Financial slavery is a reality in the United States and throughout the world today. People from all walks of life are consumed with debt and are slaves to their lenders. Debt has become easy. Young people are now leaving college to begin their careers with five and six figure loans. Our nation has undergone a transformation that was not intended by our founding fathers. Hard work and success are synonymous terms. Biblical laws of prosperity require us to work hard if we want to prosper.
The Bible says in II Thessalonians 3:10, “If a man will not work, he shall not eat.” As obvious as this sounds, the work ethic and service in this country have withered away with time. People want something for nothing and are determined to have their share of the American dream without working for it.
Get rich quick schemes fill the air around us. Commercials air with people promising wealth without work. In other words, they promote going from step one to step ten while bypassing steps two through nine. More emphasis is being placed on having fun, being free and looking out for “number one.” Many people have lived by this philosophy since they were born, but times are changing. For every action there is an equal and opposite reaction. The reaction is being seen throughout this country.
The basic truth of II Thessalonians 3:10 has been ignored by bureaucrats responsible for a top heavy, illiquid government. Welfare has become a way of life rather than a way back to work. Our government, founded on basic Judeo-Christian concepts, has been replaced by human greed. Rather than elected officials representing the people, they represent the special interest groups that bought them the office. Many judges in this country are bought off by large corporations expecting rulings in their favor should future litigation occur.
The United States is now paying the price for its ignorance. We have people that have never worked a day in their lives. Yet they live better than many hard working Americans. Governmental handouts rather than hard work have erased the poverty level. My hat is off to those who earn their way out of poverty. They deserve to enjoy the fruits of their labor. The system was designed for those individuals that could not work for legitimate reasons. Many people don’t work and wouldn’t work if you gave them a job.
If success is in our vocabulary, we need to eliminate get rich quick schemes and handouts to those that do not want to work. The biblical laws of prosperity are self- explanatory when it comes to success and prosperity. “Go to the ant, thou sluggard; consider her ways, and be wise: Which having no guide, overseer, or ruler, providith her meat in the summer, and gatherith her food in the harvest” (Proverbs 6:6–9). Laziness and success are completely opposite. Laziness produces poverty. Hard work produces success. People no longer have an initiative to become entrepreneurial and start a business. Primarily this is due to the government penalizing hard working Americans and rewarding lazy ones.
I read a letter once by a gentleman complaining of the tax code in this country. It was obvious that this individual was part of the “give me, I deserve it” crowd. When explaining the way he believes the tax law should be, he wrote, “I believe the tax rate should be 50% of everything earned to $500,000, 70% of everything earned between $500,000 and $1,000,000 and 90% of everything earned above $1,000,000.”
Granted these income levels represent a fraction of this nation’s population, but is it fair to tax at this rate if someone works hard and earns it honestly? I often wondered if this individual would approve of these tax laws if he won the lottery. Odds are he would adamantly object.
The entrepreneurial spirit has made America what it is today. Now jobs, incentives, better incomes, etc., are all produced because of someone’s vision. Would you want a blind person to lead you across a busy intersection? No, you would want someone with vision. This country, however, is being led by blind people with no vision penalizing the producers and rewarding the non-producers.
Can this all change? I believe it can. I have hope for our country and I think that if we go back to the original biblical concepts we were founded on we can succeed. But not without learning several important issues to avoid and living beyond the financial slavery trap. The first five of these guidelines are the basic financial foundations laid down by Solomon in the book of Proverbs so that we may experience financial freedom. They are listed below for your reference. If you are going to achieve success and not become a victim of financial slavery, I believe this groundwork is the basic foundation to begin working from. Then and only then can we enjoy success as God intended it to be.
Guidelines for Avoiding Financial Slavery
1. Keep Good Records
Proverbs 27:23–24a says, “Be sure to know the condition of your flocks, give careful attention to your herds; for riches do not endure forever.” Put in another way, riches can disappear fast, so watch your business interest closely. You need to know where you are in order to know where you are going. The importance of keeping good records cannot be stressed enough.
Proverbs 23:23 tells us to get the facts at any price. Many people have checkbooks that are nothing less than a disaster. They couldn’t find a receipt or cancelled check if they had to. Don’t fall short of financial freedom because your records are not up to par. Make keeping good records part of your overall financial plan. With today’s computer technology and software programs you have no excuse for not having your financial records up to date and accurate.
2. Plan your spending
How do you spell relief? R-O-L-A-I-D-S? Well for some maybe, but for those of us that wish to have financial relief it’s spelled B-U-D-G-E-T. Having a spending plan or budget to adhere to is imperative in your overall plan for financial freedom. Impulse buying is literally eating away at our society by creating wants through the use of advertising. To give you an example, my son (8 years old at the time of this story) came to me some time ago asking me for my credit card after watching a commercial! He not only wanted it; he was some kind of upset for not receiving it. He told me that a commercial was on TV that was offering something he wanted and he would never have the chance to buy it again.
That’s the problem with our society. You must buy know or you will never have the same opportunity. The sales pitches that are given completely astound me. “Only 152 easy payments…no payments until January the year after next!” I don’t know about you, but I never met an easy payment plan in my entire life.
Proverbs 21:5 says, “Plans of the diligent lead to profit as surely as haste leads to
poverty.” Look at verse 20b, “But a foolish man devours all he has.” The Good News Version is even more direct in it’s writing, “Stupid people spend their money as fast as they get it.”
In chapter six I explain in describing a financial principle the importance of living by a budget. Another principle in this chapter explains how you should never make a business decision under pressure.
It is wise to plan your spending regardless of how much money you have. The most financially independent individuals I have come across all adhered to a spending plan. On the other hand, the ones who talked as if their financial life was under control attempting to live as though they were financially independent didn’t have a spending plan and didn’t have any money. Don’t be fooled into believing you have it under control and don’t be afraid to face your spending habits. By adhering to a spending plan you will be in the top percentage of those that control their finances rather than allow their finances to control them.
3. Save for the Future
Proverbs 21:20 tells us, “In the house of the wise are stores of choice food and oil, but a foolish man devours all he has.” In chapter 13 Solomon says, “He who gathers money little by little makes it grow” (v. 11b). I mentioned in chapter six about saving ten percent of your income regardless of your age. You may think this sounds like a lot. If you have no savings plan at all, it is. However, realize what the ramifications of not saving are. Here are some enlightening facts.
- At the age of 65, 45% of all Americans are dependent on relatives, 30% are dependent on charity, 23% are still working and only 2% are financially independent.
- At age 65, 85 out of 100 Americans don’t have $250 in cash.
- 80% of all Americans owe more than then own.
- The Japanese save 15% to 20% of their income. Americans save about 3%. Not a very pretty picture is it? Our financial future depends on our knowledge and the realization that other than winning the lottery or inheriting money it’s up to us to provide for tomorrow. Discipline, persistence and following a savings plan are the key ingredients in making accumulation and financial freedom a reality.
Accumulating wealth no matter how much it may be must begin somewhere. Because of the magic of time and compound interest there is no time like the present. Anyone that has accumulated money in their lifetime with a savings plan realized the importance of compound interest and time being on their side. Let me give you an example of two individuals, one contributing to an IRA from the age of 21 to the age of 30 and the other beginning at age 31 and continuing until the age of 60. Both earn at the same interest rate, yet the one contributing for 30 years has less money at the age of 60 than the one that contributes for only ten years because of the magic of time and compound interest.
Put another way, let me ask you this question. Do you believe you could save $6.50 a day—yes or no? When I ask this question in my seminars the answer is almost always a definite yes. If it is with you and you’re not saving at least that much, why aren’t you? Procrastination is the biggest killer of dreams next to fear. Theodore Roosevelt once said, “In a moment of decision, the best thing you can do is the right thing to do. The worst thing to do is nothing.” Consider that $6.50 a day equals approximately $200 per month. At 16% interest in five years you would have $19,000. In ten years the total would be $60,000; 15
years, $150,000; 20, $350,000. In 25 years you would have just under one million dollars. You are probably saying that all sounds well, but 16% interest? That sounds high. I agree. But did you know that according to data by Morningstar, Inc. the average small cap mutual fund returned 16.9% from 1976–96?
The main excuse people have about saving is that they can’t afford to. My answer to that is you can’t afford not to. In order to save you need to remain focused, disciplined and refrain from activities on investments that cause you to loose money. A self-made billionaire was asked what his secret to wealth was. His answer was that he has two rules. Rule number one is don’t loose money. Rule number two is when tempted, refer to rule number one.
I mention this because if you are going to save money you have to refrain from loosing it by remaining focused on your goal. Stay clear of off the wall investment opportunities and develop an accumulation mindset. If regular saving is part of your financial life, that’s great. Continue doing so. If it’s not, I urge you to make it an integral part of your plan to avoid financial slavery and gain financial freedom. Tomorrow will come faster than you think and you will be glad that you created financial security for you life.
4. Enjoy What You Have
There is an old saying that describes contentment in detail in my opinion. It is “use it up, wear it out, make it do or do without.” A large percentage of people today are never satisfied with anything in life or with life itself. They simply exist wanting more and more and never enjoying today or what they have. People save to buy something only to be disappointed because by the time they get it a better one exists on the market. This one area I believe causes more disagreements and strife between couples than most any other. “I never can satisfy you! You always want more! No matter what you have, it’s never enough!” The statements revolving around contentment go on and on.
Hebrews 13:5 says, “Be content with what you have.” Am I saying it’s not right to strive to be more, have more, etc.? Absolutely not! What I am saying is that you need to be content with who you are. Go ahead. Shoot for the stars. Set goals as I have explained here. But don’t loose sight of today. If tomorrow never comes, today is all you will ever have. Some say contentment leads to laziness. I disagree. Complacency leads to laziness. Contentment and complacency are two totally different things. Realize the true meaning of contentment which is to enjoy the present. Give thanks to God for your blessings regardless of how little or small they may be. Find happiness in who you are today. Practice satisfaction when you purchase an item or meet a goal. Remember that you have everything of which to be glad and nothing of which to be sad.
5. Learn the Importance of Giving
I emphasized this point also in one of my financial principles. It is important in the overall picture of financial health. People everyday talk to me about their financial lives. Ultimately the ones that have very little are bound in financial bondage because they give very little. They justify it by their own philosophy. Proverbs 3:9–10 encourages us to honor the Lord by giving Him the first part of all your income. He will cause “your barns [to] be filled to overflowing.”
Proverbs 10:16 reads, “The wages of the righteous bring them life.” Chapter 22:9 says, “A generous man will himself be blessed, for he shares his food with the poor.” Jesus himself said “It is more blessed to give than to receive” (Acts 20:35).
Giving without a doubt is the most misunderstood guideline for financial freedom.
Many people believe and are being taught that they should give for the reason of receiving something in return. It doesn’t work that way. James says, “When you ask, you do not receive, because you ask with wrong motives” (James 4:3). Giving should come from your heart first because we are instructed to do so and second because we desire to do so. We should not give to receive, but rather to see that others receive. If we give for the reason of giving then we are giving for the right reason.
John explains, “If we ask anything according to his will, he hears us” (I John 5:14). According to His will are the key words in that verse. People are being mislead by well- known preachers telling them to give and claim their Mercedes Benz or whatever their hearts desire. Hopefully by now you will realize that I am all for you striving and achieving the desires of you heart as long as they are right for you. If you want and can afford a Mercedes Benz, all I can say is more power to you. Just be sure your desire is pure and not to impress others. That’s what I find most humorous among many people when they buy an expensive item. They get it to impress others. Have you ever thought of that? Why would we buy things we don’t want with money we don’t have to impress people we don’t like? I haven’t been able to figure that one out. So how do you know if you qualify to receive for your giving, namely the hundred-fold return spoken of in Mark 10:29–30? How do you know if you are giving for the right reason? Below I have listed three questions to ask yourself when evaluating whether you are giving according to biblical laws:
- Have I really put God first in every area of my life?
- Have I studied the biblical laws of prosperity and am I following them?
- Do I really want financial blessings, not for my own selfish desires, but rather to do His will in my life?
[Source Moore for your Money, Byron R Moore, CFP, April 1998]
If you answered yes to these questions, you are qualifying for the financial blessing in Mark 10. If not, reevaluate your giving and line them up with these principles. If you give for the right reason, it won’t matter if the one you gave abused the money. They will answer for their wrongdoing, not you. In life we reap what we sow. If we want people to be nice to us, we must be nice to them. Many people fail to realize that this same principal works with their finances.
One of the biggest cancers in human nature is greed. It knocks on everyone’s door at one time or another. Humanly speaking, you cannot escape it. Spiritually speaking however, you can. If you plant financial seeds regularly during your life it causes that equal and opposite reaction, and greed diminishes. It is very difficult to give regularly and be greedy at the same time. That is, unless you are giving only to receive one-hundred-fold returns on every seed you plant. Here are few foundational truths important to understand when giving.
First, God doesn’t need our money. He wants you to sow seeds for your benefit, not His. Second, if we sow sparingly, you will reap modest rewards. “Remember this, whoever sows sparingly will also reap sparingly, whoever sows generously will also reap generously” (II Corinthians 9:6). Everything we own belongs to God. To give him 10% is a deal when you come to grips with that. God will supply your needs so that we can have enough left over to contribute to other good works.
Finally, we must give cheerfully. “God loves a cheerful giver, and God is able to make all grace abound to you, so that in all things at all times, having all that you need, you will abound in every good work” (II Corinthians 9:7–8).
Not being a cheerful giver, in my opinion, is the main reason why people do not reap the
rewards of their giving. God doesn’t have to provide all of the things listed in II Corinthians 9:8. He is able to and will if we give bountifully and cheerfully. This type of giving doesn’t just receive back but also helps others with their specific needs. Reaping the benefits of seed faith is a wonderful thing, but it should not be your main purpose. Give and give cheerfully. You will be blessed and have more than enough to meet all of your needs.
6. Expect an Honest Day’s Pay For an Honest Day’s Work
If we constantly try to get paid more than our work is worth, we are violating the laws of prosperity. We need to work as hard as we possibly can instead of doing as little as possible. “Whatever your hand finds to do, do it with all your might” (Ecclesiastes 9:10).
Learn to go the extra mile. Do more than you are asked to do. Jesus told us to go two miles if we need to go one. “If someone forces you to go with him one mile, go with him two miles” (Matthew 5:41).
7. Realize Hard Work Requires Discipline
If we want freedom from financial problems or any other problems in life, we must be disciplined. Financial discipline, spiritual, physical, mental or emotional discipline is to be developed for success to be achieved. Success achieved without hard work and discipline is artificial and temporary. Only when we discipline ourselves and work hard toward a goal, will our ultimate outcome be real and lasting in nature.
8. Avoid Financial Lust of the Eye.
Financial lust of the eye is one of the leading causes of financial slavery today. I hear individuals talking about what others have, what others are doing, and what others are driving. I have a saying for this. Things are seldom as they appear or as they are told when it comes to money. Proverbs 13.7 says, “One man pretends to be rich, yet has nothing: Another pretends to be poor, yet has great wealth.”
Most individuals that people lust over have a fraction of what others think they do. As you have learned, success comes in many different forms. I know of no one that is richer than the individual that is loved by his or her family and has a loving relationship with God. Beauty may be only skin deep in some cases, but I can assure you that wealth without love is in all cases. It takes all of the building blocks we have discussed to this point to build true success. I have yet to see anyone desire what another has that has been satisfied with what they found if they pursued it. Life just doesn’t worth that way. There is only one Man to follow, one Champion. There is only One that is always a winner. Jesus Christ is that man. If you cast your eyes on Him, you will find that all else pales in comparison.
Understanding these basic guidelines and foundational truths are not the usual worldly way of viewing finances and debt. They are God’s ways and I believe in His way far above any man’s philosophy. Now that you have the foundation required for avoiding financial slavery, what if you are entrapped in it? How do you become free? First, pray for the strength and will power it takes to avoid the buying game. Second, come to the unwavering position that you have had enough and be willing to make a change. Last learn all you can about finances so that you have a basic understanding of how to handle money. Some people are gifted in this area while others struggle their whole life.
There are many books on the subject of reducing and eliminating debt on the market today. Therefore, I will concentrate on the types of debt and debt traps that we are faced with everyday. Before proceeding, let me emphasize that unmanageable debt, regardless of what type it is, is not good. Avoid it at all cost by praying and thinking about a purchase
before you make it. Is it necessary? Is it something I can do without? Can I manage this debt and pay it off earlier than scheduled? These are a few of the questions that you should embed in your mind when contemplating a purchase. Take time before buying an impulse item and up to 15 days on major purchases. Most have reported that they decided against what it was they were contemplating buying while the ones that did purchase using this philosophy had few regrets. Only by learning to say no can you truly become debt free and only when you strive for this freedom will you experience the financial life that you are capable of having.
Types of Debt
Appreciable debt
This debt is the type of debt that goes up in value. A prime example is real estate. The debt on your home is money owed like any other debt. The difference is the home is increasing in value. This type of debt is the best type to have of the two types.
Depreciable debt
This debt is the type of debt that goes down in value. Examples are automobiles, most credit card debt, personal debts, equipment debts, etc. This is the area that most people get themselves into trouble.
I see more young people today than ever before in debt up to their eyeballs with nothing to show for. Pre-approved credit cards are being sent to teenagers before they learn how to pay a phone bill. There are charge limits on the card, but the problem lies in two areas. First, young people have no earthly concept of how to us a credit card. Second, the next pre-approved card has no idea what the last pre-approved cards limit is or, for that matter, how many credit cards the individual has in his or her possession.
Young people are not the only ones that are victims of credit card debt. The second reason above plays a large factor in that. If one cannot receive an approval for $20,000 from a particular credit card company, why should he or she be able to receive ten approvals for $2,000 each from different companies?
The credit industry is fast becoming a major part of our exchange system. The future could very well lead to a totally cashless society. If this becomes reality, it becomes of utmost importance for parents to teach their children the value of a dollar and how to manage debt. Regardless of what kind of debt you have, the danger only comes when you can’t manage what you owe. Debt is part of our society. Unmanageable debt is part of our nation and we can’t let that filter down to the next generation. We must become cognizant of the debt traps that surround us. Let’s take a look at the two main debt traps we confront frequently.
Credit Card Schemes
Two popular schemes used today are
- Pre-approved cards — discussed above
- No annual fee/low interest rates
I am astounded at how many people fall into this trap. Credit cards are advertising no annual fee or interest rates below the norm. How do you know if you’re getting scammed? READ THE FINE PRINT! Most cards waive certain fees and/or lower rates for a
short period of time only to resume at a rate equal to or higher than the norm. Reading the fine print will save you much heartache in the future.
Monthly Payment Schemes
I am astounded at the amortization proposals (the way interest and principle are calculated and how your loan payment is applied to reduce them) made on merchandise these days. Not long ago, I was reading an outdoor magazine and happened to turn to the section on boats. It appeared that each boat was offered at substantial savings reflected in the advertised monthly note. As I read further (especially the fine print), I noticed these boats were amortized over 120 months or ten-year period! Ten Years! I can’t imagine how the individual purchasing one of these boats would feel five or six years later should the buyer wish to sell. The owner would be upside down, owing more than the boat is worth, with another four to five years left on the debt.
Automotive dealerships are guilty of this as well. They offer low monthly rates that are a reflection of long amortization periods or balloon payments at the end. No matter whether you are purchasing an automobile, boat or other merchandise, be sure you understand the terms before signing.
People from all walks of life have been burned. They refuse to admit it because of pride and a lack of diligence, this author included. The time you spend studying the terms involved in your purchase could save you literally thousands of dollars.
Financial slavery is alive and well in America today. It is my hope that this book will assist you in circumventing its nasty claws. Even if you avoid one mistake you would have otherwise made, it’s worth it. I urge you to become educated in the financial arena that surrounds you everyday. Whether you are a professional or a blue-collar worker, you will be faced with financial decisions during your lifetime. Avoiding mistakes takes a little time and study, but I can assure you the rewards are well worth it.
About the author
Dr. Dallas Humble is a healthcare provider, business owner, professional consultant, author and founder of The Reshape Institute. Dr. Humble consults with individuals and organizations across the country to improve productivity, identify & mitigate injuries and promote wellness. For more information visit www.dallashumble.com.
