Christian Personal Finance

A man raises his arm at Biarritz beach, southwestern France, in this January, 2007 file photo. There is not one formula that suits everyone saving for retirement; take your circumstances and needs into account when planning. (Regis Duvignau/Reuters/File)

How much should you save for retirement?

By Craig Ford, Guest blogger / 05.18.10

Everyone wants to retire with an adequate amount of retirement savings. However, there are so many factors that cannot be predicted that people often feel overwhelmed when they ask themselves, “How much should I save for retirement?”

Due to simplicity, it is recommended that you try and establish a set percentage of your income to save for retirement.

What The Experts Say

What percentage should you be saving for retirement?

I took some time looking through the books on my shelf trying to see if there a consensus to the question, “What percentage should i save for retirement?” Here is what I found from my research:

* Dave Ramsey from The Total Money Makeover – 15% of your income

* Austin Pryor from The Sound Mind Investing Handbook – No set percentage, but instead there is a nine page retirement planning worksheet

* David Chilton from The Wealthy Barber – 10% of your income

* Mary Hunt from Debt Proof Your Marriage – 10% of your income

* George Clason from The Richest Man In Babylon – no less than 10% of your income

* David Bach from The Automatic Millionaire – 10% of your income

* Larry Burkett from Money Matters: Answers To Your Financial Questions – 5% savings, 5% retirement. It seems like he is suggesting 10% unless you are doing some saving for other things.

Conclusion: There is no right answer that applies to every person in every circumstance. When this is the case, we are forced to consider our own situation and our own needs to establish an appropriate amount to save for retirement.

What is the Right Amount To Save For Retirement?

With the exception of Austin Pryor, all of these other folks are trying to boil your retirement numbers down into a single simple percentage. Why do we need these percentage suggestions? Because most people won’t do the work necessary to complete a full retirement worksheet. Most folks just want you to give them a number so they can save accordingly.

But, your retirement situation is completely unique.

* Is there a company match? If yes, you can save more with less of your own income.

* Did you start young? If yes, you’ve got a good head start so you could gravitate to some of the lower suggestions.

* Do you plan to significantly increase your income in the future? If yes, saving 10% of your income might result in the appropriate nest egg.

* Do you plan to retire? If no, a smaller retirement balance would be appropriate.

* Are you in debt? For those in debt, paying off debt should be a greater priority than saving for retirement.

I believe that Christians should be saving for retirement, but I also believe there is a point when Christians should be able to say they have enough for retirement. If you don’t believe this, then the amount to save for retirement is simple – as much as you can.

However, I believe it is virtuous to appropriately balance your retirement savings so you save an appropriate amount.

“Two things I ask of you, O Lord; do not refuse me before I die: Keep falsehood and lies far from me; give me neither poverty nor riches, but give me only my daily bread. Otherwise, I may have too much and disown you and say, ‘Who is the Lord?’ Or I may become poor and steal, and so dishonor the name of my God. (Proverbs 30:7-9 NIV)

On the other hand, if someone is in their 50’s and is just starting to save for retirement, they may need to surpass some of the suggested percentages listed above.

Save While You’re Young

Retirement planning for young people is very different than retirement planning for more mature adults. Because of this, I suggest a special retirement saving approach for those who start retirement savings in their early 20’s.

Give generously and save aggressively when you are younger. Since Dave Ramsey suggests the most aggressive saving percentage, you should make it your goal to start off saving 15% for retirement.

After five years of saving 15%, prayerfully consider reducing your retirement savings by 1-2%. Repeat this process every 3-5 years.

When you are within 10 years of retirement, revisit your numbers. If you want to increase your retirement back up to 15% for the final stretch, then that is fine. However, if you are on track to reach your retirement goals, then just keep up with your smaller retirement savings.

Remember: You must personalize this information. How old were you when you started saving? How much money do you need in retirement? Do you plan to work in retirement? How you answer this question greatly impacts what will and will not work for you.

Do you think people should ever consider reducing their retirement contributions, or is more always better? How do you determine what percentage to save for retirement?

* The Only 5 Things You Need For A Newborn

* How to save money for retirement

Craig is a fulltime missionary in Papua New Guinea who writes Money Help For Christians and Help Me Travel Cheap, a frugal family travel blog. He is the author of Money Wisdom From Proverbs, has a Masters of Divinity degree, and (most importantly) eats homemade pizza with his family every Friday night.

Add/view comments on this post.

------------------------------

The Christian Science Monitor has assembled a diverse group of the best economy-related bloggers out there. Our guest bloggers are not employed or directed by the Monitor and the views expressed are the bloggers' own, as is responsibility for the content of their blogs. To contact us about a blogger, click here. To add or view a comment on a guest blog, please go to the blogger's own site by clicking on the link above.

A stock trader works at the Frankfurt Stock Exchange in Frankfurt am Main, Germany, on Monday, May 10. (Mario Vedder/AP)

Europe's debt crisis: Sitting on America's front porch?

By Rocky Vega, Guest blogger / 05.17.10

The financial crisis that began in housing, and then with banks and insurers, has now moved onto the balance sheets of nations. And, among the fiscally unsound, it’s the euro that is suffering the most. It recently hit a 14-month low in dollar terms, and the ongoing uncertainty facing the EU continues to break records for pessimism.

According to MarketWatch:

“In early February, the cost of insuring against a sovereign default in Western Europe exceeded the price of similar protection against default by North American investment-grade companies. That was the first time this had happened, according to data compiled by Markit from the credit derivatives market.
“The move ’symbolizes how credit risk has been transformed from corporate to sovereign risk, as the solution to the financial and economic crisis was government intervention,’ Hans Mikkelsen, credit strategist at Bank of America Merrill Lynch, wrote in a note to investors at the time.”

But it’s not just a European problem…

“Even though the current epicenter of the crisis is focused on the euro zone, the overall fiscal position of the single currency area is stronger than that of the U.S., the U.K. and Japan, he noted.

“‘Unless there is a radical change of course by those in charge of fiscal policy in the U.S., Japan and the U.K., these countries’ sovereigns too will, sooner (in the case of the U.K.) or later (in the case of Japan and the U.S.) be at risk of being tested by the markets,’ Buiter said.”

In response to these market pressures, Greece, and now Spain and Portugal, have begun austerity programs to rein in government spending and get deficits under control. As Daily Reckoning editorial director Eric Fry recently pointed out in the chart below, the US has similar debt funding requirements as the troubled EU countries… but has yet to start acting like the party’s over.

Visit MarketWatch to read more details on the second debt storm.

Add/view comments on this post.

Fred Archambault and his wife, Amy, couldn't afford to buy in the West Hollywood, Calif., neighborhood where they rented for 10 years, so they moved 30 miles north to Santa Clarita and bought this home. Here are four things to weigh before you decide whether to buy a home or rent a home. (Damian Dovarganes/AP/File)

Buy a home or rent a home? Four things to consider.

By Jason Price, Guest blogger / 05.16.10

It is often a tough decision of renting or buying a house. How do you know which is best for you? There are quite a few forces involved in making the decision. Certainly there are many pros and cons of buying versus renting.

Everything aside, there are four important things you should keep at the top of your list when trying to decide.

Monthly payment affordability

There is nothing worse than having a monthly mortgage payment (including insurance and taxes) put a squeeze on other areas of spending in your monthly budget. Such a squeeze can leave you wondering why you made the home purchase decision when you’re frustrated you don’t have enough money to go out and have some fun or meet other expenses. You have to keep housing costs within control.

Practically speaking, Crown Financial Ministries recommends that your home associated costs be no more than 33% of NSI (Net spendable Income) for a family of four. Net Spendable Income is money left over after taxes and tithing. As a safeguard against stretching your house payment too far, Crown includes home associated costs within the 33%. Such costs include electric, water, maintenance, etc. If you can stay within the 33% you’re in good shape to have adequate funds for other areas of the budget. You visit Crown’s website to view find a spending guide that fits your situation.

Down payment amount

Often mentioned and critical is the amount of money you have on-hand for a down payment. Make sure you aren’t including various costs associated with the loan itself and prepaid expenses. Rather, it is the amount that you expect to use to put down against the sales price of the home.

Ideally, that amount should be 20% or more. It’s a good amount in that it allows you to avoid Private Mortgage Insurance (PMI). It also creates good amount of equity to protect you should the price of your house go down in value. You don’t want to owe more than your house is worth.

If you don’t have 20% to put down, consider how long it would take you to save this amount before buying. Note: your down payment shouldn’t pull from emergency cash savings. This is considered to be other critical savings that should remain in place after you’ve purchased your home. Create a savings plan and try to hit the 20% within 1-2 years if possible.

Make progress on your financial journey

Don’t forget where you are and where you’re going. If you’re using the Money Map or the Baby Steps to guide your journey, you’ll want to make sure home ownership doesn’t render you stagnant. For example, let’s say your financial journey includes tithing 10% each month, saving $1000 for emergencies and eventually getting out of debt.

You have to ask yourself if you can still make forward progress with home ownership. In other words, can you move to the next destination without being stuck in the same place for an unreasonable amount of time? The 33% mentioned earlier may allow you to do so if you don’t have debts or other unbalanced expenses squeezing your budget. If you can’t make progress on your journey, home ownership shouldn’t be your next step.

Renting may not be a waste of money

“I’m tired of renting because I’m just throwing money out the door.” Really, is that the case? Don’t be ashamed about renting or feel the pressure to get into a home because others are telling you you’re wasting money. Remember you get a shelter for your money and that’s never a bad thing.

Rather, consider that renting provides you the time you need to position yourself financially for home ownership. There is no shame in renting until a home can be affordable via down payment and monthly expenses. That’s just good stewardship, my friend.

Handy Calculator

Perhaps you want to dive deeper and do some financial analysis. As I mentioned earlier there are a lot of forces involved in making a decision to buy or rent. The Crown Rent Vs. Buy calculator attempts to forecast the net effects of all the hidden forces (interest, property taxes, tax savings, appreciation, opportunity costs, closing costs, selling costs, etc.) to help you make an even more informed decision.

What would be the most important things you would consider if you were deciding to when deciding to rent vs. buy?

Jason Price is a personal finance writer at One Money Design and a Money Map Coach. His mission is helping people achieve true financial freedom.

Add/view comments on this post.

------------------------------

Saving slowly builds character and ensures lasting wealth. (Newscom)

The best way to build a savings account

By John Frainee, Guest blogger / 05.14.10

"Get rich quick” schemes are everywhere. Late night cable teaches us that we can earn millions if we just buy this or that video set. Guru wannabes claim we never have to put in more effort than lifting a finger. Is this all true? Is it probable that we can reach fame and wealth overnight? Not likely.

Americans live in a microwave culture – we want things and we want them now! But what does the Bible teach? How are we to obtain wealth? Little by little!

“Dishonest money dwindles away, but he who gathers money little by little makes it grow.” -Proverbs 13:11 NIV

Here’s how The Message reads:

“Easy come, easy go, but steady diligence pays off.”

So many people try to get ahead in life by winning the lotto, gambling in day trading, or betting at the casino. But as easily as the money can come, it goes – and fast. Instead, what if there was a surefire way to build wealth? What if there was a method that almost certainly produces riches?

I believe that formula is Patience + Hard Work. One Fruit of the Spirit is patience (Galatians 5:22). Why be in an absolute rush to obtain wealth? I’m not claiming all of us should be lackadaisical and give up on trying to produce more money. But what I am saying is that we should not be so zealous that we forget what really matters in life.

So, how do you gather money little by little?

What methods should one use to build wealth with time? Here are a few ideas:

Skip “death by a thousand cuts.” It’s the coffee. It’s the extra bagel. It’s the chewing gum. It’s anything that you REALLY DON’T NEED! Okay, maybe you need the coffee. Understood. But you know what I mean! Sometimes it’s the little expenditures in life that can destroy us financially. Skip the non-essentials in life and save that money instead – little by little!
Create a solid foundation – build that emergency fund! Sometimes people get too far ahead of themselves and invest money before they have a solid emergency fund. Don’t try it! Instead, work hard and build up that rainy day fund. Later, you can invest with confidence knowing that if you lose money in the market, you’ll still have your emergency fund if something goes wrong. Don’t jump ahead of yourself!
Invest in many, not few. Spread your money out. Don’t yield to the temptation to “go all in” on any investment (see Ecclesiastes 11:2). That way, if disaster falls upon one of your investments, you’ll be spared by the other investments. Don’t get greedy! Build wealth slowly through diversification and you’ll arrive at your destination.

Remember, it’s all about Patience + Hard Work. We’ve covered the patience part, but what about hard work? I’m convinced that hard work is the means by which God allows us to discover our full potential. Hard work builds our self-confidence and can be an income-producing machine. Easy money easily goes. Hard-earned money tends to stick around.

We’ve all seen or heard of those who walk into a casino and easily win big money. In their greed, they turn right back around and waste it away. They end up with less money than they walked in with. Why does this happen so often? Quick money blinds us to the true value of money. Quick money compels us to try to get more money quickly. As we pursue even greater riches, we trip and fall.

Why gather money little by little? So it doesn’t dwindle away. Gathering slowly will build our character and ensure that our riches aren’t temporary – but lasting.

Add/view comments on this post.

------------------------------

Shopping for a newborn baby doesn't need to be complicated or expensive. (Newscom/File)

The only 5 things you need for a newborn

By Bob Lotich, Guest blogger / 05.12.10

What things do you really need when you have a newborn baby?

I am not a parent and don’t have babies yet, but I am becoming increasingly interested. So as we are nearing the point of parenthood I am always trying to take a financial tally of what to expect. I know babies aren’t cheap, but I have always had this suspicion that many parents buy their babies way too much junk – that they don’t really need.

I have pretty much kept my mouth shut about it, because after all, what do I know – I am not a parent!

But I recently found this article (Baby gear: the only 5 items you need) from CBSnews that encouraged me a bit.

The article was written by a mom who explains that for her second child she managed to get by with only five things for her newborn.

Here is her list…

1. Car Seat

There’s no getting around it. You simply can’t get by without a car seat. And unlike other items that you can buy used, safety experts recommend that you purchase a new one for your baby.

2. Crib

Even if you decide to co-sleep with your newborn, you’ll eventually want him to snooze behind bars. Keep in mind that cribs are constantly getting recalled, so you’ll want to stay on top of the latest news and buy one with fixed sides.

3. Stroller

Strollers are a bit like cars. You can’t really survive without one. But the good news is that you can spend as little or as much as you want on a set of wheels. My personal recommendation is to start off with a frame for the infant seat (about $55). Then buy something more substantial once your child reaches six months and you have a better handle on your needs.

4. Bouncie Seat

There’s no doubt a child can survive without a bouncie seat. But it sure is nice to have someplace to put your baby while you’re mixing bottles or want to give your back a break.

5. Baby Bottles

Even if you breast feed, you may decide to give your child expressed milk in a baby bottle. But that doesn’t mean you need to go out and buy ones that hold just two or four ounces. In just a couple of months your infant will start drinking six ounces and those petite bottles will become obsolete.

Really? Is the checklist for a newborn really that simple?

Like I mentioned before, I think many of our babies (just like the rest of us) have too many “things”, but do you think you could get by on just those five?

I have heard rumors that that what goes in a baby comes out the other end, so maybe we should add diapers to the list as well. But who knows, maybe the Baby Einstein folks have figured out a way to potty train in the womb. I can only hope.

Add/view comments on this post.

------------------------------

This foreclosed home in East Palo Alto, Calif. was for sale a month ago. Is it ethical to buy a foreclosed home? (Paul Sakuma/AP/File)

Is it ethical to buy a foreclosed home?

By Bob Lotich, Guest blogger / 05.12.10

I was having a discussion with Linda the other day about buying foreclosures and doing it the “right” way. The reason we were chatting about it was because during Financial Peace University I remember Dave talking about how he went and visited homeowners who were about to be foreclosed upon and offered them $10K more than the starting price at the auction.

For example, one homeowner he visited was going to be foreclosed upon 3 days later – the bank was going to be auctioning the property with a starting price of $150K. The homeowners house was appraised at something like $250-$300K – and they were asking a price in that ballpark. But Dave was aware they had 3 days to sell the house or they would be foreclosed upon.

The question I keep asking myself is – is it right?

Morally, it feels a lot different buying a bank-owned property that was foreclosed upon – because the damage is done. The homeowner already lost the house – and getting a deal from a bank (if you can) seems justified.

On one hand you could argue that any options offered to someone about to lose their house is a gesture of kindness – because after all, they can turn down the offer.

But it seems to me that there is a very fine line between using someone’s misfortune for gain and just offering what it’s worth to you at that given moment.

Anyway, my hunch is that every situation is a little different, so there may not be a black & white answer. But either way, what do you think?

Add/view comments on this post.

------------------------------

There are many ways to save money. Following these mind tricks will help you save those extra few dollars each month. (Rick Bowmer/AP)

Money mind tricks: ways to save money and control spending

By Jason Price, Guest blogger / 05.11.10

We’ve all read articles about ways to save money, or tips in controlling spending. But sometimes we get used to the obvious and common ways and they become routine. As humans, who often make mistakes and sometimes lack discipline, we need new ideas to shock our system.

The same holds true in weight training. The weight lifter will gain strength through a routine, but at some point it’s likely a plateau will be reached. To get out of the plateau, the weight lifter must come up with new ways, or exercises to shock the muscles to strengthen more.

I think you can do the same thing as it relates to managing money or performing financial stewardship. There are some subtle little tricks you can do that can add up into some significant savings over time (if you can shock your system). They can get help get you out of a plateau. I call them money mind tricks. Here are a just a few that you can try:

Consider extra money as just another check

Your bonus or tax refund is just another paycheck. Before you have a chance to decide what you’re going to do with the money, fund your retirement, savings, giving and debt goals just like you would if you were receiving your typical monthly paycheck. Often we see this new found money as freedom to go and spend. Some spending is fine. However, don’t get overly excited and view it as extra money.

Why does this work? If you pretend like you need the money versus seeing it as extra money you will manage it more wisely and be able to contribute to your goals.

Pretend you have less than you do

Another good mind trick is pretending you have less money than you do. This can be done by forgetting about $100 in your account, or forgetting you have money in a budget category such as entertainment. Of course, you really know it’s there, however, you can decide to block spending on that money just like you lost it or forgot it. A good way to lose or forget the $100 is to create a transaction in your register for $100. Call it “money mind trick” and take it out of an area in which you want to create more margin.

Why does this work?

You’re accustomed to having the money available to you. And as long as the money is there, you’ll probably spend it. However, if you can interrupt that behavior you may find you really didn’t need the money after all and you can grow accustomed to spending less in an area such as entertainment.

Round up budget categories

When I plan my budget each month I like to round up budget categories. For example, let’s pretend your car payment is $300. What if you budgeted $310? And maybe you over budgeted in a few other areas for the month as well. Do you think you could over budget $50 and save that extra money? At the end of the month the extra money in each category can be used to fund other needs based spending or transferred directly to your savings account.

Why does it work?

Even if you didn’t send it over to your savings account immediately you will be creating more margin in your checking account each month to protect against the unexpected. Before long you just forget this extra money is there and it can grow into hundreds of extra dollars. You can then sweep through your categories and collect the extra money for savings, giving, etc.

Budget using net spendable income versus net income

Net spendable income (NSI), as defined by Crown Financial Ministries, is money available for spending after tithe and taxes. All of the sudden, you no longer have to find money to tithe. The money has already been purposed for this use. It’s now up to you to figure out your spending plan with what is remaining, or the net spendable income. Guess what? This includes using money for your 401(K) and other savings too. It should be taken from NSI.

Why does this work?

Most importantly, it sets your priorities in order. You’re tithing first and trusting God with this money is probably the most liberating thing you could ever do. By taking out the money first you no longer have to search for where to find the money to give each month. As an aside, the next payment you should make is to yourself (savings).

What do you think about these money mind tricks? Can you think of others?

Add/view comments on this post.

------------------------------

Baked dill eggs with shrimp and sour cream is seen in this April 18 photo. Among our top 10 gifts for Mother's Day, you can make mom something special like this dish or take her out for lunch. (Larry Crowe/AP/File)

Top 10 gift ideas for Mother’s Day

By Linda Lotich, Guest blogger / 05.08.10

It’s almost Mother’s Day so I thought I’d share some fun gift ideas for anyone to give to the special mother in their life. I am blessed enough to have two mothers now.

One I’ve known since birth and the other feels more like a real mother rather than a mother-in-law. Both are wonderful women with different strengths who have done their best to be good examples and I’m so grateful for them both!

Some Nice Jewelry. How about a bracelet from Tiffany? Or a Mom necklace with the names of their children. I know a few people who have charm bracelets with the name of each of their children and grandchildren on them. They’re so beautiful and mean so much. And feel free to get creative with this one. One year my we got a ring sized that my mother inherited from her late mother. Now she’s able to wear it and it reminds her of us and her mother.
A Spa Gift Card. Mom’s always can use a little bit of relaxing. Manicure, pedicure, massage.
Treat Her To Lunch! Just once, let her not have to cook for you. We all know she’s good at it, but she needs a break!
A Nice Journal or Stationary. Look how cute these are!
Bring Her Breakfast In Bed. One year we did this for my mom and I think it was hard for her to stay in bed while we were banging pots and pans around in the kitchen, but I think she really appreciated it.
A New Purse. Brighton, Coach, or just something fun from Target!
A Sweet Framed Photo of the Two of You! What mother wouldn’t love that?
Write Her A Lettter Telling Her Why You’re Grateful She’s Your Mom.
Flowers Are Always A Good Idea! Fresh cut or something for her garden perhaps?
Gift Card to their favorite clothing store. This is always a good gift and maybe you can even go shopping with them! Then it’s two gifts in one!

Have any other suggestions? What are you doing special for your mom?

Linda loves chocolate milkshakes, a day of shopping & lunch & coffee with friends, Honeycrisp apples, perusing fashion magazines, laughing for no reason at all, fresh-cut flowers, Boaz (from the Bible), warm weather, and watching movies on the couch with her husband, Bob.

Add/view comments on this post.

------------------------------

Berkshire Hathaway Chairman and CEO Warren Buffett arrives to play table tennis against junior champion Ariel Hsing in Omaha May 2 during the company's annual shareholders meeting. the meeting offered insights into life and work from Mr. Buffett. (Nati Harnik/AP)

Nuggets of wisdom from Warren Buffett's shareholder meeting

By Bob Lotich, Guest blogger / 05.07.10

This last weekend I had the great pleasure of going to see Warren Buffett at the Berkshire Hathaway Annual meeting in Omaha. Even though I started shopping for hotels a couple months ago, just about everything within 20 miles was full. So we decided to stay in Kansas City and just drive up to Omaha on saturday – about a 3 hour drive.

By the way, if you are planning a vacation this year, I highly recommend Hotwire.com. We have used them in the past to get a great price renting a car and we got another killer deal on our hotel this year. We ended up getting a 4-star hotel on the Plaza (the best place to be in KC, in my opinion) for $100 a night. It was definitely the nicest hotel I have ever stayed at – I mean the toilet paper rolls had the end folded to a point – Linda never does that for me.

Anyway, back to the topic. The event was held at the Qwest center in Omaha which is basically like an area and convention center in one. There were about 40,000 people there and even though we got there an hour before it started, we were sitting pretty high up.

The meeting began with an hour long video about a lot of Berkshire’s Companies. After that, the next six hours – really all of the meeting – consisted of Warren and Charlie Munger in an open Q&A session. Warren likes to talk, and he is very good at elaborating and explaining in simple terms why he does what he does.

While I am really glad I went, I think anyone who is interested in learning how Warren does what he does can learn more from reading his annual reports than attending the meeting. It may have been the questions that he was asked, but I feel that there is more to be gleaned from his reports than what I got at the meeting.

However, there is something to be said for being there listening to him. It was fun.

So, I didn’t take as many notes as I had planned, but I mostly picked up nuggets of wisdom. Some of these are from Warren and some are from Charlie.

Work and life…

Warren said that the common thread with all the managers of his companies is that they absolutely love what they do. That’s what he looks for in a manager.
“Find your passion and don’t let anything stop you.”
“Always try to go to bed a little wiser than when you woke. If you do that for a long time, you will be a success.”

Investing…

When investing Warren is extremely patient. He waits and waits and waits for the perfect opportunity. Then he takes action.
Warren likes businesses that get a great return on capital and require little capital to run them.
You don’t need to find very many winners. Just a couple big winners make all the difference.

When asked about the resiliency of the US economy…

They are both very confident the in US and think this is still a good place to invest.
Don’t ever underestimate human’s abilities to solve the world’s problems.

When speaking about the dishonesty of much of Wall Street…

Create a business structure that minimizes the weaknesses of human behavior. Eliminate the opportunities for transgressions.
The system that holds no one accountable is a bad system. Everyone needs to be responsible for their actions.
“Having integrity is the safest way to do business.”

Random…

Charlie is VERY optimistic about the future of solar energy, but he says not to buy panels now because they will be much cheaper in the near future.
Warren likes to do video interviews over newspaper interviews, because he finds that it more accurately portrays what he meant to say.

One of my favorite things that was said was that they both admitted they aren’t particularly brilliant, it is just that they work hard to avoid stupidity. I have been soaking this one up the last couple days and am working to minimize the stupid things I do!

So, there was a lot more I got out of the meeting, but this is the gist of it. Were you there or have you ever been to see Warren? What did you think?

Add/view comments on this post..

------------------------------

This sign for Johnny Appleseed Lane in Leominster, Mass., leads to his birthplace. Here are six financial lessons from his life. (John Nordell / The Christian Science Monitor / File)

Six financial lessons from Johnny Appleseed

By Joe Plemon, Guest blogger / 05.07.10

Johnny Appleseed was born John Chapman on September 26, 1774. He was an American pioneer nurseryman and missionary who became an American legend while still living, not only because of his great leadership in conservation, but also because of his kind and generous ways.

Johnny, of course, gained fame because of his penchant for growing apple trees. His life and the legend that surrounds it make interesting reading-and some great financial lessons.

1. Johnny pursued his dreams.

Growing up on a small farm in Massachusetts, Johnny’s favorite place was his father’s apple orchard. Not surprisingly, he loved the apples. When settlers passed by with tales of fertile soils, he became inspired to plant apple seeds throughout the frontier. At 18, Johnny went west to pursue his dream.

How about you? What is your dream? Are you actively pursuing it? If not, what is holding you back?

2. Johnny had a plan.

Whereas the popular perception of Johnny Appleseed is a man who strolled along broadcasting appleseeds willy nilly, he was actually quite organized. Having been apprenticed as an orchardist, Johnny planted nurseries, built fences around them to protect them from livestock and left the nurseries in the care of a neighbor who sold trees on shares. Johnny would then return every year or two to tend the nursery and settle up with the nursery caretaker. Appleseed would often barter, accepting corn meal, cash or used clothing as means of payment.

Do you have a plan that will allow you to monetize your dreams? If so, how is your plan progressing? If not, why not? Hint: offer to buy lunch for someone who is already doing what you dream of doing. Ask this person to share how he built his business. Learn and keep notes. Of course if you might be competing directly with this person, find someone who lives outside of the competition radius.

3. Johnny used ingenuity

Johnny shrewdly realized that more apple trees would bring more business to the cider mills, so he negotiated with them for free apple seeds.

Do you think outside the box? Samuel Brannon became California’s first millionaire during the gold rush of the late 1840s, but not by panning for gold. Brannon sold shovels, picks and supplies to the wide eyed miners. Is it possible that an ingenious solution for your dilemma is right in front of you?

4. Johnny was generous

Life is not all about getting. It is also about giving. Jesus said, “It is more blessed to give than to receive.” (Acts 20:35) Johnny Appleseed may have been generous to a fault . . . he wore the most ragged of the clothing he received in barter, giving the best to others. He seldom wore shoes. Because he had no home to maintain, he had more to give.

Are you generous? Where does “giving” rate in your budget? Here is a thought: put giving first then learn to live on what is left after you give. God will help you do so.

5. Johnny lived on less than he made.

He might not have made much, but with his frugal life style he needed little. Appleseed managed his money well, generally keeping enough with him to pay his way and give to all he deemed needy.

Do you live on less than you make? If not, have you cut your lifestyle to the bare bones? I am not recommending that you go without shoes, but eating out, driving new cars and paying for satellite TV don’t fit when you are spending more than you make.

6. Johnny stuck with it.

Appleseed began planting apple trees when he was 18 years old; he was still doing so at the time of his death at age 70.

Do you stick with it? When pursuing your passion, have you given up prematurely? There is no such thing as an overnight success . . . Author Malcolm Gladwell, in his book “Outliers: The Story of Success,” shares his research that very few people achieve excellence without putting in at least 10,000 hours of preparation.

Summary

Johnny Appleseed is not your typical entrepreneur, but he was nevertheless very successful. He was a man of his own mind; he did what he loved, he was ingenious, generous and loved by all. His life made a difference as he changed his world. If you follow those same life principles, you too will make a difference in your world.

What specific attributes of Johnny Appleseed would you like to further develop in your own life?

Joe Plemon, a retired engineer, financial counselor and blogger, lives in Southern Illinois with Janice, his wife of 39 years.

Add/view comments on this post.

------------------------------

1 | 2 | 3 | 4 | 5 | 6 | 7

Most viewed

About these ads

Subscribe to the MONITOR and get 19 FREE ISSUES!

CSMonitor.com on Facebook

Inside CSMonitor.com:

2012 Westminster dog show: some viewers barking over 'Best in Show' choice

The Pekingese, which won Best in Show at the 2012 Westminster dog show, is adorable to many. Some view the waddling ball of fur as a wonder of nature. Others ask, is that really a dog?
Global News Blog: Russia's islands of media freedom are under attack
Ugandan minister raids gay-rights workshop
Global News Blog: Knicks fans in Taiwan? Yes, thanks to Jeremy Lin.
Why military hawks are leading drug legalization debate in Latin America

About these ads

What happens when ordinary people decide to pay it forward? Extraordinary change. See how individuals are making a difference...

Charlie Weingarten pictured during a Common Threads cooking class in Los Angeles. The program, one of many projects started by Mr. Weingarten, aims to teach children to love healthy cooking and eating.

Charlie Weingarten finds fresh ways to champion selfless acts of philanthropy

A member of a philanthropic family founded Explore.org to inspire selflessness and lifelong learning.