Category Archives: wealth

For The People, By The People… What Are We Doing?

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There has been a lot of rhetoric by politicians on who’s to blame for the current state of our economy.  We recently had a mid-term election that many of us didn’t take time to vote in because we didn’t think it was important.  Many Americans are out of work and their spirits are low.  Although there are signs of economic recovery, it’s not happening fast enough for most of us.  As I began to ponder the direction of this posting, I decided to provide a quick review of our government structure and the role of “we the people”.  That being said, let’s take a trip down memory lane to the 5th grade.

Our government is made up of three branches.  A quick overview of each branch is included below:

  1. Legislative Branch.  The Congress.  The Congress is comprised of the House of Representatives and the Senate.  The primary duty of Congress is to write, debate, and pass bills, which are then submitted to the president for final approval.  Bills are laws or policies that help to govern our Country.  Because of the recent tax bill, I want to place emphasis on a specific job that the House of Representatives has.  The House is the only governmental body that can start laws that make people pay taxes.  A key job to highlight for the Senate is that they have the final say on anyone that the President recommends for jobs (i.e., Cabinet offices, Supreme Court Justices, and Ambassadors).
  2.  Judicial.  The judicial branch of the government is made up of the court system, with the highest court being the Supreme Court.  As a refresher, the courts interpret the meanings of laws, how they’re applied, and whether they align with the rules of the Constitution.
  3. Executive.  The executive branch of government makes sure that the laws of our Country are obeyed.  The President is the head of the executive branch.  This branch is comprised of :
    • President – leads the country, commands the military
    • Vice President – President of the Senate and steps in as President of the country if the President can no longer do the job
    • Departments & Independent Agencies – advises the President, and helps to carry out policy and special services

So, what does this mean to “the people”?  All branches of government are important.  While the role of the President is very important, and the Office does indeed influence policy that the legislative branch passes, the President does not run the country alone.    Historically, we’ve placed significant emphasis on the presidential election, while minimal attention is given to mid-term elections that have a significant impact on the make-up of the legislative branch of our government.  Remember that this is the branch of government that is responsible for creating policy that impacts our economy (i.e., stimulus bill, tax bill, etc.).

I never thought that I’d say this, but we blamed President Bush for the state of affairs during his presidency without holding Congress accountable for their actions.   We are now doing the same thing to President Obama.  Make no mistake, I believe that leaders should be held accountable for their decisions, but this holds true for all leaders.  Congress should not be able to blame the President for everything that’s wrong in our country.  I cringe when I hear Bush tax cuts and Obama care. 

As a result of the recent mid-term election, Republicans took control of the House of Representatives.  I am personally in favor of a balanced approach as long as it does not create a stalemate.  I am not a proponent of one party controlling the three branches of government.  I do not believe that it is representative of “the people” that make our country great.  It does not celebrate our differences.  Although I am somewhat concerned about how we will pay for all of the concessions that are being given to try and boost the economy, I do believe that the recent tax bill was necessary and to some degree balanced.

I hope you’ve enjoyed your trip down memory lane, and the refresher on our governmental structure.  Now, what can you do?  Remember to stay abreast of the decisions that your elected officials are making and hold them accountable during election time.  Do you know who your elected officials are?  If not, that’s your first assignment.  This information can be found by visiting www.votesmart.org.  In 2011, there will be a lot of noise in the media because we are approaching a presidential election year.  You will need to be able to separate facts from fiction.  We have a lot to do before the 2012 election.  Roll up your sleeves and become a part of the solution.

A Gift That Keeps on Giving

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Christmas is less than a week away.  Although it’s celebrated on the same day each year, somehow it still sneaks up on us.  If you’re like me, there may be a few people on your Christmas list that you are challenged by – you simply don’t know what to buy for them.  Instead of buying one more sweater, scarf, or toy, consider giving a financial gift that will continue to give well beyond Christmas day.  A few suggestions include:

  • Purchase a savings bond.  While it is not an aggressive or high yielding investment option, it does earn interest.  Additionally, it is exempt of state and local taxes, and federal taxes are deferred until the bond is redeemed.  In the book Rags to RICHES, we stress the importance of practicing wealth building behaviors (i.e., saving and investing).  Savings bonds will not likely make you rich, but they do promote wealth.  Remember, small changes can create big results
  • Buy a share of stock.  What does the person love?  Are they avid patrons of Starbucks or McDonald’s?  A common recommendation when purchasing stock is to buy stock in what you love or support.  To purchase a single share, visit www.giveashare.com
  • Give a financial book or a subscription to a financial magazine or newspaper.  Knowledge is power and you can’t do what you don’t know.  You also don’t know what you don’t know
  • Contribute to a child’s 529 education savings account.  This will require some coordination with the child’s parent, but it’s worth it.  A 529 education savings account is a tax deferred investment account that is designed to help families save for future education expenses.   If the child doesn’t have one, consider giving an initial investment.  Many times we give children toys or things that may keep their attention for a short while, but in all likelihood, before the holiday break is over, the toy is broken, lost, or put aside.  Invest in a child’s future.  They may not fully understand it now, but they will thank you later
  • Buy a gift certificate for their favorite charity.  Is the person on your list passionate about a cause?  Perhaps they have been personally impacted by cancer.  Think about what’s important to them.  If you don’t know, ask.  Gift cards for charitable donations can be purchased through www.charitygiftcertificates.com

Christmas is the celebration of Jesus’ birth.  The practice of giving gifts can be traced to the gifts that the three wise men gave to Christ.  Although each had a significant spiritual meaning, they were also very valuable.  As we make a mad dash to finalize our preparations for the holiday, consider giving a gift that keeps on giving.

Giving vs. Receiving

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How many of you have heard that it’s better to give than receive?  The biblical mandate is clear… we are supposed to give. There are many scriptures that support this.  The book of Proverbs, often referred to as the book of wisdom, is filled with scripture that support this mandate.   However, how can you have a giver without a receiver?  If you can’t have one without the other, I would say that they are equally important. 

If receiving is equally important, why do many of us have a hard time receiving?  Do you think that you’re a good receiver?  If so, answer the following questions:

  • When someone gives you a compliment, do you find yourself complimenting them back, or do you thank them for the compliment?
  • If someone compliments you on a job well done, do you thank them, or critique the job and communicate all of the things that didn’t go as well as they should have?
  • If someone does something nice for you, do you feel obligated to do something nice for them?

If you answered “yes” to any of the questions above, you are likely not a good receiver.  This is simply my opinion, but oftentimes, we are not good receivers because we don’t believe that we are worthy of receiving.  From a Christian perspective, if you feel that you aren’t worthy of receiving, you will have a hard time believing that Christ can forgive us, and that he loves us unconditionally – in spite of ourselves.  When dealing with money, you will find it difficult to keep money.  If you spend everything you make, discipline is likely a factor, but there may be some deep rooted issues regarding self-worth too.

 If you have struggled in the area of receiving, try this exercise for the next week – if someone compliments you, thank them and move on.  Do not compliment them back.  They will not be offended.  It sounds easy, but many will struggle with this exercise.  If you find that this is a “stretch” exercise for you, don’t stop, stick with it.  I guarantee that you will feel better about yourself at the end of the week. 

Christmas time is also known as the season of giving.  Adhere to the mandate and give from the heart, but do take time to receive.  This is not about material things – receive the kind word, hug, or compliment from a loved one.  Your spirit will thank you!

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