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Jul 24

Dave Ramsey’s Insight on Financial Crisis

I was in Atlanta last week attending “Catalyst”, the premier Christian leadership conference in the country with over 12k people from over 5k churches. One of the speakers was Dave Ramsey, who runs a ministry designed to help people in the area of finances. Recently he’s had a commentary voice on many of the national news stations giving his insight on the economy and financial crisis we are facing. While he did not primarily speak on this issue, he was interviewed at the end of his session and gave some wise, practical counsel as we get through the crisis. Whether these are principles you already live by, or you are hearing them for the first time, I believe they are extremely valuable to providing comfort and hope for all of us. Here are his thoughts that I simplified into three categories:

Breathe: The country is living in fear (individuals, corporations, financial experts, government officials, president), and fear is not a fruit of the spirit. When people live in fear they make unwise decisions (bailout plans, emptying savings accounts, selling stock, etc.). The crisis is being fueled by fear. God is still in control.

Understand: Since 1970, the stock market has fallen more than 10% ten times, and has always bounced back. When 9/11 happened, the stock market dropped and regained it’s value 57 days later. While he does not know where the bottom is, he believes it will recover. Also, the news never reports the bounce-back, they focus on the crisis-mode….it increases ratings. In the long-term, we are going to be ok.

Create Space: Get out of debt, stay out of debt. Create a 3-6 month emergency fund of living expenses, live on a budget. As for investing, diversify. Don’t put everything in one place. Keep investing gradually over a long period of time over many diverse investment options. Christians who are living by these principles will be the moral authority, and voice for others.

Hope this helps as you continue to see and hear the images on the news.

  • marketiva

    Haha, enjoy reading your post. great. :)