TEMPORAL PREPAREDNES

S PART 2

Self RelianceDoctrine & Covenants 83:1-6

1. You

2. Family

3. Church

(President Spencer W. Kimball, C.R., 1977)

So much of our time is ironically devoted to learning and marketing perishable skills that will soon become obsolete. It isn’t just the morticians who will have a vocational crisis in the next world (“’In Him All Things Hold Together,’” 104).

The Lord declared: “Organize yourselves and prepare every needful thing…” (D&C 88:119).

President Kimball taught: “This involves the wise planning of financial matters, full provision for personal health, adequate preparation for education and career development, and giving appropriate attention to home production and storage” (Ensign, Nov. 1977, 78).

Temporal preparation involves five main areas:

Financial and resource management, physical health, education, career development, and home production.

Area #1:Financial and Resource Management

A daughter once asked her father, “What shall I look for in a potential husband?” The wise father replied, “Find a man of God that has a job.” Similarly we could tell young men, “Find a righteous daughter of Zion who knows how to manage a home.”

More than 900,000 people go bankrupt in the United States each year. Of those who go bankrupt, 80% will be in financial trouble again within 5 years. Regarding bankruptcy, Elder Ashton counseled: “Bankruptcy, should be avoided, except only under the most unique and irreversible circumstances, and then utilized only after prayerful thought and thorough legal and financial consultation” (One for the money: Guide to Family Finances).

Money Management tends to be a leading cause of conflict in marriage. It ranks first or almost first in virtually every study.

It is one of the leading causes of divorce.

It seems that, for some, it is “marriage for time and all eternity….or until debt do us part!”

But, as Elder Marvin J. Ashton noted: “these marriage tragedies are not caused simply by lack of money, but rather by the mismanagement of personal finances” (ibid).

Problems sometime arise because couples failed to discuss finances at all. Other times couples struggle because they enter marriage with unrealistic expectations about how much money they can expect to earn and how much things will cost. Some couples have difficulty because they fail to create and follow a budget or because they overuse credit. At other times, conflict arises because of differences in economic philosophy.

For example, if one spouse believes that money should be spent to make life enjoyable today, and the other believes that money should be saved to provide security for the future, there is likely to be some conflict.

Studies seem to suggest that most of these conflicts arise over one of three questions:

1. What will the money be spent for?

2. Who decides how it will be spent?

3. How much should be spent?

10 LAWS OF EFFECTIVE MONEY MANAGEMENT

Law 1: Pay an Honest Tithing:

Paying tithing is one of the important ways we show we are “seeking first the kingdom of God.” For many of you there is no question about whether or not you will pay tithing. You have firmly established that pattern in your lives. As soon as you get paid, let the first check you write be for tithing.

President Tanner said: “I wonder if we realize that paying our tithing does not represent giving gifts to the Lord and the Church. Paying tithing is discharging a debt to the Lord. The Lord is the source of all our blessings, including life itself” (ibid, 69).

In reality tithing is not so much a question of money as it is a question of faith.

President Spencer W. Kimball commented: “There are people who say they cannot afford to pay tithing because their incomes are small. They are the people who need the blessings of the Lord [the most]! No one is ever too poor to pay tithing, and the Lord has promised that he will open the windows of heaven when we are obedient to his law. He can give us better salaries…more judgment in spending our money…better health…[and] greater understanding so that we can get better positions…However, if we like luxuries or even necessities more than we like obedience, we will miss the blessings which he would like to give us” (TSWK, 212).

Law 2: Develop and Live Within a Budget:

President Tanner counseled us to: “Develop and live within a budget… Many people think a budget robs them of their freedom. On the contrary, successful people have learned that a budget makes real economic freedom possible” (ibid, 70).

Following a budget takes discipline and commitment.

There are six steps to developing a budget.

First, determine your monthly income.

It is very important that you know, as closely as possible, what your monthly income will be. Be sure you account for taxes and other withholdings, such as insurance.

Second, analyze your past expenditures to see where you money is going and how much is being spent. Without this information, your budget will only be a guess. You can use your checkbook to do this. The biggest challenge with this step comes when we spend cash for something. Get used to recording cash expenditures. You need to keep track of them. Otherwise, your budget will fail.

Third, determine your fixed expenses. Fixed expenses are those that are the same every month. These may include your rent or mortgage payment, car payment, and other fixed loan payments. List these by category.

Fourth, determine your flexible expenses. Flexible expenses are those that vary from month to month, such as food, clothing, gas, etc. These expenses are the ones that can most easily be adjusted, if necessary, to make a budget work. List these by category. Often the money allocated to these categories can be decreased as you develop skills such as home and car repair, gardening and canning.

Fifth, add your fixed and flexible expenses.

Compare this total to your monthly income. If the total exceeds your monthly income, then reduce your flexible expenses. If the total is less than your monthly income, then you are in business! The extra should be saved to help you meet your long-range budget goals and to protect you in the event of an emergency.

Sixth, use good follow-through and maintenance procedures.

Once your budget is established, keep track of all expenditures. Write down everything you spend. Keep all receipts. This is also important for tax purposes. Keep tax records for at least 7 years. Keep you checkbook balanced. Most people find it helpful to set up their budget on a spreadsheet in which a running total is kept for each budget category. That way, you will always know how much money is left in each category.

Monitor your budget and adjust it, if necessary. If you find you have not budgeted enough money in a category, increase the amount in that category by taking money from another category that has been underused. Remember, a budget is only helpful if you follow it! Your budget becomes your financial plan of action. Be sure you include such items as savings, health insurance and life insurance. President Tanner said that “every family should make provision for proper health and life insurance” (ibid, 70).

Law 3: Save Some Money Every Month

In the United States, for every one hundred people who reach age sixty-five, only five can retire without some form of assistance from government or family. Some who do plan for retirement, fail to take inflation into account. So, by the time they retire, their money does not have the same buying power that it once did. A savings plan that is started early and added to consistently will grow to sizable amounts in the future. For example, if you invest an equal amount every year from age 25 to age 65, your savings will be worth approximately 440 times the annual investment you have made. That means if you saved $10 a month, by age 65 you would have accumulated $52,800. If you saved $25 a month, you would have accumulated $132,000 by age 65. Some common deterrents to saving money include not following a budget, buying on impulse, and buying on credit. Avoid these pitfalls.

Elder Ashton counseled: “Save and invest a specific percentage of your income. Liquid savings available for emergencies should be sufficient to cover at least three months of all essential family obligations” (ibid, 67).

Law 4: Work Toward Home Ownership

Elder Ashton counseled: “Buy the type of home your income will support. Improve the home and beautify the landscape throughout the period you occupy the premises so that if you do sell it, you can use the accumulated equity and potential capital gain to acquire a home more suitable to family needs” (ibid, 68).

Elder L. Tom Perry said: “Take the opportunity to compute how much you would add to your personal net worth if your home mortgage was only for ten or fifteen years instead of thirty. Compute the value of sweat equity if your time and your talents are invested in adding to the size and comfort of your home” (ibid, 208).

Suppose you wanted to buy a home and were trying to decide whether to have a 15-year loan or a 30-year mortgage. How would your overall cost compare, if you borrowed 100,000 at 10% interest? On a 15-year loan, your monthly payment would be $197 more than on a 30-year loan. But, after five years of a 30-year loan, you would still owe $96,576 compared to $82,316 with a 15-year loan. After ten years of a 30-year loan, you would still owe $91,000 compared to $50,576 with a 15-year loan. After fifteen years of a 30-year loan, you would still owe $82,000 compared to owing nothing with a 15-year loan. The home would be yours. With a 30-year loan, the actual cost of your home is approximately triple your initial cost! The older you get, the more important it becomes to not get into a long-term mortgage.

President Benson counseled: “If you must incur debt to meet the reasonable necessities of life-such as buying a house…then I implore you, as you value your solvency and happiness, to buy within your means. Resist the temptation to plunge into property far more pretentious or spacious than you really need” (TETB, 289).

Law 5: Prepare For Less Prosperous Times

Elder Perry pointed out that “careers are ever changing…Young people entering the work force today will have major career changes maybe three or four times during their work life. Job changes will occur even more frequently, even ten to twelve time during a life’s work cycle. I know of no other way to prepare for these time of adjustment than to be certain that during times of employment, preparations are made for less prosperous times, should they occur. Start now to create a plan if you don’t already have one, or update your present plan” (ibid, 208).

Law 6: Get a Year’s Supply of Food

The leaders of the Church have counseled us for decades to get a year’s supply of food. One question we might ask is: “Should I go into debt to get a year’s supply of food?” President Benson answered: “You do not need to go into debt to obtain a year’s supply. Plan to build your food supply just as you would a savings account. Save a little for storage each paycheck. Can or bottle fruit and vegetables from your own gardens and orchards. Learn how to preserve food through drying and possibly freezing. Make your storage a part of your budget. Store seeds and have sufficient tools on hand to do the job. If you are saving and planning for a second car or a television or some item which merely adds to your comfort or pleasure, you may need to change your priorities. We urge you to do this prayerfully and do it now. I speak with a feeling of great urgency” (Ensign, Nov. 1980, 33).

Law 7: Be Honest

President Tanner said: “Be honest in all your financial affairs. The ideal of integrity will never go out of style. It applies to all we do” (ibid, 70). Being honest means paying our financial obligations.

President Tanner told the following experience:

“A young man came to me not long ago and said, ‘I made an agreement with a man that requires me to make certain payments each year. I am [behind], and I can’t make those payments, for if I do, it is going to cause me to lose my home. What shall I do?’ I looked at him and said, ‘Keep your agreement.’ ‘Even if it costs me my home?’

“I said, ‘I am not talking about your home. I am talking about your agreement; and I think your wife would rather have a husband who would keep his word, meet his obligations, keep his pledges or his covenants, and have to rent a home than to have a home with a husband who will not keep his covenants and his pledges.’

“I don’t know whether everyone here agrees with me or not; in fact, I am wondering. There are too many today, I feel, who are prepared to take the easy way out of paying their debts by not paying them and take whatever action is necessary to keep them free. It is important, brethren, that we keep our pledges and our covenants and keep our name good” (C.R., October 1966, 99).

Law 8: Become Knowledgeable Consumers

Most families spend 50-60% of their income in 3 or 4 areas: food, taxes, insurance, and transportation.

It would be wise to study these areas and to find ways to save money and get the most for your money.

Learn what things can be deducted for taxes, which kinds of insurance are really the best buys, how to fix your own car etc.

Law 9: Teach Family Members the Importance of Work and Managing Money

We work hard to give our children music lessons and swimming lessons and sports skills. Yet, we rarely teach them money management. Children need to understand the financial pressures on a family. They need to know why they can’t have everything they want, even if you could afford it. Children can help contribute to family welfare by helping control expenditures like remembering to turn off the lights when not in the room, for example.

Elder Marvin J. Ashton said:

“One of the greatest favors parents can do for their children is to teach them to work… I believe children should earn their money needs through service and appropriate chores. Some financial rewards to children may also be tied to educational effort and the accomplishment of other worthwhile goals. I think it is unfortunate for a child to grow up in a home where the seed is planted in the child’s mind that there is a family money tree that automatically drops ‘green stuff’ once a week or once a month…Children should be responsible for the financial decisions affecting their own money and suffer the consequences of unwise spending…Teach children to contribute to the total family welfare” (ibid, 68).

Law 10: Make Wise Investments

If you have money to invest you should recognize that every investment represents a trade-off between risk and return. If you have only small resources, safe investments such as saving accounts are probably the best. On the other hand, if you have more resources to invest, you can probably try investments that are a bit riskier, yet still have excellent likelihood of preserving your principal. As a general rule, you should not invest more than you can afford to lose. Also, it is best to diversify. That is, invest in a variety of things so that if one investment loses, you have not lost everything. Don’t’ invest in something that does not make good business sense. If it sounds too good to be true, it usually is. It is also wise to be careful from whom you seek investment counseling. Just because a friend, neighbor, relative, counselor, or Church leader recommends it, doesn’t mean it is a good investment for you, or anyone else for that matter. Many have experienced financial disaster because they trusted the person promoting the investment rather than examining carefully the investment itself.

Perhaps the first investment every Church member should make is a good food storage program. There is great security knowing that no matter what happens, you will always be able to feed your family. A home is usually a good investment. Home ownership often provides considerable tax savings. Monthly payments also remain constant, whereas rent payments may go up yearly.

Area 2: Physical HealthThe second major area of temporal preparation is physical health. The demands of life, including the demands of raising a family are significant. It is essential that we do all we can to maintain good physical health.

This area of personal preparedness could be summarized in five ways:

FIRST, we should obey the Word of Wisdom and eat healthy foods.

SECOND, we should get regular exercise.

THIRD, we should get sufficient sleep.

FOURTH, we should seek adequate medical and dental care.

FIFTH, we should keep our home and surroundings clean and sanitary. Learn all you can about health, nutrition, and exercise. Learn how to properly clean and maintain a sanitary home environment.

In choosing a spouse, my mission president gave me advice in three areas:

1. Find out how she treats her parents. He said she will likely treat you much the same way.

2. Find out how she is with children. You need to be sure she will be a good mother.

3. And find out how she keeps her room. She will probably keep your home like she keeps her room.

Area 3: Education

“The glory of God is intelligence” (D&C 93:36).

Education has always been an important matter in the Church. God knows everything because he applied himself to learn it. All of us should improve our ability to read, write, and do basic math. In addition we should take advantage of opportunities to gain more knowledge and better our skills. For many that means going to college.

President Gordon B. Hinckley said:

“Be smart about training your minds and hands for the future…You have an obligation to make the most of your life. Plan now for all the education you can get, and then work to bring to pass a fulfillment of that plan. You live in a complex age. The world needs men and women of ability and training. Do not short-circuit your education. I am not suggesting that all of you should become professional men. What I am suggesting is this: whatever you choose to do, train for it. Qualify yourselves… Regardless of the vocation you choose, you can speed your journey in getting there through education. Be smart. Do not forfeit the schooling that will enhance your future in order to satisfy your desire for immediate, fleeting pleasure” (Ensign, Nov. 1981, 40).

President Hinckley also noted: “The world into which you will move will be terribly competitive. You need to increase your education, to refine your skills, to hone your abilities so that you may fill responsibilities of consequence in the society of which you will become a part” (Ensign, May 1992, 71).

Bishop Victor L. Brown said: “At whatever level our children complete their formal schooling, they should have learned how important excellence is in all they do. There is always room at the top in any enterprise, and it is always crowded at the bottom. It doesn’t matter what the field of endeavor – plumber, doctor, teacher, lawyer, farmer, carpenter, [homemaker, pre-school teacher], whatever – if our children learn early in lives that they should do their very best, they will be…better prepared for…life” (Ensign, Nov. 1982).

The Brethren are certainly good examples of this. Before their calls, of those we sustain as prophets, seers, and revelators five were businessmen, four were educators, two were attorneys, one in public relations, one in publishing, one was a heart surgeon, and one was a nuclear engineer. They represent a wide range of professional interests. Each excelled in his chosen field.

But, it is certainly not just men that are encouraged to develop their minds and further their education.

Elder Russell M. Nelson said: “Opportunities for development of spiritual and intellectual potential are equal. Masculinity has no monopoly on the mind, and femininity has no exclusive dominion over the heart…A wise woman renews herself. In proper season, she develops her talents and continues her education” (Ensign, Nov. 1989, 21).

Area 4: Career Development

This area, of course, involves becoming skilled at whatever work you choose through appropriate and adequate education and skill training. Training and education do not end when we graduate from college. It must continue throughout our careers. We need to keep our skills and knowledge current. This area also includes learning to be diligent, hard working, and trustworthy. We must be sure that we always give an honest days’ labor for an day’s pay. As Elder Perry suggested, many people change careers over their lifetime, so in some cases, career development involves learning a new skill or developing new abilities. Like any major decision, the choice of a career needs to be made after much thought, prayer, fasting, and studying things out. Talk to those who can help.

Area 5: Home Production and Storage

In this area, we prepare ourselves by learning how to produce, use, store, and prepare food and other items that are essential to life. Where possible, we should store a year’s supply of the basic items needed to sustain life. Families could begin by storing the food that would be required to keep them alive in case they did not have anything else to eat. Depending on where they live, these basics might include water, wheat or other grains such as corn or rice, legumes (dried beans, peas, lentils), salt, honey or sugar, powdered milk, and cooking oil. Where storing a year’s supply is not possible, families should store as much as they can.