Good Ol' Days
Remember the days of old; consider the years of many generations. Ask your father and he will show you, your elders, and they will tell you. (Deuteronomy 32:7)
This verse was written to those of that era to recall and inquire about the works God performed and how it would lead to the coming Messiah. Today, I want us to learn about how the ways of our past generations differed financially from those of today, and what we can glean from that.
In 1955, the average annual income was $4,400, with the average home price just over $18,000. Today those figures are $79,900 and $342,000 - with both representing just over 4 times the annual salary. A standard car was about $1,900, with today around $47,000 - still a similar ratio, however current cars have a much longer reliable lifespan.
In that past era, more families stayed in their first homes longer, eventually paid them off and rarely refinanced. Those aspects are less prevalent today, and with the appetite for frequent refinancing... into new 30-year notes, makes it that much harder to achieve true home ownership.
What is really the biggest difference between then and now financially, and why can there be such a struggle? It's plainly comprised in the photo below.
CREDIT CARDS, COMPUTERS & CELL PHONES
You know that these inventions are not evil organically, but it is in how we can use and abuse them which cause self-inflicted wounds financially that can take years to undo. Our family above in black-and-white did not experience the temptation, pitfalls and calamity that can exist today in these areas.
Back then, a family on tough times may be given some credit with their grocer or store if they knew them well. Revolving credit and cards (allowing for charges to not be paid off completely each month) was begun in 1958... and soon exploded from there, along with the consequences for consumers who fell behind in the form of high interest rates and penalties.
Simply put, our 1955 family could only end up in so much debt - because the only available instruments towards debt were for necessities. Today, a person can quickly become underwater from buying ANYTHING. Yes... that's right, ANYTHING. You know that now you can purchase ANYTHING online, from the smallest basics all the way up to automobiles and have them delivered to you in a jiffy, with the accompanying delivery fees.
In addition, it's possible to have a built-in charge onto every month of your credit card bill from subscriptions for everything from entertainment, pet items, fitness clubs, clothing and now even tacos. The takeaway is to review these subscriptions regularly - if you're using them and receive value from them, then keep them. But if not, remove them at once.
No matter how times and devices change, God's Word will always show us the way to go, and here is no exception if we look at 1 Timothy 6:8 - "But if we have food and clothing, with these we shall be content."
It is in anchoring our contentment in Jesus Christ, and the provision He has given to us at this time, that we will be genuinely satisfied and will reduce our cravings for the things of this world.
If we need to reduce our debts, looking to a literal example to imitate is found with our past family:
- Try to stay in your current home, and if interest rates suggest a refinance is beneficial, only do so to the amount of remaining years in your current mortgage.
- In 1963 (earliest data available) less than 9% of new cars were leased, today it is over 26%. Buy your vehicles and thus have an asset available when it's time to replace.
- Limit the bulk of your credit card use to necessities. Have a separate debit card or bank account for frills and non-essentials. That way you cannot go into debt and pay interest for these optional things.
- Maintain a "pulse" with your spending. Review your credit card charges weekly or bi-weekly at most. It is the best way to know you are staying within your ability to pay it off at the end of the month and avoid a shock when the bill arrives.
- Statistics show church members tithed and gave at a higher rate of their incomes in 1955 than today. Remember that God is our source, that He considers the tithe to be holy and that we honor Him by placing Him first in our finances.
Finally, be encouraged in viewing your horizon within the context of what is written in Jeremiah 29:11:
"For I know the plans I have for you, says the Lord, plans for welfare and not for evil, to give you a future and a hope."
God Bless you and may He show Himself greatly to you,
Paul
