MoneyWalk #113: Insulation Against Economic Upheaval

This program will help you undo financial bondage.

Many people get laid off, receive less pay, and have their overall assets reduced during times of stock market correction, recession, and depression. One has only to review the history of the U.S. and world economies to recognize that these times will come. Yet, many people act as if they’re oblivious to the fact and others act in such a risky investment manner that they override the fact that these economic situations will arise at some point.

People in these two extremes normally engage in personal money management practices that will land them in financial turmoil at some point in their lives, especially when several of the major markets are down, such as stock and real estate. Turmoil occurs because they merrily, or so they think, continue to do things the world’s way like taking on ever increasing debt to purchase material things beyond the reach of their current income and assets. Many also fail to honor God by giving him a tithe for the spread of the gospel of Jesus Christ and the work of the ministry. At the same time, others spend all their resources on get rich quick business ventures and high-earning investment schemes marketed by people whose promises turn out to be untrustworthy.

They fail to realize that you cannot listen to anyone who tells you a specific method is successful for everyone who uses it. The only time you want to listen to such talk is when the bible says that all believers should engage in specific methods, such as tithing, not living beyond your means, forsaking debt, etc. Otherwise, the heavy concentration you make in one investment or industry will usually turn into a financial downfall for you, especially if you do not become an expert in how that market operates so you can avoid the downturns or have enough income and assets to weather them. You might even suffer foreclosure, bankruptcy, unrecoverable losses, and discomfort for a lengthy time in order to get back to the place where God wanted you to be all along.

God has done preventative maintenance by putting investment principles in the bible that help us overcome the severe effects of economic downturn. This doesn’t mean that you’ll never be touched or that you should take no risks. We know that every person will face obstacles and catastrophes in life and that all investments deal with the risk that they may not grow and you might lose principal. However, you always have a better chance of maintaining your giving, your lifestyle, and recovering losses when you consistently make two actions part of your financial plan.

First, you should diligently work to get out and stay out of debt by regularly paying down and ultimately paying off everything from credit card debt to car loans to home mortgages. Secondly, you should diversify your assets by buying seven or eight different types of investments. These principles help you overcome the downturns that affect every investment market. Historically, down markets do not affect every industry or investment at the same time, so using these two principles allows you to be in a place where you’re not negatively affected or moved by the current economic winds. You can spend whatever income you receive to meet your needs without having bill collectors chasing you to pay debts you cannot afford. Also, you have a much greater possibility of annual asset growth when only a few markets are down at the same time because the growth of investments you have in markets that are up have an opportunity to outweigh the losses you will experience in markets that are down.

As you can see, God has provided insulation against economic upheaval, but you must do your part to employ His plan so you are always able to come out ahead no matter what obstacles are thrown in front of you.

Please pray for this ministry and email any questions. May God bless you richly as you follow His plan!!!
Deuteronomy 28:12, Ecclesiastes 11:1-2, Acts 6:3, Romans 13:8
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