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| Go To The Ant, Thou Sluggard! - Save for the Future |
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6:6 Go to the ant, thou sluggard; consider her ways, and be wise:
God said it...not me! So what can we learn from the ant? If you read on in Proverbs 6, we read that the ant has no guide, overseer or ruler, and yet gathered her food in the harvest. The ant is a very hard working, wise species. They know they need to store enough food for the winter. Even at the risk of us coming along and stepping on them!
Ants work hard to build and defend their nest. The worker ants begin their jobs almost immediately; to enlarge their nest, gather food and care for the other eggs. If an ant does this by instinct, how much more should we who have brains and souls prepare for the future? Yet the animals seem to have a much better handle on saving than most humans.
God's word says that the foolish servant spent everything he had, and that the wise servant went out and multiplied what he had been given. The servant was even considered foolish who "hid" what had been entrusted to him, because he did not have an increase.
Many people spend everything they make, without planning or considering the future. We just never know what tomorrow may bring. I have meet many seniors who have to continue to work past the age of 65, simply because they did not plan for retirement. We should never completely rely on Social Security. I have heard it called "Social Insecurity." (I think it was Dave Ramsey) Chances are we will be living in poverty if we solely rely on the government to meet our retirement needs.
So what should we do? Well the first rule of thumb is to never turn down free money! That is, if your company offers a 401K or 403B, take full advantage of the plan. Every financial book I have read suggest that you go for the maximum they are willing to match, for starters, and then gradually work your way up to the maximum they will allow you to put into the plan. But I would go for the maximum, if at all possible. You would be amazed at how quickly these accounts accumulate. Many companies will match $.50 on a $1, or even $1 for $1. You just can't get that kind of return anywhere else. So if your company offers any of these plans, your first step would be to sign up.
After you have taken step one, the next step would be to build up an emergency savings. A very good start would be to set aside 10% of your income for savings. Use 5% for unexpected bills, such as car repairs, and keep the other 5% in a liquid savings account. If you can't put that much aside, start with any amount, even if it is as low as 1%. But save something! And whatever you decide to save initially, set out a plan to increase your savings over time.
After you have built up a good 3-6 months income, you can start considering putting some of your savings into retirement accounts. If you qualify, the Roth IRA is quite a bargain. You pay your taxes on the money before you put it into the account. So when you are 65, you already paid taxes on the money you receive! It makes perfect sense to pay the taxes now, while you are able to work. You might want to consider putting the maximum into these accounts. Again, you wouldn't believe how quickly they multiply.
If this parable doesn't give you the incentive to save, nothing will!
19:15 When he returned, having received the kingdom, he commanded these servants, to whom he had given the money, to be called to him, that he might know what they had gained by trading. 19:16 The first came before him, saying, 'Lord, your pound has made ten pounds more.' 19:17 And he said to him, 'Well done, good servant! Because you have been faithful in a very little, you shall have authority over ten cities.' 19:18 And the second came, saying, 'Lord, your pound has made five pounds.' 19:19 And he said to him, 'And you are to be over five cities.' 19:20 Then another came, saying, 'Lord, here is your pound, which I kept laid away in a napkin; 19:21 for I was afraid of you, because you are a severe man; you take up what you did not lay down, and reap what you did not sow.' 19:22 He said to him, 'I will condemn you out of your own mouth, you wicked servant! You knew that I was a severe man, taking up what I did not lay down and reaping what I did not sow? 19:23 Why then did you not put my money into the bank, and at my coming I should have collected it with interest?' 19:24 And he said to those who stood by, 'Take the pound from him, and give it to him who has the ten pounds.' 19:25 (And they said to him, 'Lord, he has ten pounds!') 19:26 'I tell you, that to every one who has will more be given; but from him who has not, even what he has will be taken away.
If you are really in debt, or your bills are just too tight, please read my post on getting out of debt. You can save and pay your debts at the same time. It may take a lot of sacrifice, but the payoff will be well worth it in the future. And you will surely see how God will bless your efforts!
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Sue |
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September 03, 2007 at 1:06pm |
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| Carol, Thanks for sharing. I figured if this post inspired even one person, it was worth the homework and effort that was put into this. Putting off saving for the future is something so many people do and live to regret. I know one person in particular who has to work 50 - 60 hours a week just to make ends meet. And she is at the age where she should be living off of retirement. |
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| For me, saving is the toughest thing. I live off a seasonal business income and the money comes in waves. Its hard for me to find a program that works for me. Got any small business advice? |
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| 401 K's rock! Ours, Tyco, has one of the best in any buisiness. I am happy to let God use it and see it grow! |
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Deb |
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September 03, 2007 at 9:22pm |
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| Great advice Sue! Thanks! |
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| Sue, another outstanding blob. You have a lot of much needed wisdom to offer regarding finances. Keep it coming! |
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Sue |
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September 04, 2007 at 12:15am |
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Shannon, I personally use T. Rowe Price. I love the way they have no setup fees, minimum start-up investing, and lots of options. They offer a Simplified Employee Pension Plan (SEP) and 401K's. I know that there are different income brackets for different retirement plans. Here is the page on their site that is for small businesses.
http://www.troweprice.com/common/index3/0,3011,lnp%253D10264%2526cg%253D960%2526pgid%253D7622,00.html
We are blessed in that my husband works for a company that offers 403B (and Dennis, 403B rocks even more than 401K :) ($1 for $1 dude!) Back to Shannon :) I am self-employed. So we qualify for 403B, Roth IRA and SEP. We have a unique situation that benefits greatly from all of these options. And T. Rowe Price only charges $10 a year, and it is withdrawn from your account. But the returns have far out weighed the 10 bucks.
You would have to speak to a financial advisor to find out just what you qualify for and what your best options might be. T. Rowe Price can help you will all of that, right over the phone for free. I started by calling and requesting free information. |
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Glenn |
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September 04, 2007 at 2:05pm |
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Hey Sue,
Great blog and sound advise on savings. Yes 403b is an excellant opportunity. I can't believe people at my office don't take advantage of it. Whenever someone new starts working here, I plug the program right away. Even though we need to trust God in all things, he has given us a brain to use, and we need to take full advantage of the opportunities he places before us.
Thanks again,
peace
Glenn |
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