Dear Dave – Part 1

Laurance W. LongIn 1982, my grandfather responded to a letter from “Dave,” asking him to dispense some of his knowledge on monetary matters.  In upcoming posts, I will share portions of my grandfather’s response.  Here’s the intro:

February 5, 1982

Dear Dave,

From time to time a number of folk have suggested that I reduce to writing some of my views about money. The idea appealed to me, but I have always questioned my ability to produce quality material, from the standpoint of both content and expression. I’m no expert in money or writing.

However, your letter (with a $10 bill) has sort of put me on the spot. I can’t accept the $10 lest I then be under obligation to give value received. But neither can I just return the money and say, “Sorry, no dice.” At the very least, I ought to be willing to put some of my ideas on paper for a friend. So . . . here goes.

He’s Talking to You (and Me)

The Apostle Paul said:

Command those who are rich in this present world not to be arrogant nor to put their hope in wealth, which is so uncertain, but to put their hope in God, who richly provides us with everything for our enjoyment.  Command them to do good, to be rich in good deeds, and to be generous and willing to share.  In this way they will lay up treasure for themselves as a firm foundation for the coming age, so that they may take hold of the life that is truly life. (1 Timothy 6:17-19, NIV)

 

According to Randy Alcorn:

If you have:

sufficient food,
decent clothes,
live in a house or apartment,
and have a reasonably reliable means of transportation,
you are among the top 15 percent of the world’s wealthy.

If you have:

any money saved,
a hobby that requires some equipment or supplies,
a variety of clothes in your closet,
two cars (in any condition),
and live in your own home,
you are in the top 5 percent of the world’s wealthy.

(Money, Possessions, and Eternity)

 

Jesus said:

I tell you the truth, it is hard for a rich man to enter the kingdom of heaven. Again I tell you, it is easier for a camel to go through the eye of a needle than for a rich man to enter the kingdom of God. (Matthew 19:23-24, NIV)

 

 

We’re Debt Free!

Debt Free

Ten years ago, I borrowed $68,000 to buy a house.  If I had made the regular payments for the full 30-year term, I would have paid $101,076.80 in interest, repaying a total of $169,077.60 on that $68,000 loan.  Ouch!  That’s an overall interest rate for the life of the loan of nearly 150%!

Today, I went over to the bank, got a cashier’s check for the remaining amount, and mailed it off to the payoff department.

As it is, I paid somewhere in the neighborhood of $25,000 in interest and fees over the last 10 years (including initial closing costs and a refinance 8 years ago), which is about 34% of the $73,000 purchase price of the house.  Still a hefty chunk of change!

Looking forward to getting the title to our house in a few weeks!

Giving to Beggars

Jon Bloom (Executive Director of Desiring God) has recently blogged two entries on the subject of Jesus’ command in Matthew 5:42 (“Give to the one who begs from you, and do not refuse the one who would borrow from you.”)  I recommend reading both of them.

When I think about this topic, I always recall Dale Ahlquist’s description of G.K. Chesterton in his book Common Sense 101: Lessons from G.K. Chesterton.

He seems so frivolous and so careless, but he gives money to beggars, not frivolously or carelessly, but because he believes in giving money to beggars, and giving it to them “where they stand”.

He says he knows perfectly well all the arguments against giving money to beggars. But he finds those to be precisely the arguments for giving money to them. If beggars are lazy or deceptive or wanting a drink, he knows only too well his own lack of motivation, his own dishonesty, his own thirst.

He doesn’t believe in “scientific charity” because that is too easy, as easy as writing a check. He believes in “promiscuous charity” because that is really difficult. “It means the most dark and terrible of all human actions—talking to a man. In fact, I know of nothing more difficult than really talking to the poor men we meet.”  (pp. 13-14)

I have given money to someone with a sob story, and afterwards concluded that I was scammed.  I have given a few bucks to someone in need, and afterwards regretted that I didn’t do more.  I have spurned a beggar’s request, and wondered if I did the right thing.

The thoughts from Jon Bloom and the example of Chesterton convict me that it is better to give than to worry about analyzing the situation and attempting to predict the outcome.

Generosity vs. Equality

Equality eliminates generosity. You can’t be generous unless you have an excess. If you disagree with that statement, then consider this: two people have equal resources; Person 1 exhibits generosity by giving some of his resources to Person 2. Result: Person 1 and Person 2 no longer have equal resources.

Think about this the next time you hear someone talk about “redistribution of wealth.”

“Do not steal” implies (and condones) ownership. You can’t steal something unless it belongs to someone else. The Eighth Commandment declares that it is wrong to steal, and by implication declares that it is right for individuals to maintain ownership and control of their resources.

This about this the next time you hear someone talk about “communal ownership.”

See http://instruct.westvalley.edu/lafave/hb.html for an interesting look at these concepts.