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*Personal Finance: Another Perspective
Personal Finance:Another Perspective
*ObjectivesA. Understand the importance of perspective B. Understand our perspective for this courseC. Understand the principles upon which that perspective is basedD. Understand the implications of that perspective
*A. Understand the Importance of PerspectiveWhat is the importance of perspective?The historian Will Durant wrote of the human need to seize the value and perspective of passing things. We want to know that the little things are little, and the big things big, before it is too late; we want to see things now as they will seem foreverin the light of eternity (The Story of Philosophy, New York: Simon and Schuster, 1927, p. 1).How do we see things as they will seem forever--as they are, were, and are to come? (D&C 93:24)
*The Importance of Perspective (continued)The key is to have a correct perspectivePerspective is important because it impacts choiceHow you look at things makes a difference in how you make choicesDo you recognize your difference in perspective as you look at the world around you?Do you recognize the implications of your differences in outlook, i.e., the differences your eternal perspective makes on how you view things and people?
*B. Understand Our PerspectiveOur perspective is simple. It is:Financial management is not separate from our Christian lives; rather, it is simply part of our Christian livesFinancial management from this correct perspective is simply living the gospel of Jesus Christit is putting Christ first in our livesBut seek ye first the kingdom of God, and his righteousness; and all these things shall be added unto you (Matt. 6:33).I believe that if we do not put Jesus Christ first in our lives, in the end, it will not matter who or what we put first
Our Perspective (continued)President Howard W. Hunter said:Living members put Christ first in their lives, knowing from what source their lives and progress come. The central role in life belongs to God. Instead of asking him to do our bidding, we should seek to bring ourselves in harmony with his will, and thus continue our progress as a living member. The first great commandment is to love the Lord thy God with all thy heart, and with all thy soul, and with all thy mind (Matt. 22:37). In order to love him we need to do the things he has asked us to do. We need to show that we are willing to become like him (Am I a Living Member?, Ensign, May 1987, p. ).
Our Perspective (continued)Elder Neal A. Maxwell wrote of those without this perspective. He wrote:Living without God in the world brings a functional lack of consistent perspective. If there were no eternal truths, to what principles would mortals look for guidance? If not accountable to God, to whom are we ultimately accountable? Furthermore, if nothing is ever really wrong, then no one is ever really responsible. . . Why should we be surprised, then, at so many disturbing outcomes, including the lack of community, when every man does that which is right in his own eyes? (Take Especial Care of Your Family, Ensign, May 1994, 88.)
*QuestionsAny questions about our perspective and why it is important?
*Elder Richard G. Scott commented:Joseph Smiths inspired statement, I teach them correct principles, and they govern themselves, still applies. The Lord uses that pattern with us. You will find correct principles in the teachings of the Savior, His prophets, and the scripturesespecially the Book of Mormon. . . Your consistent adherence to principle overcomes the alluring yet false life-styles that surround you. Your faithful compliance to correct principles will generate criticism and ridicule from others, yet the results are so eternally worthwhile that they warrant your every sacrifice (Richard G. Scott, The Power of Correct Principles, Ensign, May 1993, 32). C. Understand the Principles upon which this Perspective is Based
*Principles (continued)What are those principles that we must adhere to, whose results are so eternally worthwhile that they warrant our every sacrifice?Let me propose a few correct principles, that are the foundation upon which this perspective is basedI call these my Principles of Finance
*Principles (continued)1. Ownership: Everything we have is the LordsThe Psalmist wrote:The earth is the Lords, and the fullness thereof; the world, and they that dwell therein (Psalms 24:1) The Lord is the creator of the earth (Mosiah 2:21), the supplier of our breath (2 Nephi 9:26), the giver of our knowledge (Moses 7:32) the provider of our life (Mosiah 2:22), and the giver of all we have and are (Mosiah 2:21).Nothing we have is our ownits all Gods
*Principles (continued)2. Stewardship: We are stewards over all that the Lord has, is, or will share with usThe Lord through the Prophet Joseph Smith stated: It is expedient that I, the Lord, should make every man accountable, as a steward over earthly blessings, which I have made and prepared for my creatures. (D&C 104:13)The Lord through the Brigham Young said:Thou shalt be diligent in preserving what thou hast, that thou mayest be a wise steward; for it is the free gift of the Lord thy God, and thou art his steward. (D&C 136:27)
*Principles (continued)3. Agency: The gift of choice is mans most precious inheritancePresident Marion G. Romney said:Agency means the freedom and power to choose and act. Next to life itself, it is mans most precious inheritance. (Ensign, May 1976, p. 120.) President David O. McKay:Next to the bestowal of life itself, the right to direct that life is Gods greatest gift to man. Freedom of choice is more to be treasured than any possession earth can give (Conference Report, Apr. 1950, p. 32; italics added).
*Principles (continued)4. Accountability: We are accountable for every choice we makeThe Lord through the prophet Joseph stated:Verily I say, men should be anxiously engaged in a good cause, and do many things of their own free will, and bring to pass much righteousness. For the power is in them, wherein they are agents unto themselves. (D&C 58: 27-28)For it is required of the Lord, at the hand of every steward, to render an account of his stewardship, both in time and in eternity. (D&C 72:3)
*On this subject, Elder Neal A. Maxwell stated:The submission of ones will is really the only uniquely personal thing we have to place on Gods altar. The many other things we give, brothers and sisters, are actually the things He has already given or loaned to us. However, when you and I finally submit ourselves, by letting our individual wills be swallowed up in Gods will, then we are really giving something to Him! It is the only possession which is truly ours to give! (italics added, Swallowed Up in the Will of the Father, Ensign, Nov. 1995, 22.)
*Principles (continued) President Spencer W. Kimball said:We hope we can help our young men and young women to realize, even sooner than they do now, that they need to make certain decisions only once. We can push some things away from us once and have done with them! We can make a single decision about certain things that we will incorporate in our lives and then make them ourswithout having to brood and re-decide a hundred times what it is we will do and what we will not do. My young brothers [and sisters], if you have not done so yet, decide to decide! (Ensign, May 1976, p. 46; italics added.)
*QuestionsAny questions on the key principles upon which our perspective is based?
*D. Implications of that Perspective (continued)Benjamin Franklin knew about the importance of perspective and how it influenced choice. He wrote: Those who believe there is one God who made all things and who governs the world by this providence will make many choices different from those who do not. Those who believe that mankind are all of a family and that the most acceptable service of God is doing good to man will make many choices different from those who do not. . . Those who subscribe to the morals of Jesus will make many choices different from those who do not (The Art of Virtue, 1986, 8890).
*Implications of that Perspective (continued)Elder Neal A. Maxwell commented: We see the world and the people in it differently, because, as C. S. Lewis observed, it is by the light and illumination of the gospel that we see everything else. . . The gospel is like the lens of a cosmic kaleidoscope that, instead of showing life, man, and the universe as senseless, unconnected fragments, shows us pattern, beauty, and purpose! It is this vision that can give us a special sense of proportion about the things in life that matter most. . .This perspective can make so many differences in so many ways that, unintentionally, we may be unconscious of the implications of our difference in outlook (Talk of the Month, New Era, May 1971, 28).
*Implications of that Perspective (continued)The purpose of this section is to help the implications of that perspectivesThey are many and varied, but make a big difference in how we live our lives
Implication 1. Life is about othersSome believe the statement its about me They think life is:Only about themThey are the center of the universeThey decide what they should doWhat they want is right, regardlessThey can do whatever they want, because they dont have to account to anyone
The reality is different
Thoughtful consideration causes us to think:Who created us? Who loves us the most?What is our purpose here on earth?Where do we find the most joy?What were we sent here to do?Who are the most important people in our lives?And when we think longer-termWho forgives our sins?Who allows us to live eternally with our families?Who will judge us at the last day?
Life is About Others
The more we think, the more we realized that this life is not about us, its about what we do with our lifeLife is a test, training, or probationary time to show where our heart and our will really areIf we put Christ first in our lives, we will live eternally with God and our families If we fail to put Christ first, in the end it really doesnt matter what or who we put firstIf our goal is truly eternal life, then it is not about us anymoreIts about others and our Savior, Jesus ChristLife is About Others (continued)
Implication 2. Its About FaithSome feel personal finance is all about moneyMoney is the answer to all our problemsSomeone commented: If you can solve it with money, it is not a problem. But is it really about money?
The reality is different
In most cases, financial problems are behavioral problems, not money problemsWe all know what we should do: live on a budget, spend less than we earn, not go into debt, build a reserve, etc.But other things (ignorance, carelessness, compulsiveness, pride, and necessity) get in the wayFor most, it is not a question of knowledge, but of motivationHow do we motivate ourselves (and others) to do the things we know we should?
It's About Faith (continued)
It's About Faith (continued)Elder Boyd K. Packer answered this when he said:True doctrine, understood, changes attitudes and behavior. The study of the doctrines of the gospel will improve behavior quicker than a study of behavior will improve behavior (Boyd K. Packer, Little Children, Ensign, Nov. 1986, 16).Moreover, the Lord told us:But no temporal commandment gave I unto him, for my commandments are spiritual; they are not natural nor temporal (D&C 29:35).
It's About Faith (continued)The lesson for us then is to understand doctrineThen we can apply it to help us do what we shouldThe doctrine is we have been commanded in the scriptures and by living prophets to:Live within our meansGet out of debtBuild a reserve Save for long-term goalsFrom this perspective, we see that financial problems are not problems of money, but problems of faith
Implication 3. Finances are a Spiritual MatterMany think money matters are only temporal mattersThey feel that how we manage our money has nothing to do with their spiritualityThey feel that scriptures talk only of spiritual things and not temporal issues such as financial matters. Those are left up to us.
The reality is different!
Finances are a Spiritual MatterMoney matters are spiritual matters because:a. All things are spiritualIn D&C 29:34 the Lord says, All things unto me are spiritual, and not at any time have I given unto you a law which was temporal. The Apostle Paul taught that the love of money is evil, not money itself (1 Timothy 6:10).
Finances are a Spiritual Matter (continued)b. Money is a medium of exchangeElder Sterling W. Sill said:We can build temples with money, we can send out missionaries with money, we can erect educational institutions, operate hospitals, and pay our tithing with money. In many ways we can build up the kingdom of God with money (Sterling W. Sill, A Fortune to Share, Ensign, Jan. 1974, 60).
Implication 4. The Lord Wants us to be FreeMany think they are free, even when they are in debtThey think that it is OK to be in debtAfter all, it builds their credit score, doesnt it?
The Lord Wants us to be Free (continued)There is no true freedom without financial freedom President Ezra Taft Benson said:The Lord desires his Saints to be free and independent in the critical days ahead. But no man is truly free who is in financial bondage (Prepare Ye, Ensign, Jan. 1974, p. 69).*
Implication 5. Money is a Tool to Bring Us to ChristMany think their whole purpose in life is to make moneyHe wins who stands tallest when he is standing on his wallet, or She who dies with the most clothes wins
The reality is different
Money is a Tool (continued)Money is a tool to teach gospel principlesMoney is a tool to teach us many things, including the gospel principles:1. Seeking the Kingdom of God firstBy paying our tithes and offerings first, we show we love God more than material things2. The spiritual and physical creationMoney teaches and reinforces both the spiritual and physical creation, as we develop goals and budgets and work toward them *
Money is a Tool (continued)3. The Law of the HarvestWe learn this as we invest for retirement and other long-term goalsWe cannot cut corners with this law4. Christlike characteristics of:Patience, as we save for our goalsCharity, as we serve and give to othersSacrifice, as we give up things now for things greater in the future
Implication 6. We are Responsible for our FinancesSome feel that they are not responsible for their financial livesIt is someone elses responsibility, their parents, the government, their children, etc.
The reality is different
We are Responsible (continued)We are responsible for our financial livesWe cannot spend our way into financial securityWe must save for our own retirementWe must save for our long-term goalsIf we choose, we must save to help our children with their missions and educationIf we want to serve missions later on in life, we must save *
We are Responsible (continued)Some feel that parents must support their children financially, regardless of the age of their childrenThey must continue giving food, clothing, cars, insurance, etc. regardless of the childrens age, actions, and unwillingness to learn or take financial responsibility
The reality is different!*
We are Responsible (continued)After children become adults, they are responsible for their financesParents are not responsible for their adult childrens financesthe adult children are. Likewise children are not responsible for their parents financesParents who continually support their children financially, will find their children will always need support It is hard to learn financial responsibility if they are continually rescued from their financial choices or if they do not have to work for what they get
We are Responsible (continued)Others think money matters are a male responsibility for married couplesThey think if wives become knowledgeable about financial matters, their husbands will be upsetThey reason that since the husband makes the money, husbands get to decide where it goes (I believe this is called unrighteous dominion)
The reality is different!
We are Responsible (continued)Couples are jointly (equally) responsibleThe Proclamation on the Family states:By divine design, fathers are to preside over their families in love and righteousness and are responsible to provide the necessities of life and protection for their families. Mothers are primarily responsible for the nurture of their children. In these sacred responsibilities, fathers and mothers are obligated to help one another as equal partners (Proclamation on the Family, 1995).
We are Responsible (continued)Control of money by one spouse as a source of power, or failure by a partner to be a part of financial management are both incorrect attitudes Management of family finances should be mutual between husband and wife in an attitude of openness and trust. Control of the money by one spouse as a source of power and authority causes inequality in the marriage and is inappropriate. Conversely, if a marriage partner voluntarily removes himself or herself entirely from family financial management, that is an abdication of necessary responsibility (italics added, Marvin J. Ashton, Guide to Family Finance, Liahona, Apr. 2000, 42).
Implication 7. Debt is an AddictionSome consider it is OK for them to go into debt for things, especially things they really wantYou cant have a car without a car payment, can you?Its OK to borrow, if you really want it, isnt it?The reality is different!
Debt is Addictive (continued)Consumer debt is badIt stops growth and savings, and is expensive, both economically and spirituallyPresident James E. Faust stated:Over the years the wise counsel of our leaders has been to avoid debt except for the purchase of a home or to pay for an education. I have not heard any of the prophets change this counsel (Doing the Best Things in the Worst Times, Ensign, Aug. 1984, 41).Sadly, consumer, auto, and credit card debt not paid off monthly are not included in that short list
Debt is Addictive (continued)President Ezra Taft Benson said:Pride is a sin that can readily be seen in others but is rarely admitted in ourselves. . . It is manifest in so many ways, such as . . . living beyond our means (italics added, Ezra Taft Benson, The Faces of Pride, New Era, Oct. 2003, p. 40).Perhaps the debt problem is more a problem of pride than it is of money?Dont think of it as I am going into debtThink of it as Im spending my childrens mission and education money or I am disobeying the teachings of my Savior
Implication 8: Every family Should have a budgetSome feel that living on budgets is only for college students and those that need to be careful with their money, not more mature people like ourselvesWe do not need to have a budget because we know where their money goes (it goes to pay our bills)
The reality is different!
Every Family Should have a Budget (continued)President Spencer W. Kimball counseled:Every family should have a budget. Why, we would not think of going one day without a budget in this Church or our businesses. We have to know approximately what we may receive, and we certainly must know what we are going to spend. And one of the successes of the Church would have to be that the Brethren watch these things very carefully, and we do not spend that which we do not have (Conference Report, April 1975, pp. 166-167).
Every Family Should Have a Budget (continued)Elder Marvin J. Ashton stated:Some claim living within a budget takes the fun out of life and is too restrictive. But those who avoid the inconvenience of a budget must suffer the pains of living outside of it. The Church operates within a budget. Successful business functions within a budget. Families free of crushing debt have a budget. Budget guidelines encourage better performance and management (italics added, Marvin J. Ashton, Its No Fun Being Poor, Ensign, Sept. 1982, 72).
Implication 8. We Cannot Judge or CompareSome consider that they can judge others by the outward appearance, by how much money they have, and how they are using that moneyThey think that appearances are more important than the heart
The reality is different*
We Cannot Judge (continued)In the parable of the talents (Matt. 25:14-30) the Lord gave different talents to different peopleThey took the talents given themThey took responsibility for those talentsThey used the talents to the best of their abilitiesThey made different returns on their talentsBut the end result was the same wonderful blessing: Enter thou into the joy of thy lord, regardless of the amount given*
We Cannot Judge (continued)None were in a position to judge another or to impugn righteousness or wickedness based on the talents (or blessings) given them by GodWe have been commanded in Matt 7:1-2:Judge not, that ye be not judged. For with what judgment ye judge, ye shall be judged: and with what measure ye mete, it shall be measured to you again
We Cannot Judge (continued)Some, such as parents, bishops or other Church leaders must make judgments as part of their stewardships. The counsel to them is equally important, that they should judge by the light of Christ. but the counsel is strong:And now, my brethren, seeing that ye know the light by which ye may judge, which light is the light of Christ, see that ye do not judge wrongfully; for with that same judgment which ye judge ye shall also be judged (Moroni 7:18).
We Cannot Judge (continued)Just as we are in no position to judge others based on what we perceive, we are in no position to compare ourselves to others based on what we perceiveWe are in no position to judgeWe are in no position to compareJudgment and comparisons are Satans tools, not Christs toolsThey come from, and lead to, pride, self-aggrandizement, and feelings of being better (or worse) than others. These are not part of Christs gospel where all are alike unto God (2 Nephi 26:33).*
Implication 10. We must Learn to be Financially WiseDidnt the prophet Malachi say:Bring ye all the tithes into the storehouse, . . . and prove me now herewith, saith the Lord of hosts, if I will not open you the windows of heaven (Malachi 3:10, 3 Nephi 24:10).Doesnt it say that if I pay my tithing, the windows of heaven will open and I will get all the financial blessings that I need, regardless of any learning, thought, application, hard work or effort on my part?
The reality is different!
We Must Learn To Be Wise (continued) The prophet Malachi promised that God will open the windows of heavenHowever, there is no promise that the windows of heaven will be financial blessings or that paying tithing will eliminate all our financial problemsWe still are stewards over what we have and are, and must learn to live in this increasingly challenging financial worldThere are still more commandments which relate to finances in addition to just paying your tithing, i.e., living with your means, avoiding debt, building a reserve, preparing for retirement, missions, etc.
We Must Learn to Be Wise (continued)Interesting statistics:Average per household debt in the U.S. is $14,500 excluding mortgage debt in 2007Credit card users pay 12-20% more than cash users40% of American families spend more than they earnThe typical family pays $1,200 per year in interest About 60% of all active credit card accounts are not paid off monthlyMost couples indicate that finances are a major stress on their marriagesSource: available upon request
We Must Learn to Be Wise (continued)How do to you learn to be wise financially?There are many sources of good informationIt just takes time to sort them outOver the next 27 class periods, we will work together to decide what you can do to become more financially wise and better financial stewards
*QuestionsAny questions on the implications of that perspective?
*SummaryPerspective is importantWe want, and need to know, that we are seeing things as they really are, that big things are really big things--that little things are really little thingsOur perspective is simply that financial management is not separate from a Christian life, put simply part of a Christian lifeIt is simply living the gospel of Jesus ChristThat perspective is important as it influences choiceHow we view the things of eternity will have a major impact on how we live our lives- * -
*Summary (continued)This other perspective is important. It is based on four key principles. They are:1. Ownership: Everything we have or are is a gift from God. Remember that it is not ours2. Stewardship: We are stewards over the things the Lord has blessed us with. We must learn to be better stewardsthis class will help 3. Agency: The ability to choose is a God-given gift. Use it wisely4. Accountability: We are the final decision makers, but we will be held accountable for our decisions. We must learn to choose wisely!
*Summary (continued)There are implications of that perspective that change everything we do. They are:1. Life is about others2. It is about faith3. Finances are a spiritual matter4. The Lord wants us to be free5. Money is a tool to bring us to Christ6. We are responsible for our finances7. Debt is an addiction8. Every family should have a budget9. We cannot judge or compare10. We must learn to be financially wise
*Review of ObjectivesA. Do you understand the importance of perspective? B. Do you understand our perspective for this course?C. Do you understand the principles upon which that perspective is based?D. Do you understand the implications of that perspective?
*Case Study #1DataBrenda came from a family that had little of the worlds goods, but there was a lot of love in the home. The parents loved their children and the children loved their parents. She respects you for the wonderful example you have set.ApplicationShe asks you:1. What is the purpose of wealth in our lives? 2. What scriptures support that purpose?
*Case Study #1 answers1. You have lots of good ideas, but you share the following: The Nephite Prophet Jacob shared with us one view of the purpose of wealth in our lives. He counseled us that if we seek wealth, we should do it for the right reasons: After ye have obtained a hope in Christ ye shall obtain riches, if ye seek them; and ye will seek them for the intent to do good-to clothe the naked, and to feed the hungry, and to liberate the captive, and administer relief to the sick and the afflicted. (Jacob 2:18-19)
*Case Study #1 answers2. Again, there are many different answers from scripture. You could respond: Riches are to help us to fulfill our missions here on earth, to help us become like Christ, to raise righteous families, to move the kingdom forward, and to help and serve others. Remember D&C 14:7 and 11:7: Seek not for riches but for wisdom; and, behold, the mysteries of God shall be unfolded unto you, and then shall you be made rich. Behold, he that hath eternal life is rich.
*Case Study #2DataBrenda continues to ask you questions regarding your perspective and principles for understanding and using wealth wisely. ApplicationShe asks:What are the four key principles for using wealth wisely? Why is each principle important? What can we do now to incorporate each principle into our lives now?
*Case Study #2 answersThere are a lot of good answers for these questions. You might respond with: The key principles for understanding and using wealth wisely are:1. Ownership: Everything we have or are is a gift from God. It is important as the things we have are not ours, but are on loan from a loving Father in Heaven We can incorporate this principles into our lives by learning that when we share with others, we are only giving back to God what was His in the first place, and what He has loaned to us.
*Case Study #2 answers2. Stewardship: We are stewards over the things the Lord has blessed us with. It is important as we must learn to be better stewards over our blessings as we will be held accountable for what we do with these blessings.We can incorporate this into our lives by learning as much as we can about the things we need to do so that we can become the best stewards we can over the blessings our Heavenly Father shares with us.
*Case Study #2 answers3. Agency: The gift of choice is mans most precious inheritanceIt is important as we need to use this gift wisely so we can return and live with God eternally. We can incorporate this in our lives by studying all areas of our decisions and decision making processes so we can have the information needed to make the best decisions possible.
*Case Study #2 answers4. Accountability: We are accountable for our choicesWe are the final decision makers in life. It is important as we must learn to choose wisely.We can incorporate this into our lives by setting good goals and then by making wise choices to help us attain those goalsgoals that our Heavenly Father would have us seek for.
*Case Study #3DataBrenda was concerned as one of her friends was blessed with material riches, and made poor choices which caused him to lose his testimony. She asks: If wealth is so bad, should we seek for riches? ApplicationWhat did the prophet Jacob in Jacob 2:18-19 say about this question? What should we seek for first?
*Case Study #3 answersThe prophet Jacob said seeking for riches is OK if we first seek the Kingdom of God, and if we seek riches for the right intent--for righteous purposes. But before ye seek for riches, seek ye for the kingdom of God. "And after ye have obtained a hope in Christ ye shall obtain riches, if ye seek them; and ye will seek them for the intent to do good-to clothe the naked, and to feed the hungry, and to liberate the captive, and administer relief to the sick and the afflicted (Jacob 2:18-19).First, we should seek for the Kingdom of God and doing His will. Then we can seek for richesbut with the intent to do good
*Case Study #3 answersPresident Gordon B. Hinckley said:The Lord will love us, I think, to the degree to which we lift and bless those in distress. I believe that with all my heart, mind, and soul. The accumulation of means is not a bad endeavor when those means are used to bless the needy of the earth (Discourses of President Gordon B. Hinckley, Volume 2, Intellectual Reserve, 2005, p. 593.)