Surviving on a Pastors Salary

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Surviving on a Pastors Salary

• By G. Edward Reid

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www.adventiststewardship.org
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• The way you manage your money has a
• great deal to do with
• Your personal happiness
• Your stress level
• The quality of your family life
• The stability of your marriage
• And your success in ministry

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• 85 percent of pastors have not been taught Gods
  way of handling money and are facing personal
  financial challenges.
• Financial problems are the number one reason
  pastors leave the ministry.
• Crown Financial Ministries
• Money Matters, January 2003

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• Pastors Conference
• Crown Financial Ministries
• Church Personal Finances
• Charlotte, NC
• Tuesday January 28, 2003
• 830 a.m. 430 p.m.
• 75 registration fee
• Over 300 worth of books given to each registrant
• www.crown.org/conferences
• 800-722-1976

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• It would not take a genius to figure out that
  the devil would like to see everyone of these
  areas of your life messed up. And in many cases
  he has been quite successful at this!

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• You must either live within your income or your
  creditors will eat you alive!
• He who rides a tiger cannot dismount.
• From a financial perspective, that tiger is
  debt. Debt and its resulting bankruptcy have
  drastically changed the American financial
  picture.

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• In addition to Enron, Worldcom, Tyco, United
  Airlines and many other corporate giants, on the
  level where we live, things dont look much
  better.

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• Personal or family bankruptcy rate at an
  all-time high
• In 2001 27,000 personal bankruptcies in the
  U.S. every week
• 1.4 million families went under threw in the
  towel

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• Though under the provisions of the U.S.
  Bankruptcy Code, bankruptcy is an option to those
  who are up to their ears in debt, and it is not
  without serious consequences.

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• 3 Problems with
• Declaring Bankruptcy
• Poor Christian Witness Ps. 3721 The
  wicked borrows and does not repay.
• Negatively impacts your credit rating
• Negatively impacts your reputation due to the
  reflection on your management competence and
  moral integrity.

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• Why do people have money problems???

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• 3 main reasons why people have money problems
• and likely in the following order in frequency

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• Ignorance many people/couples
  are financially illiterate.
• They were simply never taught the Biblical
  principles of money management.
• There is hope for these people!!! But you dont
  learn this at the Seminary.

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2. Greed and Selfishness they live beyond
their means. They are not willing to live in,
drive, or wear what they can really afford. Many
of these people also feel they are just too poor
to tithe. Consequently, they live their lives
without Gods promised wisdom and blessing.
(Prov. 35-9)
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• An Unfortunate Tragedy
• -a serious illness without adequate insurance
• -being abandoned by a spendthrift marriage
  partner
• -a natural disaster
• -a major financial loss not of your own doing

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• Enough about the problems!
• What can YOU do to experience financial freedom?

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• Learn all you can about money management and the
  practice what applies to your family situation.
  Read books, attend seminars, talk with those who
  know whats going on.
• Pray for Gods wisdom and blessing (Prov.
  35-9)
• Ask God to transform your heart from selfishness
  to love. When we become unselfish we are ready
  for heaven. (DA 641, chap. 70 The Least of
  These My Brethren)

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7 Points to Success

• Get organized develop a budget have a plan
• Spend less than you earn determine to live
  within your means
• Save a little every pay period start with only
  50 (not just your retirement)
• Avoid debt like AIDS. Interest is one expense
  you can live without.

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7 Points to Success

• Be a diligent worker. (Prov. 2229)
• Be faithful to God. Hes given us so many
  promises (Deut. 281-14) Your family cannot
  afford to live without Gods blessing.
• Remember that this earth is not your home. Our
  management here determines our eternal destiny.
  (See Matt. 25)

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Budget Suggestions

• 1. How much is enough? 1 Tim. 66-8
• 2. What is a budget--counting the cost.
  Luke
  1428
• 3. Proper uses of money. COL 351
• 4. Where does the money go?

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• Money has great value, because it can do great
  good But money is of no more value than sand,
  only as it is put to use
• - in providing for the necessities of life,
• - in blessing others
• - and advancing the cause of Christ
• COL 351

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• Christian Education
• 1. Counting the cost--one year at a time
• What will it profit a man
• Our children belong to God
• The ultimate goal
• 2. Student loans
  Prov. 227

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• Christian Education
• 3. Finding a way
• Student initiative
• Parental assistance
• Family sacrifice--
• prudent living
• Grants and
• scholarship

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Worry-free Investments 1. Understanding
dont
Matt. 619 2. Understanding do
Matt. 620 3.
Looking for a safe place to keep money 4.
Savings versus hoarding
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Problems With Hoarding 1. Loss in a failing
economy
1 Tim 6 2. Holding the assets too long
James 51 1T 173-175 3. Cant buy or sell
Rev 317 Mark 836, 37 4. Documented
evidence of selfishness
James 51-3 Col 352

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The very means that is now so sparingly invested
in the cause of God, and that is selfishly
retained, will in a little while be cast with all
idols to the moles and to the bats. Money will
soon depreciate in value very suddenly when the
reality of eternal scenes opens to the scenes of
man. Ev 63
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The time is coming when we cannot sell at any
price. The decree will soon go forth prohibiting
men to buy or sell of any man save him that hath
the mark of the beast. 5T 152
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Hoarded wealth is not merely useless, it is a
curse. In this life it is a snare to the soul,
drawing the affections away from the heavenly
treasure. In the great day of God its witness to
unused talents and neglected opportunities will
condemn its possessor. COL352
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Some Investment Suggestions 1. High risk / low
risk 2. Where do you want to lose it? 3. Get rich
quick schemes a. Promise of high returns -
wealth b. Something new that you dont really
understand c. Must risk money you cant afford
to lose d. Make a quick decision
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The Tyranny of Debt

• 1. What is debt?
• (Prov. 227)
• 2. Bankruptcy--a Christian
• alternative? (Deut. 151)
• 3. Surety (Prov. 61-5)
• 4. Personal surety
• (6T 448 AH 393)

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• There are only two places in the world where we
  can deposit our treasures--in Gods storehouse or
  in Satans, and all that is not devoted to
  Christs service is counted on Satans side and
  goes to strengthen his cause.
• 6T448

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• The borrower is the slave of the lender.
  Prov. 227

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• Let no debt remain outstanding except the
  continuing debt to love one another.
• Rom. 138

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Debt Elimination

• Basic premise establish the tithe
• (See Prov. 3 Deut. 28 Mal. 3 Matt. 6 Matt
  25)
• Step 1 - declare a moratorium on
• additional debt
• Step 2 - make a covenant with God
• Step 3 - list your debts from largest to
  smallest

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• Freedom Through Self-Denial
• Be determined never to incur another debt. Deny
  yourself a thousand things rather than run in
  debt. This has been the curse of your life,
  getting into debt. Avoid it as you would the
  smallpox. Make a solemn covenant with God that
  by His blessing you will pay your debts and then
  owe no man anything if you live on porridge and
  bread.
• CS257

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• It is so easy in preparing your table to throw
  out of your pocket twenty-five cents for extras.
  Take care of the pennies, and the dollars will
  take care of themselves. It is the mites here
  and the mites there that are spent for this,
  that, and the other, that soon run up into
  dollars. Deny self at least while you are walled
  in with debts.
• CS257

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• Do not falter, be discouraged, or turn back.
  Deny your taste, deny the indulgence of appetite,
  save your pence and pay your debts. Work them
  off as fast as possible. When you stand forth a
  free man again, owing no man anything, you will
  have achieved a great victory. (Letter 4,
  1877)

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Additional Assistance

• 1. Establish a budget
• 2. Set goals for your family
• 3. Destroy credit cards if--
• 4. Purchase depreciating items with cash
• 5. Begin economy measures
• 6. Have a sale--inventory your possessions and
  sell off what you dont absolutely need

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• It should be our highest aim in life to get
  ready for heaven.
• 5MR 255

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Putting God First

• 1. Trusting God with all your heart
  Prov. 35-10
• 2. God is the owner of everything
  Ps. 241 5012 1 Chron. 2913, 14
• 3. Our purpose in life--to glorify God 1 Cor.
  1031
• 4. The tithe is the minimum testimony of our
  Christian commitment Mal. 36-10

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Gods Perspective

• 1. Debt is bad
  Prov. 227
• 2. Prosperity is having what you need when you
  need it
  Phil. 419
• 3. The master / servant relationship Matt.
  2514-30
• 4. Application
  Mark 834-37

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The Significance of Tithing

• 1. Tithing and the tree of knowledge of good
  and evil
  (CS 65)

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A Test of Loyalty

• The tithing system is the equivalent to the
  last-day Christian of the
• Tree of Knowledge of Good and Evil
• for Adam and Eve
• in the Garden of Eden.
• CS 65

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• There was nothing poisonous in the fruit
  itself, and the sin was not merely in yielding to
  appetite. (1) It was distrust of Gods goodness,
  (2) disbelief of His Word, (3) and rejection of
  His authority, that made our first parents
  transgressors, and that brought into the world a
  knowledge of evil.
• Ed 25

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• When we are faithful with our tithe we show God
  that we
• trust His goodness,
• believe His word,
• and accept His authority

CS 65, Ed 25
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The Significance of Tithing

• 1. Tithing and the tree of knowledge of good and
  evil
• (CS 65)
• 2. Tithing and our covenant relationship
  with God
• (Abraham, Gen. 14 Jacob, Gen. 28 Mal
  310 CS 75)

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• He who gave His only-begotten Son to die for
  you, has made a covenant with you. He gives you
  His blessings, and in return He requires you to
  bring Him your tithes and offerings.
• CS 75

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The Significance of Tithing

• 3. Failure to tithe is robbery of God
  
• (Mal. 36-12 CS 77 CS 86)

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• The evasion of the
• positive commands of God
• concerning tithes and offerings,
• is registered in the books of heaven
• as robbery toward Him.
• CS77

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• To defraud God is
• the greatest crime of
• which man can be guilty
• and yet this sin is
• deep and widespread.
• CS86

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• When the judgment shall sit and the books shall
  be opened, every man will be rewarded according
  to his works. Many names are enrolled on the
  church book that have robbery recorded against
  them in the Ledger of Heaven. And unless these
  repent and work for the Master with disinterested
  benevolence, they will certainly share in the
  doom of the unfaithful steward. 4T481, 482

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• Bring ye all the tithes into the storehouse
  KJV
• Bring all the tithes into the storehouse NKJV
• Not You all bring the tithes
• but
• You bring all the tithes...

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The Significance of Tithing

• 3. Failure to tithe is robbery of God
  
• (Mal. 36-12 CS 77 CS 86)

• Tithing is an act of worship (Mal. 310
  11612-14)

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• Those who go forth as ministers have a solemn
  responsibility devolving upon them which is
  strangely neglected There is great need of
  instruction concerning the obligations and duties
  to God, especially in regard to paying an honest
  tithe.
• CS 104

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• Everyone is to be his own assessor and is left
  to give as he purposes in his heart. But there
  are those who are guilty of the same sin as
  Ananias and Sapphira, thinking that if they
  withhold a portion of what God claims in the
  tithing system the brethren will never know it.
  Thus thought the guilty couple whose example is
  given us as a warning.
• 4T 469

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If ministers give themselves wholly to the work
of God, and devote all their energies to building
up His cause, they will have no lack. As regards
temporal things, they have a better portion than
their Lord and better than His chosen disciples
whom He sent forth to save perishing man.
-Testimonies, vol. 2, p.345
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Offer unto God thanksgiving and pay thy vows
unto the most High And call upon me in the day
of trouble I will deliver thee, and thou shalt
glorify me. - Psalm 50 14,15 I
have been young, and now am old yet have I not
seen the righteous forsaken, nor his seed begging
bread. - Psalm 3725
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Current Market Situation Current market slump
as of July 19, 2002 Nasdaq, 74 below its
peak S P 500 down 45 Dow Jones industrials
off 32 -MONEY, September 2002
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What has caused the problems? Human nature
dictates that greed and fear battle for the soul
of the investor. Throughout the 90s, greed won
handily. Buyers of stock abandoned common sense
and were rewarded for doing so if owning one
profitless pet-products-by-internet stock was
good, owning two was better. -
MONEY, September, 2002
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• Why Problems? (Cont.)
• Corporate greed
• Investor greed
• Competition among market managers
• Auditor dishonesty and greed
• Unrealistic Expectations P/E ratios
• Baptist Foundation of Arizona
• Greater Ministries
• Corporate scandals
• Lack of Confidence
• Terrorism 9-11

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• Points to remember
• From 1926 to 2000 the stock market returned an
  average of 11 per year. Trying to top
• that average is what causes high risk.
• With so many conflicts out there, putting all
  your faith in a single person or source is a
  recipe for disaster.

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How to get started Accept responsibility for
your finances. Get educated read books,
newsletters, magazines. Seek counsel from
others. Write down your needs and goals. Be
diligent in laying the foundation. Seek Gods
wisdom and blessing throughout.
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There are four levels of financial fitness The
first level Getting debt free - This is the
only proper foundation - Develop your spending
plan - Use credit and credit cards properly -
Pay off your house
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Keep this truth in mind No investment is as
secure as a repaid debt. Putting your desire to
invest ahead of repaying your debt obligations is
usually a sign of immaturity, not financial
sophistication. Pryor, p. 36
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The second level Saving for future needs. -
develop an emergency savings fund - develop an
accumulation fund for future purchases or
expenditures (taxes) - develop a plan for your
childrens education
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• The third level of financial fitness
• - Investing your surplus
• - Learn about the various types of investments
• -lending investments
• -ownership investments
• Spend time learning about mutual funds
• - Understand the tax consequences

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The one fundamental rule of investing that you
should never, ever forget is The greater the
return being offered, the greater risk youre
taking. (This is always the case whether
those making the offer tell you or not, whether
its obvious or not, and whether you know it or
not.)
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• There are only two basic choices with
• investing
• The investments where you become a lender
  savings accounts, CDs, corp. bonds, government
  bonds, state and local bonds, annuities. you
  get a fixed return.
• The investments where you become an owner
  stocks, mutual funds, real estate, precious
  metals, farmland you make money if the value
  goes up or the company is successful.

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The fourth level of financial fitness -Diversify
ing for Safety -Understand investing, know what
you want to accomplish, set goals. -Spread out
the risk.
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• Determine your investment needs and stage
• in life.
• Laying the foundation runs into the 40s.
• Accumulating assets your forties and 50s.
• Preserving assets your 60s and into 70s.
• Distributing assets age 75 and beyond.
• Learning years - birth to 30
• Earning years - 30 to 60
• Returning years - 60 till laid to rest

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Retirement Tips Income source
recommendations Social Security 30 -
40 401k or 403b etc. 30 - 40 Other
investments 10 15 Part-time job 10 15
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Retirement Monthly Budget Tithe and
Offerings 300 Food
400 Clothing 200 Telephone - computer
200 Utilities 150 Insurance -
house/vehicle 150 - life/medical
400 Property tax 200 Maintenance
100 Personal allowance 200 Misc.
200 Entertainment 200 Total Income needed
2,700
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• Some Investment Suggestions
• 4. Best places
• -Government backed securities
• -Church investments
• -Projects to advance Gods cause
• -Education of workers

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As the followers give back to the Lord His own,
they are accumulating treasure which will be
theirs when they hear the words Well done, thou
good and faithful servantenter thou into the joy
of thy Lord. 9T59
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• He who embezzles his Lords goods not only loses
  the talent lent him of God, but loses eternal
  life.
• 3T 387

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• They rob God of the tenth, which He claims as
  His own, and in robbing Him they rob themselves
  of the heavenly treasure.
• 3T 398

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