The wrong refuge

Financial advisor Dave Ramsey recommends taking a two-step approach to building an “Emergency Fund.”  First, save up $1,000.  Then, after you pay off all debt (except your house), your next Emergency Fund target is 3x-6x your monthly expenses.  When my wife and I first learned about this approach, it didn’t take much effort to reach the first step – we paused eating out, rearranged some spending habits, and probably sold a thing or two we weren’t using.  Paying off all consumer debt took a while, but when we finally made it, we stumbled hard on the saving up for 3x-6x our monthly expenses.

Admittedly, we lost momentum…and it was our fault.  We had freed up a lot of space in the monthly budget by getting out of debt, which gave us the flexibility to do more things than we had previously.  Haphazard saving would bring us up a little bit – then life would happen, the Emergency Fund would take a hit, and we’d start building again.  Eventually, years later, we finally hit 100% of the 3x goal.  And let me tell you – it felt great!  It was so nice to know we were very prepared for potentially sizeable emergencies. 

And then…as it always does…life happened.  Our 3x goal wasn’t 100% funded anymore.  We were sitting maybe 50-60%.  While I was grateful that we could handle the situation without going into debt, I began to notice that I was feeling “less ok” about our financial situation.  My thoughts went along these lines: I’m glad we were prepared to take a 50% hit, but it’s going to take some time to build that back up.  Another 50% size hit (or bigger) would be devastating.  And I began to feel anxious about what to do next, and my mind swirled for days around how quickly we could recover.

I hadn’t realized that while we were building up the Emergency Fund, I was slowly becoming dependent upon the amount in the Emergency Fund as validation of our (my) ability to take care of our (my) family.  It wasn’t until after the Emergency Fund took a sizable hit that I discovered how much I viewed it as our rescue in tough times.  As I thought through these feelings, I also remembered the times when I was doing the budget, I’d look at the Emergency Fund with a small amount of pride: Yeah, that amount looks good.  Look how much we (I) have prepared us for any unforeseen issues.  While I wouldn’t brag about it to others, I certainly gave myself a mental pat on the back for the on-going achievement status.

But let’s be honest and think about this realistically…God got us through plenty of other times when our Emergency Fund was much less than the 50% it was at that moment.  That’s not a reason to avoid setting aside 3x-6x of our monthly expenses for emergencies, but there’s always the possibility that an emergency will come along that has a greater price tag than any amount we could save.  My faulty thinking was that the Emergency Fund was our (my) salvation and our (my) glory.  Our rescue and proof of success shouldn’t have been tied up in how much money we had in the bank.  The whole situation really wasn’t a money issue…instead, the money revealed a heart issue that needed to be dealt with.

As we’ve progressed through Psalm 62, David and Jeduthun have pointed out the evil that others can do against us.  In these next verses, they continue to point us toward the right response:

Psalm 62:7-8
My salvation and glory depend on God, my strong rock.
My refuge is in God.
Trust in Him at all times, you people;
pour out your hearts before Him.
God is our refuge.
                                           Selah

God is the only one who is stable and secure.  When I trust Him with my present and future circumstances, then my soul finds rest and refuge from whatever difficult circumstances or trying people come my way.  No other person, place, or thing will satisfy my need for refuge – because there’s always the possibility that the situation could be larger than I can prepare for.  But with God as my focus and my trusted rescue, I know I am secure.

Let’s not forget that the Israelites used the psalms during the temple worship service – for singing, praying, and meditating.  That’s something for us to consider doing as well:

Has what we’ve been singing lately sounded anything like these verses?
Have our recent prayers recognized our dependency on God?

If we answered “no” to one or both of these questions…perhaps we should consider meditating on how much we need to depend on God.

While you’re meditating, pour out your heart to God.  All of it.  He can handle it. 

We find rest and refuge in Him when we do.

Keep Pressing,
Ken

Proverbial life: money struggles

We’re taking a topic-focused tour of the book of Proverbs.  Although Solomon was commenting on life roughly 3000 years ago, his observations ring loud and clear in today’s modern times.  In this blog post, we’ll be looking at a topic that still has a lot of influence in our modern-day lives: money.

Money has always been one of the top reasons for couples to fight; it’s even one of the main relationship wedges that can lead to a divorce.  Amassing wealth is a common status symbol of our “greatness”, but, if we’re not careful, it is easy for the pursuit of more money to become the driving force in our lives. 

Nowadays, there are scores of books on money: how to make it, how to handle it, and how to invest it – and when Solomon was writing down his advice for his son to know how to live a wisdom-filled life, he touched on several places where money intersects with the rest of life. 

In our first proverb, Solomon tells his son the most direct way to acquire wealth:

Proverbs 10:4
Idle hands make one poor,
but diligent hands bring riches.

Money is necessary to make transactions in life.  We need currency to keep fed, warm, and protected.  The best way to keep these necessities on hand for ourselves and our families is to acquire enough riches to afford them.  In this proverb, the contrast of idle hands vs. diligent hands stands out – this tiny saying invokes a ton of personal responsibility and personal action when it comes to us making money.

Beyond basic necessities, Solomon points out another useful aspect of acquiring wealth:

Proverbs 10:15
The wealth of the rich is his fortified city;
the poverty of the poor is their destruction.

Last month, I came downstairs on a Saturday morning, and the entire first floor of our house was cold – as if someone left a window open.  What happened was that the motor on our downstairs heating unit locked up during the night.  That was a $700 repair.  Earlier this week, I awoke in a very cold bedroom, because a fuse and wiring had failed in our upstairs unit.  That was a $400 repair.  And, just this morning, I found that the load of dishes I started last night didn’t finish…because our 10 year old dishwasher died, mid-cycle.  I ordered a new dishwasher today, and it will be installed next week.

I list our family’s recent financial hits to point out that we are ok, because we have an emergency fund.  Putting cash aside every month has been our fortified city when (not if) these types of repairs come around.  If we didn’t have an emergency fund, any one of these issues would have been destructive to our finances.  If you don’t have an emergency fund…start one today.  Put something aside now, so that you are fortified and ready for when (not if) the alternator in your car goes out, or your refrigerator stops holding temperature, or the kids break a window.

However, when it comes to someone having money in the bank…Solomon pointed out that looks can be deceiving:

Proverbs 13:7
One person pretends to be rich but has nothing;
another pretends to be poor but has abundant wealth.

Back in my day, we would have called them a poser.  Pretending to be rich when they’re not?  Totally posing, just trying to make people think better of him.  But what is Solomon saying, that another pretends to be poor?  Come to find out, most millionaires don’t act like the millionaires you see on “Reality” Shows or on TikTok.  Take a look at this Ramsey Solutions study of millionaires…they’re much more like everyday people than you might think.

The last of Solomon’s proverbs we’ll look at has to do with next steps:

Proverbs 17:16
Why does a fool have money in his hand
with no intention of buying wisdom?

Saving money and amassing wealth is all well and good, but what are you going to do with it?  We certainly need a plan for making money and for saving money, but we also need to be intentional about why we are doing these things.  Having our goals in sight enables us to use money as a tool instead of it becoming the goal.  Money can help us overcome our foolishness if we are intentional about paying for the wisdom and skills we need to reach our goals.

It’s been said that money makes a terrific servant, but a terrible master.  In-and-of-itself, money has no morals, no politics, and no purpose.  We must define what those are…because if we don’t, we can get into all sorts of trouble.  If we take Solomon’s advice, we’ll be able to avoid many pitfalls and be successful with money.

Keep Pressing,
Ken