I want to talk about creating margin in our life this morning. Margin is when we have a little extra space that allows you to breath. It’s when I have a few extra minutes to enjoy life. Or when I have a few extra dollars beyond just paying the bills to devote to things that matter. Whether we have little of it or a lot, money has a powerful impact on our lives. And few areas of our lives can cause the stress that financial problems cause.
This morning I want to speak to you about the power of savings.
Many of us spend $1.10 for every $1 we make. The result is something breaks in our house or in our life and we are incredibly stressed out. If stress were measured like rpms of a car’s dashboard, then we would be running in the red. Now, we have all done stupid things with our money. So we need to create margin so that we have room to breathe and grow.
Later this year, our campus will encourage everyone of us to go through something called Financial Peace University. We need margin in our life to truly connect with the people we care about the most. And margin in my finances to enjoy what the Lord has given me. And adding margin will allow you to be generous with those in need. Most importantly, margin in your life allows you to truly worship the Lord. One of the most powerful tools the Lord has given us to reduce stress and anxiety in our lives is the ability to save for a rainy day. The number one complaint Americans have about our money is that we are not saving enough. In a survey completed just over the holidays, nearly one in four of us say our biggest blunder is we aren’t saving like we should be.
Find Genesis 41 and place a bookmark at Proverbs 6 also if you would with me.
Imagine yourself owning the money of a professional athlete – you’d be set, right? If you had the money from just one three or four year contract from an NFL player, an NBA player, or MLB player, you would be set for life. Consider this fact: A 2009 Sports Illustrated study discovered that 60 percent of US professional basketball players have faced bankruptcy within five years of retirement. Warren Sapp, the seven-time Pro Bowler and Hall of Fame defensive tackle, earned $82 million during a 13-year career that ended in 2007. By the spring of 2012, however, he filed for bankruptcy, even though he was still pulling in $116,000 per month at the time as a TV analyst. Other NFL players are right there along with Warren as well. The money just spilled right through these athletes fingers.
I want to tell why it’s so important that you listen to me this morning. Forbes money magazine says we have been in a bull market since March 2009. A bull market is when the economy is on the rise and we are economically sound. The average bull market is four and half years in length. Our current run is nearly twice that, nearing eleven years now. Our current run is the longest run in recorded history. We are enjoying a record long stretch where the economy is really good. Now, I am not a financial expert and I don’t even play one on TV. But everyone knows the economy works like this in a way – the financial tide comes in and the financial tide goes out. I want you and me to be as prepared as possible for when the tide goes out no matter when that is. Billionaire Warren Buffett, the Oracle of Omaha, says, “You never know who’s swimming naked until the tide goes out.”
Let’s get up to speed on Genesis 41. Joseph has been languishing in prison for two years. Remember, Joseph had been sold into slavery in Egypt through the betrayal of his brothers, and he was actually put into prison through the betrayal of his master’s wife. There in prison, he had interpreted the dreams of 2 white-collar prisoners, the chief cupbearer and the chief baker to none other than Pharaoh. The last thing Joseph said to the cupbearer, “Remember me when you’re back with Pharaoh.” But two long years went by – over seven hundred times the sun went and the sun went down. All the while, Joseph languishes in prison.
Today’s Scripture -Pharaoh Dreams
“After two whole years, Pharaoh dreamed that he was standing by the Nile, 2 and behold, there came up out of the Nile seven cows, attractive and plump, and they fed in the reed grass. 3 And behold, seven other cows, ugly and thin, came up out of the Nile after them, and stood by the other cows on the bank of the Nile. 4 And the ugly, thin cows ate up the seven attractive, plump cows. And Pharaoh awoke.” (Genesis 41:1-5).
When the Pharaoh couldn’t understand his own dreams, the cupbearer finally remembered Joseph’s ability. Joseph is called up before Pharaoh and this what he says to the most powerful man on the globe:
“Then Joseph said to Pharaoh, “The dreams of Pharaoh are one; God has revealed to Pharaoh what he is about to do. 26 The seven good cows are seven years, and the seven good ears are seven years; the dreams are one” (Genesis 41:25-26).
Joseph is like a cork, you keep pushing him down, but he’s sure to come back up!
Pick up reading the story with me in verse 33: “Now therefore let Pharaoh select a discerning and wise man, and set him over the land of Egypt. 34 Let Pharaoh proceed to appoint overseers over the land and take one-fifth of the produce of the land of Egypt during the seven plentiful years. 35 And let them gather all the food of these good years that are coming and store up grain under the authority of Pharaoh for food in the cities, and let them keep it. 36 That food shall be a reserve for the land against the seven years of famine that are to occur in the land of Egypt, so that the land may not perish through the famine.”
37 This proposal pleased Pharaoh and all his servants. 38 And Pharaoh said to his servants, “Can we find a man like this, in whom is the Spirit of God?” 39 Then Pharaoh said to Joseph, “Since God has shown you all this, there is none so discerning and wise as you are. 40 You shall be over my house, and all my people shall order themselves as you command. Only as regards the throne will I be greater than you.” 41 And Pharaoh said to Joseph, “See, I have set you over all the land of Egypt” (Genesis 41:33-44).
In just one day, Joseph goes from a forgotten prisoner to a powerful prince. Joseph was soon in charge of everything in Egypt. Joseph received authority over everything in the king’s entire household. Further, he was given financial power. He has a chariot led by an entourage of runners – a security detail. In our day, it would be a stately, black limousine where you have a drive and soldiers snap to attention on your orders.
Leave Joseph for a moment… Now, there’s four things you need to concern yourself with money. The first is work because money comes from work. Second, you can spend money and most of us are really good at this. Third, you can give money which can impact people in need. Fourth, you can save your money. We looked at finding contentment last week and today we examined the need to save. Next Sunday, we’ll look at the joy of giving.
Joseph teaches us that using money wisely is not about math but behavior. The difference between where you are and where you need to be is changing your behavior. By changing your habits, you can add margin to your life and reduce your financial stress.
Saving requires discipline. Savings require you to experience delayed gratification. Delayed gratification is a muscle each of us can grow. We delay our desires for an immediate reward to a later time when we received a greater reward. Joseph teaches us about delayed gratification. Delayed gratification is when we delay our desires for an immediate reward to a later time when we received a greater reward. Discipline and Delayed gratification are two proven methods Joseph used to save both Egypt and his people.
Joseph knows he has to act fast because the Lord has given him the supernatural ability to interpret dreams. Because of this, Joseph knows a limited amount of the future. He knows there is going to be seven years of plenty followed by seven years of draught. To prepare for this inevitability, Joseph advises a flat-tax – one-fifth of all that is grown in the land for the next seven years. The brilliance of Joseph’s “20 percent x 7 years saving plan” was at once obvious.
Why? – 3 reasons
1. It decentralized food.
The decentralization of the stored grain would, when the time came, allow for convenient distribution.
2. It made the food easy to protect.
And the storage of grain in centers of population provided for adequate protection should a panic set it when the famine grew in severity. Knowing the unpredictable behavior of people who are facing starvation and trying to cope with survival, Joseph urges that such supplies be protected from public access and possible looting.
3. It saved for a rainy day.
Everything Joseph has said turns out to be accurate. Just as Joseph planned, store cities were set aside and more crops and produce were on hand than anyone could feasibly count. God showed compassion to people who didn’t even follow Him. He wants everyone to save for a rainy day. I don’t have Joseph’s ability to interpret dreams and the Holy Spirit has not told me when the market will slow down. But any reasonable person can see that tide goes out and the tide comes in, right? Remember Warren Buffett’s little ditty, “You never know who’s swimming naked until the tide goes out.” As Noah had built the ark in preparation for a worldwide flood, now Joseph stores grain for a worldwide famine.
Years ago, I was a pastor in the Panhandle of Texas and having grown up back east, I had a lot to learn about the “flat earth” people of the Panhandle. I was sitting in the office of one of our church members. He was in oil business. Many Texans say “ahl” but you understand what I am saying when I say, “oil,” right? So I asked this man how he was successful for so many years in his business. I remember him saying to me that oil prices go way up and if you live off of everything you make when the prices are high, you’ll go bankrupt in a short amount of time. Because in time, the price of a barrel of oil when bottom out and you’ll have no money left. You have to save some of the money you made in the high times for when the price of oil dropped below when you were profitable.
Joseph’s life highlights an important principle for our lives: the Bible calls on to save for a Rainy Day. We’ve had: The Great Depression, The Fuel Crisis, The Farm Crisis, and recessions. We’ve had Black Mondays - not as much fun as Black Fridays, the Dot Com Bubble, Housing Crisis, and possibly a Student Loan crisis forthcoming. Save today so you can be as prepared as possible for when the tide goes out no matter when that is. You need to put some money back for a future day when you will need it.
Go to Proverbs 6 with me if you will.
“Go to the ant, O sluggard;
consider her ways, and be wise.
7 Without having any chief,
officer, or ruler,
8 she prepares her bread in summer
and gathers her food in harvest.
9 How long will you lie there, O sluggard?
When will you arise from your sleep?
10 A little sleep, a little slumber,
a little folding of the hands to rest,
11 and poverty will come upon you like a robber,
and want like an armed man. (Proverbs 6:6-11)
God’s Word points us to the tiniest of creatures, the ant. It’s the ant that looks ahead toward winter when it is summer. He works hard during the harvest to a time when there is no harvest. The ant plans and tacks actions for the future. The ant is your model because of his self-discipline and for his ability to think ahead.
The ant is a model of diligence. Laziness will lead to your poverty and your ruin. Laziness will arrive like an armed robber and take everything from you.
In fact, Proverbs pictures laziness like a sluggard. Maybe you don’t what a sluggard is. Picture the way syrup oozes slowly out of the bottle when it’s cold. That is a sluggard. And our sluggard needs go to the ant and take notes. Because the ant has no “chief, officer, or ruler,” yet, the ant is properly motivated even though no one is over her.
Next, the ant is hard-worker because of verse 7: “she prepares her bread in summer” (Proverbs 6:7b). You are at a Fourth of July picnic, you are relaxing, but the ants are carrying off the sugar one grain at a time, and they will be back for the rest of your food! Lastly, pay attention to the ant because the ant is paying attention to tomorrow: “and gathers her food in harvest” (Proverbs 6:7c).
The ant works today for tomorrow. She isn’t sitting idly and hoping life will go her way. She gets out ahead of the next season of life. The purpose of saving is set money aside for the future. The ant will use all that it saves. The ant will eat all that it saves. It just doesn’t eat it all right now. It saves for a future time to enjoy it. Again, this is delayed gratification.
Which Disney trip would enjoy the most? Disney on the credit cards where every ride you’re thinking about the credit cards you will have to pay over the next year with seventeen percent interest? Or, Disney where every dollar is coming from savings and there’s no guilt?
“Precious treasure and oil are in a wise man’s dwelling, but a foolish man devours it” (Proverbs 21:20). Notice it doesn’t say, “rich.” Instead, it says, “wise.” Rich people are not the only ones who can afford to save; instead, it is the wise person who saves.
Let me share with you an example that isn’t saving. This isn’t saving: Here is not a way to save money: If I buy $100 pair of jeans that are on sale for $55, I haven’t saved $45. Where is the $45? – it doesn’t exist. Money that is saved is in your wallet or in the bank.
Three Levels of Savings:
Level #1: Save for Emergencies
A good start is to put back $1,000 for emergencies. According to the Federal Reserve Board, forty-seven percent of Americans would either have to borrow or sell something when facing an emergency of just $400. This is a stressful life where you are juggling creditors. You’re afraid to go to the mailbox for fear of another bill. You screen your calls for creditors. Less than half of all American can cover a $1,000 emergency room bill or a $500 car repair bill. For some, this will next you ten months of saving $100 each month. Have a garage sale or work extra hours is possible. Do everything you can to tuck back $1,000 for emergencies. If the ant could talk, she would tell you to save for emergencies.
Level #2: Save for Replacements
Your tires are going to wear out. What happens if you lose your job this year? Shortsighted living is the walkway into living in the poor house. What happens if someone in your family has a medical emergency? Consider putting back even more as a rainy day fund.
Pew Charitable Trusts found that fifty-five percent of households didn’t have enough cash on hand to replace a month’s worth of lost income. JP Morgan Chase did an analysis of millions of Chase checking accounts and their research firm recommended 6 weeks of your take-home pay. Middle class families need around $5,000 according to their study but have only around $2,000. Again, this isn’t about math but it’s about behavior. The ant says save for a rainy day.
Joseph is here telling you saving for the economic downturn. Save now for when the bubble bursts. One of the best tools you can use is the automatic transfer from each of your paychecks into an emergency savings account. If you don’t see it, you don’t miss it. Audit what is automatically being drafted from bank accounts: gym memberships, streaming services (Disney Plus), etc.
Level #3: Saving for Retirement
Let’s talk about saving for your retirement. Do you think you’ll be able to work until the very end of your life? Perhaps you will. But what if your health gives out? What if your employer does age discrimination and lets you go at a certain age? What if the economy turns “belly up”?
Fidelity's rule of thumb: Aim to save at least 1x your salary by 30, 3x by 40, 6x by 50, 8x by 60, and 10x by 67. Some of you are really depressed after I shared those numbers!
Recent studies are showing we are not saving nearly enough to retire.I know not everyone has a 401k as some of do other means. The average 401k in America for those between the ages of 20-29 is just under $12,000. The average 401k in America for those between the ages of 30-39 is just over $42,000. The average 401k in America for those between the ages of 40-49 is just over $100,000. Lastly, the average 401k in America for those between the ages of 50-59 is just under $200,000.
You need to save for a day when you may not be able to work. You may not have the ability to work as your health maybe compromised. And if you are single, you are likely to have no one to assist you in evaluating whether you should spend your money when you are justifying the shoe purchase. Find someone who is older and wiser in your church family and ask them to help make a plan with you.
According to the census, the average household income for our area is $65,000. If you do this for 40 years, then $2.6 million will pass through your hands. Think of it: $2.6 millions dollars of God’s money will pass through your hands. I have an opportunity to use all of these items/resources for His Kingdom.
Conclusion
Imagine you are having your dream home built. Your dream home is built and you’ve picked out the perfect chandelier for your future home. Hold on that for a moment. Here at the end of the sermon, I want you to pause to think about your financial life like you are building a house. I want you to think of savings as the roof for a moment. Saving is what protects us from those famine years, from the loss of a job or the loss of our health. Saving protects us from the elements of life, we’re all too familiar with these storms. I want you to think of your lifestyle as the Interior of your home. That’s the extra stuff that goes inside. After giving, after saving - after re-orienting our hearts towards the purposes of God and then using His money wisely...then we pick out our lifestyle. But too often we do the last thing first. We pick lifestyle first, based on how we grew up or the level to which we believe we should live. Our lifestyle is set and the rest comes later.
Imagine if I walk onto a job site and you were standing on a slab with a house that is halfway done being framed and your standing there with a chandelier. It’s the chandelier you had picked out for your beautiful new home and you ready to hang it in your foyer. The contractors look at you like you’re crazy. Even if the electrical had been run, none of them are going to install it - it’s going to get rained on! I’m not going to stand behind those parts or that install, because it’s going to get ruined. Same thing we spend and spend and spend on our lifestyle without providing a roof of savings.
