Category Archives: Everyday Life

Topics related to the world we live in

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?

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.

3rd-party Politics

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Many people are dissatisfied with the Republicans and Democrats, but what can we do about it?

Originally posted 10/19/2004 on bibleforums.org:

I’d like to get some opinions on viable ways to get better candidates elected.

I know a lot of Christians are disappointed with President Bush, and would like to see someone more like Michael Peroutka get elected president. However, Peroutka doesn’t even show up on the polls, so there is no way he will be elected. Anyone who does vote for him is usually taking away a vote from Bush, meaning Kerry is more likely to get elected, and most of us certainly don’t want that.

Is it reasonable to think someone with little or no political experience, who has never held an elected office…

a) has a snowball’s chance in hell of getting elected?
b) is likely to be effective even if they did get elected?

I was watching the Indiana gubernatorial debate the other day, and I liked the Libertarian candidate’s idea of eliminating property tax and slashing educational costs by 50% or more by getting government out of education and converting every public school into a charter school. However, even if he managed to get elected, the legislature made up of Republicans and Democrats would never in a thousand years be willing to do that.

The Constitution Party has the same problem. They have 100 or so candidates running for offices across the country, but no incumbents from what I could tell. If they can’t even get a candidate elected to local or state government, how can they expect their presidential candidate to stand a chance? And even if he somehow was elected, with no Constitution Party support in the House or Senate, what could he really accomplish? Everything he would attempt to do would be blocked. If Peroutka is their top candidate, why “waste” him on the presidential race? Why doesn’t he run for something he has a better chance of winning, so the Constitution Party can get their foot in the door?

Please read this article and share your thoughts:
http://www.worldmag.com/displayarticle.cfm?id=9370

Quotes from article by Gene Edward Veith:

A constant refrain among “Third Party” members is their frustration at the idea of picking what they consider the lesser of two evils among the major parties. Greens on the left and Constitutionalists on the right insist on voting for what—and who—they believe in, even if that person doesn’t have a chance in the world to win, and even though their vote will help the side that they most oppose.

…

…a purist vote for a third-party candidate does not advance one’s cause, but rather advances the polar opposite of that cause. A vote for the Green candidate really will help keep George W. Bush in office, and a vote for the Constitution Party candidate really will help elect John Kerry and potentially enshrine pro-abortionists in the courts for decades to come.

…

Third parties can be built, though, not by nominating presidential candidates who are sure to lose but by starting from the ground up, by electing candidates to local and state offices, who might eventually develop the expertise and the reputation to win election to higher office.

…

…a grassroots movement must grow from the grassroots.

Relationships (marriage)

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Random thoughts on marriage and relationships in general…

Orginally posted 10/14/2004 on bibleforums.org:

I think it’s probably best for two people to be at relatively the same spiritual maturity, or at least on the same trajectory. Being unequally yoked doesn’t have to just mean believer w/ non-believer, it could also be spirit-led believer w/ carnal believer.

I believe God intends for the husband to be the spiritual leader in a marriage, but I don’t think this has anything to do with spiritual maturity. Being the leader means taking initiative and setting the pace, it doesn’t necessarily mean they are the stronger Christian of the two.

On being “unequally yoked…”

Originally posted 2/8/2005 on bibleforums.org:

2 Cor. 6:14-18 does not refer specifically to marriage; certainly it can be applied to a marriage relationship, but it also pertains to other relationships and activities as well. The critical factor is that in order for two or more people to effectively pursue Christ, they need to be united in their motivation and direction. If two people have different life purposes, or are heading in two different directions, they should not be bound together in a relationship. This could be a marriage relationship, a business relationship, or even a social relationship. This does not mean we should not have non-Christian friends, or do business with non-Christians; it means we should not make a commitment to “do life together” with someone who will attempt to lead us in a direction that is in conflict with our desired path.

While the most obvious example of an unequal yoke would be a believer with a non-believer, I think the same principle also applies even for people who profess Christianity. Someone who is a nominal Christian with no desire to grow in their knowledge of Christ, could be a hinderance to a spouse who is trying to follow Christ with all their heart. The “level” of their spiritual maturity is a minor point; what really matters is the trajectory that they’re on.