Economic Security

This past week has not been a good week for the stock market in the USA.  There have been two days of major drops and there are still two days of trading left in the week.  I suspect that some people are truly being devastated by this economic upheaval. 

I am not worried at all.

I have a four part plan for economic security. 

First,  I understand the difference between needs and wants.   We need the basics of food, clothing and shelter.  Beyond that, it is what we want to have that gets us into trouble.  One of the biggest problems that people have today is that they want to live beyond their income.  Credit is available, and people overextend themselves to have something today that they will pay for dearly tomorrow.  Often these are things that people want, but don’t need.  We don’t need steak, designer clothing or large homes.  I understand the diffence between needs and wants, and am willing to live within my income.

Secondly, I create and stay on a budget.  I believe in planning ahead.  I believe in saving for large ticket items, rather than paying the interest on a loan.  I am thankful that my wife agrees with me about this issue, because it takes both of us being willing to work together to make a budget work. 

Third, I have told my sons since they were toddlers, that I will take care of you for the first eighteen years of your life, if necessary, you will take care of me, for the last years of my life.  I hope that it will never come to that, but it is an option that has been used for generations, long before social security or pensions. 

Fourth, and most importantly, since I was sixteen, I have been faithful in giving back to God a tithe, plus offerings, of my income.  I believe that God blesses my finances, at least partially, because I have always trusted that God is my ultimate provider.  He is my true source of economic security.

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2 Responses to “Economic Security”

  1. Ruthie Oberg Says:

    Found your blog through a link on Gloria’s. Good stuff…I particularly like the line “I will take care of you for the first eighteen years of your life, if necessary, you will take care of me, for the last years of my life.”

    Our daughter, Corrie (15) has already promised me that I can live in her basement and she will wheel me in my chair to the library every day so that I can entertain myself while she is gone. What a plan for old age!

    God has been good to us in that we have made it thus far on our salary and have no debt, outside of our mortgage. I put extra onto principle each month and hope to have that paid for within 8 years.

    Couldn’t have done that without good financial principles and money management techniques learned from my father.

  2. cgirod Says:

    Ruthie,

    Thank you for sharing your thoughts. I hope that I have managed to pass on good financial practices to my sons. So far, so good.

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