I invest money in mutual funds. In fact, I invest all of our savings in mutual funds. I don't feel lucky or gutsy enough to play the stock market straight out. I don't have time for real estate. I just invest in mutual funds and let the professionals choose the stocks or real estate for me.
But professionals have to eat. They have families, and they make very good salaries. In fact, they are paid with my money - mine and the other investors. Most mutual funds have an expense ratio of 1-2%. Out of any $1,000 invested with them, they'll spend $10-20 taking care of themselves and trying to figure out how to invest the rest of the money.
I don't mind giving them this money. They are good investors, and they are helping the rest of my money grow and a very nice rate so that the little bit they get is fully offset and then some.
What is your expense ratio? God has invested money and talents and education in you. How much of it do you keep for yourself? How much of it do you spend on yourself? How much of it do you invest in Kingdom causes that produce good returns? I don't think God minds us having expenses. We have to eat and have to live. Some entertainment is good for us. On going education will hopefully improver our ability to serve God. But I think God expects us to keep our expenses at a minimum and our investments in his causes at a maximum.
I remember talking to a Wal-Mart clerk from Africa. Somehow right there in the checkout lane we had an in depth conversation about his living situation. (I know, I know, I'll ask people just about anything.) This man worked 2 jobs, for a total of 80 hours a week. He was making money to send home to his struggling family in Africa. By living cheaply and sharing a home with 10 other people, he was able to send home 90% of his earnings to his family. His expense ratio was only 10%.
Most of us struggle to have an expense ration of less than 100% percent (to stay out of consumer debt). Even a 90% expense ratio, giving 10% of our income as a tithe is a real challenge for most of us. Yet this man from Africa, who was working low paying jobs, was able to give away 90% of what he earned and live on just 10% of the money that came in his paychecks. Why is there such a great difference between us and him? I expect there are two main differences. 1) Our expectations for our standard of living are very different. 2) He felt like poverty was a very personal issue, in his family even. We, however, feel like poverty is very far away and feel no deep desire to help those in poverty.
How can we become more like him?
3 comments:
We don't know what Jesus did in his 20's when he was by all likely-hood perform the craft and trade of his family. However we do know that he was supported during his ministry often through the gracious hospitality of others. The bible doesn't seem to mention that Jesus had saved a bundle while living with mom and making dining sets. Given his aversion for earthly store-houses for himself he probably had given everything he had 100% away, whether that 100% looked more like 60% once the tax-collectors had their say, maybe.
Don't take from my statement that Jesus is saying don't save money, because I am pretty sure Jesus knew that he wasn't going to be around as long as everyone else. Also, he lived in an age where largely the elderly were cared for in a way that the society and culture of western nations no longer operates in.
For our (Alicia and me) take home pay it's like this.
Housing 25%
Other Debt (Student Loans, Credit Card, Personal Loan) 20%
Utilities 15%
Church 10%
Day-To Day Living Expenses 30%
That being said that ideally we could be giving away an additional 45% of our income 55% total each month if we were not in debt, and maintain our current standard of living.
Sarah and I are currently giving somewhere around 30-40% of our income to pay off our school loans. The rest goes to every day living, tithe, long-term savings, the very expensive annual trips to the USA, Emma's preschool, and some other minor giving. (Our housing is paid for by KNU.)
So our expense ratio is probably about 89% - if you count our savings as being spending for us. However, like you suggested, I hope that our giving will go way up when we finish paying off our school loans in the next year or two. At that point we'll also probably start saving for other long term things, like adopting a child, and a doctoral program for me. But I would probably consider those as Kingdom investments, not personal expenses.
Another commodity that often-time correlates directly to our finances is how we spend our time.
Time expense ratio's are almost as in need of addressing as our money ratios.
I am adamant in my family and at-home time. I find myself counter-cultural to most of the higher-ups in my company. They often gone from home for days and weeks at a time, working 12 hour days + while leaving a wife and small children at home. It's something I struggle with, I have the talent and skills to do what they do, I wouldn't mind the cushy pay that goes with it, but in the end I just can't reconcile myself to that pursuit.
To that end I am at a bit of a cross-roads and may have some news to share in the coming weeks.
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