Chapter 3: Financial Preparation & Protection

by Stephen Palmer on June 17, 2009

“The Lord has told us that if we are prepared, we shall not fear…personal and family preparedness is vital to our eternal welfare and happiness, and it is important to be strong financially, as well as spiritually, mentally, and physically.” -Elder Franklin D. Richards

“…members of the Church have been counseled to be thrifty and self-reliant; to avoid debt; pay tithes and a generous fast offering; be industrious; and have sufficient food, clothing, and fuel on hand to last at least one year.” -Ezra Taft Benson

The foundation of our financial house is built with the gospel ideals of seeking first the kingdom of god, using money to achieve eternal happiness, and loving our neighbors as ourselves. With that foundation solidly in place, next comes the framing, which consists of financial preparation and protection.

Our research identified the following components of this phase:

  1. Secure adequate life, medical, homeowners, automobile, and disability insurance.
  2. Save a percentage of income.
  3. Maintain a food and fuel storage program.
  4. Preserve and utilize assets through appropriate tax and estate planning.

Why are preparation and protection so vital, especially in a gospel context? How does saving money draw us closer to God? What is the relationship between food storage and spirituality? Does insurance have celestial implications?

We realized from our own distressing experience that it becomes increasingly difficult to focus on spiritual matters while struggling financially. And the less prepared we are for unexpected events, the more we’ll struggle when they befall us.

The burden of financial stress absorbs our attention and energy, thus inhibiting our disposition and ability to perform spiritual duties. We become so focused on solving our own problems that we’re left with little time to help others.

“…we go into debt to buy things we can’t afford…Whenever we do this, we become poor temporally and spiritually. We give away some of our precious, priceless agency and put ourselves in self-imposed servitude. Money we could have used to care for ourselves and others must now be used to pay our debts. What remains is often only enough to meet our most basic physical needs. Living at the subsistence level, we become depressed, our self-worth is affected, and our relationships with family, friends, neighbors, and the Lord are weakened. We do not have the time, energy, or interest to seek spiritual things.” -Robert D. Hales

“If you are without bread, how much wisdom can you boast, and of what real utility are your talents, if you cannot procure for yourselves and save against a day of scarcity those substances designed to sustain your natural lives?” -Brigham Young

Furthermore, it can become tempting to lose faith in God when tragedy strikes, especially for those who are unprepared. We’re ashamed to admit that for a brief period after failed real estate strategies led to disaster, we felt abandoned by God. We felt entitled to everything working out just as we had planned. Our faith was strong when life was great, but when trials came, we faltered.

Had we been more obedient to prophetic financial counsel, we would have weathered the storm with greater faith. So often, as was the case with us, forfeited faith conceals self-deception. When we have done all we can and have been fully obedient, we can “be still, and know [He] is God” when immersed in trials. However, when deep down we know we haven’t done our part, we seek to justify ourselves with excuses.

“Too often, people assume that they probably never will be injured, get sick, lose their jobs, or see their investments evaporate. To make matters worse, often people make purchases today based upon optimistic predictions of what they hope will happen tomorrow. The wise understand the importance of saving today for a rainy day tomorrow...” -Joseph B. Wirthlin

barninstorm 271x186 custom Chapter 3: Financial Preparation & ProtectionOne positive effect of being financially prepared is that we can be a light and strength to others during hard economic times. The ancient prophet Joseph was a prime example of this. When famine imperiled Egypt, “…all countries came into Egypt to Joseph for to buy corn; because that the famine was so sore in all lands.”

Today, the Church helps millions of suffering people throughout the world with its humanitarian service program. Not only does this help people with temporal needs, but it also provides missionary opportunities.

More than anything, financial preparation and protection facilitate personal freedom, which is the ultimate goal of the gospel. As Elder Albert E. Bowen taught:

“The Lord must want and intend that His people shall be free of constraint whether enforceable or only arising out of the bindings of conscience…That is why the Church is not satisfied with any system which leaves able people permanently dependent, and insists, on the contrary, that the true function and office of giving, is to help people [get] into a position where they can help themselves and thus be free.”

Marion G. Romney further stressed that, “Whenever we get into a situation which threatens our self-reliance, we will find our freedom threatened as well. If we increase our dependence, we will find an immediate decrease in our freedom to act.”

The purpose of preparing and protecting ourselves financially is to help us remain focused on spiritual matters, stand firm in our faith, be a light to others, and maintain personal freedom during economic challenges and personal misfortune.

Questions for Readers:

  • How have you been blessed by being financially prepared?
  • How have you suffered by not being prepared?
  • What experiences have helped you understand the importance of financial preparation and protection?
  • Have you ever had any missionary experiences because of your emergency preparedness efforts?

We invite you to answer these questions by commenting below.

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Chapter 2, Part 6: Conclusion (God’s Financial Ideals)

by Stephen Palmer on June 10, 2009

“Lay not up for yourselves treasures upon earth, where moth and rust doth corrupt, and where thieves break through and steal: But lay up for yourselves treasures in heaven, where neither moth nor rust doth corrupt, and where thieves do not break through nor steal…” -Matthew 6: 19-20

Through His prophets, God has specified the worthy reasons to seek prosperity. These include to build the kingdom, achieve eternal happiness, and to serve others. As Franklin D. Richards summed up, “…let us dispense the means which the Lord has given us to enrich the lives of others who are less fortunate than we are and to build the kingdom of God, that we may make of our life a good gift to God…”

These three ideals should be the foundation of the LDS financial plan — the starting point, rather than a future goal. Prosperity is not an appropriate end — it is simply a tool that can be used to help us achieve the end of eternal life, and to help others do the same. When prosperity becomes our end — however subtly and to any degree — the chances of us becoming prideful and selfish and straying from the gospel are significantly increased.

greed 225x300 Chapter 2, Part 6: Conclusion (Gods Financial Ideals)The world is swarming with advice on how to become wealthy. We’re bombarded with images and stories of the “good life” complete with extravagant homes, glittering cars, and lavish lifestyles.  Especially in America, “fine-twined linen” in all its forms is readily available to those who seek it.

None of these things have intrinsic value; they are not good or bad in and of themselves.

However, would they be our primary focus if we were grounded in God’s true financial ideals? Would we seek them directly? Would we use the “law of attraction” to envision them consistently? Would we selfishly hoard material goods after gaining them? Would they become a source of pride, or a means of service? Would we value worldly profit over eternal progression?

These three ideals provide the context and standard for making all financial decisions, down to the most minute, most practical details.

Consider life insurance, for example. If a providing father dies without life insurance, what happens to his family and the productivity (which represents service) he could have created had he lived? Not only does his service in this world stop, but also the service efforts of his wife and children will be inhibited, since they will have to work to replace his income.

What about something as basic as budgeting? If we cannot manage our home finances properly, how can we build the kingdom effectively? If our small portion of the Lord’s vineyard is mismanaged, how does that impact the vineyard as a whole?

Money that services debt interest could be used instead to serve people. The more dependent we are, the less we can impact others for good. Money lost in risky schemes is money that could have been used to build temples and send youth on missions.

Viewing our personal finances in this light helps us understand the gravity of our daily decisions and actions. It directly connects our dollars and cents to the principles, ordinances, and covenants of the gospel.

“May God bless us,” Brigham Young entreated, “that we may always have enough, and know what to do with what we have, and how to use it for the good of all, for I would not give much for property unless I did know what to do with it.”

Action Items

 
Think
Answer the following questions:

  • Why do I want to prosper?
  • If I had $1 million, what would I do with it?
  • Am I fully living the law of consecration? How can I live it better?
  • If the United Order were to be instituted today, would I accept it, or struggle with it?
  • Do my daily thoughts, words, and acts reflect eternal, or temporal, priorities?
  • Do my financial habits contribute to, or detract from, building the kingdom?
  • How can I better serve others and become more selfless?
  • Who do I know that is struggling, and how can I help them?

Plan

  • Create a plan to help someone in need.
  • Create a long-term plan of how you will use your talents and material blessings to build the kingdom of God (i.e. serve a full-time service mission, grow a community garden, build a non-profit, etc.).

Read

Do

  • Pay an honest tithe and generous fast offerings.
  • Help an individual or family struggling financially to become more self-reliant and prosperous.
  • Volunteer to serve when opportunities present themselves, particularly in your Ward.

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Chapter 2, Part 5: Love Your Neighbor As Yourself Continued

by Stephen Palmer on June 3, 2009

teamworkhands copy 257x237 custom Chapter 2, Part 5: Love Your Neighbor As Yourself ContinuedThe ideal Christian community is neither dependent nor independent; it is interdependent. It is built and perfected by self-reliant individuals who voluntarily give their time, energy, knowledge, talents, and material blessings to lift and bless others.

It is one in which “they [have] all things common among them; therefore there [are] not rich and poor, bond and free, but they [are] all made free, and partakers of the heavenly gift” (4 Nephi 1: 3).

It is comprised of individuals who heed Jacob’s exhortation to “Think of your brethren like unto yourselves, and be familiar with all and free with your substance, that they may be rich like unto you” (Jacob 2: 17).

We weren’t placed on this earth and told, “You’re on your own.” We’ve been given specific and repeated counsel to seek the interest of our neighbor (see Doctrine & Covenants 82: 19) in all our affairs. We’re all in this test together — and at the heart of our mortal test is whether or not we will lose our lives in the service of others.

The principle of voluntarism is a critical component of this ideal. Too often, Christian service is politicized and corrupted by instituting it through forceful means and venues, particularly government. Forced taxation in the name of helping the poor — in other words, socialism — is not Christ-like charity; it is Luciferic deception.

Contrary to naive and misguided belief, the United Order and socialism are precise opposites in principle and application. As Marion G. Romney explained,

“The United Order is implemented by the voluntary free-will actions of men, evidenced by a consecration of all their property to the Church of God…On the other hand, socialism is implemented by external force, the power of the state…in both implementation and ownership and management of property, the United Order preserves to men their God-given agency, while socialism deprives them of it.

“The United Order exalts the poor and humbles the rich. In the process both are sanctified. The poor, released from the bondage and humiliating limitations of poverty, are enabled as free men to rise to their full potential, both temporally and spiritually. The rich, by consecration and by imparting of their surplus for the benefit of the poor, not by constraint but willingly as an act of free will, evidence that charity for their fellowmen characterized by Mormon as ‘the pure love of Christ.’” [Emphases added.]

While we currently do not live a formal, institutionalized version of the United Order, the law of consecration is still in full force, as evidenced by temple covenants.

The beauty of consecration is that it eliminates both selfishness in the rich and idleness in the poor. While forced welfare tends toward mediocrity, voluntary consecration tends toward excellence. Consecration is not intended to subsidize indolence, but rather to promote productivity.

“Thou shalt not be idle; for he that is idle shall not eat the bread nor wear the garments of the laborer.” -Doctrine & Covenants 42: 42

True charity generates humility in the giver and self-reliance in the receiver. Forced philanthropy generates resentment in the giver and dependence in the receiver.

“Many programs have been set up by well-meaning individuals to aid those who are in need. However, many of these programs are designed with the shortsighted objective of ‘helping people,’ as opposed to ‘helping people help themselves.’ Our efforts must always be directed toward making able-bodied people self-reliant.” -Marion G. Romney

In our charitable efforts, we are commanded specifically to deal mercifully with the poor and the needy, the sick and the afflicted.

“And remember in all things the poor and the needy, the sick and the afflicted, for he that doeth not these things, the same is not my disciple.” -Doctrine & Covenants 52: 40

“For the earth is full, and there is enough and to spare…if any man shall take of the abundance which I have made, and impart not his portion, according to the law of my gospel, unto the poor and the needy, he shall, with the wicked, lift up his eyes in hell, being in torment.” -Doctrine & Covenants 104: 12-18

Tithing is obviously one of the primary ways that members of the Church fulfill our duties to love our neighbors and to build the kingdom of God. As Gordon B. Hinckley pointed out, “There has been laid upon the Church a tremendous responsibility. Tithing is the source of income for the Church to carry forward its mandated activities. The need is always greater than the availability.”

However, tithing should never replace the face-to-face, hand-to-hand charity so poignantly and consistently exemplified by the Savior. As Neal A. Maxwell observed, “We so often depersonalize our assistance to others that we might be called ‘checkbook Christians.’ We pay our taxes and offerings and unintentionally move away from the personal acts of brotherhood.”

Charity isn’t only manifest by specific acts of service, such as taking dinner to a family dealing with illness, or helping an elderly couple with grocery shopping. Charity should permeate every act in every aspect of the lives of faithful Latter-Day Saints.

For example, we’re cautioned to be charitable in our economic transactions. We’re taught to never take advantage of the vulnerable, the naive, the unsuspecting. As Dallin H. Oaks instructed,

“Christian standards should also apply to those who earn a living by selling or advertising products in the marketplace. The marketplace for products and services has many potential buyers who are vulnerable because they are poorly informed or excessively trusting…Can a seller ever justify obtaining personal profit by persuading someone to assume a financial burden he cannot wisely bear in order to acquire something he does not really need?”

Can we, in good conscience, do our home or visiting teaching one day, then take advantage of a naive buyer in the marketplace the next? Can we rationalize unfair business practices by paying tithing?

Clearly, loving our neighbor as ourselves means to both serve outside of economic exchanges, as well as to be honest, thoughtful, and charitable in all our business dealings.

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Chapter 2, Part 4: Love Your Neighbor As Yourself

by Stephen Palmer on May 27, 2009

“…are we responsible to look after the well-being of our neighbors as we seek to earn our daily bread? The Savior’s Golden Rule says we are. Satan says we are not.” -Dallin H. Oaks

helpinghands 252x161 custom Chapter 2, Part 4: Love Your Neighbor As YourselfChrist taught that every gospel law and prophetic teaching hangs on the first two commandments; to “love the Lord thy God with all thy heart, and with all thy soul, and with all thy mind,” and to “love thy neighbour as thyself.”

To put the kingdom of God first in our lives is to constantly seek opportunities to serve, since serving our fellow man means serving God (see Mosiah 2:17). Service, therefore, is the lifeblood of prosperity. The greater our prosperity, the greater our responsibility and opportunity to serve.

As Marion G. Romney taught, “Food for the hungry cannot come from empty shelves. Money to assist the needy cannot come from an empty purse.”

Interestingly, what often inhibits this ideal is not the selfishness borne of hedonism or materialism. Rather, a misguided sense of personal responsibility may prevent us from sharing our material blessings with others. Taking self-reliance out of gospel context leads us to self-centeredness, pride, and a lack of compassion.

We were both raised to place a high premium on self-reliance. We were taught the virtues of the free market, the value of hard work, and the principle of sacrifice. We believed to depend on others for our sustenance and well-being is the product of a flawed character. Though we did strive to serve, in some ways our perspective was tainted by judgment of those who were not temporally self-reliant.

Our perspective was honed after we approached our bishop in tears, ashamed to petition for assistance, and forced to surrender our pride. Although much of our situation was caused by our own mistakes, the truth is that we were also impacted by circumstances way beyond our control.

After being humbled, we developed a much deeper and, we hope, purer sense of compassion. We’ve realized that everyone, no matter how responsible, hard-working, and righteous, suffers hardship. We’re far less prone to judge those struggling economically. King Benjamin’s warning and unmistakable counsel in Mosiah chapter four was seared into our hearts:

“Perhaps thou shalt say: The man has brought upon himself his misery; therefore I will stay my hand, and will not give unto him of my food, nor impart unto him of my substance that he may not suffer, for his punishments are just—

“But I say unto you, O man, whosoever doeth this the same hath great cause to repent; and except he repenteth of that which he hath done he perisheth forever, and hath no interest in the kingdom of God.

“For behold, are we not all beggars? Do we not all depend upon the same Being, even God, for all the substance which we have, for both food and raiment, and for gold, and for silver, and for all the riches which we have of every kind?” -Mosiah 4: 17-23

We’ve realized that the whole point of being self-reliant is to increase our ability to serve others. Self-reliance is the opposite of selfishness and is the gateway to meaningful and sustainable Christian service. As Marion G. Romney taught,

“Self-reliance is not the end, but a means to an end. It is very possible for a person to be completely independent and lack every other desirable attribute. One may become wealthy and never have to ask anyone for anything, but unless there is some spiritual goal attached to this independence, it can canker his soul.”

President Romney continued:

“We lose our life by serving and lifting others. By so doing we experience the only true and lasting happiness. Service is not something we endure on this earth so we can earn the right to live in the celestial kingdom. Service is the very fiber of which an exalted life in the celestial kingdom is made.

“Knowing that service is what gives our Father in Heaven fulfillment, and knowing that we want to be where He is and as He is, why must we be commanded to serve one another? Oh, for the glorious day when these things all come naturally because of the purity of our hearts. In that day there will be no need for a commandment because we will have experienced for ourselves that we are truly happy only when we are engaged in unselfish service. Let us use the freedom which comes from self-reliance in giving and serving.”

Gratefully, our experiences have intensified our desire to serve. Furthermore, we’ve learned how to allow others to serve us, which has been even more difficult. We’ve learned that being ashamed to depend on others through temporary hardship is simply pride disguised as responsibility. The willingness to be served is equally important as the desire to serve.

To be continued…

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Chapter 2, Part 3: Use Money to Achieve Eternal Happiness

by Stephen Palmer on May 6, 2009

“Money in the lives of Latter-Day Saints should be used as a means of achieving eternal happiness…God will open the windows of heaven to us in these matters if we will but live close to Him and keep His commandments.” -Marvin J. Ashton

“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.” -D&C 11:7

Prosperity is a natural result of seeking the kingdom of God and living the gospel. After acquiring wealth, it’s critical to continue using it for the right purposes. In other words, we invest our profits back into building the kingdom.

Eternal happiness is found through the things that money cannot buy, such as relationships, service, and keeping the commandments. Material prosperity certainly makes life more comfortable and enjoyable, but it is not a prerequisite to enter the celestial kingdom. It is a means to the end of salvation, and not an end in and of itself.

We should always be asking ourselves, “What are the things that will bring me eternal, rather than temporal, happiness?” Or, as Robert D. Hales put it, “Whenever we want to experience or possess something that will impact us and our resources, we may want to ask ourselves, ‘Is the benefit temporary, or will it have eternal value and significance?’”

praisingman 248x277 custom Chapter 2, Part 3: Use Money to Achieve Eternal HappinessInterestingly enough, we’ve never been happier as a family than when we were buried in financial trouble. We grew stronger and became wiser. We increased our faith in God. We learned thrift and discipline at levels that couldn’t have been achieved in any other way. We increased our production through trial and error. We shed pride and embraced humility. We became better people and our family has never been closer.

In short, we became more attuned to things of an eternal, rather than a temporal, nature. We’ve become much more compassionate toward others, and more inclined to serve.

This is a common phenomenon — the loss of temporal security leading to an increase in spiritual faith and discipline.

However, this does not mean that money is not desirable, or that prosperity is wrong. When gained righteously and managed appropriately, it can be a powerful tool that enables us to serve and bless the lives of others. Of course, we can’t buy our way into heaven. But we can use our money for good works.

This ideal teaches us how to stay on the strait and narrow path after we are blessed with wealth. It teaches us to keep money in its proper perspective and to become wise stewards.

As L. Tom Perry explained:

“So often it is the order of things that is fundamental in the Lord’s instructions to us. The Lord is not telling us that we should not be prosperous. This would be inconsistent with the many records we have of Him blessing His people with prosperity. But He is telling us that we should seek prosperity only after we have sought and found Him. Then, because our hearts are right, because we love Him first and foremost, we will choose to invest the riches we obtain in building His kingdom.”

In other words, living this ideal leads to the “spiral” model of prosperity, where the more money we obtain the closer we get to heaven. This is opposed to the pride cycle, where we’re dragged down by inappropriate attitudes toward wealth.

When this ideal is lived consistently, proper perspective and wisdom can always be present and even deepened the richer we become. We don’t have to be “compelled to be humble” (see Alma 32: 16), as we were as we struggled with the consequences of pride and forgetfulness.

Through this ideal, we overcome addiction and “hunger and thirst after righteousness.”

“When we are addicted, we seek those worldly possessions or physical pleasures that seem to entice us. But as children of God, our deepest hunger and what we should be seeking is what the Lord alone can provide — His love, His sense of worth, His security, His confidence, His hope in the future, and assurance of His love, which brings us eternal joy. We must want, more than anything else, to do our Heavenly Father’s will and providently provide for ourselves and others.” -Robert D. Hales

The next ideal details the practicalities of how to use money to achieve eternal happiness.

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