Of Borrowing and Saving

November 8, 2013 Leave a comment

The basic rule is, if you are not already saving, then you are not ready to borrow. This may sound paradoxical, but it is the only safe way to approach borrowing.

You may wonder, if I have savings, then why would I borrow? That question may be answered in any number of ways. Asking it suggests some lack of understanding of the proper purpose of borrowing.

The proper purpose of borrowing is to manage your income. You should never borrow to spend beyond your income.

Most people receive income in lumps, like once a month or twice a month. Expenses do not always behave themselves that way. First, there are the every day expenses, such as for food, transportation, and a wide range of miscellaneous minor expenditures that quickly add up. Then there are other expenses that occur monthly and may more or less happen at about the same time as your income. A third category is the big expenditure, that may come once or twice a year, such as tuition, taxes, major purchases, insurance premiums. Since the timing of our income and outgo often do not line up, we use borrowing to help bring the two into line.

For example, the tuition is due in September, but you plan to pay for college by working through the school year. A student loan or other borrowing arrangement with the college can line your income up with the expense.

Another example might involve a big appliance. Your refrigerator breaks down and you need a new one. You may not usually have several hundred dollars of unallocated income available in any one month to pay for the new refrigerator, but you likely will over the course of a year. Borrowing lets you draw that income from the course of the year into your current month and match it against this large purchase needed today.

Here is a bigger example. You need a new car, both for family transportation and perhaps even for travel to work. Very few people have enough ready income to buy the new car with what will be received in any one month. Most people, though, can draw upon funds available from their income over the course of a few years to pay for the car, and borrowing is the tool that they can use to do that.

Of course, this borrowing from the future to pay for something today can be abused. There is a natural temptation common to man to seek gratification today and worry about tomorrow’s problems tomorrow, even while causing them today. Two things can help counter this potential for abuse. One is interest, and the other is saving.

Interest is what we pay for borrowing. While rewarding the lender, it is a penalty against anyone who borrows in order to spend beyond his income. As you spend beyond your income, the interest mounts. In the end, it will bring down the abuser once the abuse has gone too far and gets out of hand.

Saving is a more benign and effective check on the impulse to borrow in order to spend beyond income. If you are regularly saving, you are doing something even more important than preparing for the future and reaping the rewards from lending to other borrowers. By definition, if you are saving, you are living within your income. You are taking part of your income and putting it aside. That discipline is what is needed to prevent you from using borrowing to exceed your income. You have a proven practice of spending less than you earn.

That is why I say that if you are saving, then you are prepared to borrow, and if you are not saving, then you are either living right on the edge—spending your income as fast as it is received—or you are going beyond, borrowing to spend beyond what you earn, and that leads to trouble. Then you will be spending to consume something that you did not earn and do not deserve. The eventual price for that is loss of freedom, as you must in the future consume much less than you earn in order to satisfy the debts.

(First published September 8, 2008)

Filed under abundant life, banking, compensation, deficit spending, discipline, freedom, interest rates, money, personal finance, slavery

Of Mountains and Forever

November 2, 2013 Leave a comment

They say that the mountains of the East are far older than the mountains of the West and at one time were just as lofty. Over ages and ages the Appalachian Mountains have been worn down by wind and rain and the other engines of change, their substance contributing to much of the land on which many of the people of the southeastern United States today live and where generations before them cleared the land, built their homes, and at length departed.

The sugary white beach sands of Florida’s Emerald Coast are said to be uncountable grains of quartz eroded from the mountains far to the north. The cities of Wilmington, Delaware; Baltimore, Maryland; Washington, D.C.; Richmond, Virginia; Raleigh, North Carolina; Columbia, South Carolina; Macon, Georgia; Montgomery, Alabama; and numerous others are outposts along the “Fall Line” of the eastern seaboard, marking where the ocean once met the land and where eons later waterfalls and rapids set the limit that colonial ships could travel up the rivers. All of the land between these cities and today’s coast was created from the rocks of the timelessly ancient Appalachians.

And yet these mountains are still majestic for all of that wear and tear. The clouds ever cling to the Smoky Mountains, while in Virginia, as the Blue Ridge, the mountains rise as the rocky fence that for the early colonists divided the new land between what they called east and west.

I recently spent a week in Gatlinburg, Tennessee, on the western side of the Smokies. In the morning the view of Mt. LeConte and other towering peaks greeted me, and at night they fed evening reverie.

Each evening of the week the family gathered for a devotional on a wide porch with that marvelous view as our backdrop. Each adult family member, often helped by a younger participant, took a turn leading us in song, prayer, scripture study, and a spiritual message. Spiritual thoughts came easy in that setting. On one evening in full twilight I called upon the setting for my visual aid.

The mountains of the East are distinguished by being blanketed in forest framing the occasional meadow, with very infrequent exposed rock. I drew attention to the forest covering, noting that among the woodland growth there were a fair number of trees shorn of every leaf—long dead. I remarked that all of the living trees that we saw would die in turn, and that the mountains themselves were steadily disappearing, imperceptibly wearing away. We live in a world that of itself is a world of steady decay, with no earthly exceptions.

And then the point of the message (with little ones in attendance you have to reach the point soon enough): each one of us is older than the mountains before us. Our Heavenly Father told us long before time all about this world and His plan for us here while we lived in His presence in His eternal home that preexisted the earth. From that eternal world we were sent to a world where all was change and where decay prevailed. This temporary world is our learning, growing, and testing ground, where we have full freedom to choose who and what we want to become.

Into this world of death and decay Jesus Christ was sent by His Father and our Father to redeem every good thing, including (most of all) those who would choose to rely upon His power and grace to become good and be brought back into the eternal worlds of the Father’s presence. All good, all beauty, all loveliness of this world would be saved by Christ and amplified where moth and rust do not corrupt. That was the power that Christ the Redeemer won by His atoning sacrifice. As beautiful and great as the view before us, Christ came that we might rise above and lay claim forever to it all, losing nothing worth keeping. Most of all, that included especially all of us gathered on that porch and our eternal relationship as family.

And that was the lesson of the mountains and the forests before us, presented in fewer words. But the truth of the message lingers and will not wear away.

(First published June 25, 2013)

Filed under abundant life, atonement, children, creation, death, divine nature, eternal life, family, freedom, future, heaven, Heavenly Father, home, Jesus Christ, life, mortality, premortal life, resurrection, salvation, spirituality, time

Of Hope and Just Getting By

October 23, 2013 Leave a comment

Working in Washington, D.C., and living in the D.C. suburbs as I do, I am fond of saying that I eagerly accept opportunities to get away from the Capital region and spend time in real America. That has always been a bit of an overgeneralization, expressing a usually correct but not unerring description. Washington is not real America, but there are parts of this nation that have already gotten ahead of where the smart people of Washington have been able to take the nation. Those places are not what I mean when I refer to real America.

Our large, industrial states are examples of misrule by those who assume that their ability and right to rule, and the inexhaustibility of the wealth of their cities and states, are given and immutable. Wrong on all assumptions. These states, once beacons of progress, growth, and development, are wastelands of decline: economic, social, moral, and even demographic. Millions of people—those who could—have been leaving these states for decades.

The recent bankruptcy of Detroit is a prominent symbol of where this misrule leads. At its prime a bustling metropolitan center approaching two million in population, Detroit has been steadily falling from its prime to a dilapidated city of barely 700,000 who remain to wonder where have the productive people gone, and what is to be the future?

I recently returned from spending several days in such a place, mixing with, talking with, associating in the daily lives of the ordinary people living there, people with whom I had lived as a wide-eyed teenager a generation before. I am not referring to the urban center of the state. The region I visited has been for 150 years a mixture of industrial and rural economies, and as I recalled, a happy mix. Now the villages and towns are actually smaller than in my youth and shrinking. The number of productive enterprises is fewer and those that remain, smaller. The schools have remarkably fewer students and struggle with how to keep their programs going with declining enrollments. The largest employers are the instruments of government welfare services—as well as a couple of new state prisons—and the local hospital network.

The people were friendly and pleasant, yet something did not feel right. I understand the wisdom that “you can never go home” if you expect to find all the same. I expected change. New technologies were present, hand-held electronic devices ubiquitous, a fair number of new cars, if not the foreign luxury models so common in Washington. It was not, though, a happy place of happy people. Why?

It was only near the end of my stay that I recognized the ailment. The region has become a land of small hope, particularly small hope of progress. People there were not living their lives to get ahead, to advance, to build a better future (I cannot recall seeing a single new house in the several days of my visit, though the dump north of town is working on its third mound). Most of the people in these formerly vibrant communities, with what I remember as bright expectations for the future, were now living their lives to get by, just to get by, to get on from day to day, holding on to what they have.

Taxes are high, so it is not easy to keep what you earn. Regulation makes it hard to do anything new. For those reasons, businesses have been leaving, and so have the talented youth. Talk with the people about their daily lives, and not long into the conversation the problems of wrestling with this or that regulation or working with some officious government apparatchik will come up. And yet so many of the people expect the solution to their problems to come from some new government program or service rather than from their own effort.

I say “most” of the people are so ailing. There are a few exceptions, and interesting ones. Two religious groups seem to be growing—and not the establishment churches, whose places of worship, grand and beautiful buildings, eloquently testify to bygone days of prosperity but now show signs of neglect. The two groups are the Latter-day Saints, whose Church was founded in the area nearly two hundred years ago and whose membership is growing steadily, and the Amish/Mennonites, who in recent years have moved in strong numbers to take advantage of neglected farm land. There are also some very prosperous farm businessmen, also gathering up land and putting it into obvious productivity. Finally, I would mention the growth of mini-wineries, although this latter movement seems after about 25 years to be approaching maturity.

Hope is an essential ingredient in happiness. Hope comes from the belief that a desirable future is attainable, so much so that it draws out extra effort to realize its promise. Genuine hope in your own effort can be contagious, and those who have it can help revive communities. You cannot do much to give hope without that personal effort, but hope comes naturally with that effort and the opportunity to keep the fruits of one’s efforts. Our nation’s founders were filled with hope and with it created the greatest nation on earth.

There is no hope, though, in just getting by. In the end, you cannot get by if getting by is all there is to your hope. No future there, only decline. For hundreds of years people have been leaving their lands where they struggled to get by and have been coming to America, to them a land of hope and the freedom that feeds hope. When I leave Washington to look for America, that is what I am looking for. I hope to find it ever.

(First published July 20, 2013)

Filed under abundant life, America, bureaucracy, civilization, economic growth, exceptionalism, freedom, future, government, hope, immigration, life, poverty, productivity, statism, taxes, Washington, wealth

Of Guaranties and Reliance

October 19, 2013 Leave a comment

All around the world people are seeking guaranties against the various risks of life. Borrowers want guaranties that they can stay in their houses, even if they cannot pay the mortgage; lenders want guaranties that they will not lose money on bad mortgages; investors want guaranties against bad investments; people living at the water’s edge want guaranties against floods; and even people making guaranties are looking for guaranties that they will not lose money on the guaranties that they have made to others. Guaranties of health, guaranties of wealth, guaranties of safety and happiness, all seem to be in ever increasing demand.

Perhaps what is most disturbing is that people are not just seeking guaranties, but they are looking for others to pay for them. Rather than relying upon their own resources and performance to obtain guaranties, too many are substituting pleas and moans and whines to wheedle free guaranties from others, especially from the government.

In practice, many of these guaranties will fail. Even guaranties from government are unreliable. I recall when a Senator for whom I worked was faced by an agitated constituent, complaining that a government agency reneged on a promise. There was not anything that the Senator could do about the situation, other than to remind the constituent of an important truth about government: they lied.

There is a source of reliable, faithfully honored guaranties. The ancient American prophet Mormon taught a congregation of Christians, “the way whereby ye may lay hold on every good thing.” The way is through faith on Jesus Christ, by whom people from the beginning of time obtained all things worth having, “and thus through faith, they did lay hold upon every good thing” (Moroni 7:21,25).

Unlike many of the guaranties of men and governments, these guaranties are sure, and they also require some reliance by the individual upon his own efforts in order to qualify. In modern times the Savior Jesus Christ has said, “I, the Lord, am bound when ye do what I say; but when ye do not what I say, ye have no promise.” (Doctrine and Covenants 82:10)

The qualifying requirements are not onerous. They relate directly to the promises sought. For guaranties of goodness, the Lord asks us to be kind. For guaranties of financial wellbeing, the Lord asks us to follow practices of financial prudence. For guaranties of happy family life, the Lord asks that we love and serve each other. That is to say, to obtain the Lord’s sure guaranties, we are asked to rely jointly upon ourselves and upon the Lord.

The result was summed up by the counsel of another ancient American prophet, Helaman, that he gave to his own sons:

And now, my sons, remember, remember that it is upon the rock of our Redeemer, who is Christ, the Son of God, that ye must build your foundation; that when the devil shall send forth his mighty winds, yea, his shafts in the whirlwind, yea, when all his hail and mighty storm shall beat upon you, it shall have no power over you to drag you down to the gulf of misery and endless wo, because of the rock upon which ye are built, which is a sure foundation, a foundation whereon if men build they cannot fall. (Helaman 5:12)

That is a guaranty worth having, and well within the budget of each one of us.

(First published September 21, 2008)

Filed under abundant life, banking, faith, government, government spending, happiness, individual worth, Jesus Christ, personal finance

Of Faith and Life

October 12, 2013 Leave a comment

I hesitate to get into this discussion, because I consider it basically silly. It is almost entirely a semantic argument, divorced from reality. I speak of the phony and diabolical debate that poses faith in opposition to works.

I enter into it, because this manmade doctrine too often becomes a shield against repentance and the changing of one’s life to become like Jesus Christ and receiving all that He has to offer us, which is everything. In modern days, Jesus Christ announced that all who receive Him, “receiveth my Father; and he that receiveth my Father receiveth my Father’s kingdom; therefore all that my Father hath shall be given unto him.” (Doctrine and Covenants 84:37, 38)

That is to say, I take up the issue not to debate the doctrine, for there is no salvation in doing that. Rather I seek to focus on how we live our lives to receive Christ, because happiness and salvation can be found there.

I know that there are some human doctrines that hold that a man or woman is “saved” only by faith, absolutely and completely unrelated to any good or evil that the person may do at any point in life. That is the doctrine. I do not, however, know of anyone who lives in accordance with that doctrine. Since I do not know and could not possibly meet everyone, I do not deny that there might be someone who lives his life by that doctrine—I cannot imagine it—but I have yet to meet him, and I doubt that I ever will.

I say that because I hold that how someone lives is an exact and complete expression of his faith. People think, however briefly, before they act, and their action is an expression of their faith in what will happen as a result of that action.

You might ask, what about the person who acts on reflex? I would ask, how did that person develop his reflex if not by thoughtful action, repeated over and over? His reflex is the expression of his faith exercised in the development of the reflex.

The same would be true for habits that have become very hard to break. You may say that a smoker knows and has faith that smoking is bad for his health. That may be true, but people do a lot of things that they understand to be bad for their health, but they do it anyway because it seems to them like a good idea at the time. Often a desire for immediate gratification of a physical appetite overcomes understanding of some long off harm. After all, all life takes place in the immediate moment, and the promise of future effects often can seem less persuasive and less real to the mind. Faith in the present can trump faith in the future.

What does that have to do with faith and works? Everything. What people do are their works, and what they think before hand is where their faith resides before it manifests itself in their works, in what they do. All we do, except perhaps when we sleepwalk, is a union of our faith and works. Only in unreal, semantic debate is it possible to separate faith and works. I have little time in this brief life for that debate.

The Apostles of Jesus Christ have all been, every one of them, practical men, living everyday life as we do. The very practical James wrote in the New Testament, to those who asserted a separation between faith and works, “I will show thee my faith by my works.” (James 2:18) So do we all. Then in metaphor James explained, “faith without works is dead” (James 2:20). As the body without the spirit is dead, there is no life in faith and works when separated.

I would offer another analogy, albeit one less elegant. To say that faith and works can be separated and, moreover, that we can be saved by faith without any regard to our works makes as much sense as saying that a house can be built by plans alone, without brick and mortar. A plan without the bricks and mortar is just so many pieces of paper, providing no shelter, warmth, or comfort for the living. A house without plans will be nothing more than a pile of building materials awaiting application of some intelligent design. There is no house without both design and materials organized and applied according to the design.

Sometimes at this point in the discussion an objection is made that there is no faith, no salvation, without grace, and that no amount of works no matter how good can make up for a lack of grace. All of that is true. And that is what I would explain next as a concluding point.

Never forget, ever, during this life of mortality that all of this existence on earth is temporary and was designed to be so. All of mortality eventually has an end. Men get into great difficulty when they try to make this mortality last. Nothing of mortality lasts. God designed and created this temporary life as a learning time and a place of testing to prepare us for worlds where endlessness is the rule, the existence where God lives and where most of life takes place, without end.

Part of that preparation in this life involves the voluntary reception by us of things from the eternal worlds that God offers to us in this world of mortality. Anything of any real value in this life is what God has extended to us from the eternal worlds, and that is all that survives from our mortal existence. It is all that we need and any good thing that we could want.

All of those extensions of eternal things from eternal worlds come by grace, the free gift of God. We can demand none of them, and there is nothing that we can do to merit them, but we do have to qualify for them. Basically, to qualify for them we have to demonstrate to God that we will receive the things of eternity rather than despise them. And then He gives them to us.

Let me illustrate by returning to the house analogy. The plans for building the house are like faith. Organizing and applying the bricks and mortar according to the plans are our works. By grace God has inspired our plans, and by grace we receive from God the building materials. Indeed, by grace God even works to correct the errors in our building. Without grace there would be no plans, no materials, no house perfectly formed.

God will not, however, build the house by grace. He leaves that for us, in this world of action, and effort, and choice. In what we do, by the exercise of our faith in Him through our actions, we show what we would do with what God gives us, and we qualify to receive all that the Father has. We live our faith in this way so that the Father may say to us when we return into His presence, “thou hast been faithful over a few things, I will make thee ruler over many things: enter thou into the joy of thy lord.”(Matthew 25:23)

(First published August 31, 2013)

Filed under abundant life, death, divine nature, eternal life, faith, grace, happiness, heaven, Jesus Christ, joy, knowledge, life, repentance, salvation, stewardship, works

Of Scripture Study and Growth

October 7, 2013 Leave a comment

Holy scripture is a record of God’s communion with man. There is rich value in the daily study of scripture.

As one engages in regular study of the scriptures they become smaller and larger at the same time. They become smaller through this personal exploration in that they are less and less of a vast, dark, mysterious, unexplored world. Their landmarks and features become more distinct and familiar.

More importantly, the scriptures simultaneously expand as they take on greater, and deeper, and fuller meaning for you. They increasingly apply to you and your life, extending into more areas and corners of your life and your world.

As your regular scripture study continues, the process both of exploration and of application continue, until the world and reach of the scriptures and the world and reach of your life become one. Each in that way becomes larger, greater, richer.

In this way regular study of the scriptures brings us to God and brings God more fully into our life and makes it eternal. As Jesus Christ taught in Jerusalem, “Search the scriptures; for in them ye think ye have eternal life: and they are they which testify of me.” (John 5:39)

(First published August 9, 2008)

Filed under abundant life, eternal life, Jesus Christ, scripture, spirituality

Of the Power of Change and the Power of Christ

October 6, 2013 1 Comment

Change is in the air. It is autumn, the leaves have begun their brief flash of color before gliding to the ground to be swept away.

Fall is also the season when politicians promise change. The mood predominating among the electorate this year seems to be disillusionment with Change. They want change from Change—that is, from Change that makes things worse and reinforces what is bad in Washington. At least for now, voters are showing a strong preference for candidates who do not fit the usual political mold, who reject solutions imposed from Washington. Such moments do not come very often, and like the autumn they seem to pass too quickly.

Yet with all of this discussion of the change apparent in nature and the political world, it seems strange to find those who doubt the ability of people to change. Properly understood, the plan of God for His children is all about change.

The central message of Jesus Christ and of all of His prophets has been the need and possibility for people to change, to change their world by changing themselves, from the world of unhappiness and distraction, to a life of purpose, growth, and deep joy. All who have drawn close to the Savior have experienced change, have drawn upon His power to change, and the closer they drew to Him the more that they changed and became more like Him.

Consider the early Apostles who lived while the Savior walked the earth. Mere fishermen (Peter and John) were turned into inspired leaders whose testimonies have endured for two millennia. A tax collector (Matthew) was converted into a human benefactor. A persecuting zealot (Paul) turned into a powerful missionary. In earlier days, a slave (Joseph) became viceroy of Egypt, a fugitive from Pharaoh’s court (Moses) became the mighty lawgiver who led Israel from bondage, a shepherd (David) became King of Israel. The change in these whom history calls great was repeated among millions of their less well-known compatriots.

In our own times, an untaught boy (Joseph Smith) became a wise prophet and religious founder, a craftsman (Brigham Young) became the greatest colonizer of the West. Again, these are more prominent examples among millions of others similarly changed through the power of Christ, the more effectively changed the closer that they approached Him.

When I was in college a friend explained to me her disillusionment with her church, which in her view told its members to be good but somehow lacked the power to transform them. It lacked the power of Christ, who made change of life possible. As the ancient American prophet Mormon explained in a letter to his son, Moroni, through Jesus Christ our sins can be forgiven, our past can be overcome.

And the remission of sins bringeth meekness, and lowliness of heart; and because of meekness and lowliness of heart cometh the visitation of the Holy Ghost, which Comforter filleth with hope and perfect love, which love endureth by diligence unto prayer, until the end shall come, when all the saints shall dwell with God. (Moroni 8:26)

There is power, the greatest power on earth, the power to change the greatest creations on earth, the children of God. There is the power to transform men and women and make them fit to live with the Father in His presence forever, “that ye may at last be brought to sit down with Abraham, Isaac, and Jacob, and the holy prophets who have been ever since the world began, having your garments spotless even as their garments are spotless, in the kingdom of heaven to go no more out.” (Alma 7:25) Thank God that power is on the earth.

(First published October 11, 2010)

Filed under abundant life, Apostles, Brigham Young, Jesus Christ, Joseph Smith, joy, Moses, prophets, repentance, Washington Tagged with , , , , , , , , ,

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