Growing up, I was taught about the value of saving money.
In particular, I came to realize that if I could manage to earn and save one million dollars, I could then invest that money in U.S Treasury bonds or another very safe security, receive maybe 6% interest each year, which would amount to $60,000 annual income, keeping the one million dollars of principal intact.
This idea has been simmering in the back of my head, and sometimes in the front of it, for a long time. When I became a Christian, I began to re-prioritize this goal because of Jesus’ warnings in the Gospels about serving money instead of God.
Interestingly, when my mother and I went to Thailand to visit my sister, Heather, a few years ago, I learned from Heather that you can live in Thailand, at least on the island that she spent most of her time on, for about $6,000 a year!
Suddenly, I realized that I only needed to save $100,000, and then I could retire to Thailand. ($100,000 principal @ 6% interest = $6,000 per year).
But at that time I had not met Katie, and I believed strongly that God was leading me to marriage (which He was), so the idea of retiring to a Thai island paradise didn’t appeal to me very much. The beauty of the place would be wonderful, but I wouldn’t have anyone to share it with, so what’s the point? John Paul II said: “A human person finds himself only through making a sincere gift of himself.”
Now that Katie and I are married, and because neither one of us are keen on moving to a Thai island, the million dollars is back in my head. So I asked myself, “What is it that having a million dollars would allow me to do?”.
And the answer was: “I could then do whatever I wanted to do without having to worry about providing for my family”. Simple enough, right? The money comes in from the interest on the principal, and Katie and I spend all our time doing other things: rearing our children, growing a garden, serving God in our apostolates, writing computer games, etc.
Now that’s not a bad thing at all, right? We would be “retiring” but not just sitting around doing nothing all day; we would be doing good things. Instead of going off to work and leaving my wife and children for 9 hours a day, I would spend it all with them!
So, I would like to ask a question to you: Is there anything wrong with this goal of saving one million dollars so that we can “retire” and pursue our family and personal dreams (whether it’s farming or computer game-writing or Ph.D or whatever)?
What about the idea of: “Whatever it is you would do if you didn’t have to work to pay the bills, that’s what you should be doing”?
Thursday, 30. August 2007
I keep telling myself “I can’t wait to retire so that I can actually get something done.”
There’s something to be said for work in and of itself - the dignity it brings, the graces we receive, the virtues we exercise, and the redemptive acts it requires. I found JPII’s encyclical letter Laborem exercens to be very inspiring as a man of labor.
And out of curiosity, how do you plan to acquire the $1M? I noticed you left that part out.
Friday, 31. August 2007
My good friend Adam, if I were to tell you my secrets plans for making one million dollars, what would stop you from implementing my brilliant ideas first and beating me to the punch?
Seriously, unless I “hit it big” with something–not sure what–earning one million dollars, much less saving that much, is going to take a long time, to say the least.
That’s one reason why I have been thinking along slightly modified lines: How much would I need to save in order to launch my own business (whether computer game-programming, farming, or something else) and have a good buffer for those first 5 negative or at least very lean years?
That amount is certainly less than one million dollars, maybe its more like $100,000 or $200,000, not a small sum, but much less than the million.
Also, if I were to start a business myself, we would plan to dip into the $100,000 principal, hoping that we could become profitable and make a living before it all ran out.
I also need to check out that encyclical; thanks for suggesting it!
Friday, 31. August 2007
I too am a saver, or wish i was. however i have found that life, kids, houses, cars….all these things keep me from saving, at least on the level i want to. i admire your idea and if it is God’s will, you will be able to do it!
Friday, 31. August 2007
Devin, you should talk to enrique about this…he’s got a plan to retire by the age of 40..spreadsheet and all! Interesting thoughts!
Friday, 31. August 2007
Hmmmm, interesting discussion. I don’t think there’s anything wrong with accumulating wealth as long as you are always at the service of God. Look at the Dominoes Guy. He was able to start a wonderful Catholic University (Ave Maria in Florida).
Have you read Dave Ramsey’s Total Money Makeover?? My dh and I have been following it for 2+ years. He talks about saving and staying debt free and then goes on to discuss building wealth. I like that he stresses that building wealth obligates the Christian to be VERY generous and more charitable than most “wealthy” people would be inclined.
In 1 Corinthians 12:27-31 Paul speaks about the different roles people have within the church. One is that of contributors (V.28) or forms of assistance (depending on translation). You can find it again in Romans 12, specifically v. 8.
So maybe God is calling you to be generous as a contributor?! I think as long as money is just a means and not an end in itself. I think most wealthy people fall into the trap of thinking of money as an end in itself. But if money can be used as the means to grow in holiness (through apostolates, charitable work, etc) then how wonderful to be able to give that gift back to God. As long as you can see yourself dependent on God despite the million $’s.
Which is why 3rd world countries are closer to God sometimes. They see their dependence on God. But with more wealth comes more blurry vision about that very same dependence. So while you’re raising that $1 million, just stay grounded and focused on God and how He’s wanting that money back!!