TWW-Finances to Live Comfortably

Average Americans Feel They Need Over $186k Annually to Live Comfortably -- an Amount Most Don't Earn

The Wired Word for the Week of July 14, 2024

In the News

Although the international Organization for Economic Cooperation and Development (OECD) said last week that unemployment rates are set to pick up only slightly across the world's rich countries in the short term, while real wages will continue to rise as profit growth cools, many consumers in the United States aren't feeling it, according to a new survey.

This is not only due to inflation canceling much of the nominal growth; it is apparently due to the expectations or desires many people have.

The survey showed that average Americans feel that to be financially stable, they would need to earn $186,000 per year, a figure more than double the salary of a typical U.S. full-time worker. Per the survey, only 6% of Americans are making enough to feel secure.

Bankrate, an independent, advertiser-supported financial comparison service, conducted the survey, which defined financial success as being able to afford rent or mortgage payments, food and routine bills, hobbies and occasional nights out, plus being able to save money for the future.

The survey also found that most Americans were not seeking an opulent lifestyle, but did want to be free of financial worries.

Phillip Jordan: I'm optimistic and excited about school and the prospect of having a career that I enjoy and being able to spend more time at home with my family and finally freeing ourselves from the shackles of debt. That is the final chain weighing us down and I so look forward to how freeing it will be to no longer have that stress looming like a dark cloud.

When broken down by demographics, the survey showed some differences in the annual dollar amount various groups felt they needed to be comfortable financially, but in each case, the amount stated was significantly more than the average earned by the individual members of the sector.

"Prices have risen almost 21 percent since the pandemic, requiring an extra $210 per every $1,000 someone used to spend on the typical consumer basket, Bureau of Labor Statistics data shows," said Bankrate's report on the survey. It also noted that "other longer-term challenges from housing to college affordability are at play. Americans now need a six-figure salary to afford a typical home in almost half of U.S. states, and households are feeling that college tuition prices have gotten out of hand, separate Bankrate data indicates."

Inflation remains a key problem for Americans seeking financial security. Although the inflation rate has fallen from its 40-year high of 9.1% in June 2022, it remains at 3.3% currently, exceeding the Federal Reserve's 2% target.

The survey found that to feel rich, most respondents thought they would need to earn $520,000 annually, up from $483,000 last year.

"Many Americans are stuck somewhere between continued sticker shock from elevated prices, a lack of income gains and a feeling that their hopes and dreams are out of touch with their financial capabilities," said Mark Hamrick, Bankrate senior economic analyst.

According to OECD, on average, real wages -- that is, wages adjusted for inflation, or, equivalently, wages in terms of the amount of goods and services that can be bought -- are currently 3.5% higher than a year earlier, a development that should support consumer spending and economic growth. However, real wages were still below their 2019 levels in 16 countries, including the United States, where the shortfall stood at 0.8%.

The OECD expects the recovery in real wages to continue this year, offsetting some of the upward pressure on prices.

Applying the News Story

That most Americans feel that to be financially comfortable requires more income than they are currently making probably comes as a surprise to no one. Inflation is very apparent to us every time we go to the supermarket, eat out, pay for health care or purchase gasoline.

Christians have long had an uneasy relationship with money and possessions. Jesus himself called his followers to lay up treasures in heaven rather than on earth. His own possessions amounted to little more than the clothes on his back.

Luke 9:57–58 (LSB) And as they were going along the road, someone said to Him, “I will follow You wherever You go.” 58 And Jesus said to him, “The foxes have holes and the birds of the air have nests, but the Son of Man has nowhere to lay His head.”

So what is "financially comfortable" and how does it fit into a life of faith?

This lesson gives us an opportunity to think about that question with some biblical guidance.

Confronting the News With Scripture and Hope Here are some Bible verses to guide your discussion:

The Big Questions

1. What is "living comfortably"? To what degree is it related to income? To what degree does it include matters unrelated to income?

Philippians 4:10–20 (LSB) But I rejoiced in the Lord greatly, that now at last you have revived thinking about me; indeed, you were thinking about me before, but you lacked opportunity. 11 Not that I speak from want, for I learned to be content in whatever circumstances I am. 12 I know how to get along with humble means, and I also know how to live in abundance; in any and all things I have learned the secret of being filled and going hungry, both of having abundance and suffering need. 13 I can do all things through Him who strengthens me.

14 Nevertheless, you have done well to fellowship with me in my affliction. 15 And you yourselves also know, Philippians, that at the first preaching of the gospel, after I left Macedonia, no church fellowshipped with me in the matter of giving and receiving but you alone. 16 For even in Thessalonica you sent a gift more than once for my needs. 17 Not that I seek the gift itself, but I seek the fruit which increases to your account. 18 But I have received everything in full and have an abundance; I have been filled, having received from Epaphroditus what you have sent, a fragrant aroma, an acceptable sacrifice, pleasing to God. 19 And my God will fulfill all your needs according to His riches in glory in Christ Jesus. 20 Now to our God and Father be the glory forever and ever. Amen.

2 Paragraphs here: 10-14

15-20

What am I talking about when speaking of “paragraphs?”

What does this passage say about:

Considering others who are in ministry (missionaries, evangelists, etc.)?

Contentment?

How do verse 11-13 interrelate?

What does Vs. 13 REALLY mean? How does it relate to getting everything we want? Is that what we are promised? More below

Giving offerings?

Vs. 14 - You have done well.

Vs. 17 - The fruit which increases to your account? Does it connect to what Jesus said in Matthew 6:19–21?

How does their sacrificial giving line up with:

Vs. 18 - you have sent, a fragrant aroma, an acceptable sacrifice, pleasing to God

Vs. 19 - seems to be connected

2. How do you determine the difference between needs and wants?

Matthew 6:7–8 (LSB) “And when you are praying, do not use meaningless repetition as the Gentiles do, for they suppose that they will be heard for their many words. 8 “Therefore, do not be like them; for your Father knows what you need before you ask Him.

CBL: Jesus did tell His followers to ask and keep on asking. (See 7:7.) But they also must recognize that God is their Father and He wants them to demonstrate their trust and dependence on Him in prayer (cf. 7:11). The Father knows what they need even before they ask. This is a good reason for being brief in prayers of request, leaving the details of fulfillment to Him.

Maslow’s Hierarchy Of Needs

According to Abraham Maslow (1943, 1954), human needs were arranged in a hierarchy, with physiological (survival) needs at the bottom, and the more creative and intellectually oriented ‘self-actualization’ needs at the top.

The five levels of the hierarchy are physiological, safety, love/belonging, esteem, and self-actualization.

Lower-level basic needs like food, water, and safety must be met first before higher needs can be fulfilled.

Few people are believed to reach the level of self-actualization, but we can all have moments of peak experiences.

The order of the levels is not completely fixed. For some, esteem outweighs love, while others may self-actualize despite poverty. Our behaviors are usually motivated by multiple needs simultaneously.

1. Physiological needs are biological requirements for human survival, e.g., air, food, drink, shelter, clothing, warmth, sex, and sleep.

2. Safety needs –  people want to experience order, predictability, and control in their lives.

3. Love and belongingness needs  refers to a human emotional need for interpersonal relationships, affiliating, connectedness, and being part of a group.

4. Esteem needs are the fourth level in Maslow’s hierarchy and include self-worth, accomplishment, and respect.

Maslow classified esteem needs into two categories: (i) esteem for oneself (dignity, achievement, mastery, independence) and (ii) the desire for reputation or respect from others (e.g., status, prestige).

5. Self-actualization needs are the highest level in Maslow’s hierarchy, and refer to the realization of a person’s potential, self-fulfillment, seeking personal growth, and peak experiences.

These have since been expanded. It is important to note that Maslow’s (1943, 1954) five-stage model has been expanded to an 8-level model that includes cognitive, aesthetic needs and later transcendence needs (Maslow, 1970b).

The point is, there are many things money cannot buy —

It seems that to tell God WHAT your needs are, let alone HOW to meet those needs, is unwise.

Matthew 6:31–34 (LSB) “Do not worry then, saying, ‘What will we eat?’ or ‘What will we drink?’ or ‘What will we wear for clothing?’ 32 “For all these things the Gentiles eagerly seek; for your heavenly Father knows that you need all these things. 33 “But seek first His kingdom and His righteousness, and all these things will be added to you. 34 “So do not worry about tomorrow; for tomorrow will worry about itself. Each day has enough trouble of its own.

John 16:23–24 (LSB) “And on that day you will not question Me about anything. Truly, truly, I say to you, if you ask the Father for anything in My name, He will give it to you. 24 “Until now you have asked for nothing in My name; ask and you will receive, so that your joy may be made complete.

Anything?

1 John 5:14–15 (LSB) And this is the confidence which we have before Him, that, if we ask anything according to His will, He hears us. 15 And if we know that He hears us in whatever we ask, we know that we have the requests which we have asked from Him.

Hebrews 13:5 Keep your lives free from the love of money, and be content with what you have, for [God] himself has said, "I will never leave you or forsake you." (For context, read Hebrews 13:1-17.)

This verse is about how money should function in a life of faith, but that's not the topic of the whole of Hebrews 13. Most of the chapter is a series of exhortations about living a life pleasing to God -- exhortations about hospitableness, prisoner care, marriage fidelity, following good leaders and sound teachings, doing good and more. In that list, avoiding love of money is simply another aspect of solid Christian living. And it quotes God's promise from Deuteronomy 31:6: "I will never leave you or forsake you" as a reason to "be content with what you have."

Questions: To what degree should income be a consideration when considering how to live as a follower of Jesus?

Following God’s will, God’s call?

Stewardship: 1 Peter 4:7–11 (LSB) The end of all things is at hand; therefore, be of sound thinking and sober spirit for the purpose of prayer. 8 Above all, keep fervent in your love for one another, because LOVE COVERS A MULTITUDE OF SINS. 9 Be hospitable to one another without grumbling. 10 As each one has received a gift, employ it in serving one another as good stewards of the manifold grace of God— 11 whoever speaks, as one speaking the oracles of God; whoever serves, as one serving by the strength which God supplies; so that in all things God may be glorified through Jesus Christ, to whom belongs the glory and might forever and ever. Amen.

What does it mean to be content with what you have?

Answered

When that statement is used by management to keep workers from striking, is it still a Christian instruction? How does context affect how that statement should be heard?

Matthew 19:21-24 Matthew 19:16–26 (LSB) And behold, someone came to Him and said, “Teacher, what good thing shall I do that I may have eternal life?” 17 And He said to him, “Why are you asking Me about what is good? There is only One who is good; but if you wish to enter into life, keep the commandments.” 18 Then he said to Him, “Which ones?” And Jesus said, “YOU SHALL NOT MURDER; YOU SHALL NOT COMMIT ADULTERY; YOU SHALL NOT STEAL; YOU SHALL NOT BEAR FALSE WITNESS; 19 HONOR YOUR FATHER AND MOTHER; and YOU SHALL LOVE YOUR NEIGHBOR AS YOURSELF.” 20 The young man said to Him, “All these things I have kept; what am I still lacking?” 21 Jesus said to him, “If you wish to be complete, go and sell your possessions and give to the poor, and you will have treasure in heaven; and come, follow Me.” 22 But when the young man heard this statement, he went away grieving; for he was one who owned much property. 23 And Jesus said to His disciples, “Truly I say to you, it is hard for a rich man to enter the kingdom of heaven. 24 “And again I say to you, it is easier for a camel to go through the eye of a needle, than for a rich man to enter the kingdom of God.” 25 And when the disciples heard this, they were very astonished and said, “Then who can be saved?” 26 And looking at them Jesus said to them, “With people this is impossible, but with God all things are possible.”

The verses above come from the incident of a rich man who asked Jesus what he needed to do to receive eternal life. Jesus told him to keep the commandments. The man answered that he already did those things, so Jesus added the suggestion that he sell his possessions, give the proceeds to the poor and follow Jesus. The man departed "grieving, for he had many possessions."

Understanding the mindset of this rich man helps us to see that Jesus' instruction to him to sell all he had and give the proceeds to the poor was not a one-size-fits-all command to all wealthy people. Rather, grasping that this man was greatly attached to his possessions, Jesus knew that in this man's case, the only solution was for the man to free himself from their bonds and opt out of the life of luxury.

Nonetheless, Jesus also knew that wealth and possessions are inherently captivating. They lure us to focus so much on our own wants that our ability to see our neighbor's need is blurred. Even worse, love of possessions makes it difficult to see God very clearly as well. Jesus generalized this understanding by observing to his disciples, "How hard it will be for those who have wealth to enter the kingdom of God!" And when his disciples, somewhat slow on the uptake, puzzled over those words, he added, "It is easier for a camel to go through the eye of a needle than for someone who is rich to enter the kingdom of God."

Thinking conventionally about the impossibility of the image Jesus just painted, the disciples responded with astonishment, and said to one another, "Then who can be saved?"  Jesus then gave them the key: "For mortals it is impossible, but not for God; for God all things are possible."  In other words, God can get a camel through the eye of a needle, and so God can get wealthy persons who seek to serve him with all their hearts into heaven.

Questions:

In what ways might an abundance of possessions weigh you down on the road to eternal life?

What do you consider to be the minimum number of possessions to be both comfortable and faithful to the spirit of Jesus' words to the rich man?

Matthew 6:21 Matthew 6:19–21 (LSB) “Do not store up for yourselves treasures on earth, where moth and rust destroy, and where thieves break in and steal. 20 “But store up for yourselves treasures in heaven, where neither moth nor rust destroys, and where thieves do not break in or steal; 21 for where your treasure is, there your heart will be also.

This declaration of Jesus is sometimes used to exhort people to show that their hearts are in the right place by putting their "treasure" in the right place, usually in giving to the church.

But what Jesus says here is that the heart follows the treasure, not the other way around.

In other words, if you want your heart to lean in the right direction, you should first make your treasure -- your finances -- go in the right direction. Do what is right, and your heart will follow.  In other words, consider what is the right thing to do, and then do it.

Questions:

How does this differ from the common stewardship exhortation to "give as you feel enabled" or "as you feel moved"?

What tools and advice are available in order to rationally determine where you treasure should be, so that your heart might eventually follow?

2 Corinthians 9:7

2 Corinthians 9:1–15 (LSB) For it is superfluous for me to write to you about this ministry to the saints; 2 for I know your readiness, of which I boast about you to the Macedonians, that Achaia has been prepared since last year, and your zeal stirred up most of them. 3 But I have sent the brothers, in order that our boasting about you may not be made empty in this case, so that, as I was saying, you may be prepared; 4 lest if any Macedonians come with me and find you unprepared, we—not to speak of you—be put to shame in this certainty of ours. 5 So I regarded it necessary to encourage the brothers that they would go on ahead to you and arrange beforehand your previously promised blessing, so that the same would be ready as a blessing and not as a begrudging obligation. 6 Now this I say, he who sows sparingly will also reap sparingly, and he who sows with blessing will also reap with blessing. 7 Each one must do just as he has purposed in his heart, not grudgingly or under compulsion, for God loves a cheerful giver. 8 And God is able to make every grace abound to you, so that in everything at every time having every sufficiency, you may have an abundance for every good deed; 9 as it is written, “HE SCATTERED ABROAD, HE GAVE TO THE NEEDY, HIS RIGHTEOUSNESS STANDS FOREVER.” 10 Now He who supplies SEED TO THE SOWER AND BREAD FOR FOOD will supply and multiply your seed and increase the harvest of your righteousness; 11 you will be enriched in everything for all generosity, which through us is bringing about thanksgiving to God. 12 For the ministry of this service is not only fully supplying the needs of the saints, but is also abounding through many thanksgivings to God. 13 Because of the proven character given by this ministry, they will glorify God for your obedience to your confession of the gospel of Christ and for the generosity of your fellowship toward them and toward all, 14 while they also, by prayer on your behalf, long for you because of the surpassing grace of God on you. 15 Thanks be to God for His indescribable gift!

Second Corinthians 8 and 9 are considered by some to be two fundraising letters written to the Corinthian Christians to get them to fulfill their pledge to support the Christians of Jerusalem who were struggling with famine and food shortage. Paul cited the Macedonian Christians' willingness to fulfill their pledge (9:2-4) even though they were not as prosperous as the Corinthians.

The Corinthians were better off than others in the Peloponnesian peninsula because of their location at the isthmus. There was a good deal of boat traffic, which the Corinthians served by either transporting ships on wheels across the land to the farther shore, or by unloading boats and moving their goods to the other port, substantially cutting down on the risk of travel on the Mediterranean Sea.

Despite their prosperity relative to the rest of the region, they did not feel they had enough to live, much less give, prompting Paul to write that the Lord loves a cheerful giver, and talking about laying up for yourselves treasures in heaven, where moth and rust, etc. He also mentioned the one who sows sparingly will reap sparingly. Feeling your finances are too tight to be generous can hamper your ability to give.

Questions:

To what degree should your giving to the church and to charities be determined by how much you earn?

Why is it important to be a cheerful giver? What is lost when a gift is given reluctantly or under compulsion?

Where do you see evidence that people are enriched for their great generosity?

Why is giving to people in need an important aspect of gospel ministry? What is lost when we focus only on the freedom we have in Christ Jesus, failing to meet the needs of our brothers and sisters?

The Big Questions

3. To what degree, if any, is greed a driver in determining income goals? How does your faith in Christ cause you to view greed?

4. It's commonly accepted that money cannot buy happiness, but what does a severe lack of money "buy"?

My brother-in-law: Money cannot make you happy, but not having enough

money can make you sad.

5. Is there a spiritual obligation to give some money to people in need? Why or why not?

For Further Discussion

1. Did you hear the one about the rich man who died and went to the pearly gates for admission into heaven? When he got there, he asked St. Peter if he could have a special dispensation to go back to earth just long enough to gather some of his wealth and bring it into heaven with him. St. Peter said that this was a very unusual request, because nobody considered wealth of any use in heaven. But the man pleaded with Peter to check with the Higher Authority to see if permission could possibly be obtained. So Peter did, and to his surprise, word came back from God that the man would be allowed to return to earth just long enough to pack one suitcase full of whatever of his wealth he could fit into it.             So the man was returned to earth for this brief errand. When he got there, he considered all the forms of his wealth. His cash would be no good in heaven, since everything there was free. His stocks and bonds were no good there because the companies they were invested in didn't operate in heaven. His property was too big to fit into a suitcase, as was his collection of rare paintings. Finally, he decided to bring some of his gold bullion, because gold holds its value so well. So he got a really big suitcase, and loaded it with gold bars from his safe.             Then he returned to heaven lugging the suitcase. When he got to the pearly gates, St. Peter said, "Now, before you go in, I've got to check your suitcase to see that you aren't bringing anything other than wealth." "No problem," said the man, and he put the suitcase on St. Peter's desk. Peter opened it and a surprised look flashed on his face. In fact, Peter was dumbfounded. Finally, he said to the man, "You brought pavement?"

2. Respond to this, from TWW team member Malia Miller: "As for income, we are a society that can't seem to strike a balance between 'needs' and 'wants.' There is no doubt that costs are higher for groceries and gas, not to mention the cost of health care and housing; however, as a country -- and individually -- many of us spend beyond our means. Are we searching to meet spiritual needs through acquiring more things?             "I don't want to dismiss the fact that this is a complex issue, and there are many doing the best that they can and still struggling due to inflation, but it seems that what is at the heart of this study is the definition of 'comfortable living.' The criteria they use in the [Bankrate] study is reasonable -- afford rent or a mortgage, food, bills, hobbies and the occasional night out -- while also having enough to save money for the future. But hobbies can vary tremendously in their cost. I have friends who see expensive travel as their 'hobby' as opposed to someone who enjoys a weekly golf round or splurges on new technology such as air pods. There is a lot of scripture cautioning us on guarding against greed and the love of money."             TWW team member Mary Sells responded, "On Malia's comment about needs and wants, I would add that we are very confused and think our wants are our needs -- unless we are truly destitute.  Comfortable is a deceptive measure.             "I awakened today with a roof over my head, running clean water, air conditioning and food -- in addition to many other creature comforts that put me ahead of many in this world.  What do we take for the spiritual journey?"

3. Some years ago, Phillip Yancey, a writer for Christianity Today, told of his attempt to live a less expensive lifestyle, based on his Christian belief. He got a basic car, with no air conditioning. He lived in a mobile home with less than $500 worth of furniture. He went to extremes to get the best possible price on any item.             He became obsessed with the question, "Is there a lifestyle level above which a Christian should not live?" But he found no satisfactory answers. He lived in a mobile home, but half the world lives in mud huts and cardboard shacks. He had a stripped-down car, but nine out of 10 people in the world have no car at all. He had the eventual option to retire with a pension and some savings.

Many people around the world live from hand to mouth and cannot consider retirement. They will have to scrounge for a living until the day they die.

Beyond this, think about what would happen to the world's economy if everyone radically reduced consumption. In the 1970s, after realizing how dependent we in the United States were on oil, there was a conscious effort to reduce our oil imports. In the process, we very nearly wrecked the economies of Nigeria and Mexico. By the same token, if we could cut our coffee drinking in half, much of Latin America would suffer.            

Yet we cannot believe that the Christian approach is ever totally unfettered consumption either, where acquiring and accumulating possessions or becoming rich is our major priority. We cannot forget that Jesus warned that where our treasures were, our hearts would be also.                     

So we cannot surrender to the pursuit of wealth, but neither can we give up every possession. Is there a Christian path through the middle ground?

4. The late Robert McCracken, who was a nationally known preacher, once said, "What a [person] is is determined by what he does with what he has." His point, of course, was that the things on which we are ready to spend our money are good indicators of where our values lie.

Or as someone put it, when we give our offering in church, we are in effect praying, "O Lord, No matter what we say or what we do, here is what we think of you."

5. Discuss this from TWW consultant James Gruetzner: "Two of the 'seven deadly sins' -- noted by many Christian theologians as being of significant danger to faith -- are 'envy' and 'greed.' In many ways, these seem to be different views of the same thing. Greed is a desire for more than what one has earned or has use for. On the other hand, envy seems to be anger at what someone else has earned or has use for -- that you yourself might desire, but haven't earned or desires one's own use for.              "Sadly, each can then become manifest in a desire for power: to take from someone else in order to give it to oneself.  (Note that, instead of 'give it to oneself,' one can replace it with 'give it to someone who lacks,' but the same underlying impulse is a desire to control others for one's own personal physical or psychological benefit.)"

Responding to the News

1. In addition to filling out a will that determines who gets your valuables, consider writing what's been called a "Spiritual Will" in which you pass on (as a letter, say) your values to your heirs. What would those values be? And why are they worth passing on?

2. Consider compiling a list, one column for things you want, one a 'need' column for those that are essential.  Now make another list of things you already have that you are willing to give up by sharing to others or donating to people that can be helped by receiving them.

Prayer

O Lord, help us to so earn, give, spend and save that our financial life is a reflection of your call to us to be your people. In Jesus' name. Amen.