watch for an important announcement regarding a new G$ core curriculum which will be out this Fall. You'll soon be receiving a special email concerning it.

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Transforming Truths

"Finally, brothers, whatever is true, whatever is noble, whatever is right, whatever is pure, whatever is lovely, whatever is admirable—if anything is excellent or praiseworthy—think about such things." - Philippians 4:8

On a recent vacation I did something I rarely do. I read a novel. It isn't that I don't read much. I read a lot, but mostly non-fiction. So I thought a good novel might serve as a refreshing change of pace. I picked a short one, hoping to start and finish it during the trip. I chose a famous author, figuring I'd hedge my bets by choosing someone already noted for their writing skills. And I chose one with an intriguing, hopeful title. I was looking for a little inspiration.

The story began with great promise and I found myself looking forward to the brief times of solitude when I could get back to the book. I rooted for the main character as he overcame difficult circumstances, received a miraculous blessing, made good choices, and survived hardships. And then it ended—badly. I couldn't believe it. It brought me down for two full days.

It reminded me of the importance of filling our hearts and minds with what is good (not to mention the importance of reading a few reviews before reading a book!). It isn't about putting on rose-colored glasses or turning a blind eye to the reality of life's ups and downs. It's about recognizing that what we take in has an impact on us, which impacts how we relate to others. It's about remembering that we are called to be an encouragement to others (Ephesians 4:29). And in our stewardship ministries, there's no shortage of people who could use a little encouragement.

As we choose what to read, watch and listen to, let's use this month's Transforming Truth as a guide.

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News You Can Use

Debt Takes a Toll

Heavy debt loads are taking a toll on people's health. A new survey by the Associated Press and AOL found that nearly 20 percent of all American adults are experiencing "high debt stress." The survey assesses people's actual debt and self-reported concerns over that stress to come up with its measure of debt stress. Those with high debt stress were much more likely than those with low debt stress to suffer from muscle tension, migraines or other headaches, severe anxiety, ulcers or digestive tract problems, severe depression, and even heart attacks.

Matt's View: Clearly, when we teach the Good Sense Debt Workshop or the debt portion of the Budget Course, we're addressing much more than a financial issue. And that should heighten the urgency with which we reach out and serve those who are suffering under the bondage of debt.

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When Does Frugality Go Too Far?

There was a thought-provoking and well-written post on The Simple Dollar asking the question: when does frugality begin to give the impression of poverty? It all centered on the author's honest wrestling over whether to install a clothesline in his backyard. It would be a frugal move, to be sure. But what will it do to his relationship with his neighbors?

Matt's View: I was especially struck with his point that during World War II using a clothesline was considered patriotic, but now marketers have succeeded at replacing such sentiments with worries over what others might think.

By the way, a certain Mr. Towner and his wife regularly hang their wash out to dry, and they say there's nothing like how a bed sheet and pillowcase feel and smell after they've been out in the sunshine for a few hours!

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Boomers Getting Bounced by Economy

Our shaky economy is impacting way more than people's driving habits. According to a recent survey of people age 45 and older by the AARP, 66 percent are finding it more difficult to pay for essential items, 62 percent have reduced the number of times they eat out, 33 percent have stopped putting money into their retirement accounts, 19 percent have increased their hours at work, and 8 percent have taken on a second job.

Matt's View: Some of the changes, such as eating out less often, are prudent responses to tougher financial times. Others may not be so wise. Nearly 25 percent of respondents said they have "prematurely withdrawn" funds from their retirement accounts. The survey didn't break that down by hardship withdrawals and loans, but both have their downsides. With a hardship withdrawal from a 401(k) plan, taxes are due along with a 10% penalty. The money does not have to be repaid. With a loan, the money does need to be repaid with interest and you'll end up paying taxes on the money twice. First, you'll be using after-tax money to repay the loan. Then, when you tap your account in retirement, you'll pay tax again. One other point about 401(k) loans: If you leave your employer, the loan will need to be repaid quickly—often within 60 days.

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Heeeeeeere's Another Foreclosure

Johnny Carson's long-time sidekick, Ed McMahon, may lose his $6 million dollar Beverly Hills home to foreclosure. Asked about his problems by Larry King, McMahon explained: "If you spend more money than you make, you know what happens." And McMahon isn't the only celebrity facing foreclosure. Boxer Evander Holyfield's $10 million dollar suburban Atlanta estate is due to be auctioned off this summer.

Matt's View: These stories only further cement "The Millionaire Next Door" as one of the all-time great secular personal finance books. Our culture is fascinated by the rich. But too often wealthy celebrities set poor examples in how they manage money. "The Millionaire Next Door" shows what it really takes to manage money successfully – live beneath your means, save and invest a portion of all that you make, and use a budget to guide your spending.

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Spotlight

Making Sure There's Money When You Need It: Part 2

We've been looking at the lost art of saving money and some ways to save more effectively. I (Matt) find it helpful to group savings into three broad categories: If, When and Why savings. We dealt with If savings (an emergency fund) in April. Last month we discussed near-term When savings (money for bills and expenses that occur less often than monthly, and for financial goals to be accomplished within the next five years). Now we'll turn our attention to mid-term When savings.

Mid-term When savings is mostly for the replacement of items that will need replacing in the next five to ten years. Some of the usual suspects, depending on their age and condition, include: your car, your home's roof, a water heater, an air conditioner or furnace, appliances, furniture, windows, etc.

Too often, replacement expenses come as a bit of a surprise, and end up getting paid with credit. It's far better to take a look around your home, start anticipating what may need replacing, and begin saving for those items.

You can get some rough estimates for how long certain home-related items will last and their replacement costs here. For example, a dishwasher will last five to twelve years and cost $650 to $900 to replace.

Mid-term When savings is also for goals you'd like to accomplish in that time frame. Perhaps your parents will celebrate their 50th wedding anniversary in the next five to ten years. You could save for a special gift with a mid-term When savings account.

Appropriate places for near-term When savings include a money market mutual fund, certificate of deposit (CD), or a relatively conservative mutual fund such as a balanced fund. As with If and near-term When savings, I recommend keeping mid-term When money in a separate account. Otherwise, it is likely to end up getting used for something else.

Next month we'll look at long-term When savings, along with our picks for the best long-term savings calculators on the Internet.

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Market Indicators

Financial Literacy Moving the Wrong Way

Earlier this year we reported on the latest Jump$tart Coalition survey of financial literacy among high school seniors. The findings are especially noteworthy when seen within the context of previous surveys (see first slide). Clearly, far too little is being done to teach our young people about money. The latest survey was the first time the Coalition also tested college students (see results in the second slide). Their scores were better than those of high school kids, but were still very low. In a U.S. News & World Report analysis of the survey and other financial indicators, it was noted that financial education, in general, does not improve people’s financial literacy. What does work is a particular type of financial education: "Programs that are interactive and repetitive, and focus on big-picture concepts, such as goal-setting, get the best results." One way to get the repeated message of effective, God-honoring money management in front of people is to encourage them to sign up for our other two free eNewsletters: Managing Money By The Book, and Matt About Money. Encourage people to sign up by sending them this link: http://www.moneypurposejoy.com/resources/subscribe_to_managing_money_by_the_book.php.

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Resources