FINANCIAL FREEDOM

First, I want to say I hope you all had a HAPPY 4TH OF JULY to celebrate the birth of our Great Nation and demonstrate the patriotic spirit so needed in our country today.

Due to a special request from the Bishopric that all priesthoods, relief society, young men and young women meet for a special announcement after Sacrament meeting, our regular lesson was delayed for a few minutes.

The Bishop wanted to take an opportunity to present the Statement from the First Presidency and the Quorum of the Twelve Apostles that has been issued in response to the Supreme Court's recent decision to legitimize same-sex marriage.  The statement was read verbatim, including the introductory letter, the Statement itself and the background material provided by the Church.  The points that stood out to me are that while the Supreme Court's decision comprises a civil recognition of same-sex marriage, the First Presidency and Quorum of the Twelve Apostles restates and reaffirms the "doctrinal foundation of Church teachings on morality, marriage and the family." Changes to civil law do not and cannot change God's laws. We are urged to review The Family: A Proclamation to the World for confirmation of the Church's doctrine and guidance with respect to Church standards on this subject. We are counseled to always be respectful of others, even when we disagree with their choices and the Church continues to welcome all visitors so long as they respect our standards of conduct while here.  

I have included a hyperlink to access these documents and urge all to read through them for additional information. http://www.mormonnewsroom.org/article/top-church-leaders-counsel-members-after-supreme-court-same-sex-marriage-decision 

Now, as to our lesson:  Sister Kathleen Libbey of the R.S. Presidency gave us an excellent lesson pertaining to "Financial Freedom" that has valued advice for everyone, no matter what their situation may be.  This was taken from an Ensign article in March, 2004, entitled, "Five Steps to Financial Well-Being", by Lane V. Erickson, a Bankruptcy Attorney.

Anyone can achieve financial well-being by relying on the Lord and following prophetic counsel on monetary matters.

Since our time was shorter than normal, Sister Libbey basically reviewed the five steps recommended by Bro. Erickson in his article.

1.  Pay Tithing - The first and most important step to financial freedom is to pay our tithing, no excuses, no exceptions.  One of the sisters read a direct quotation from President Gordon B. Hinckley on this topic. "Some of you have money problems. I know that. There is never enough money in your homes, I know that. You are struggling to get along. What is the cure? The only thing I know of is payment of tithing . . . It was God who made the promise that He would open the windows of heaven and pour down blessings upon those who walked honestly with Him in the payment of their tithes and offerings, and He has the capacity to keep His promise." 

Discussion on this step led to a number of sisters testifying to the blessings received in their homes during times of financial need as a result of paying an honest tithe no matter what.  When we pay tithing, we may not have any more income, but somehow we are able to stretch the money we have to pay our financial commitments. Many times "windfall" money appears seemingly out of nowhere from debts owed to us that we may have forgotten about or given up on that will see us through.
Other blessings we can gain from paying tithing are: better planning/organizing of finances and the discovery that creditors are generally willing to accept installment payments during a rough patch, rather than insisting on a larger payment due, simply because we communicate with them to explain our situation and express the intent to fulfill our debts as time and money allow. 

2. Pay Yourself! - So many times we forget to allot a portion of our earnings to ourselves as a savings account, investment or other means of putting away a sum that can help with education, missions, retirement or emergencies.  We should assign a specific amount or percentage of earnings to set aside in an account that remains largely untouched except for an unexpected, urgent need.  Elder L. Tom Perry explained, "After paying your tithing of 10 percent to the Lord, you pay yourself a predetermined amount directly into savings . . . it is amazing to me that so many people . . .think so little of their own efforts that they pay themselves nothing." President Heber J. Grant counseled that we should live within our means. This means we spend less than we make. We pay our bills and concentrate on purchasing necessities, not luxuries. Incurring a mortgage payment in order to provide a safe, pleasant home for your family would fall under necessities; a vacation trip to Disney World would most likely be considered a luxury. We must use discretion in categorizing our 'needs'.

3. Create a Budget - (groans from the class) - President N. Eldon Tanner once said, "I am convinced that it is not the amount of money an individual earns that brings peace of mind as much as it is having control of his money. Money can be an obedient servant, but a harsh taskmaster".

Why a budget? The author states, "Simply put, budgeting means tracking purchases and expenses and creating a written plan to save a certain amount of money each month."  Kind of like making a covenant or contract with yourself for future well-being and success, right?  Again, President Tanner, responding to whether a budget robs us of financial freedom said, "On the contrary, successful people have learned that a budget makes real economic freedom possible." A budget will allow us to control our money rather than allowing money to control us.

A budget must reflect an accurate written record of all income and expenses. By keeping track of our various expenses and writing them down, we may be amazed at the amount of money we tend to spend without thinking. Unless we have a (painfully accurate) written record to which we can refer, we cannot formulate a good working budget for our homes.

It is recommended that a budget be created as a family task. Elder M. Russell Ballard stated, "Parents need to teach children very early that a solid financial base is a very important element in a happy home."  And Elder Marvin J. Ashford said, "We can't afford to neglect personal and family involvement in our money management".  When we budget as a family, we are given the perfect opportunity to guide our children in the proper use of money.  Many comments were given from the class pertaining to a Family Home Evening lesson based on budgeting and prudent use of money as having been of great and lasting value to their children.

A budget should have some flexibility and undergo regular review in order to be useful and effective.  A 'stale' budget will not accurately reflect current circumstances.

4.  Avoid Unnecessary Debt - Too many times we incur debt for things we truly do not need. President Hinckley commented, "Reasonable debt for the purchase of an affordable home and perhaps for a few other necessary things is acceptable.  But from where I sit, I see in a very vivid way the terrible tragedies of many who have unwisely borrowed for things they really do not need." 

In order to help avoid unnecessary debt, we are counseled to reduce the number of credit cards we have and to use them only when we have the cash saved to pay off the balance each month. Credit cards are so easily obtained these days and, once misused, can be destructive to our economic stability. "Buy now, pay later" is a dangerous practice and the author advises families to avoid all other types of short-term, high-interest loans. 

5. Eliminate Debt - We have been counseled throughout the history of the Church to first avoid debt, but once incurred, to eliminate debt as quickly and efficiently as possible for our financial success. President Hinckley advised us to "Get out of debt and rid yourself of the terrible bondage that debt brings . . . Discipline yourselves in matters of spending, in matters of borrowing . . ."  President Ezra Taft Benson advised, "Let us use the opportunity we have to speed up repayment of mortgages and to set aside provisions for education, possible periods of decreased earning power and emergencies the future may hold."

We can help to pay off our debt as quickly as possible by paying more than the minimum payment due each month (prepayment) on each of our interest-bearing debts.  Any surplus paid, perhaps on the mortgage, will apply directly to the principal of the loan which can reduce the amount of interest incurred and the length of time it takes to repay the debt. The principal of "roll over" for installment payments is also effective.  Begin by concentrating on the smallest of your installment debts and use the prepayment method to add an additional amount to the minimum due each month. Once that debt is completely repaid, add the amount of that bills regular payment to the next debt until it is completely repaid, then "roll over" both payments to the next debt in line. In this way, you may not be paying out more each month, but will be effectively eliminating the amount of debt in your life. 

The closing paragraph of this useful article summarizes:

"Financial freedom is possible in the latter days. The Lord, through His chosen leaders, has taught what Latter-day Saints . . . can do to obtain and maintain financial well-being. Paying tithing proves our obedience to the Lord and brings promised blessings. Paying ourselves insures that we will have money when needed. Budgeting allows family members to evaluate their spending habits and control their money. Finally, avoiding unnecessary debt and eliminating legitimate debt loosen the chains of financial bondage and provide a family with the financial freedom to aid the building of the Lord's kingdom." 

These principles may not make us all millionaires, but our obedience to the laws set forth will certainly bring us peace of mind, allow for less worry and stress in our lives and help us to be as self-sufficient as possible.

Your bloggess,

Karen

The link to this article is:  https://www.lds.org/ensign/2004/03/five-steps-to-financial-well-being?lang=eng#footnote14-24903_000_021