Thoughts on “Giving” versus “Tithing”

Dear Jack,

I’m not sure I’ve ever been so overwhelmed with thoughts before sitting down to write you a letter.  I feel like I need to give so much context to my thoughts – my full understanding of stewardship, my idea of what it truly means that God owns it all, even my personal hermeneutics in reading the Bible.  But we don’t really have time for all of that, so I’ll fill in the gaps as needed.

What I want to address is the difference, a potentially HUGE difference, between an understanding of “giving” versus “tithing.”  My good friend Daniel brought this up concerning a previous letter I wrote to you.  Specifically, he said:

In one of your replies above, you wrote, “…giving to God is inclusive of anything he’s using to redeem the world around us (including us), of which the Church is a big part of. A distinction between give/tithe is intentionally used in this instance.”

I would be very interested in more of your thoughts on this (perhaps another post sometime?). I find “giving” much easier and more fulfilling than “tithing.” I definitely give more to non-church charities than I do to my church itself.

Also, where does “Christianly” consuming fit in to this? I try to use ALL my money in economically just ways. That’s why (for instance) I don’t shop at Wal-Mart, and support local businesses as much as I can. It’s more expensive to buy things that weren’t made in sweatshops, or have less impact on the environment. But I know plenty of people who save money at Wal-Mart and then can afford larger gifts to the church. Is one more pleasing to God than the other?

Phew… the overwhelming factor hit me again.

Daniel packs a lot into this.  As always, I want to try to simplify and examine.  First, I think we have to actually take a step back and look at the bigger picture.  As a Christian, I believe that God owns everything.  Every.  Thing.  My checking account.  My Jeep.  My student loan.  My wrist watch.  It’s all His – I’m just being a steward of it.  And when I say steward, I mean I’m just taking care of it from a temporary standpoint … figuring out how to best use someone else’s “stuff” the way that I best think they’d prefer it to be used.  This is really where any concept of “stewardship” needs to grow its roots in.

So, instead of asking “How much money should I give to God?  10%?  15%?” we need to say “God, 100% is yours.  What do you want me to do with it?”  There’s no right answer to this question – it’s completely unique to each individual and family.

Now, let’s look at what a “tithe” is.  Without getting too in depth and bringing up all of the verses (I’ll just refer to the website of another good friend and fellow financial planner – Paul) my basic understanding is as follows.  In the Old Testament, where we were under the Law, we were required to tithe (give 10%) (and then tithe on the remaining amount, and then tithe every 3 years on top of that).  Had to.  No questions asked.  It was, literally, the Law.  Fast forward to the New Testament.  Jesus Christ, the savior whispered about in every Old Testament passage, comes and dies for us so that we no longer are enslaved to the Law.  We are free.  We’re no longer required to offer blood sacrifices to cleanse us from our sins – Jesus did that.  All of the laws, the codes, the interpretations, the sacrifices required … they’re all fulfilled because Jesus died for us.  This is the gospel, in its simplicity: grace.  Undeserved, unmerited grace.

Stick with me, Jack.  So now that we’re not required to follow the Law, does that mean that we’re free to sin and to live as we please?  Paul (the apostle Paul, not financial planner Paul) says in Romans 6 “No way!  Are you nuts?  In fact, if anything, if we understand the gospel fully, we should be all the more inspired to live holy lives.” (Loose, very loose, paraphrase).  Jesus even took the Law in several places up to a new level (Think Matthew 5.21-48).  So, what on earth does this have to do with giving?

We’re no longer required to tithe – but instead are urged to do even more, because we know first hand the generosity that Jesus had on the cross.  That is why giving is so much better of a word, and one that I wish the Church would be using exclusively instead of interchangeably with tithe.  A tithe, a literal 10%, is archaic.  It’s Old Testament.  It’s Law-bound.  Is it a sin to give 10%?  No, not at all.  I’d say it’s just as biblical as giving 3% or 50%.  The number isn’t important.  The motivation and generosity portion of it is.

Getting back to Daniel’s question, I loosely defined giving as “inclusive of anything [God]‘s using to redeem the world around us (including us).”  I think this is a fair definition of the word – but it’s as good as I can think of right now.  Now we need to link some of my thoughts together: God owns everything, we are stewards of all these “things”, we’re not required to give any fixed amount, and we should be as generous as Jesus.  What does that leave us with?  A lot of freedom, and a lot of responsibility.

I think that we should be generously giving to causes that we feel God is using the redeem the world around us.  If you sense God redeeming the world through your local church that you worship with, give freely to that.  If you sense God redeeming the world through fine charities like HOPE International, donate freely to that.  If you find God redeeming the world through local business owners, purchase freely through them.

Personally, I believe whole heartedly in the leadership at our own local church, and we give a majority of our giving percentage to that.  But I also believe strongly in HOPE, Compassion International, and having designated fellowship money to invite neighbors, friends, and family over for meals.  Is setting $50 a month aside so that we have enough to invite our neighbors over for dinner found in the Bible?  Maybe, maybe not.  I certainly won’t be able to write it off as a tax deduction.  But that’s missing the point.  The point is individualized generosity.  That’s the example that Jesus gave us in the Bible, and that’s the example that we should be setting in our giving.

I’ve written enough – and my head is spinning, so I’m sure yours is as well.  My take away is this, Jack: be generous.  You’re not bound by the Law anymore.  Be a good steward of what God’s entrusted to you – and give as you feel He is directing.  Till next time, Jack.

Sincerely,
J.

“The Cramer Effect” – Kiplinger Article Review

Dear Jack,

I’m a subscriber to Kiplinger magazine, not necessarily because I learn a lot from the magazine (a bulk of their articles contradict each other and encourage short term insight) but largely because I want to know what our clients and any prospective clients are hearing – good or bad.  However, in this month’s issue, there is a simply fantastic one pager on “The Cramer Effect” (I’ll link it up once they put it online).  It’s point is that Jim Cramer, the host of CNBC’s Mad Money, has a lot of influence on his viewers, for good or for bad.  Robert Frick, the author of the article, points out seven aspects of the show that may be bad for your investing psychology, and most of these are quite intentional and obvious when identified.  I’ll list these below in italics and then write my own thoughts.

1. Ticker Overload: Ticker streams are mainly babble.  But our brains are wired to see patterns in random data, so they appear meaningful.  Plus, the ticker’s speed whips up our enthusiasm, much like the whirling wheels on a slot machine. Fascinating.  Due to recent events, recapped here, I’ve taken on a new appreciation and understanding of how our brains work.  We truly are influenced, in far heavier ways than we realize, by seemingly subtle things around us.  The ticker on the show, and on any other investing program, gets us excited, just the as the whirling wheels on the slot machine do – and when we get excited, we’re more apt to act on things (buy/sell stocks or gamble in Atlantic City).  This subconscious influence comes up several times in the following points.

2. Bright Lights, Big Noises: Casinos have long known that sounds and flashing lights generate excitement and spur people to act impulsively.  Investment decisions are best made logically, not emotionally. Similar to the above scrolling ticker, the loud sounds and bright lights that Cramer is known for setting off during his segments have a strong influence – as equal if not more than the words Cramer actually says.

3. Shoot From the Hip!: Cramer’s stock picks focus on recent events, and the recency effect – putting too much importance on the near term – blinds us to crucial long-term trends. As a financial planner, we teach our clients to focus on the long term when dealing with investments.  For anyone with a long term goal, such as retirement that’s 10 or more years out, stocks are most likely the best way to meet your goals – and picking stocks based on short term performance is a recipe for disaster.

4. It’s All About Jim: With no one on the set to challenge him, Cramer becomes the undisputed authority figure.  Authority figures hold undue sway over our opinions. I’ve stopped watching the show, after being a somewhat enthusiastic fan in college, but I never realized the truth in this point: no one ever challenges Jim.  I’m sure this is intentional, and it actually makes me think it’s a cowardly move on Jim’s part.  If he’s so sure about his picks, why not have someone challenge them?

5. He talks really, really fast: Cramer is a fast talker, and research has shown that a fast-talking broker is more successful at persuading people to invest than a broker who speaks at a slower pace. Unfortunately, in the investment world, advisors, planners, brokers, whatever you want to call them – are trained on how to sell.  And sell hard.  Most clients don’t recognize the subtle approaches to “landing the sale” but talking fast is one of them.  Clients feel overwhelmed by the overload of information, and oftentimes don’t stop to ask questions because they feel ashamed for not knowing.  In the short term, it puts ethical advisors, like our team, at a disadvantage, but in the long term doing well is accomplished by doing good.

6. Over-confidence Man: Despite a track record that studies have found to be merely average, Cramer exudes unabashed confidence.  That in turn can make viewers over-confident – and overconfidence is perhaps the number one cause of poor investment decisions. This is my favorite video that shows just how wrong Cramer has been in the past.  Please, Jack – click this.  It’s a short clip showing just six days before Bear Stearns was essentially bought for nothing, Cramer pleads with his viewers to stick with the Bear stock.  An exact quote: “Bear Stearns is not in trouble!”  Now, I wouldn’t be picking on Jim just for getting something wrong, because everybody does at some point – but just by the nature of who he is, he really sets himself up for this one.  And just so I am being fair, Cramer admitted he was wrong here as well as trying to explain what he meant.

7. There’s a Reason It Drives Bulls Crazy: the motif of Cramer’s set features the color red, an intense and sometimes angry hue that is known for creating feelings of excitement or agitation. Again, the subconscious influence on our decisions.  If the show just featured a few of these psychological influences, it’d be one thing.  But points 1, 2, 5, and 7 having the same theme is a true concern to be pointed out.

The bottom line is this: people often confuse sound investing advice and entertainment.  The two shouldn’t be co-mingled.  Viewers should not be investing their retirement or education or down-payment savings with the advice given from the show.  And I have no idea of knowing how many are using “play money” versus 401(k) or IRA money from the show’s advice – but I am relatively certain that most people don’t distinguish the two.  Which is extremely unfortunate, because Cramer himself said that the idea of “Mad Money” is money that viewers “can use to invest in stocks … not retirement money, which you want in 401K or an IRA.”  I actually had no idea he said this at any point – so thanks, Wikipedia for pointing that out, with the source, here.  My concern is that most people, like me, had no idea he ever made this distinction, and their long term savings are suffering because of it.  So Jim, if you happen to read this letter, a good idea may be to put that disclosure at the beginning of each of your shows.

I’m not a negative person, Jack, and the point of this letter is not to bash on an accomplished investor like Jim Cramer, but rather to point out some concerns that I’d want you to be aware of.  Until next time, Jack.

Sincerely,
J.

Making Financial Decisions

Dear Jack-

Part of what I do on a daily basis, not just as my job, but as the leader of our home, is figure out how to spend our money – however meager or massive the amount.  And this is often a complex issue, because even if there are only five uses of money (giving, taxes, living expenses, debt, and savings), there is an almost infinite amount of sub-categories, and that’s where we often get lost.

Some examples

• Should we complete the back yard project, or increase our cash reserve?
• Should we put the work bonus in savings, or pay down debt?
• Should we pay our kids on commission, or give them a fixed allowance?
• Should we save for a bigger house to do more ministry in, or stay in our current residence?

Ron Blue wisely states that we can’t arrive at the correct answer if we’re not asking the correct question.  As stewards, rather than ask “What should we spend this money on?” I believe a better question is “What would God have me do?”  It seems trivial, maybe – but I have found it forces us to pray and read scripture more than if we leave God out of the question.

The second follow up question is then “What is the best use of this money?”  It is most certainly not “Can we afford it?”  Just because you have enough money in the bank is not reason enough to make a purchase or other financial decision … it may be a start, but it’s by no means the end of the discussion.

These questions seem awkward, I’ll admit, and they may not be answered quickly, which brings me to another point: create time to answer them.  I find that for me, the best time to be still and be quiet and just listen comes in the morning, but that may not be for you.  Maybe it’s on your commute to work, or it’s laying in bed at night, or it’s taking a walk in the mid-afternoon.  Whatever time it is, just be sure that you are intentional in creating it.  I’ve found that God speaks most surely when we’re intentionally listening for him.

This isn’t to say that God’s going to speak audibly on guidance for every $5 you spend, nor should you fast before deciding to fill up on gas, but I do believe he wants us to seek him and listen.  Sometimes he’ll just use our wisdom and our hearts to answer, and other times it seems like a still small voice.  Regardless, we’re to seek him intently.

So remember Jack – don’t just ask “Can I afford this?” or “What should we spend this money on?”  Dig a little deeper and ask “What would God have me do?” and “What is the best use of this money?”  Clarifying the question I believe helps clarify the answer.  Till next time, Jack.

Sincerely,
J.

Financial Advice from dcTalk

Dear Jack,

On my way home from work the other day, I popped in an old, old CD: dcTalk’s Nu Thang, which was produced in 1991.  Aside from the astonishing discovery I could still match Toby Mac lyric for lyric, I was surprised by the depth and truth in some of their lyrics.  Specifically, their song “Things of This World.” All of the lyrics can be found here, but here’s my favorite part.

[chorus]
Things of this world are passin’ away
Here tomorrow, but they’re sure not here to stay
Things of this world are passin’ away
So lay your treasure above
And start to live for him today

Our mind transforms a want to a need
A simple process that we call greed
Ya say ya like to have money, well i do too
The problem starts when the money has you
Workin’ overtime to keep up with the pace
A lifestyle that you want to embrace
But it’s 2 steps from where your needs are met
You’re keepin’ up with the Joneses, but your all in debt
Which will lead to stress, not meeting the bills
While ya sportin’ a Benz with all the thrills
The domino effect’s gotcha life in check
A temporary stitch and ya livin’ a wreck

Love it.  “Transforming a want to a need,” “The problem starts when the money has you,” “You’re keepin’ up with the Joneses, but your all in debt,” “A temporary stitch and ya livin’ a wreck.”  Who knew?  Toby Mac, MTait, and K Love were financial advisors?  Till next time, Jack.

Sincerely,
J.