Prepare for the Future

This is number 6 in a series I call Financial Freedom. The last post was entitled “You Need a Vacation”.

My wife and I started late preparing for retirement. When we were young it was not an imperative and we lived paycheck to paycheck. Our parents never really instilled the necessity of getting ready for retirement. They did not really prepare themselves for their eventual loss of income. In fact, JP Morgan calculates that 74% of Americans are not saving properly for the future. As I realized their inevitable position it made me think about our own lack of preparation. 2 Corinthians 12:14 “…Children should not save up for their parents but parents for their children.” I did not want to be a burden on my children and as always God provides ways to do so. Proverbs 6:6-8 “Go to the ant, o sluggard, observe their ways and be wise, which, having no chief, officer or ruler, prepares her food in the summer and gather her provision in the harvest.” Was an ant being wiser than me? I was being called by God to make a change.

The best way to do this is invest in a 401K and never touch it. In our first few years of marriage we did have a 401K. It accumulated $1500. We closed it out and took the cash for other things. It seemed like a small amount and we really needed the money. I now think differently. Proverbs 27:23 “Know well the condition of your flocks, and pay attention to your herds.” We do not have flocks and herds today. We have money. Different times and ways of exchange but the concept holds true. I needed to be aware of what I had and the future. What preparation was I making? Really none! I knew something was wrong until the title of an articles caught my eye …”How to Become a Millionaire”. Who doesn’t want to be a millionaire? The article was about something called compound interest. The concept astounded me. Leave it to God to come up with answers to hard questions. Here is how it works.

Let’s say I was 25 when I cashed in that $1500 but this time I decided to leave it in a 401K. If I left it alone and never touched it along with a conservative rate of 8% return then that would grow into over $80000 by the time I was 75. Pretty cool! I did no work and gained $78500. Now let’s say I was really wise, like the ants, and put in an extra $30 a week. Cost of a cup of coffee every day? At the age of 75 that looks like 1.1 million. Wait what!? Yes, that’s right. An investment of almost $80K over 50 years will make you a millionaire in retirement. Not only that but most companies have a matching program and investing more will inflate that number.. Praise God that He has come up with ways to do the thing He calls you to do. BTW … Had I started saving with my first job at the age of 15, over the course of 60 years that is 2.5 million. Can anyone afford not to invest in their future?

1. Prayerfully decide how much you will set aside for your future. Figure out how much you will need to retire. Seek advice from a professional if necessary.

2. Ask God to give you the resources necessary to prepare for the future.

3. Thank God for the abundance He has provided so that you can prepare for tomorrow.

I wish I had started saving at 15. We started saving later in life. The good news is that it is not too late to start. For us we still had some time but needed to be more aggressive than if we had started earlier. We started by contributing the minimum amount matched by our work. We then increased this amount as promotions and raises allowed until we reached our goal. Right now we are on track. We have been fortunate. God has been very good to us. We did have to make some sacrifices at first. Lesser vacations and fewer dinners out. A warning though. Matthew 6:24 “… You cannot serve both God and money.” The goal is not to accumulate wealth. The goal is to make preparations for your elderly years. It’s our responsibility and our calling.

My prayer for you and me is that we trust God’s word, do as He commands, make a plan then faithfully act on our preparations for the future.

3 thoughts on “Prepare for the Future

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s