When God’s hand is in something you know it. I’m sure you, like me, have had many experiences where it seemed that at every corner there was another obstacle. They might be simple things like traffic delays getting to an important appointment, or larger ones like ongoing challenges in business. Whatever the struggles might be, it provides such a stark contrast to the opposite, when something you undertake seems to come together effortlessly. I remember one time in our life, where it seemed that God even shortened a long drive or somehow transported us to our destination in record speed without speeding.
Financially, I know of many people who seem to have a ‘Midas Touch’ in that it seems almost everything they invest in or undertake produces a profit for them. I know of others who seem to experience the opposite, where they get involved in an investment or a business and all of a sudden the circumstances change and they’re scrambling to recoup their losses.
Do you know what I’m talking about? Have you ever wondered why? Or does someone else’s success evoke envy because you’re someone who has experienced disappointment a few times?
Biblically, you can probably see where I’m going with this: Satan’s armies will do anything they can to sabotage your triumph in Christ. This means he’ll use either your own struggles or someone else’s success or both, against you. It’s in times of both stress and struggle as well as during the good times, that we need to hold on to His word and to surround yourself with other believers for support, prayer, practical advice and mentorship.
Practically, regardless of your current financial situation there are ways you can protect the assets and money you’ve been given to manage by the Lord. He knows better than you do what your expenses and needs and desires are. We also know that He has given us great wisdom in His Word for how to maximize those resources. We can read of the Lord providing immeasurable benefit from a very small beginning. The ‘feeding of the 5000’ from only a few loves and some small fish (Matthew 15)is one example. Another is the widow and her son who was preparing what she thought was their last meal and instead she fed Elijah also and the flour and oil did not run dry. (1 Kings 17)
In real financial life today there are some incredibly powerful ways to leverage a very small seed to exponentially realize ongoing benefits. It starts with a mindset to ‘have your money and use it too’; meaning you are thinking about how you can keep the money you have while also using it to create ongoing income.
There are many ways to do this. Here’s one that is so simple yet rarely used because of our conventional money thinking about ‘saving money to accumulate a bunch, then to withdraw it for spending’.
The typical money flow starts with income being deposited into a bank account then spent and allocated from there. The objective is to minimize spending so there is more money left over to invest., If there’s not enough cash in the account then credit gets used, and one of the expenses becomes paying for debt. For many people in addition to savings and giving their spending categories include housing, transportation, food, clothing, entertainment, and insurance. Because there always seems to an almost infinite number of places to use money, the focus often becomes one of spending the least amount possible to make the dollars you have go further.
When you think exponentially here’s what you can do instead:
- Establish a whole life insurance policy to act as your banking business
- Deposit money into your policy which is managed and invested by the insurance company. The fee for their work is paid from the money you deposit into the policy.
- If you want to access some of that money, arrange a loan that you then pay back to your policy banking business.
- Meanwhile the money you deposited in the first place is still earning interest.
- Now you have your money being invested, you’re paying your insurance premiums and your loan payments all through your own banking business in an extremely tax and interest effective manor.
Here’s a very simple illustration based on the deposits to our daughter’s policy (she is 18):
- $100 per month
- 3 month summary: $259 cash balance and $159 available to borrow.
- This means that here insurance has been paid for for 3 months and if she closed the policy she’d have $259. Or, if she kept the policy open, she could access $159 and pay it back in a way that worked for her on both sides of the ‘banking’ scenario – her as owner of the ‘banking business’ that has the $259 asset on deposit available to lend as part of it’s regular course of business. The other side of the transaction would be her as the borrower of the $159 who will be making payments with interest back to the policy.
When you truly understand the simplicity of this concept and how similar it is in real life to the exponential and sustainable financial illustrations we have in God’s Word, you’ll quickly understand why and how this concept can work ‘miracles’ when you start adding zero’s to the deposits. Imagine getting a lump sum of money and rather than depleting it, you used it to start your own ‘banking business’ so you could keep your money plus still have access to it for whatever spending you needed. This is the concept that our conventional banks work from. It’s just a shift in how you think about earning, managing and maintaining money.
Obviously there are a lot of other details like the amount of insurance and who’s insured and who owns the policy, and what happens to the cash and the death benefit. This is why it’s extremely important to know that you don’t walk into the bank or visit any financial planner off the street to set up your own ‘bank’. Its simple, but it’s not conventional. It takes a mindset shift as well as technical expertise to set it up. And when you combine all of these together you have a modern day program that acts a lot like the financial miracles we read about in God’s Word.
If this intrigues you, let me know and we can have a conversation to see how it might work for your personal or business situation.
This is a longer message for Financial Grace Friday News. I hope you found it helpful. There are many exciting ways that God is working with Financial Grace today so stand by for what He’s going to do next!
Joe and Sam