CCS Newsletter: Winter 2007

The Savings Saga

In the “good ole days” people saved money to buy something. In fact, the Bible teaches that principle. In Gen. 41, we have this principle of savings exemplified in the life of Joseph. You remember the seven years of feast and the seven years of famine? They were required to withhold some of their crop during the years of feast (saving) for the seven years of famine.

Yet, today, that has become a foreign concept to many, including believers. A recent newspaper article said the following:

WASHINGTON – People in the US once again spent everything they made and then some last year, pushing the personal savings rate to the lowest level since the Great Depression more than seven decades ago.

The Commerce Department reported Thursday that the savings rate for all of 2006 was a negative 1 per cent, meaning that not only did people spend all the money they earned but they also dipped into savings or increased borrowing to finance purchases. The 2006 figure was lower than a negative 0.4 per cent in 2005 and was the poorest showing since a negative 1.5 per cent savings rate in 1933 during the Great Depression.

The savings rate has been negative for an entire year only four times in history – in 2005 and 2006 and in 1933 and 1932. However, the reasons for the decline in the savings rate were vastly different during the two periods.

During the Great Depression when one-fourth of the labour force was without a job, people dipped into savings in an effort to meet the basic necessities of shelter and clothing.

Economists have put forward various reasons to explain the current lack of savings. These range from a feeling on the part of some people that they do not need to save because of the run-up in their investments such as homes and stock portfolios to an effort by many middle-class wage earners to maintain their current lifestyles even though their wage gains have been depressed by the effects of global competition.

1. Short term needs – unemployment, sickness, maintenance
2. Mid term needs – purchase new car, furniture, children's education
3. Long term needs – retirement, home purchase

Many will be saying that this sounds great, but reality is we struggle to pay the bills. The first step is to give over your finances to the Lord. Acknowledge His ownership! Second, develop a budget to start to live within your means. Current research shows that those who consistently use a budget, over time will be up to 20% better off (ie more cash available than before they started budgeting). If you need funds for savings, you need to budget.

Be a good steward and learn to be content within the means God has provided.

All you can drink for 55 cents

There was a business woman driving home on a hot day down this country road when she spotted a little boy that had a lemonade stand. Since she was thirsty, she decided to stop. Once she got up to the little boy's stand, she noticed a sign that said, “All you can drink 55 cents”. Although she thought it was an awfully small glass, she decided to get some anyway, since it was only 55 cents for all you can drink.

She gave the boy two quarters and a nickel, and shot down the whole glass in one swallow. Slapping the small glass back onto the table, she says, “Fill ‘er up!”

Without blinking, the kid replies, “Sure thing, that'll be 55 cents.”

Surprised, the irritated business woman sputters, “but your sign says all you can drink for 55 cents.”

The innocent little boy replies without hesitation, “That is all you can drink for 55 cents.”

Reflect upon your present blessings - of which every man has many - not on your past misfortunes,
of which all men have some.
Charles Dickens