Author Archives: Steve Long

Credit

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While a hunter/gatherer or farmer of the past may have been self-suffcient, or while past cultures may have relied more on bartering, today’s culture relies on money. It has also become common to purchase things when we don’t actually have the money to pay for it.

Originally posted 3/29/2005 on bibleforums.org:

There are a couple of problems that we have in the good ole U.S. of A.
1) There is a mentality some people have that they deserve to live at a socially acceptable standard of living. The socially acceptable standard of living includes a shiny car (or two), a big screen TV, lots of TV channels, movies, eating out, etc.
2) Many people assume that if they can make the monthly payment today, then they will be able to pay the debt off in the future.

This results in increased spending and an increased willingness to take on debt.

My personal approach to credit: I’ll only buy something on credit if I could turn around and get out of debt immediately if required.

I use my credit card for most of my purchases, but I only buy something if I have the money in the bank to pay for it, and I never carry a balance on my credit card.

I borrowed money to buy a new car, but I put enough down that even with the depreciation, the car was always worth more than I owed on it. (I then payed it off in under 2 years so I didn’t have to keep paying interest.) I don’t particularly recommend borrowing money for a car, but if you do, you should never let your loan get upside-down (what you owe is more than what the item is worth). I did it partly to build my credit rating, because I knew I would be applying for a mortgage in the future.

I borrowed money to buy my house. This is the one scenario where I see debt as a “good” investment. Yes, it’s possible to save up money and pay cash for a house, but in the meantime you’re paying rent that doesn’t build any equity. By getting a mortgage, at least some of your payment is towards the principle, the interest is tax-deductible, and you can still put additional savings towards the principle. That doesn’t mean every mortgage is worthwhile; you still need to make a wise choice in the property that you purchase, and not over-extend yourself. However, if you buy a decent property and put enough money down, the house will always be worth more than you owe.

When I bought my furniture, I took advantage of the “18 months same as cash” deal. I could have paid for it in full, but, hey, if they’re going to let me keep my money for another 18 months, I’ll do it. I don’t recommend that for everyone, because not everyone has the discipline to set the money aside and not spend it. Furniture, appliances, etc., are not the sort of things you can easily turn around and sell for as much as you paid for it, so I definitely don’t recommend buying anything like this on credit unless you have the cash on hand. If you do have the cash on hand, it doesn’t make sense to pay in installments if you are paying interest, but if you don’t have to pay interest and you’re disciplined enough to keep the money in the bank, there is financial benefit to hanging on to your money for as long as possible.

Borrowing money for education is debatable. I know some financial advisors (including Larry Burkett and Ron Blue, I think) see college as an investment for which it is worthwhile to borrow money. However, this is not like buying a house or a car that you could sell if you were forced to pay off the loan. There is no guarantee that you will be able to pay the debt. What if you get out of college and can’t find a job? More than a few people exit college with a new spouse, a pile of debt, and a job that doesn’t pay very well. In many cases, it may be a worthwhile investment, but there is definitely some risk involved. The level of risk depends on what field of study and occupation you pursue. It’s one thing to get student loans if you’re pursuing a professional degree (doctor, lawyer, engineer, accountant, teacher, etc.). But I have mixed feelings about coming out of college in debt to the tune of $40,000-$60,000 or more, and planning to be a pastor or missionary.

Insurance

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How do you decide what type of insurance to carry, and how much?

In order to answer this question, it’s probably necessary to first identify the purpose of insurance. As I understand it, the purpose of insurance is to protect against catastrophic events resulting in costs that you (or your loved ones) could not afford to pay on your own. Perhaps some would define it differently, and no doubt there are varying opinions about what constitutes catastrophe and what is considered “affordable.”

To some extent, I see the insurance industry as purely a middle-class phenomenon. Poor people can’t afford to buy insurance, and rich people don’t really need insurance because they can cover pretty much any expense without it. However, as a member of the middle-class, I feel a responsibility to take prudent measures to protect the resources with which God has blessed me. However, sometimes it’s not clear when insurance ceases to be protection, and becomes a bet that’s not in your favor. Let’s look at some common types of insurance and evaluate the necessity of each.

Health Insurance
Purpose: Pay for medical bills related to sickness and/or injury.

Given the high cost of medical care, most people would be devastated if they contracted a critical disease, were in a serious accident, or were plagued by ongoing illness. Therefore, some type of health insurance is a good idea. My employer provides a good plan and pays for a large portion of it, so I don’t have any reservations about this one.

Auto Insurance
Purpose: Pay for damaged property and/or medical bills related to an automobile accident, and/or miscellaneous damages to your own vehicle.

Every state that I know of requires liability insurance in order to drive legally, and most people could not afford to pay the bodily injury costs if they caused an accident, or the property damage if they run into someone’s Rolls Royce. Collision and Comprehensive is where it gets a little fuzzy; there comes a point where they just aren’t worth it. There’s no sense in paying for collision and comprehensive on a rusty old beater. Where do you draw the line though? Right now I carry both collision and comprehensive on my car and motorcycle. Once I’m comfortable on my bike, I’ll probably drop the collision and comprehensive on it, because if something happened to it, it would not be catastrophic. Even on my car, it would put a big hole in my savings if I totalled it, but I could still afford to replace it without insurance.

Home Insurance
Purpose: Pay for property damage related to natural disasters.

Banks require home insurance in order to give you a mortgage, but even if you own your home outright, most people don’t have enough cash to replace their home if it were destroyed, so home insurance is a worthwhile means of protection.

Life Insurance
Purpose: Pay for burial expenses when someone dies, and provide living expenses for survivor(s)

Since I’m not married, I don’t have any additional life insurance beyond what is provided to me at no cost through my employer. When (if?) I do get married, I don’t see the point in a large policy. My goal is to save enough so that my family is cared for without needing to rely on life insurance. A reasonable term-life policy can provide a cushion until adequate savings are available.

Long-term Disability Insurance
Purpose: Provide continued income in the case of a long-term disability.

This is one that I don’t currently have, but I’m thinking I probably should add. The income we make over a lifetime is much, much more than the $20,000 car or $100,000 house that we insure. It makes some sense to insure our livelihood against a disability that would prevent us from working.

Long-term Care Insurance
Purpose: Pay for in-home nursing care, assisted living, or nursing home.

Most recommendations I’ve seen advise against long-term care insurance until you’re closer to retirement age, and then it depends your current financial state.

Accidental Death Insurance
Purpose: Like life insurance, but only pays in the event death is caused by an accident.

Most recommendations I’ve seen advise against paying for accidental death insurance. Regular life insurance is sufficient.

Other types of insurance:
Travel insurance, credit insurance, etc.
What other types of insurance have people tried to sell you, and should they be considered?

Salvation

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What about tribes in Africa who have never even heard of Jesus? Are they destined for hell?

Originally posted 12/7/2004 on bibleforums.org:

God has revealed Himself to everyone through nature (Romans 1). Now, you may think that’s pretty limited revelation, but I don’t think it’s so important exactly what or how much God reveals about Himself; it’s how you respond to whatever revelation He provides that is important.

See Acts 17:26-27: “From one man he made every nation of men, that they should inhabit the whole earth; and he determined the times set for them and the exact places where they should live. God did this so that men would seek him and perhaps reach out for him and find him, though he is not far from each one of us.”

Also see Deut 4:29, Prov 8:17, Jer 29:13, Matt 7:7, and Luke 11:19, which all tell us that those who seek God will find Him. Someone who has never heard the gospel may not know who it is they are seeking, but if they respond to the little that God reveals to them, He will continue to reveal more of Himself.

We like to draw lines and put things in boxes, and make sure everybody in the world fits into category A, B, or C. Even if we get the categories right, who’s to say we got the boundaries right? I believe that there are boundaries, and God knows where they are, but it’s not that important for me to know where they are (when it comes to someone else’s salvation).

Originally posted 3/15/2005 on bibleforums.org:

If a Buddhist, Muslim, Jew, etc. recognizes their sin against God, repents of their sin, and has faith that God will provide atonement for their sin, they can be saved. Do they have to know about Jesus in order for His atonement to be effectual? I don’t know; people in the OT didn’t know about Him specifically. Did Noah know that a Messiah was going to come? However, if someone rejects God (or Jesus, who is God) and chooses to follow a man-made version of God, they will not be saved.

Annihilation

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There is a concept that some people believe, that says hell will eventually burn out, and everyone in hell will be completely destroyed, ceasing to exist.

Originally posted 11/1/2004 on bibleforums.org:

The overwhelming majority of Christian scholarship that I have seen rejects the concept of annihilation.

Matthew 25:46 seems to make it pretty clear:
“Then they will go away to eternal punishment, but the righteous to eternal life.”

Commentary from the People’s New Testament:

These things are certain: (1) A separation between the righteous and the wicked takes place at judgment. (2) The righteous inherit the kingdom; the wicked “depart into everlasting fire.” (3) The state of the righteous is “life eternal;” the state of the wicked is “everlasting punishment.” (4) The duration of these two states is the same, exactly the same Greek word being used in each case (aionios). Then if the state of punishment has an end, so has the life.

One other thought, “destruction” does not equal “cease to exist.”

I think we can all agree that we have a spiritual existence (our spirit) and a physical existence (our body). (Then there’s the soul, which is a little more confusing.)

I think we can also agree that both the spiritual and the physical can die, and both can be resurrected. You can’t be resurrected unless you’re dead, so death happens first, then resurrection.

Physical death is fairly straightforward; I think we all understand what it means for our bodies to die. Our physical death on earth is not final. A number of people in the Bible were physically resurrected, but they would still be subject to another physcial death. Then, at the final judgement, there will be one final physical resurrection. The Bible indicates in Acts 24:15 and Revelation 20:13 that both believers and unbelievers who have died will be rejoined (at least temporarily) with their bodies for the judgement. After that point, unbelievers will be physically dead for good, and believers will be physically alive for good.

Spiritual death is a little harder to understand, but from what Paul says in Romans 7:9 (“Once I was alive apart from law; but when the commandment came, sin sprang to life and I died.”), it appears that spiritual death has already occured. Since unbelievers are already spiritually dead, it becomes clear that spiritual death does not mean our spirits cease to exist. (Just as physical death does not mean our bodies cease to exist; it just means they’re dead, not alive.) As with physical death, spiritual death doesn’t have to be final. Spiritual resurrection occurs when we give our lives to Christ and He breathes new life into our spirits. We are not granted spiritual life or death at the final judgement. The final judgement will be a confirmation of our current spiritual state. Those who are spiritually dead, will remain dead eternally. With this understanding, eternal death does not necessarily mean obliteration, it simply underscores the finality of death; there are no longer any second chances.

E.T.

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Is there life on other planets?

Orginally posted 10/26/2004 on bibleforums.org:

I’ve heard it said that the best evidence for extraterrestrial intelligence is that it hasn’t tried to contact us.

My best guess is that God did not create life on other planets. I guess it’s possible, but I doubt it. Even if He did, I doubt we would ever find each other.