Author: Patrick Blair

Have you felt like it’s hard to make things work financially these days? With 10+ years of so-called “economic expansion,” why do most of us feel like things are getting harder? No, you aren’t crazy; things really are getting harder.

What Is Really Going On?

The euphoria on Wall Street contradicts the grinding reality on Main Street. While stock markets have recently hit all-time highs, record numbers of U.S. residents are having trouble paying their debts. Sure, you may have a job and may even get raises, but chances are your income isn’t keeping up with your expenses.

As you can see from the chart above, the cost of college, housing, and medical services have risen dramatically more than income since 2008. The pattern is obviously unsustainable and how things play out next is anyone’s guess. Strangely, government inflation statistics don’t include the cost of housing or education. So, when you hear that inflation is low, that doesn’t reflect reality for most people.

Older generations typically had only one breadwinner, but now most households need all adults working full-time just to make end meet. Graduates used to pay off their relatively small student loans quickly. Now, it’s common for graduates to take a decade or longer to pay off their massive student loans. Have you noticed that car loan terms are getting longer? Some lenders are now offering 96-month auto loans!

Why is this happening? I believe the economy is less productive (on a per capita basis) than it used to be and that instead of fixing structural problems, inefficiencies are papered over with central bank money printing (often referred to as “QE”). The money flow does not go to Main Street, but rather Wall Street, where it pumps up stocks (via stock buybacks) and education/housing (via government-guaranteed lending). Whatever the reason, the reality on the ground is that most people are struggling financially.

What Can We Do About It? Does the Bible Have Answers?

1) Accept the Truth

To the Jews who had believed him, Jesus said, “If you hold to my teaching, you are really my disciples. Then you will know the truth, and the truth will set you free.” (John 8:31-32)

Jesus was all about the truth. Famously, he said, “the truth will set you free.” If you want to know biblical truths and be free from sin, put Jesus’ teachings in practice. If you want to do better financially, then take an honest look at your finances and start doing things that help you do better financially. It starts with facing the truth and proceeding in faith.

Financially speaking, times are getting tougher for the 99%. We aren’t living in a world of ever-increasing prosperity for all. Those days are over. The sooner you accept it and adapt, the sooner you can improve your situation.

2) Adapt by Consuming Less

Then he said to them, “Watch out! Be on your guard against all kinds of greed; life does not consist in an abundance of possessions.” (Luke 12:15)

Jesus has a powerful truth for today’s consumer generation: life is not about accumulating things. If you cut back on consuming, it will not subtract from your life. It may even help your life, because you can focus on the aspects of life that really matter.

Buying nice and helpful things can be great, but it will not make you happy. Experiences such as vacations, hobbies, and cultural events can be memorable and enjoyable, but they do not define who you are or give you value. By all means, enjoy purchases and experiences if you can really afford them, but be sure to balance their impact on your finances.

3) Prepare to Be More Generous

And now, brothers and sisters, we want you to know about the grace that God has given the Macedonian churches. In the midst of a very severe trial, their overflowing joy and their extreme poverty welled up in rich generosity. (2 Corinthians 8: 1-2)

When times get tougher economically, so does suffering. As needs increase, so do opportunities for generosity. The more disciplined you are financially, the more you can share with those in need. As with the first century Macedonian churches, the grace of God can turn a bleak situation into joy and generosity.

For a biblical view on improving your finances and generosity, read my book Faith and Finances. Please see www.faith-finances.com for more blog articles.

NO, YOU AREN'T CRAZY (Things Really Are Getting Harder)