Taking Care of Business: Establishing a Financial Legacy for Your Family
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Taking Care of Business: Establishing a Financial Legacy for Your Family
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Overview
Product Details
| ISBN-13: | 9780802480552 |
|---|---|
| Publisher: | Moody Publishers |
| Publication date: | 10/01/2001 |
| Sold by: | Barnes & Noble |
| Format: | eBook |
| Pages: | 224 |
| File size: | 3 MB |
About the Author
Read an Excerpt
Taking Care of Business
Establishing A Financial Legacy For The African American Family
By Lee Jenkins
Moody Press
Copyright © 2001 Lee JenkinsAll rights reserved.
ISBN: 978-0-8024-8055-2
CHAPTER 1
WEALTH FROM THE INSIDE OUT
A few years ago, an attorney friend asked me to meet with a client of his that had won $3 million playing the lottery two years earlier. The attorney was concerned that the lady was spending too much of her winnings and just needed someone like me to come and talk to her about the importance of saving and investing. The attorney told me that this lady was a committed Christian and that while she was praying two years ago, God gave her the winning lottery numbers. Those particular numbers that she said God had given her led to her $3 million windfall. I must admit I was pretty skeptical about the Godlottery story, but according to the attorney, he thought the lady still had about $500,000 left, and he didn't want her to blow the rest of it on cars, clothes, and greedy family members. I felt it was definitely worth my time to go talk to the lady and make her a client, even though I didn't agree with her theology.
When I met the lady, she was very reserved and withdrawn. As we began to get acquainted, my curiosity got the best of me, so I asked her, "Is it true that you said God gave you the winning lottery numbers?" She got very quiet, and I could tell she was very uncomfortable with that question. She then said, "Yes, that's what I thought back then, but now I know that wasn't true." Then she began to cry uncontrollably. She said, "Lee, I thought that God gave me those numbers, but now, two years later, I know it was the devil!" She told me how miserable her life had been since she won the lottery. She said the money led to a divorce and a strained relationship among her and all of her family members. She said she had to move to Atlanta to get away from them. She went on to say, "I have no friends, and my daughter and I live a miserable life. I bought a huge house and luxury cars, and I'm still unhappy. I was happier when I was making $20,000 a year working at a hospital."
I prayed for her, and she seemed to calm down. Then I figured it was time to get down to business. I asked her how much out of the $3 million she had left. I was shocked at her answer. "Lee, I don't have anything left. I'm broke. I've spent it all up. I need to borrow against my house and sell cars to get some cash so I can live." I asked her how she could spend $3 million in two years when she seemed to live fine off of $20,000 before she won the lottery. She said, "I don't know; I guess that was too much money for a poor person to try to handle."
THE NECESSARY CHANGE: TAKING THE POVERTY OUT OF PEOPLE
In 1935, President Franklin D. Roosevelt established the New Deal, which set up our current welfare system. A few decades later, in 1964, President Lyndon B. Johnson's War on Poverty was created. Both of these two presidents decided to eliminate poverty by declaring war on it. Since that time the U.S. government has spent a whopping $5 trillion to eliminate poverty—and guess what has happened. The poverty problem in our community still hasn't gone away. As a matter of fact, in some cases it has gotten even worse.
Nearly one out of three Blacks lives in poverty compared with fewer than one in ten Whites. One-third of Black families have no family wealth. Four in ten Black households have less than one thousand dollars in net worth. Single women head two-thirds of Black households, many with low-paying jobs. A generation ago, single parents headed only one-third of Black households. Black unemployment rates are twice those of Whites. Blacks own less than 3 percent of the wealth in America, even though we are 13 percent of the population. Nationally, 30 percent of Black families live below the poverty line, an increase of 20 percent since 1969.
The reason that many people actually became poorer during this time is because money problems can never be solved from the outside in, but only from the inside out. Like the lady who won the lottery, giving someone money who has never been trained to handle it is usually a recipe for disaster. You see, poverty is never corrected by a redistribution of wealth but by a transformation of people. You can give a man begging for food a dollar, but before that day is out he will more than likely be hungry again. Unless there is a change in the person, nothing will change. The government has tried to take people out of poverty. Jesus specializes in taking the poverty out of people.
The old saying "Give a man a fish and you feed him for a day; teach a man how to fish and you feed him for a lifetime" is definitely true. Building financial and spiritual wealth that lasts throughout generations starts from the inside. It is a set of choices that become a lifestyle. Unfortunately, so is poverty.
THE WEALTH INSIDE
In Psalm 1:3, David compares the wealthy to a tree." And he shall be like a tree firmly planted by the streams of water, ready to bring forth his fruit in its season; his leaf also shall not fade or wither, and everything he does shall prosper" (AMP).
I heard a story about a guy who lived in a city that was experiencing a serious drought. Most of the trees in his yard were drying up, and the leaves were turning brown, except for this one beautiful green tree. He called in a tree specialist and was told that the flourishing tree was more than two hundred years old and the roots ran very deep into the ground. As a matter of fact, the roots ran so deep that they connected to channels of water underneath the earth. So no matter how hot or dry it got above the ground, this tree would continuously stay green and healthy and bear much fruit. It was getting fed from underground resources.
In today's economy, wealth is mostly related to money and certain material possessions that we can see, such as land, money, houses, cars, investments, etc. However, in God's economy, true wealth begins with the things that we cannot see. Inward wealth is that special something that God entrusts to each of us. Wealth includes our creative abilities, spiritual knowledge, ideas, character, health, relationships, peace of mind, and contentment. You can have a wealth of ideas, a wealth of knowledge, and a wealth of relationships.
Having money doesn't necessarily mean that you have wealth, though. Some of the poorest people I know have a lot of money. They are poor because they worry about their money all the time. They worry about the stock market; they worry that somebody is always trying to get their money. They worry about their family, their future, and their businesses. Believe me, no matter how much money you have, if you're still worried, you aren't wealthy at all.
Like the tree in Psalm 1, any outward wealth we obtain should be a by-product of our root system. It should be a result of what's going on inside of us. Wealth is always an inward realization before it is an outward manifestation. Microsoft was first an idea to Bill Gates before it ever became a billion-dollar company.
That's why so many millionaires can go broke or bankrupt and then, within a few years, bounce back to millionaire status again. It's because wealth is not what they have on them, it's what they have in them. The external is a by-product of the internal.
Here's an interesting fact: If you took all of the millions of dollars away from the rich and gave it to the poor, within five years you would make an amazing discovery. The rich would have it back again! And what about the poor people—what would happen to them? Most would be flat broke ... again! In addition, those who were considered poor before receiving the millions might be in even worse condition. They might have even more worries, more family and spending problems than before. Do you know why? Because wealth is who you are, not just something you have.
THE DIFFERENCE BETWEEN WEALTH AND RICHES
Did you know that you can be wealthy without having lots of things, or you can be rich and not be wealthy? Although this may sound a little confusing, it is really a crucial point. First of all, we must make a distinction between what we'll call simply riches and wealth. The Bible doesn't distinguish these two by words, but it does by context. Let's look at Psalm 112:1–3 and Ecclesiastes 5:19:
How blessed is the man who fears the Lord, who greatly delights in His commandments. His descendants will be mighty on earth; the generation of the upright will be blessed. Wealth and riches are in his house, and his righteousness endures forever.
Furthermore, as for every man to whom God has given riches and wealth, He has also empowered him to eat from them and to receive his reward and rejoice in his labor; this is the gift of God.
Simply stated, "riches" are something we have; "wealth" is something we are. You can become rich with or without God. Think about it—there are many drug dealers, pimps, and crooked businessmen who are rich. You never hear anyone say they struck it wealthy. It is said that they struck it rich. That's because riches are material things; wealth is more spiritual and character-related. Wealth is primarily achieved through the skills, obedience, spiritual knowledge, and character developed in obeying God's laws.
Wealth may produce riches, but riches cannot produce wealth, because wealth comes from obedience to God's covenant. God gives us the power to make wealth. That's why we shouldn't worry about or focus on getting riches, but instead focus on the production of wealth. Matthew 6:33 tells us that we should "seek first His kingdom and His righteousness, and all these things will be added to you." God will take care of the "things" in our lives if we just focus on pleasing Him.
Being in the investment profession, I know quite a few rich people that are very discontent. They are trying to find their satisfaction in riches, but they are never quite content. They are always scratching and clawing for more, only to find that more is still not enough. Why? It's because they are trying to get gratification through riches that is only possible through wealth. Like a man in a lifeboat who in desperation drinks saltwater to quench his thirst, these people find that the more they consume, the more madly they crave.
It is imperative that men and women of God understand this so we won't put the cart before the horse when it comes to material possessions. Having things like a big house and a fancy car should never be the goal in our lives, but a byproduct of our faithful stewardship. God is not against our having both wealth and riches. As a matter of fact, many of us need both in order to effectively carry out what God has called us to do and to promote and fund the gospel of the kingdom.
INCOME DOES NOT EQUAL WEALTH
Now let's talk about outward wealth. It's one thing to make a million dollars; it's quite another to be worth a million dollars. In fact, if you worked forty years and earned $2,000 a month, you would have approximately $1 million. Unfortunately, only a tiny fraction of us will ever accumulate a net worth approaching that amount. Why? Because earning money is not the same as retaining wealth.
If Black America were a nation, our income would make us one of the fifteen wealthiest nations in the world. We are thirty-five million strong and control nearly $535 billion in annual income. Within twenty years, our income is estimated to be more than $1 trillion! Now that's tremendous progress, especially taking into account the long history of Black oppression in America. More Blacks are middle class and prosperous than ever before. We have Black CEOs of Fortune 500 corporations, and Blacks are now U.S. senators, governors, Supreme Court justices, United Nations ambassadors, as well as secretary of state. But hold off on the celebration; total income does not translate into wealth.
When I began my career as an investment adviser at the age of twenty-five, I quickly found out that I was not as well off as some of my White colleagues who had the same job title, the same college degree, and the same sized paycheck as I did. We were all around the same age, but they had sizable personal investment portfolios, went on lavish vacations, and were able to afford homes and material things of which I could never dream. I often asked myself, What am I doing wrong? How can these guys afford to live like this? One day I struck up a conversation with two of my colleagues, one White, and the other Jewish. We all started in the investment business at the same time and had about the same income. However, they didn't seem to have the financial worries that I had. After talking with them, what I found out about their families and cultures would change my life forever.
For instance, both of these guys had help from family and friends in getting a head start in business and in life in general. They told me that major milestones such as graduations, weddings, and the purchase of a first home were often marked with monetary gifts. The Jewish Bar Mitzvah, for instance, was not only a coming-of-age ceremony, but a time when family and friends bestowed money upon the celebrant. Both of my colleagues had amassed more than $150,000 in their own personal investment portfolios by age twenty-five, and I had basically nothing. They told me that every time someone in their family died, like an uncle, aunt, or cousin, they usually received a sizable inheritance. I looked at these two guys in amazement and said, "Man, no wonder you all don't cry at funerals!" You see, they had wealth, and I had only income. Wealth is better.
IT'S NOT WHAT YOU MAKE; IT'S WHAT YOU KEEP
"Income without wealth is just flash without cash," said Rev. Jesse Jackson and his son, Jesse Jackson Jr., in their book, It's About the Money. There's nothing behind it. It can be gone in an instant. If you work for a company, you could be fired or downsized and your salary could evaporate overnight. That's because income is paycheck-related, and wealth is asset-related. Income supplies life's necessities, like food, shelter, and clothing. Wealth, on the other hand, is a surplus that can create income. Stories abound of prominent people who came from humble backgrounds, excelled in sports or the arts, and commanded high salaries but lost them. They were cheated by unscrupulous advisers or were simply reckless with their money. Although they were rich, they practiced the habits of the poor, and that led to their undoing.
Believe it or not, many of my wealthy clients don't have incredibly high incomes. Some of them are worth $2 million, and their incomes have never been more than $150,000. Conversely, there are others I know who have made $2 million, and are only worth $100,000. That's because they spent most of the $2 million. The beautiful thing about wealth is that it is directly transferable from generation to generation, thus assuring that position, power, and opportunity can remain in your family's hands. Income can't do that.
In the African-American culture, we need to realize that making money doesn't mean anything if we consume it all. The issue is not how much we make but how much we spend and keep. We must learn how to turn our money into wealth. Research shows that we tend to be wage earners rather than business owners, renters rather than homeowners, and spenders rather than savers—all poor behaviors that limit our ability to attain wealth.
INCREASE YOUR NET WORTH THROUGH ASSETS
One day a couple came into my office, and they were cleaner than my grandma's chitlins. They had more than $250,000 in income, expensive designer clothes, a top-of-the-line BMW, a huge house, and all the things that said they were living large and doing well. But as they began to reveal their personal financial situation to me, I quickly found out that everything that glitters is not gold. They had a truckload of credit cards that were all maxed out. Their mortgage and car loan payments, along with their extravagant lifestyle, ate up most of their income. When I subtracted their liabilities (what they owed creditors) from their assets (what they actually owned), they were, literally, not worth a dime. They were doing what a lot of people do—pretending to be rich. The Bible tells us in Proverbs 13:7 that "there is one who pretends to be rich, but has nothing; another pretends to be poor, but has great wealth."
(Continues...)
Excerpted from Taking Care of Business by Lee Jenkins. Copyright © 2001 Lee Jenkins. Excerpted by permission of Moody Press.
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Table of Contents
TABLE OF CONTENTS1. Wealth from the Inside Out
2. What's God Got to Do with It?
3. Charting Your Financial Destiny
4. From Financial Bondage to Freedom
5. Finding Purpose in Your Work
6. Spending Your Money Wisely
7. Giving Back to God
8. Putting Your Money to Work
9. Dividends of Honesty and Integrity
10. Investing in Your Family
11. Leaving a Lasting Financial Legacy