Common Cents Issue #1 April 22, 2020
First, I wanted to let you know what I believe and where I am coming from. I believe that God created the world and that He owns everything. He has appointed us, as human beings, to be the caretakers or managers. We are to care for the animals, minerals, and everything else God has made.
Individually, He has placed specific skills, places, and opportunities under our care. We are to use those skills, resources, and opportunities to provide for ourselves, our families, and for those who are unable to provide for themselves. We are to give God the glory for allowing us to do that. That is why we are here. That is our purpose. Practically speaking, we are to use the resources wisely.
Several of you suggested that I address the current crisis. Dave Ramsey, and just about every other financial expert, emphasizes the important of having an emergency fund so that when emergencies occur, they are not emergencies. Dave says that every family should have $10,000 in the bank to be able to weather storms. The storms may be loss of job, an injury, or your furnace breaking down. What is unusual now is that everybody on the planet is facing the same emergency.
I was reminded this week of the children’s story of the three little pigs. One pig built his house out of straw, one out of sticks, and one out of bricks. When the big bad wolf came, he blew down the houses made of straw and sticks but was unable to blow down the one made out of bricks. The pig that took the time and energy to build a strong house was protected from the big bad wolf, or this case, the big bad virus.
So, what about those living in straw houses? Without resources or a plan? In the story of the three little pigs, the pig with the brick house welcomed the other pigs into his brick house and saved them from the wolf. If we have strong resources, we need to look out for those that don’t. We need to take care of each other.
Personally, I’ve also noticed that our expenses have dropped significantly this month. No more eating out, I still have a full tank of gas from when I filled up five weeks ago, and of course, no shopping. It is also good to remember that this is a very temporary situation, a few months at the most. If you can only pay the minimum on your credit cards, that is OK, just catch up as soon as you can. The credit limit on credit cards is like a line of credit at a bank and should be used only in emergencies. This may be the time.
All of this applies to businesses as well as individuals. Strong businesses are able to weather a few storms. The weak ones will crumble at the first strong wind. If you have employees, you need to have cash or at least a line of credit to keep paying them for a few months, until the income starts flowing again. My uncle owned a hardware store that was destroyed by a tornado. He built a new building on the same lot, restocked the store and kept all of his employees. The insurance paid some of the loss, but mainly he was prepared for some sort of emergency.
We will get through this and come out the other side stronger and more prepared for the next emergency, whether it be a tornado, a fire, auto accident, or another pandemic.
