saving – Moment to Moment (Bible blog)

America is a very credit driven society. Japan, where I live, is much less so.

One of the major cultural differences I’ve found here is that at grocery stores and supermarkets, the usage of credit cards is quite minimal. Probably 99% of the people actually use cash. (Which makes for faster lines).

There are, of course, downsides to using cash all the time, particularly when we think about the safety of carrying around a bunch of cash with you wherever you go.

But in Japan where the crime rate is pretty low, it’s a common practice. I would never have thought to carry around as much cash as I do here in Japan while I was living in the States.

Just glancing at a report on the internet (somewhat dated, it was written over 10 years ago), the average American made 60 credit card transactions per year. The average Japanese made 4.

I suspect this has gone up somewhat in Japan if only because of some Japanese companies (such as my cell phone company) that charge customers’ bills to their credit cards every month, as well as the growth of internet shopping.

It also pointed out (and I’m pretty sure this hasn’t changed much) that 90% of Japanese customers pay their entire credit bill at the end of the month while only about half in the United States do so.

This is not to say that the Japanese save any more than the Americans. In fact, the Japanese save less. Americans save 4.3% of their income, the Japanese only 2.3 percent.

What’s my point? Both cultures need to be more wise in how they use their money.

One problem with credit cards is that we tend to spend money that we don’t have, which is why Americans are not paying their full credit card bill at the end of the month and are incurring interest charges as a result.

More than that, far too many people are forced into bankruptcy because of their reckless spending.

That’s why Solomon writes,

The plans of the diligent lead to profit as surely as haste leads to poverty. (Proverbs 21:5)

How often do we get into trouble because we see something we want and instantly move to gratify our desires, not thinking about the financial consequences?

How much financial pain could we save by taking some time to think through our financial decisions before spending our money?

Solomon adds,

In the house of the wise are stores of choice food and oil, but a foolish man devours all he has. (Proverbs 21:20)

In Japan, we have less trouble spending what we don’t have. Our problems is we spend too much of what we do have, not looking toward the future.

How about you? Are you looking toward your financial future, or only looking to gratify your desires for today?

Are you spending more than you actually have and putting yourself in a pit of financial debt that you may never be able to climb out of?

Or are you spending too much of what you do have, not thinking towards your future?

As stewards of the money God has given us, let us be wise in how we use the resources he has given us.

Being secure financially

I’m definitely not one to talk about how to improve your finances. My family’s doing okay, but we’re definitely not rolling in green or anything, so I feel a little weird talking about financial matters.

But Solomon does, so here we go.

There’s lots of financial advice in the Proverbs, and two pieces of advice are found in these verses.

One is not putting up security for another person, particularly when it comes to loans.

This is a pretty tough one, particularly in Japan. Real estate agencies always ask for a guarantor when renting an apartment, and immigration also asks for one when someone wants to stay in Japan.

The question is, does this passage mean we should never put up security for someone? My answer would be no.

However.

It is never wise to put up security for someone if you don’t have the financial resources to pay if they default.

If God has blessed you with financial resources, and it would not hurt you financially if you actually have to pay, then I would say to go ahead and do it, if God so leads.

But if you don’t have the resources to pay if they default, you should tell the person, “I’m sorry. I like you. I trust you. But you don’t know the future and neither do I. And if something happens to you, and I have to pay, then I’m going to be dead financially.”

I think the principal is the same for investments as well. I have some mutual funds (I wish I had more), but if they get wiped out, it won’t kill me financially. It’ll hurt, but it won’t kill me.

But if we put all our money into investments that go sour, then we’re dead. So don’t invest more than you afford to lose.

The other advice Solomon gives is mere common financial sense. Unfortunately, not everyone follows it. Namely, work as long as you can, and make sure you save up for your future.

In Japan, we have people called “freeters.” Basically, these are people without stable jobs.

Some of them are that way because of their low education, while others simply don’t want to work so much. I’ve read of some “freeters” that get a job, make some money, quit, and when the money runs out, they find another job.

But Solomon says of such people,

Go to the ant, you sluggard; consider its ways and be wise! It has no commander, no overseer or ruler, yet it stores its provisions in summer and gathers its food at harvest.

How long will you lie there, you sluggard? When will you get up from your sleep?

A little sleep, a little slumber, a little folding of the hands to rest — and poverty will come on you like a bandit and scarcity like an armed man. (Proverbs 6:6-11)

In other words, to live that way is very short-sighted, and it will impoverish those who live that way in the end.

But just as importantly, it’s dishonoring to God to waste the skills and talents that he has given you. And he will call you to account for it on judgment day.

So the two pieces of financial wisdom for the day:

Don’t put up security for someone when you don’t have the financial resources to back it up, and don’t invest so much of your money that you would lose everything should things go sour.
Work while you can, and save for your future.