Economic Uncertainty

You know, we’ve been experiencing tremendous volatility in the stock market over the last 12 months. This is not the first time. I remember in 1987 when the market declined 22% in one day and 36% from its high point in just a few months.

These are not new times in terms of stock market volatility, but they appear to be new to each of us as we experience something that feels different and feels threatening.
I know this – that the greatest barrier to faith is fear. When we experience economic volatility, there is naturally a fear that develops. The only way to overcome that fear is to go back to God’s word and ask, “What does God think about this?” Is He surprised? I don’t think so!

I’ve been asked on a lot of radio shows and television shows what would I tell people in times like this. I say the same thing whether the markets are in a crisis situation or doing really well. There are really only 5 foundational principles to money and money management in God’s word. One: live within your income – do you have a budget and are you spending less than you earn? Two: are you avoiding the use of debt and using it wisely when you do? Three: do you have emergency fund savings? Emergency funds are so important so that you can protect yourself in a catastrophe. Four: do you have some long-term goals so that you are organizing your financial life around some set of priorities? The final principle has to do with your belief system. Do you believe that God owns it all? If He owns it all, that means that I am a steward, a trustee, and a manager. And ultimately, even if I lost it all, it is ok because it is His. Now, I don’t suggest that we are on the brink of losing it all as a nation, by any means. As a matter of fact, I think that if Christians will follow those five fundamental principles, they are in the best position to take advantage of tough economic times.

If a believer has not followed those five principles in tough times, there is only one way out. You can begin now to reduce spending, live within income, get rid of your debt, build your savings, and set some priorities on your spending.

This should be not a time of fear, but a time of faith. The world has a right to look to you and I as Christians and say, “why are these people not afraid?” And the reason we’re not afraid is that we’ve managed our money well up to this point, we understand that God owns it all and that we are just stewards of what He’s given us, and we know that He is in control of the markets. I don’t have any control over markets.

Recently, I was asked in a radio show, “what is the key economic indicator that you look at?” My answer was that I look at my own checkbook because it is the only thing that I have control over. I have no control over inflation, deflation, stock market declines, trade balances, etc., but I do have control over how I spend my money.

My encouragement to you is to go back to God’s word and renew your faith because He is the God who is in control. Faithful is He who called you, and He will bring it to pass