TEMPORAL
PREPAREDNESS
PART 2
Self Reliance
Doctrine & Covenants 83:1-6
1. You
2. Family
3. Church
(President Spencer W. Kimball, C.R., 1977)
So much of our time is ironically
devoted to learning and marketing
perishable skills that will soon
become obsolete. It isn’t just the
morticians who will have a
vocational crisis in the next world
(Elder Neal A. Maxwell, “’In Him
All Things Hold Together,’” 104).
The Lord declared: “Organize yourselves and prepare
every needful thing…” (D&C 88:119).
President Kimball taught: “This involves the wise
planning of financial matters, full provision for personal
health, adequate preparation for education and career
development, and giving appropriate attention to home
production and storage” (Ensign, Nov. 1977, 78).
Temporal preparation involves five main areas:
Financial and resource management, physical health,
education, career development, and home production.
Area #1:
Financial and Resource Management
A daughter once asked her father, “What shall I look for in a
potential husband?” The wise father replied, “Find a man of
God that has a job.” Similarly we could tell young men, “Find a
righteous daughter of Zion who knows how to manage a
home.”
More than 900,000 people go bankrupt in the United States
each year. Of those who go bankrupt, 80% will be in financial
trouble again within 5 years. Regarding bankruptcy, Elder
Ashton counseled: “Bankruptcy, should be avoided, except only
under the most unique and irreversible circumstances, and then
utilized only after prayerful thought and thorough legal and
financial consultation” (Elder Marvin J. Ashton, One for
the money: Guide to Family Finances).
Money Management tends to be a leading cause of
conflict in marriage. It ranks first or almost first in
virtually every study.
It is one of the leading causes of divorce.
It seems that, for some, it is “marriage for time and all
eternity….or until debt do us part !”
But, as Elder Marvin J. Ashton noted: “these marriage
tragedies are not caused simply by lack of money,
but rather by the mismanagement of personal
finances” (ibid).
Problems sometime arise because couples failed to discuss
finances at all. Other times couples struggle because they
enter marriage with unrealistic expectations about how much
money they can expect to earn and how much things will cost.
Some couples have difficulty because they fail to create and
follow a budget or because they overuse credit. At other
times, conflict arises because of differences in economic
philosophy.
For example, if one spouse believes that money should be
spent to make life enjoyable today, and the other believes that
money should be saved to provide security for the future,
there is likely to be some conflict.
Studies seem to suggest that most of
these conflicts arise over one of three
questions:
1. What will the money be spent for?
2. Who decides how it will be spent?
3. How much should be spent?
10 Laws of Effective Money
Management
Law 1: Pay an Honest Tithing:
• Paying tithing is one of the important ways we show we are
“seeking first the kingdom of God.” For many of you there is
no question about whether or not you will pay tithing. You have
firmly established that pattern in your lives. As soon as you get
paid, let the first check you write be for tithing.
• President Tanner said: “I wonder if we realize that paying our
tithing does not represent giving gifts to the Lord and the
Church. Paying tithing is discharging a debt to the Lord. The
Lord is the source of all our blessings, including life itself ”
(ibid, 69).
In reality tithing is not so much a question of money as it is a
question of faith.
President Spencer W. Kimball commented: “There are people
who say they cannot afford to pay tithing because their
incomes are small. They are the people who need the
blessings of the Lord [the most]! No one is ever too poor
to pay tithing, and the Lord has promised that he will open
the windows of heaven when we are obedient to his law.
He can give us better salaries…more judgment in
spending our money…better health…[and] greater
understanding so that we can get better
positions…However, if we like luxuries or even necessities
more than we like obedience, we will miss the blessings
which he would like to give us” (TSWK, 212).
Law 2: Develop and Live Within a Budget:
President Tanner counseled us to: “Develop and live within a
budget… Many people think a budget robs them of their
freedom. On the contrary, successful people have learned that a
budget makes real economic freedom possible” (ibid, 70).
Following a budget takes discipline and commitment.
There are six steps to developing a budget.
First, determine your monthly income.
It is very important that you know, as closely as possible, what your
monthly income will be. Be sure you account for taxes and other
withholdings, such as insurance.
Second, analyze your past expenditures to see where you money
is going and how much is being spent. Without this information,
your budget will only be a guess. You can use your checkbook to do
this. The biggest challenge with this step comes when we spend cash
for something. Get used to recording cash expenditures. You need to
keep track of them. Otherwise, your budget will fail.
Third, determine your fixed expenses. Fixed expenses are those
that are the same every month. These may include your rent or
mortgage payment, car payment, and other fixed loan payments. List
these by category.
Fourth, determine your flexible expenses. Flexible expenses are
those that vary from month to month, such as food, clothing, gas, etc.
These expenses are the ones that can most easily be adjusted, if
necessary, to make a budget work. List these by category. Often the
money allocated to these categories can be decreased as you develop
skills such as home and car repair, gardening and canning.
Fifth, add your fixed and flexible expenses.
Compare this total to your monthly
income. If the total exceeds your monthly
income, then reduce your flexible
expenses. If the total is less than your
monthly income, then you are in business!
The extra should be saved to help you
meet your long-range budget goals and to
protect you in the event of an emergency.
Sixth, use good follow-through and maintenance procedures.
Once your budget is established, keep track of all expenditures. Write
down everything you spend. Keep all receipts. This is also important
for tax purposes. Keep tax records for at least 7 years. Keep you
checkbook balanced. Most people find it helpful to set up their
budget on a spreadsheet in which a running total is kept for each
budget category. That way, you will always know how much money is
left in each category.
Monitor your budget and adjust it, if necessary. If you find you have
not budgeted enough money in a category, increase the amount in
that category by taking money from another category that has been
underused. Remember, a budget is only helpful if you follow it! Your
budget becomes your financial plan of action. Be sure you include
such items as savings, health insurance and life insurance. President
Tanner said that “every family should make provision for proper
health and life insurance” (ibid, 70).
Law 3: Save Some Money Every Month
In the United States, for every one hundred people who reach age
sixty-five, only five can retire without some form of assistance from
government or family. Some who do plan for retirement, fail to take
inflation into account. So, by the time they retire, their money does
not have the same buying power that it once did. A savings plan that
is started early and added to consistently will grow to sizable amounts
in the future. For example, if you invest an equal amount every year
from age 25 to age 65, your savings will be worth approximately 440
times the annual investment you have made. That means if you saved
$10 a month, by age 65 you would have accumulated $52,800. If you
saved $25 a month, you would have accumulated $132,000 by age 65.
Some common deterrents to saving money include not following a
budget, buying on impulse, and buying on credit. Avoid these pitfalls.
Elder Ashton counseled: “Save and invest a specific percentage of
your income. Liquid savings available for emergencies should
be sufficient to cover at least three months of all essential family
obligations” (ibid, 67).
Law 4: Work Toward Home
Ownership
Elder Ashton counseled: “Buy the type of home your income will
support. Improve the home and beautify the landscape
throughout the period you occupy the premises so that if you
do sell it, you can use the accumulated equity and potential
capital gain to acquire a home more suitable to family needs”
(ibid, 68).
Elder L. Tom Perry said: “Take the opportunity to compute how
much you would add to your personal net worth if your home
mortgage was only for ten or fifteen years instead of thirty.
Compute the value of sweat equity if your time and your
talents are invested in adding to the size and comfort of your
home” (ibid, 208).
Suppose you wanted to buy a home and were trying to decide
whether to have a 15-year loan or a 30-year mortgage. How would
your overall cost compare, if you borrowed 100,000 at 10% interest?
On a 15-year loan, your monthly payment would be $197 more than
on a 30-year loan. But, after five years of a 30-year loan, you would
still owe $96,576 compared to $82,316 with a 15-year loan. After
ten years of a 30-year loan, you would still owe $91,000 compared
to $50,576 with a 15-year loan. After fifteen years of a 30-year loan,
you would still owe $82,000 compared to owing nothing with a 15year loan. The home would be yours. With a 30-year loan, the
actual cost of your home is approximately triple your initial cost!
The older you get, the more important it becomes to not get into a
long-term mortgage.
President Benson counseled: “If you must incur debt to meet the
reasonable necessities of life-such as buying a house…then I
implore you, as you value your solvency and happiness, to buy
within your means. Resist the temptation to plunge into
property far more pretentious or spacious than you really
need” (The Teachings of Ezra Taft Benson, 289).
Law 5:
Prepare For Less Prosperous
Times
Elder Perry pointed out that “careers are ever
changing…Young people entering the work force today will
have major career changes maybe three or four times during
their work life. Job changes will occur even more
frequently, even ten to twelve time during a life’s work cycle.
I know of no other way to prepare for these time of
adjustment than to be certain that during times of
employment, preparations are made for less prosperous
times, should they occur. Start now to create a plan if you
don’t already have one, or update your present plan” (ibid,
208).
Law 6:
Get a Year’s Supply of Food
The leaders of the Church have counseled us for decades to get a
year’s supply of food. One question we might ask is: “Should I go
into debt to get a year’s supply of food?” President Benson
answered: “You do not need to go into debt to obtain a year’s
supply. Plan to build your food supply just as you would a
savings account. Save a little for storage each paycheck. Can or
bottle fruit and vegetables from your own gardens and orchards.
Learn how to preserve food through drying and possibly
freezing. Make your storage a part of your budget. Store seeds
and have sufficient tools on hand to do the job. If you are
saving and planning for a second car or a television or some
item which merely adds to your comfort or pleasure, you may
need to change your priorities. We urge you to do this
prayerfully and do it now. I speak with a feeling of great
urgency” (Ensign, Nov. 1980, 33).
Law 7:
Be Honest
President Tanner said: “Be honest in all your financial
affairs. The ideal of integrity will never go out of style.
It applies to all we do” (ibid, 70). Being honest means paying
our financial obligations.
President Tanner told the following experience:
“A young man came to me not long ago and said, ‘I made
an agreement with a man that requires me to make
certain payments each year. I am [behind], and I can’t
make those payments, for if I do, it is going to cause me
to lose my home. What shall I do?’ I looked at him and
said, ‘Keep your agreement.’ ‘Even if it costs me my
home?’
“I said, ‘I am not talking about your home. I am talking
about your agreement; and I think your wife would
rather have a husband who would keep his word, meet
his obligations, keep his pledges or his covenants, and
have to rent a home than to have a home with a husband
who will not keep his covenants and his pledges.’
“I don’t know whether everyone here agrees with me or
not; in fact, I am wondering. There are too many today,
I feel, who are prepared to take the easy way out of
paying their debts by not paying them and take whatever
action is necessary to keep them free. It is important,
brethren, that we keep our pledges and our covenants
and keep our name good” (C.R., October 1966, 99).
Law 8:
Become Knowledgeable
Consumers
Most families spend 50-60% of their income in 3 or 4
areas: food, taxes, insurance, and transportation.
It would be wise to study these areas and to find ways
to save money and get the most for your money.
Learn what things can be deducted for taxes, which
kinds of insurance are really the best buys, how to fix
your own car etc.
Law 9:
Teach Family Members the
Importance of Work and Managing Money
We work hard to give our children music lessons and swimming
lessons and sports skills. Yet, we rarely teach them money
management. Children need to understand the financial
pressures on a family. They need to know why they can’t have
everything they want, even if you could afford it. Children can
help contribute to family welfare by helping control
expenditures like remembering to turn off the lights when not
in the room, for example.
Elder Marvin J. Ashton said:
“One of the greatest favors parents can do for their children is
to teach them to work… I believe children should earn their
money needs through service and appropriate chores. Some
financial rewards to children may also be tied to educational
effort and the accomplishment of other worthwhile goals. I
think it is unfortunate for a child to grow up in a home where
the seed is planted in the child’s mind that there is a family
money tree that automatically drops ‘green stuff ’ once a week
or once a month…Children should be responsible for the
financial decisions affecting their own money and suffer the
consequences of unwise spending…Teach children to
contribute to the total family welfare” (ibid, 68).
Law 10:
Make Wise Investments
If you have money to invest you should recognize that every
investment represents a trade-off between risk and return. If you
have only small resources, safe investments such as saving accounts
are probably the best. On the other hand, if you have more
resources to invest, you can probably try investments that are a bit
riskier, yet still have excellent likelihood of preserving your principal.
As a general rule, you should not invest more than you can afford to
lose. Also, it is best to diversify. That is, invest in a variety of things
so that if one investment loses, you have not lost everything. Don’t
invest in something that does not make good business sense. If it
sounds too good to be true, it usually is. It is also wise to be careful
from whom you seek investment counseling. Just because a friend,
neighbor, relative, counselor, or Church leader recommends it,
doesn’t mean it is a good investment for you, or anyone else for that
matter. Many have experienced financial disaster because they
trusted the person promoting the investment rather than examining
carefully the investment itself.
Perhaps the first investment every
Church member should make is a good
food storage program. There is great
security knowing that no matter what
happens, you will always be able to feed
your family. A home is usually a good
investment. Home ownership often
provides considerable tax savings.
Monthly payments also remain constant,
whereas rent payments may go up yearly.
Area 2:
Physical Health
The second major area of temporal preparation is physical health.
The demands of life, including the demands of raising a family are
significant. It is essential that we do all we can to maintain good
physical health.
This area of personal preparedness could be summarized in five ways:
FIRST, we should obey the Word of Wisdom and eat healthy foods.
SECOND, we should get regular exercise.
THIRD, we should get sufficient sleep.
FOURTH, we should seek adequate medical and dental care.
FIFTH, we should keep our home and surroundings clean and sanitary.
Learn all you can about health, nutrition, and exercise. Learn how to
properly clean and maintain a sanitary home environment.
In choosing a spouse, my mission president gave me advice in three
areas:
1.
Find out how she treats her parents. He said she will likely treat you
much the same way.
2.
Find out how she is with children. You need to be sure she will be a
good mother.
3.
And find out how she keeps her room. She will probably keep your
home like she keeps her room.
Area 3:
Education
“The glory of God is intelligence” (D&C 93:36).
Education has always been an important matter in
the Church. God knows everything because he
applied himself to learn it. All of us should
improve our ability to read, write, and do basic
math. In addition we should take advantage of
opportunities to gain more knowledge and better
our skills. For many that means going to college.
President Gordon B. Hinckley said:
“Be smart about training your minds and hands for the
future…You have an obligation to make the most of your
life. Plan now for all the education you can get, and then
work to bring to pass a fulfillment of that plan. You live in
a complex age. The world needs men and women of
ability and training. Do not short-circuit your education.
I am not suggesting that all of you should become
professional men. What I am suggesting is this: whatever
you choose to do, train for it. Qualify yourselves…
Regardless of the vocation you choose, you can speed
your journey in getting there through education. Be
smart. Do not forfeit the schooling that will enhance your
future in order to satisfy your desire for immediate,
fleeting pleasure” (Ensign, Nov. 1981, 40).
President Hinckley also noted: “The world into which you will
move will be terribly competitive. You need to increase your
education, to refine your skills, to hone your abilities so that you
may fill responsibilities of consequence in the society of which
you will become a part” (Ensign, May 1992, 71).
Bishop Victor L. Brown said: “At whatever level our children
complete their formal schooling, they should have learned how
important excellence is in all they do. There is always room at
the top in any enterprise, and it is always crowded at the bottom.
It doesn’t matter what the field of endeavor – plumber, doctor,
teacher, lawyer, farmer, carpenter, [homemaker, pre-school
teacher], whatever – if our children learn early in lives that they
should do their very best, they will be…better prepared
for…life” (Ensign, Nov. 1982).
The Brethren are certainly good examples of this. Before their calls,
of those we sustain as prophets, seers, and revelators five were
businessmen, four were educators, two were attorneys, one in public
relations, one in publishing, one was a heart surgeon, and one was a
nuclear engineer. They represent a wide range of professional
interests. Each excelled in his chosen field.
But, it is certainly not just men that are encouraged to develop their
minds and further their education.
Elder Russell M. Nelson said: “Opportunities for development of
spiritual and intellectual potential are equal. Masculinity has no
monopoly on the mind, and femininity has no exclusive
dominion over the heart…A wise woman renews herself. In
proper season, she develops her talents and continues her
education” (Ensign, Nov. 1989, 21).
Area 4:
Career Development
This area, of course, involves becoming skilled at whatever
work you choose through appropriate and adequate
education and skill training. Training and education do not
end when we graduate from college. It must continue
throughout our careers. We need to keep our skills and
knowledge current. This area also includes learning to be
diligent, hard working, and trustworthy. We must be sure
that we always give an honest days’ labor for a day’s pay.
As Elder Perry suggested, many people change careers
over their lifetime, so in some cases, career development
involves learning a new skill or developing new abilities.
Like any major decision, the choice of a career needs to be
made after much thought, prayer, fasting, and studying
things out. Talk to those who can help.
Area 5: Home Production and Storage
In this area, we prepare ourselves by learning how to
produce, use, store, and prepare food and other items that
are essential to life. Where possible, we should store a
year’s supply of the basic items needed to sustain life.
Families could begin by storing the food that would be
required to keep them alive in case they did not have
anything else to eat. Depending on where they live, these
basics might include water, wheat or other grains such as
corn or rice, legumes (dried beans, peas, lentils), salt, honey
or sugar, powdered milk, and cooking oil. Where storing a
year’s supply is not possible, families should store as much
as they can.