Thursday, May 31, 2007
Homecoming
My oldest son, who is 4 years old, has been with his grandparents for two weeks. He is coming home tomorrow and I can't wait... It's definitely been more difficult for me than for him. Thankfully, I have been very busy at work, so it has kept me distracted. It's also been a wonderful break for my wife who, at 8 months pregnant, normally has to chase around two little boys.
Monday, May 28, 2007
Night at the Museum
Have you seen this movie? When it came out last year, I thought Night at the Museum looked really stupid, but based on the recommendation of a friend at work, we pay-per-viewed it this weekend and were pleasantly surprised.
Ben Stiller does a great job as the lead, but it was also nice to see so many other recognizable actors in the movie: Dick Van Dyke, Mickey Rooney, Bill Cobbs, Robin Williams and Owen Wilson.
The special effects are good and not overwhelming. In fact, given that the movie DEPENDS on the special effects, it's amazing that they didn't seem overwhelming. Check it out. It's worth the rental.
Ben Stiller does a great job as the lead, but it was also nice to see so many other recognizable actors in the movie: Dick Van Dyke, Mickey Rooney, Bill Cobbs, Robin Williams and Owen Wilson.
The special effects are good and not overwhelming. In fact, given that the movie DEPENDS on the special effects, it's amazing that they didn't seem overwhelming. Check it out. It's worth the rental.
Saturday, May 26, 2007
READ MORE! Link
Well, I have a semi-solution. At the bottom of each post, the Permalink now says READ MORE! which makes it easier to see and read. Clicking on it will take you to that posts permanent web page, which will display the entire post, if there was anything more that was not shown on the front page.
Not a perfect solution, but I think both of my readers are smart enough to figure it out. Ha ha ha.
Not a perfect solution, but I think both of my readers are smart enough to figure it out. Ha ha ha.
Friday, May 25, 2007
Continued Posts
Firends - Some of my posts are a little lengthy so I truncate them on the front page. This isn't always clear, I apologize. I am trying to figure out how to have a little link that says "Continue Reading Post" or something like that, but until I figure that out, if the post seems to stop in awkwardly, trying clicking on the link for the full post at the bottom where it says, "POSTED BY SCOTT AT 10:34 PM" and see if it brings up more. - Thanks for your patience.
Money Principles #2
The second discussion in our series on Biblical stewardship involved looking at creating a big picture plan. We compared two similar outlines, Dave Ramsey's Total Money Makeover baby steps and Crown Financial Ministries Money Map steps. They are very close, but have a few differences. Here is an outline of each followed by some of my thoughts...
Dave Ramsey Baby Steps
Baby Step #1
$1,000 Emergency Fund
Baby Step #2
Debt Snowball (all debts except home)
Baby Step #3
Finish the Emergency Fund (3-6 months living expenses)
Baby Step #4
Invest 15% Income for Retirement
Baby Step #5
Save for College
Baby Step #6
Pay off Your Home Mortgage
Baby Step #7
Build Wealth
Crown Financial Ministries Money Map
Destination #1
A. Spending Plan (Budget)
B. $1,000 Emergency Fund
Destination #2
A. Pay Off All Credit Cards
B. Increase Emergency Fund to 1 Month's Expenses
Destination #3
A. Pay Off All Consumer Debt
B. Increase Emergency Fund to 3 Month's Expenses
Destination #4
A. Begin Saving for Major Expenses
B. Begin Saving for Retirement
C. Begin Saving for College Education
Destination #5
A. Buy Affordable Home
B. Begin Prepaying Mortgage
C. Begin Investing Wisely
Destination #6
A. Mortgage Paid Off
B. Children's College Funded
C. Confirm Estate Plan is in Order
Destination #7
A. Retirement Funded
B. Free to be More Generous with Time, Talents and Money
Again, the two are very similar, but the biggest difference is that Dave Ramsey is more intense and focused on a single goal at a time, whereas Crown has you working toward multiple goals at the same time. For example, once you have your $1,000 set aside for an emergency fund, Dave recommends you do focus only on paying off your debt. Period. No increasing the savings, no 401k contributions. Nothing. "Gazelle-intensity" is what he calls it. Crown, however, recommends you use some of your money for paying off debt and some of it for increasing your emergency fund.
On this point I agree with Dave. From my own personal experience and from advising over a hundred clients (in my previous financial career), I know that personal finance is about 80% behavioral and 20% math. Most people are stupid, they are just undisciplined when it comes to making good decisions and following through with them - especially when they are difficult decisions. Therefore, the more results and success a couple can see when they are trying to follow a plan, the more positive reinforcement they will get and the more likely it is they will continue to do it. So, if you can focus on only one thing and put all of your energy and resources toward it, there is a better chance you will reach your goal and reach it sooner.
I think it is also important to point out their similarities. Notice that both start with having a $1,000 emergency fund. This is critical. Emergencies are going to happen. They are a fact of life. You simply don't know when, where and what they are going to be. Working your butt off for six months to pay down your credit card, only to have something pop-up out of the blue requiring you to charge it back up again can be an incredibly discouraging thing. That's why the $1,000 is so important. It provides not only some peace of mind, but it acts as an insulation from the inevitable discouragement that everyone will face when trying to get their finances in order.
They also then both attack debt before moving on to any kind of savings for retirement or college. This is another key point. It is both a behavioral issue and a spiritual issue. Going back to our first lesson, one of the Biblical principles that we found was the importance of avoiding debt.
Dave Ramsey Baby Steps
Baby Step #1
$1,000 Emergency Fund
Baby Step #2
Debt Snowball (all debts except home)
Baby Step #3
Finish the Emergency Fund (3-6 months living expenses)
Baby Step #4
Invest 15% Income for Retirement
Baby Step #5
Save for College
Baby Step #6
Pay off Your Home Mortgage
Baby Step #7
Build Wealth
Crown Financial Ministries Money Map
Destination #1
A. Spending Plan (Budget)
B. $1,000 Emergency Fund
Destination #2
A. Pay Off All Credit Cards
B. Increase Emergency Fund to 1 Month's Expenses
Destination #3
A. Pay Off All Consumer Debt
B. Increase Emergency Fund to 3 Month's Expenses
Destination #4
A. Begin Saving for Major Expenses
B. Begin Saving for Retirement
C. Begin Saving for College Education
Destination #5
A. Buy Affordable Home
B. Begin Prepaying Mortgage
C. Begin Investing Wisely
Destination #6
A. Mortgage Paid Off
B. Children's College Funded
C. Confirm Estate Plan is in Order
Destination #7
A. Retirement Funded
B. Free to be More Generous with Time, Talents and Money
Again, the two are very similar, but the biggest difference is that Dave Ramsey is more intense and focused on a single goal at a time, whereas Crown has you working toward multiple goals at the same time. For example, once you have your $1,000 set aside for an emergency fund, Dave recommends you do focus only on paying off your debt. Period. No increasing the savings, no 401k contributions. Nothing. "Gazelle-intensity" is what he calls it. Crown, however, recommends you use some of your money for paying off debt and some of it for increasing your emergency fund.
On this point I agree with Dave. From my own personal experience and from advising over a hundred clients (in my previous financial career), I know that personal finance is about 80% behavioral and 20% math. Most people are stupid, they are just undisciplined when it comes to making good decisions and following through with them - especially when they are difficult decisions. Therefore, the more results and success a couple can see when they are trying to follow a plan, the more positive reinforcement they will get and the more likely it is they will continue to do it. So, if you can focus on only one thing and put all of your energy and resources toward it, there is a better chance you will reach your goal and reach it sooner.
I think it is also important to point out their similarities. Notice that both start with having a $1,000 emergency fund. This is critical. Emergencies are going to happen. They are a fact of life. You simply don't know when, where and what they are going to be. Working your butt off for six months to pay down your credit card, only to have something pop-up out of the blue requiring you to charge it back up again can be an incredibly discouraging thing. That's why the $1,000 is so important. It provides not only some peace of mind, but it acts as an insulation from the inevitable discouragement that everyone will face when trying to get their finances in order.
They also then both attack debt before moving on to any kind of savings for retirement or college. This is another key point. It is both a behavioral issue and a spiritual issue. Going back to our first lesson, one of the Biblical principles that we found was the importance of avoiding debt.
Wednesday, May 23, 2007
General Principles on Money from the Bible
As I mentioned in the previous post, our Bible study group is going through a short series on Biblical stewardship. One of the first discussions was on what kind of general principles on money can we get from Scripture?
This list is obviously not exhaustive, but it should at least point out some very clear guidelines and reminders. We can then use these as a foundation as we try to make wise decisions on more specific, practical financial questions (budgeting, insurance, retirement, etc.). I'll continue next time with some thoughts on putting together an overall plan.
Money is from God
Deuteronomy 6:10-12, 8:10-18,
1 Samuel 2:7 “The LORD sends poverty and wealth; he humbles and he exalts.” (NIV)
Proverbs 10:22, 22:2, 29:13
Ecclesiastes 5:19-20, 6:1-2
Honor God with your money
Proverbs 3:9-10 “Honor the LORD with your wealth, with the firstfruits of all your crops; then your barns will be filled to overflowing, and your vats will brim over with new wine.” (NIV)
Be diligent and plan ahead
Proverbs 6:6-11, 10:4-5, 12:24, 27, 13:4, 14:23, 18:9, 19:15, 20:4, 13, 21:5, 25-26, 24:27, 30-34, 28:19
Proverbs 10:4-5 “Lazy hands make a man poor, but diligent hands bring wealth. He who gathers crops in summer is a wise son, but he who sleeps during harvest is a disgraceful son.” (NIV)
Be generous
Proverbs 3:27-28, 11:24, 25, 26, 19:17, 21:13, 25-26, 22:9, 28:22, 28:27
1 John 3:17
Proverbs 11:25 “A generous man will prosper; he who refreshes others will himself be refreshed.” (NIV)
Be humble/simple
Proverbs 12:9 “Better to be a nobody and yet have a servant than pretend to be somebody and have no food.” (NIV)
Proverbs 13:7 “One man pretends to be rich, yet has nothing; another pretends to be poor, yet has great wealth.” (NIV)
Be patient
Proverbs 13:11 “Dishonest money dwindles away, but he who gathers money little by little makes it grow.” (NIV)
Proverbs 20:21
Be wise
Proverbs 3:1-2 “My son, do not forget my teaching, but keep my commands in your heart, for they will prolong your life many years and bring you prosperity.” (NIV)
Proverbs 8:17-21, 13:18, 16:16, 20, 17:16
Be righteous
Proverbs 21:21 “He who pursues righteousness and love finds life, prosperity and honor.” (NIV)
Proverbs 28:6
Be faithful
Matthew 25:14-30
Luke 16:11 “So if you have not been trustworthy in handling worldly wealth, who will trust you with true riches?” (NIV)
Be cheerful
2 Corinthians 8, 2 Corinthians 9
2 Corinthians 9:7 “Each man should give what he has decided in his heart to give, not reluctantly or under compulsion, for God loves a cheerful giver.”
Don’t trust in wealth
Proverbs 11:28, 18:11,
Proverbs 23:4-5 “Do not wear yourself out to get rich; have the wisdom to show restraint. Cast but a glance at riches, and they are gone, for they will surely sprout wings and fly off to the sky like an eagle.” (NIV)
Avoid co-signing for others
Proverbs 6:1-5, 17:18, 20:16-27, 22:26-27, 27:13
Proverbs 11:15 “He who puts up security for another will surely suffer, but whoever refuses to strike hands in pledge is safe.” (NIV)
Avoid greed/love of money
Proverbs 15:27
Luke 12:15
1 Tim. 6:4-11
Avoid debt
Proverbs 22:7 “The rich rule over the poor, and the borrower is servant to the lender.” (NIV)
Proverbs 26-27
This list is obviously not exhaustive, but it should at least point out some very clear guidelines and reminders. We can then use these as a foundation as we try to make wise decisions on more specific, practical financial questions (budgeting, insurance, retirement, etc.). I'll continue next time with some thoughts on putting together an overall plan.
Money is from God
Deuteronomy 6:10-12, 8:10-18,
1 Samuel 2:7 “The LORD sends poverty and wealth; he humbles and he exalts.” (NIV)
Proverbs 10:22, 22:2, 29:13
Ecclesiastes 5:19-20, 6:1-2
Honor God with your money
Proverbs 3:9-10 “Honor the LORD with your wealth, with the firstfruits of all your crops; then your barns will be filled to overflowing, and your vats will brim over with new wine.” (NIV)
Be diligent and plan ahead
Proverbs 6:6-11, 10:4-5, 12:24, 27, 13:4, 14:23, 18:9, 19:15, 20:4, 13, 21:5, 25-26, 24:27, 30-34, 28:19
Proverbs 10:4-5 “Lazy hands make a man poor, but diligent hands bring wealth. He who gathers crops in summer is a wise son, but he who sleeps during harvest is a disgraceful son.” (NIV)
Be generous
Proverbs 3:27-28, 11:24, 25, 26, 19:17, 21:13, 25-26, 22:9, 28:22, 28:27
1 John 3:17
Proverbs 11:25 “A generous man will prosper; he who refreshes others will himself be refreshed.” (NIV)
Be humble/simple
Proverbs 12:9 “Better to be a nobody and yet have a servant than pretend to be somebody and have no food.” (NIV)
Proverbs 13:7 “One man pretends to be rich, yet has nothing; another pretends to be poor, yet has great wealth.” (NIV)
Be patient
Proverbs 13:11 “Dishonest money dwindles away, but he who gathers money little by little makes it grow.” (NIV)
Proverbs 20:21
Be wise
Proverbs 3:1-2 “My son, do not forget my teaching, but keep my commands in your heart, for they will prolong your life many years and bring you prosperity.” (NIV)
Proverbs 8:17-21, 13:18, 16:16, 20, 17:16
Be righteous
Proverbs 21:21 “He who pursues righteousness and love finds life, prosperity and honor.” (NIV)
Proverbs 28:6
Be faithful
Matthew 25:14-30
Luke 16:11 “So if you have not been trustworthy in handling worldly wealth, who will trust you with true riches?” (NIV)
Be cheerful
2 Corinthians 8, 2 Corinthians 9
2 Corinthians 9:7 “Each man should give what he has decided in his heart to give, not reluctantly or under compulsion, for God loves a cheerful giver.”
Don’t trust in wealth
Proverbs 11:28, 18:11,
Proverbs 23:4-5 “Do not wear yourself out to get rich; have the wisdom to show restraint. Cast but a glance at riches, and they are gone, for they will surely sprout wings and fly off to the sky like an eagle.” (NIV)
Avoid co-signing for others
Proverbs 6:1-5, 17:18, 20:16-27, 22:26-27, 27:13
Proverbs 11:15 “He who puts up security for another will surely suffer, but whoever refuses to strike hands in pledge is safe.” (NIV)
Avoid greed/love of money
Proverbs 15:27
Luke 12:15
1 Tim. 6:4-11
Avoid debt
Proverbs 22:7 “The rich rule over the poor, and the borrower is servant to the lender.” (NIV)
Proverbs 26-27
Tuesday, May 22, 2007
Financial Advice
Now that I am no longer a "professional" financial advisor, I am free to talk about financial issues and dispense financial advice on my blog without breaking any rules. I am excited about that since personal finance is one of my passions.
The married couples Bible study group I facilitate is doing a small series on Biblical stewardship, so I will post my notes here. The high-level outline of our series goes like this:
Obviously the Bible does not speak specifically on most of these issues, so much of this is a search for wisdom, weighing the options available and trying to apply the principles we do find in the Bible.
I'll begin tomorrow by posting my notes from the first discussion.
The married couples Bible study group I facilitate is doing a small series on Biblical stewardship, so I will post my notes here. The high-level outline of our series goes like this:
- What are some general principles we can glean from the Bible on how God would like us to handle our money, how we should view money, etc.?
- On a practical level, what are the financial goals that we should be considering?
- How do we budget effectively?
- How much and what kind of insurance do we need?
- How do we get out of debt?
- How much money will we need to retire and how do we best go about saving for it?
- How do we save for college expenses for our kids?
Obviously the Bible does not speak specifically on most of these issues, so much of this is a search for wisdom, weighing the options available and trying to apply the principles we do find in the Bible.
I'll begin tomorrow by posting my notes from the first discussion.
Monday, May 21, 2007
Running
Over the last several months I have been running pretty consistently. Typically, I will run four times a week, about two to four miles per run. Nothing too crazy yet, although I am gradually training and preparing myself for a half-marathon near the end of the year.
I ran a 5k on March 31st and my next event will be a 10k some time in the next two months. After that, it will be on to the half-marathon.
I enjoy running. I usually run at night, so it is a little cooler. Although physically exhausting, I find it very relaxing. It's also very productive time. I listen to my iPod while I run and I am usually listening to a radio program that I have podcast. Stand To Reason, Dennis Prager, Dave Ramsey or Crown Financial Ministries. I see it as getting my mind and body in shape at the same time.
I ran a 5k on March 31st and my next event will be a 10k some time in the next two months. After that, it will be on to the half-marathon.
I enjoy running. I usually run at night, so it is a little cooler. Although physically exhausting, I find it very relaxing. It's also very productive time. I listen to my iPod while I run and I am usually listening to a radio program that I have podcast. Stand To Reason, Dennis Prager, Dave Ramsey or Crown Financial Ministries. I see it as getting my mind and body in shape at the same time.
Sunday, May 20, 2007
The Coolest Software in the World
It's very late and I need to get up early tomorrow morning, but I wanted to try and continue to reinforce the habit of blogging, so let me introduce you to the coolest software program on the planet: Logos Bible Software. It's amazing. I've used it for a few years now and continue to be impressed with all that it can do.
The really cool thing is that least week the Logos Bible Study Bus was in Plano, so I was able to go by and meet Scott Lindsey, Ministry Relations for Logos and also Bob Pritchett, Co-Founder of Logos. Both are incredibly nice guys. It was great getting to hear some of the history behind how the company was started and their philosophy of how to use technology to help change the body of Christ. I'll talk more about it later, but before I sign-off for bed, let me point you to the sidebar for a link to Logos and their blog. You might also want to check out Bob Pritchett's professional and personal blogs.
Good night!
The really cool thing is that least week the Logos Bible Study Bus was in Plano, so I was able to go by and meet Scott Lindsey, Ministry Relations for Logos and also Bob Pritchett, Co-Founder of Logos. Both are incredibly nice guys. It was great getting to hear some of the history behind how the company was started and their philosophy of how to use technology to help change the body of Christ. I'll talk more about it later, but before I sign-off for bed, let me point you to the sidebar for a link to Logos and their blog. You might also want to check out Bob Pritchett's professional and personal blogs.
Good night!
Saturday, May 19, 2007
What's in a Name?
So... for those who might stumble across this blog who don't know me, my wife and I are expecting our third child next month - a baby girl. Unfortunately, we don't have a name yet.
Possible contenders are Emily Claire and Ella Claire, although a friend pointed out that he would be able to call her E. Claire. Hmmm... there is just something strange about having a little girl named after a pastry.
Another contender is Abby, which I like. My wife would want the actual birth name to be Abby, whereas I would prefer the name to be Abigail, but we would just call her Abby. But I don't think either one of us are crazy enough about the name to go to the trouble to argue about it.
And THAT is the primary problem. Neither one of us have any names that we really like. With our first son we both had names that we liked, but couldn't agree. It took us forever to decide on a name. With our second son, we had a name almost immediately. This time around will be the toughest, though, I think. I'll keep you posted.
Possible contenders are Emily Claire and Ella Claire, although a friend pointed out that he would be able to call her E. Claire. Hmmm... there is just something strange about having a little girl named after a pastry.
Another contender is Abby, which I like. My wife would want the actual birth name to be Abby, whereas I would prefer the name to be Abigail, but we would just call her Abby. But I don't think either one of us are crazy enough about the name to go to the trouble to argue about it.
And THAT is the primary problem. Neither one of us have any names that we really like. With our first son we both had names that we liked, but couldn't agree. It took us forever to decide on a name. With our second son, we had a name almost immediately. This time around will be the toughest, though, I think. I'll keep you posted.
Friday, May 18, 2007
I'm Alive! ALIVE!
I am going to keep this one short, but I am still alive. I will be blogging more going forward. Lots of news to report and get everyone up-to-speed on, but not now. It's time to go to sleep, but I didn't want to put posting something another day.
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