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2023-Q1-L08: Planning for Success

Read for This Week’s Study: Eccles. 12:1; Gen. 2:15; 1 Tim. 5:8; Col. 3:23, 24; Gen. 39:2-5; Prov. 3:5-8.

Memory Text: “And whatever you do, do it heartily, as to the Lord and not to men, knowing that from the Lord you will receive the reward of the inheritance; for you serve the Lord Christ” (Colossians 3:23, 24, NKJV).

Scripture

  • Ecclesiastes 12:1: Remember also your Creator in the days of your youth, before the evil days come and the years draw near of which you will say, “I have no pleasure in them”;
  • Ecclesiastes 12:13-14: The end of the matter; all has been heard. Fear God and keep his commandments, for this is the whole duty of man.[c] 14 For God will bring every deed into judgment, with[d] every secret thing, whether good or evil.
  • Genesis 2:15: The LORD God took the man and put him in the garden of Eden to work it and keep it.
  • 1 Timothy 5:8: But if anyone does not provide for his relatives, and especially for members of his household, he has denied the faith and is worse than an unbeliever.
  • Colossians 3:23–24: Whatever you do, work heartily, as for the Lord and not for men, 24 knowing that from the Lord you will receive the inheritance as your reward. You are serving the Lord Christ.
  • Genesis 39:2–5: The LORD was with Joseph, and he became a successful man, and he was in the house of his Egyptian master. 3 His master saw that the LORD was with him and that the LORD caused all that he did to succeed in his hands. 4 So Joseph found favor in his sight and attended him, and he made him overseer of his house and put him in charge of all that he had. 5 From the time that he made him overseer in his house and over all that he had, the LORD blessed the Egyptian’s house for Joseph’s sake; the blessing of the LORD was on all that he had, in house and field.
  • Proverbs 3:5–8: Trust in the LORD with all your heart, and do not lean on your own understanding. 6 In all your ways acknowledge him, and he will make straight your paths. 7 Be not wise in your own eyes; fear the LORD, and turn away from evil. 8 It will be healing to your flesh and refreshment to your bones.

Notes

  • How does one measure success?
  • Who was more successful: Joseph or John the Baptist?
  • Success. Is it measured by earth or heaven?
  • Success in the parable of the talents is if you at least doubled the investment.
  • Success is measured by who you are compared to what you could have been. In that regard, we should all be humble.
  • Work was instituted before the Fall.
  • Idleness. The first objective is to avoid idleness. If you don't have a job, your first job is to find a job.
  • The least is the greatest. The last will be first.

Public education. Is a colosal failure. Christian education is better, but not by much..

  • High school graduates have little to no business (creative, entrepreneural) skills, little to no manual labor skills, and little to no relational skills.
  • Public education does not teach character development—i.e. the value of virtue. The reason it does not is because Prayer and the Bible have been taken out of the schools. What has been brought in is moral relativism and tolerance of the immoral.
  • Public school teaching is designed to create a labor force, a 9 to 5 factory worker with a salary and benefits. Creativity and individuality are discouraged.
  • Finance and entrepreneurship are not in the curriculum. Students do not learn and practice how to start a business.
  • Trade skills are generally not taught. What would it be like if every student going to college was required to go to a 1-2 trade school and learn a trade before entering college.
  • The combining of the practical with the theoretical is absent.
  • Many unnecessary academic studies. No unified purpose in education.

My random ideas on education reform. This could only work in a Christian school setting.

  • Three areas of study. Break up the curriculum into the spiritual (character development), mental (academic) and physical (labor) areas.
  • Spiritual. Teach only core concepts over and over each year with increasing detail. The basis of morality is Law. In it are found seven (7) universal principles of life.
  • Spiritual core requirements:
    • memory work. Memorize the 10 commandments (17 verses) and the Sermon on the Mount (Matthew 5-7, 48+34+29=111). Total of 128 verses.
    • Bible reading. Exodus 20-23; Deuteronomy 6-26 (elaboration of the 10 commandments); Matthew 5-7 (memorize)
    • Character vocabulary. 49 character quality words and memorized definitions and usage. The include: truthful, resourceful, self-control, discerning, persuasive, flexible, gentle, attentive, deference, sincere, discrete, dependable, diligent, punctual, thrifty, content, orderly.
    • EGW reading. Mount of Blessings.
    • Stories. Practical Bible and real life stories revolving around law and consequences.
  • Physical.
    • Cooking, cleaning, sewing.
    • Carpentry, plumbing, auto repair, metal work, using tools.
    • Entrepreneurship. Start a business on Amazon or eBay.
    • Play an instrument.
  • Mental.
    • Academics without practical application is useless.
    • Mathematics is a language. Unless it is applied, it is forgotten.
    • Money, debt, finances. History, management, etc.
    • English is a language. It must be applied in writing and speaking.
    • History must go hand in hand with Law and Prophecy.
    • Biology, nutrition, health care.

SUNDAY. First Things First

Scripture

  • Ecclesiastes 12:1: Remember also your Creator in the days of your youth, before the evil days come and the years draw near of which you will say, “I have no pleasure in them”;
  • Ecclesiastes 12:13-14: The end of the matter; all has been heard. Fear God and keep his commandments, for this is the whole duty of man.[c] 14 For God will bring every deed into judgment, with[d] every secret thing, whether good or evil.

MONDAY. The Blessing of Work (Ideally)

Notes

  • Blessing before sin.
  • 1. Labor good for the mind and body.
  • 2. Discipline in work. Not a 1/2 mowed lawn. A job done well and thorough (complete).
  • 3. Work for our needs. 2 Thessalonians 3:8-10. Not to be a burden to others. Ephesians 4:28
  • 4. Sense of accomplishment. Proverbs 12:11, 24.
  • 5. Prevent poverty. Proverbs 14:23. Proverbs 6:10-11
  • 6. Stay out of trouble.
  • 7. Provide for those who cannot provide for themselves. 1 Timothy 5:8
  • 8. Work in the new earth. Isaiah 65:21-23

TUESDAY. The Earning Years

WEDNESDAY. Working With Integrity. The subject of morality: dependable, truthful, etc. With eternity in view.

THURSDAY. Seeking Godly Counsel

FRIDAY. Further Thought:

  • “No scheme of business or plan of life can be sound or complete that embraces only the brief years of this present life and makes no provision for the unending future. … No man can lay up treasure in heaven without finding his life on earth thereby enriched and ennobled.” — Ellen G. White, Education, p. 145.
  • “That which lies at the foundation of business integrity and of true success is the recognition of God’s ownership. The Creator of all things, He is the original proprietor. We are His stewards. All that we have is a trust from Him, to be used according to His direction.” — Education, p. 137.
  • Because of the pressure to provide for our families, many times we think that our work is simply to provide an income. But as Christians, we also face doing our part in the great commission that Jesus gave to all His followers. After quoting this commission as found in Mark 16:15, Ellen G. White wrote, “Not that all are called to be ministers or missionaries in the ordinary sense of the term; but all may be workers with Him in giving the ‘glad tidings’ to their fellow men. To all, great or small, learned or ignorant, old or young, the command is given.” — Education, p. 264.
  • “We need to follow more closely God’s plan of life. To do our best in the work that lies nearest, to commit our ways to God, and to watch for the indications of His providence — these are rules that ensure safe guidance in the choice of an occupation.” — Education, p. 267.

APPENDIX

Inflation Time Bomb

Savings and debt. Most people are not aware that 80% of the value of the dollar was destroyed by inflation between 1972 and 2007 (35 years) as measured by official government statistics. Unfortunately, the United States is in much worse shape right now than in 1972 and inflation has accelerated.

There are unspoken assumptions underlying savings and debt: (1) that the currency is stable, (2) that assets and debts each maintain their value, and (3) that a dollar is a dollar. The problem comes when these assumptions are incorrect. With powerful inflation, what a dollar is worth changes every year (and every month), and that turns our notions of savings and thrift upside down.

Trying to outrun inflation with traditional investments is a very difficult thing to do, and becomes near impossible for most people when we consider tax consequences. Unfortunately, government tax codes don't take inflation into account. If an asset appreciates in dollar terms but not in inflation-adjusted terms, the government doesn't care. You still pay taxes on the phantom "profit" you make when you sell the asset. The primary victims of inflation tend to be the older part of the population, and the primary beneficiaries are the younger people.

The Mind and Methods of a Rich Man

When Credit = Capital. There is a legitimate and productive role for credit, when credit = capital. That is, when credit is used to finance the manufacture or acquisition of capital goods. My definition of capital goods is expansive: anything enabling the production of other capital (and consumption) goods and generates income for the producer(s). See To Our (Dis)Credit. Ultimately, savings resulting from income-producing capital is the best way to finance new capital.

The Seven (7) Old Rules of Money - Robert Kiyosaki

  1. Go to school (to get a safe and secure job). You need more education that the school system provides. Schools provide very little if any financial education. Most people are in trouble financially.
  2. Work hard to earn more money. Most people get a job as an employee or a specialist (i.e. doctor, lawyer, accountant, etc). Better to become an enterpreneur or an investor. Enterpreneurs and investors get tax breaks. Earned income is taxed at the highest rate (25-50%); portfolio income is taxed at 15-20%, passive income is taxed the least (as low as 0%). (401k is the worst investment vehicle. When you retire 401k is earned income.)
  3. Save money. The dollar is devaluing at an alarming rate since 1971. Even if the banks give you 5% interest, you can't keep up with the U.S. Federal Reserve Bank (the FED) printing money. Since 1971 the U.S. dollar has lost 80% of its purchasing power.You need to hedge money--hedging using oil, gold, and silver, which is a bet against the U.S. dollar.
  4. Buy a house. Your house is not an asset but a liability. Income (Income/Expense) and Balance Sheet (Asset/Liability). Does a house put money into your pocket or take money out of your pocket? For most people, a house takes money out of their pockets via a mortgage and maintenance and insurance expenses. If I have a rental house, then it's an asset (assuming the tenant continues to pay rent). Assets put money in your pocket; Liabilities take money from your pocket.
  5. Get out of debt. There is both good and bad debt. Most people have too much bad debt. Good debt puts money in your pocket--i.e. debt that other people are paying for me. Over time, debtors (of good debt) are the winners because they continue to pay their debts with dollars that are worth less and less.
  6. Invest for the long term (mutual funds). Need to know the difference between buy and sell. Buy a house (forever) and sell it every month (to the renter). You should be selling more than buying. Have something to sell every month. Keep your money moving. With mutual funds, you are risking 100% of your capital with someone else who takes no risk (i.e. no skin in the game) but takes a high percentage of the profit.
  7. Diversify. Instead of diversification, "focus." Follow one course until your successful, and then keep doing it.

The Seven (7) New Rules of Money - Robert Kiyosaki

  1. More financial education. Increase financial IQ. (Part 1/7) - Conventional Education vs Financial Literacy.
  2. Aim for portfolio/passive income. (Part 2/7) - The Cashflow Quadrant. Three types of income: Earned (taxed at the highest rate), Portfolio (taxed 15-20%), Passive (taxed 0% in many cases).
  3. Don't save money but "hedge". (Part 3/7) - Why Savers Are Losers in This Economy.
  4. Know differences between assets vs liabilities. (Part 4/7) - Assets vs Liabilities. Assets put money in your pocket. Liabilities take money from your pocket.
  5. Good debt vs bad debt. (Part 5/7) - Good Debt vs Bad Debt. Good debt puts money in your pocket. Debt for cash flow.
  6. Have something to sell every month. (Part 6/7) - The Difference Between Buy, Sell, and Fool. Buy a house (forever) and sell it every month (to the renter). You should be selling more than buying. Have something to sell every month.
  7. Follow one course until you're successful. (Part 7/7) - Focus! Diversification is a mistake.

The Four Asset Classes. (1) A business, (2) Real Estate (wisely using debt), (3) Stocks/Bonds (you have to know what you are buying), (4) Commodities (i.e. gold, silver, oil companies). Jobs are *not* assets--you cannot sell your job, and you can get fired!

Cashflow Quadrant. #2 (E)mployee (job - benefits and security), (S)elf-employed (you own a job; no work - no pay), (B)usiness-owner (can leave and business will continue), (I)nvestment-income (automatic paycheck).

Live Above Your Means. #6 Increase assets. Buy assets first, liabilities second.

Investing Isn't Risky. #8 Buy an asset with insurance.