January 4, 2009



Riddle me these four questions, if you will:

1. Do financial institutions want all of your money, or only some of it?
2. Do they want more of the money you make in the future?
3. Do they want to give it back a long time from now, or soon?
4. Do they want to give it back all at once, or over time?

Are you surprised you know how to run a bank? You shouldn't be. All financial institutions work this way, whether they're your local bank, an insurance company, or a Wall Street firm. They all have different products, but they utilize the same principles. Of course, occasionally they are forced by the government to make poor decisions, or by principle-breaking greed. But for the most part, financial institutions have been profitably utilizing a few, simple principles for hundreds of years, and in a more basic way, for thousands.

The banks teach us lay-folk to incorporate the “Accumulation Theory” into our financial thinking and planning. They show you a 30 year mountain chart that demonstrates that if you put money in each month, in 30 years, you'll have much more. They tell us to give up on properly stewarding our money. They say, “just give it to us and we'll take care of it.” Another word for this practice is hoarding – something scripture maintains is evil. But most people out there have no idea of how to do otherwise.

Granted, for those people who would otherwise blow the money, hoarding is the best bet. But for those who have the discipline to make wise choices, to steward their money as God tells us to, and a desire to make an impact on the world in a meaningful way, there is a better way.

You already know that banks don't practice hoarding and that they utilize totally different principles with their own assets. The primary economic principle that they employ so differently from what they teach is “Velocity.” And by “bank,” I mean any financial institution. Unlike you, they're not focused on 30 years from now. They do want to be a much larger and stronger bank in 30 years, but they're focused on improving cash flow – right now. What’s amazing is that by focusing on the now every year, they're able to have much bigger futures than they would have had, had they put off responsibility for what they managed into the future.

Sound similar to the spiritual life? Hmmm….Someone you know should read this blog. Pass it on.