God's Laws of Finance » Personal Finance

Highlights on Finance from the April 2009 General Conference

Stephen Palmer — Fri, 10 Apr 2009 20:21:44 +0000

As a brief departure from the book manuscript, we wanted to highlight the great advice given this past conference on personal finance. The consistency of prophetic advice is refreshing and assuring.

What insights did you have this conference? Please share them by commenting below. We look forward to hearing from you.

Robert D. Hales, Becoming Provident Providers: Temporally and Spiritually

“Just as our grandparents and great-grandparents learned vital lessons through economic adversity, what we learn now, in our present circumstances, can bless us and our posterity for generations to come.

“Today I speak to all whose freedom to choose has been diminished by the effects of ill-advised choices of the past. I speak specifically of choices that have led to excessive debt and addictions to food, drugs, pornography, and other patterns of thought and action that diminish one’s sense of self-worth. All of these excesses affect us individually and undermine our family relationships. Of course some debt incurred for education, a modest home, or a basic automobile may be necessary to provide for a family. Unfortunately however, additional debt is incurred when we cannot control our wants and addictive impulses. And for both debt and addiction, the hopeful solution is the same—we must turn to the Lord and follow His commandments. We must want more than anything else to change our lives so that we can break the cycle of debt and our uncontrolled wants…

“… What is a provident provider?

“All of us are responsible to provide for ourselves and our families in both temporal and spiritual ways. To provide providently, we must practice the principles of provident living: joyfully living within our means, being content with what we have, avoiding excessive debt, and diligently saving and preparing for rainy-day emergencies. When we live providently, we can provide for ourselves and our families and also follow the Savior’s example to serve and bless others.

“Being provident providers, we must keep that most basic commandment, ‘Thou shalt not covet’ (Exodus 20:17). Our world is fraught with feelings of entitlement. Some of us feel embarrassed, ashamed, less worthwhile if our family does not have everything the neighbors have. As a result, we go into debt to buy things we can’t afford—and things we do not really need. 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…

“…When faced with the choice to buy, consume, or engage in worldly things and activities, we all need to learn to say to one another, ‘We can’t afford it, even though we want it!’ or ‘We can afford it, but we don’t need it — and we really don’t even want it!’

“The foundation of provident living is the law of the tithe. The primary purpose of this law is to help us develop faith in our Heavenly Father and His Son, Jesus Christ. Tithing helps us overcome our desires for the things of this world and willingly make sacrifices for others. Tithing is the great equitable law, for no matter how rich or poor we are, all of us pay the same one-tenth of our increase annually (see D&C 119:4), and all of us receive blessings so great ‘that there shall not be room enough to receive [them]‘ (Malachi 3:10).

“In addition to our tithes, we should also be an example with the payment of fast offerings. A fast offering is at least the cost of the two consecutive meals from which we fast each month. By not eating these two meals, we draw close to the Lord in humility and prayer and also participate in anonymous giving to bless our brothers and sisters all over the world.

“Another important way we help our children learn to be provident providers is by establishing a family budget. We should regularly review our family income, savings, and spending plan in family council meetings. This will teach our children to recognize the difference between wants and needs and to plan ahead for meaningful use of family resources.”

Henry B. Eyring, Adversity

“I spoke recently to a young father who has lost his job in the recent economic crisis. He knows that hundreds of thousands of people with exactly his skills are looking desperately for work to feed their families. His quiet confidence led me to ask him what he had done to become so confident that he would find a way to support his family. He said he had examined his life to be sure that he had done all he could to be worthy of the Lord’s help. It was clear that his need and his faith in Jesus Christ were leading him to be obedient to God’s commandments when it is hard to do…

“That young man with whom I spoke recently was one who had done more than put away food and a little savings for the misfortune which living prophets had warned would come. He had begun to prepare his heart to be worthy of the Lord’s help which he knew he would in the near future need. When I asked his wife on the day he lost his job if she was worried, she said with cheerfulness in her voice, ‘No, we’ve just come from the bishop’s office. We are full-tithe payers.’ Now, it is still too early to tell, but I felt assured as they seemed to be assured: ‘Things will work out.’ Tragedy did not erode their faith; it tested it and strengthened it. And the feeling of peace the Lord has promised has already been delivered in the midst of the storm. Other miracles are sure to follow.”

Thomas S. Monson, Be of Good Cheer

“Since last we met together in a general conference six months ago, there have been continuing signs that circumstances in the world aren’t necessarily as we would wish. The global economy, which six months ago appeared to be sagging, seems to have taken a nosedive, and for many weeks now the financial outlook has been somewhat grim. In addition, the moral footings of society continue to slip, while those who attempt to safeguard those footings are often ridiculed and, at times, picketed and persecuted. Wars, natural disasters, and personal misfortunes continue to occur.

“It would be easy to become discouraged and cynical about the future — or even fearful of what might come — if we allowed ourselves to dwell only on that which is wrong in the world and in our lives. Today, however, I’d like us to turn our thoughts and our attitudes away from the troubles around us and to focus instead on our blessings as members of the Church. The Apostle Paul declared, ‘God hath not given us the spirit of fear; but of power, and of love, and of a sound mind.’

“None of us makes it through this life without problems and challenges — and sometimes tragedies and misfortunes. After all, in large part we are here to learn and grow from such events in our lives. We know that there are times when we will suffer, when we will grieve, and when we will be saddened. However, we are told, ‘Adam fell that men might be; and men are, that they might have joy.’

“How might we have joy in our lives, despite all that we may face? Again from the scriptures: ‘Wherefore, be of good cheer, and do not fear, for I the Lord am with you, and will stand by you.’”

Steven E. Snow, Get On With Our Lives

“It would be nice if we could anticipate all the changes that would occur in a lifetime. Some changes we see coming. Certainly all Latter-day Saint young men are taught to prepare for a full-time mission, a life-changing experience. Every worthy young single adult understands the importance of choosing a spouse and being sealed in the holy temple. We know these changes are coming, and we can plan for them. But what about the changes which are thrust upon us rather unexpectedly? These are changes over which we seemingly have no control. Economic downturn, unemployment, debilitating sickness or injury, divorce, and death are examples of change we do not expect, anticipate, or welcome. How do we deal with such unexpected setbacks in life’s journey?

“The answer is the same. By listening to the prophets, keeping an eternal perspective, having faith, and being of good cheer, we can face life’s unexpected challenges and ‘get on with our lives.’”

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© Copyright 2009 by Stephen & Karina Palmer

Highlights on Finance from the April 2009 General Conference

Chapter 1: The Prophetic Model of Prosperity

Stephen Palmer — Wed, 25 Mar 2009 05:30:07 +0000

“When the lives of the people are in harmony with the Lord’s will, all of the essential factors that produce the blessings God deigns to give to his children seem to come into line. Love and harmony prevail. Even the weather, the climate, and the elements seem to respond. Peace and tranquility endure. Industry and progress mark the lives of the people.” -Dean L. Larsen, Quorum of the Seventy

You probably won’t encounter any new specific teachings in this book. We haven’t dug up obscure talks with startling revelations different than anything else you’ve heard and/or read from prophets.

What you will find, however, is the placement of all prophetic financial counsel into a unified, cyclical model. The model emerged in our research, and the more we researched, the clearer it became.

We don’t claim that this specific model format is authoritative. However, it has been profoundly useful to us. Seeing these basic, common sense truths within the context of this model puts them all into perspective and gives one a macro view, with an understanding of how individual parts fit into a greater whole.

Also, it is built upon and comprised of specific, authoritative teachings, which are explained in detail in subsequent chapters.

The model is built using six distinct phases, or concepts, each of which builds upon the other. The sequential order is critical — each step follows the other and dangers arise when the process is pursued out of order.

The sequence was arrived at by studying the emphasis placed by the prophets and apostles on each, as well as the frequency with which each have been taught.

This is not to say that we can’t work on different components simultaneously; we must simply understand that there are definite degrees of importance placed on each, and so our efforts should reflect that order as much as possible.

The six phases are Ideals, Preparation/Protection, Management, Career, Productivity, and Blessings.

Ideals are the righteous purposes behind wealth creation. They represent our motivations for acquiring wealth — or at least what they should be.

Preparation/protection consists of basic steps to protect our wealth, such as insurance, savings, food storage, and tax and estate planning.

Management is our ongoing actions and habits that determine what we do with our cash flow and spending.

Once we have started out with the right ideals, properly prepared and protected, and have learned to manage our finances appropriately, the next step is to choose the right career. This choice comes with specific guidelines.

With this step in place, the next phase is to increase our productivity as much as possible. And all of the phases working together lead us to promised blessings.

Once we identified these distinct phases, the following model emerged:

There are two noteworthy aspects of this model. First, ideals are commonly thought of as things to shoot for or look up to, either metaphysically or in the future. In this case, the ideals are the foundation, the key that unlocks the entire process.

Without these as a foundation, everything else gets messed up along the way. Also, the ideals are something to connect with constantly.

Secondly, the model is cyclical in nature. As we obey the prescribed laws and follow each step, we receive blessings. Then, as blessings are received, we reconnect with the ideals, but at a higher level. We have more resources with which to apply the ideals. And the more times we go through the cycle, the more we prove to God that we are worthy of prosperity.

“When this people are prepared to properly use the riches of this world for the building up of the Kingdom of God, He is ready and willing to bestow them upon us. I like to see men get rich by their industry, prudence, management and economy, and then devote it to the building up of the Kingdom of God upon the earth.” -President Brigham Young

The gap between blessings and ideals is critical, as this is where people typically get derailed. This is the Book of Mormon pride cycle deviation, where increased prosperity (blessings) lead to pride, then disobedience, then conflict, then destruction, then humility. After being humbled, people usually then get back into the righteous-prosperity cycle.

But what if we could stay on the prosperity cycle? What would happen within our families, our communities, our nation, and ultimately the world if enough people became prosperous for the right reasons, then continually reconnected with those reasons the more righteous they became? How much hunger, suffering, and poverty could be alleviated?

The City of Enoch provides one vivid example of such a society. In this sense, a more complete model is a corkscrew, or spiral model, representing a prosperous people continually getting closer to God the more wealth they create and the more wisely they apply it.

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Palmer’s Financial Journey Intro, Part II

Stephen Palmer — Thu, 19 Mar 2009 13:00:58 +0000

Interestingly, Stephen was once involved in a discussion where a member of the Church claimed that the prophets and apostles are “unsophisticated” regarding finances. As people who have first-hand experience with disregarding their counsel, we bear witness that nothing could be further from the truth.

These God-endorsed men possess the sophistication borne of revelation and the wisdom borne of experience. Their counsel may seem simple to those “wise in their own eyes,” as we were for a time. Indeed, it is simple — which is why it is so profound.

It’s the foundation that gives all other advice context. It’s the standard that gives us discernment when making financial decisions. It’s the unchanging core that fluctuating strategies and techniques revolve around. When followed, their counsel leads to much more than personal prosperity — it leads to a just, equitable, peaceful, and sustainable society.

God’s Laws of Finance represents the culmination of our journey. The revealed truths found in this book have been a rope thrown down to us in our pit of debt. They have been a light in a tunnel of financial failure. Our hope is that others can learn from our mistakes to find peace and stability through times of financial turmoil.

We’ve done our best to preserve the authoritative nature of the content, while presenting it in a readable, logical, detailed, and practical format. Although our commentary may expound on specific quotes or teachings, we strive to accurately represent these prophetic truths as purely as possible, without tainting them with misinterpretations.

“The Prophetic Model of Prosperity,” as laid out in chapter one and explained throughout, is our own creation, although the teachings that comprise it are direct quotes from prophets and apostles. We developed the model in an effort to compile the broad range of financial teachings into a coherent, comprehensive whole. We hope you find it as useful as we have.

And in our current state of national financial crisis, if you’re like most people, you’re looking for as much help as you can find, particularly from authoritative sources.

At the time of writing this, financial markets are in turmoil. Foreclosures, bankruptcies, and unemployment are soaring to record highs. Citizens are fearful, many even desperate.

Our informal research and personal associations confirm that Latter-Day Saints across the nation and throughout the world feel an urgency to heed prophetic counsel and prepare for trying times. We’re convinced that God’s Laws of Finance has never been more relevant and crucial.

It’s interesting to note, however, that these times are nothing new. Since the restoration of the gospel in 1830, the United States alone has experienced no less than fourteen recessionary crises, including the Great Depression and the current financial crisis.

Yet despite drastic fluctuations in markets and economies, God’s words regarding finances, prosperity, and preparedness have stayed constant. We have short memories. We’re plagued by fear and greed. We thus continue making the same mistakes over and over again. Meanwhile, God preaches the same doctrines incessantly.

“What I the Lord have spoken, I have spoken, and I excuse not myself; and though the heavens and the earth pass away, my word shall not pass away, but shall all be fulfilled, whether by mine own voice or by the voice of my servants, it is the same.” -Doctrine & Covenants 1:38

We can avoid unnecessary suffering, but only through obedience. For God’s servants, prosperity is much more than possible — it is inevitable. The Book of Mormon pride cycle teaches much more than man’s weakness. It shows that God is ready and waiting to bestow upon us the riches of both eternity and mortality if we but obey, serve, and love.

As Joseph F. Smith said, “It has always been a cardinal teaching with the Latter-day Saints, that a religion which has not the power to save people temporally and make them prosperous and happy here, cannot be depended upon to save them spiritually, to exalt them in the life to come.”

Ultimately, simply living the gospel is the surest route to prosperity. In that sense, this book is unnecessary.

Its benefit, however, is the compilation of so much information from so many separate sources, which provides a useful how-to manual for conscious and wisely-utilized prosperity. When presented with such overwhelming and focused guidance, perhaps minds will open, hearts will soften, habits will change, and Saints will flourish even during the most difficult times.

The truths found in this book saved us financially. If you’ve followed a similar path to us, may they also save you. And if you haven’t yet made our mistakes, may this book prevent you from doing so.

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Introduction To the Palmer’s Financial Journey, Part I

Stephen Palmer — Wed, 18 Mar 2009 13:00:24 +0000

“In the day of their peace they esteemed lightly my counsel; but, in the day of their trouble, of necessity they feel after me.” -Doctrine & Covenants 101:8

Writing this book is both empowering and embarrassing. Empowering because we’ve discovered prophet-certified, time-tested, recession-proof financial truths that have brought us peace and security.

Embarrassing because our road to discovery was paved with bone-headed mistakes, all under the guise of financial “sophistication.”

Nor is our embarrassment without irony. Stephen spent two years in the financial services industry, between 1999 and 2001, maintaining multiple licenses and servicing a wide variety of clients.

Together, we had been immersed in the “prosperity industry,” attending financial and investment seminars frequently and reading every financial book we could find.

We once calculated that between Stephen’s financial services training and seminars and books, we had spent well over $100,000 on financial education.

To top it off, in 2008 Stephen co-authored the New York Times, Wall Street Journal, USA Today, and Amazon bestselling personal finance book Killing Sacred Cows: Overcoming the Financial Myths that are Destroying Your Prosperity.

At the height of the bestseller campaign, we found ourselves at rock bottom financially. A series of real estate investment blunders had plunged us deep into debt and left us on the brink of bankruptcy.

Humbled to the core, we realized that despite our comprehensive study of personal finance, and investing, we had never studied in depth what the prophets have consistently taught on the subjects since the restoration of the gospel.

Like most Saints, we knew the basics from what we had picked up over the years in conference talks and Sunday School. But we had never fully immersed ourselves in prophetic counsel regarding personal finance.

We had consumed countless hours and thousands of dollars and heeded the advice of numerous men and women in an effort to prosper. Meanwhile, pure, prophetic truths had stared us in the face every day of our lives — truths that, had we lived them, would have saved us from a lot of heartache.

We were ashamed that we had heeded the “wisdom of men” more so than prophets, and our financial failure was a direct result.

This realization propelled us into an intense study of personal finance from a revelatory perspective. We pored over scriptures, conference talks, books, pamphlets, and anything we could find from prophetic sources that would illuminate financial truths and help us discern the “philosophies of men, mingled with scripture.”

The result was the emergence of a comprehensive financial model, a big-picture overview of the purpose and appropriate use of prosperity, as well as detailed advice regarding every aspect of finances.

We were astounded by how thoroughly the subject of personal finance has been dealt with by prophets and apostles through the ages, from the Book of Mormon, to Joseph Smith and Brigham Young, to President Monson.

We were also enlightened by how integral financial obedience and health are to the gospel of Jesus Christ.

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