The Crowd

Soren Kierkegaard remarked about crowds, "No witness to the truth gets involved with the crowd. His work is to be involved with all people, if possible, but always individually, speaking with each and every person on the sidewalk and on the streets – in order to split apart. He avoids the crowd, especially when it is treated as authoritative in matters of the truth or when its applause, or hissing, or balloting are regarded as judges. He avoids the crowd with its herd mentality more than a decent young girl avoids the bars on the harbor. Those who speak to the crowd, coveting its approval, those who deferentially bow and scrape before it must be regarded as being worse than prostitutes. They are instruments of untruth."

I have been thinking recently about the danger of following the crowd. I have discovered that most people would rather be mainstream than right. Many people believe that it is safer to be in herds. The crowd mentality shapes everything we do- how we spend money; how we invest; how we do church; how we invest time; what kind of work we choose; exercise and dietary habits. The crowd is quietly whispering in our ear, "Conform, conform. Don't expose yourself. Play it safe."

I am sometimes asked- not very often- what voices I listen to when it comes to investing? The answer to that question is: I like people that have humble hearts, intelligence, wise perspective and aren't afraid to stand on convictions despite the mood of the crowd. Some examples of this in the investment world are: Rusty Leonard, John Mauldin, Lincoln Anderson, Jeremy Grantham and David Swensen. These five men are examples of thoughtful analysis and men who aren't afraid to stand alone on their convictions. Therefore, their advice is worth consideration.

Then there are some voices that many people listen to who I consider fools. One of those voices is: Robert Kiyosaki. Kiyosaki is the author of Rich Dad/Poor Dad. This book has sold millions of copies due in large part to his devout allegiance to the multi-level marketing industry. The book has many flaws from an advice standpoint. Those flaws are detailed at this website: http://www.johntreed.com/Kiyosaki.html. I won't repeat the bad advice here, because John Reed has done an excellent job.

How did Kiyosaki ever obtain an advice colum on Yahoo Finance? Two of Kiyosaki's recent columns were titled: "Why Mutual Funds Are Such Lousy Long-Term Investments" and one of his all-time classics "Why Savers Are Losers." Despite the fact that many long-term investors have averaged over 10% per year after fees in stock mutual funds for long periods of time, Kiyosaki says they are lousy investments. He prefers great long-term investments like gold- which has averaged close to 4% per year over long periods of time. I am not saying that a small portion of gold in a portfolio is not wise as a hedge. I am merely pointing out Kiyosaki's foolish advice to avoid a portion of investing that can produce great long-term results.

In his "Why Savers are Losers" column, Kiyosaki exposits on why people who save money in liquid cash reserves are stupid. He says cash is trash due to the imminent decline of the dollar. Really? And why is Kiyosaki such an economics expert all of sudden? Because he wrote a best-selling book about get-rich quick real estate strategies at the height of the real estate boom? I fear that many people who listen to this man's "expert" advice have been selling stock funds, liquidating cash and piling into real estate and commodities. This is herd mentality at its best.

Beware of the fools that play to the crowd. They feed on fear and greed. And the advice they dispense is often dangerous to your pocketbook.

For His Glory,

Ashley Hodge

Wasting Time

" He who lives by killing time dies with it." I remember reading this quote in a book by Chuck Colson years ago. Time is an invaluable resource and yet so many have no plan for how they invest time.

My wife- Amy- always makes fun of me because I started keeping a daily time sheet in 2003. She says I waste a great deal of time tracking my time. She has a point.

I got the idea from reading books about John Wesley and Jonathan Edwards. Both men had rigorous plans for their time and surprise, surprise both men accomplished a great deal of good for the kingdom of God with their lives.

Henry David Thoreau said in Walden, "most men live lives of quiet desperation but I have chosen to live deliberately." We need to heed this wise advice and have a plan for how we invest time on a daily basis.

Most are not addicted to structure like I am and would find tracking time to be a onerous exercise. But I have one strong suggestion. Track the amount of time that you are investing in two areas: watching television and playing video games.

The statistics are numbing. The television is on 7 hours and 40 minutes per day in the American home. The average viewing per person is over 4 hours per day. The full array of stats can be view at http://tvturnoff.org. I was under that average when I started tracking my time in 2003. But I was wasting many hours watching television. The first step in decreasing my television time was to start measuring how much television I was watching.

My goal was to decrease my television time to less than 2 hours per week. In a year, I accomplished that goal. What you measure will improve. So now that the NBA playoffs are over, I can preach again- without hypocrisy- of the importance of limiting your television time. And instead investing that time in more God-honoring activities- prayer, relationship building, study of the Word, reading, exercise, family time, etc...

Here are three tips for decreasing television time:

1. Go to bed early and wake up early. Most people watch TV when they are tired at the end of the day. Our family has moved from the family room where the TV is to the bedroom after 7pm. In the bedroom, we read to our son, talk and play. In the family room, we typically revert to the idiot box.
2. Get rid of the television in all bedrooms. The bedroom is a place for rest and sex with your spouse if you are married. TV in the bedroom is a terrible idea.
3. Set goals for your time in the evening. Keep a list of books to read to children or for your own development. Study the Bible- set a goal to read 4 chapters of the Bible daily and you will read through the Bible in a year.

The best suggestion of all is to get rid of the TV. But I realize less than 1% of Americans are without a TV. I did it for a year when I was single and still look back nostalgically on all the great things I was able to do with time as a result.

"Make the best use of time..." Ephesians 5:16

For His Glory,

Ashley Hodge

In Case of Emergency

America used to be a nation of savers. I have been in the financial advisory business for over 13 years. Other advisors will verify what I am saying. There is a huge disparity in the savings habits of older- over 70 years old- and younger clients. Many of my older clients live in houses that are modest and have large amounts of cash reserves- over $100,000.

Younger clients tend to place little value in cash reserves and invest large amounts of resources in homes. I am not sharing anything revolutionary here. But I believe it is important to continually stress the importance of having a healthy emergency fund. Asset prices have risen dramatically in the last thirty years if you have been an owner of stocks, real estate and lately commodities. Having money saved for a rainy day has seemed like a stupid financial decision in light of these advances. But let us heed Proverbs 21:20, "A foolish man devours all that he has."

I have four reasons why it is important for you to build up your cash reserves.

1. Adversity will come. Whether it is a medical problem, an unexpected downturn in business, a family situation or some type of disaster, you will experience adversity. Job 5:7, "Man is born to trouble as surely as sparks fly upward."

2. Adversity creates opportunity as an investor. Successful investing often comes down to having cash reserves at times of maximum pessimism. Harvey Firestone for example built a fortune in large part because he was able to buy up real estate during the Great Depression.

3. Adversity creates opportunity as a giver. Since most people do not prepare for the future, you will be in a position to show the love of God to them in a tangible way. I am not encouraging supporting financial irresponsibilty. But many who are faithful to God experience unexpected loss- health issues, job losses, divorce. Katrina, 911 and the Tsunami remind us all that disaster can strike a moment's notice.

4. Healthy cash reserves affords peace of mind to allow your longer-term investment and giving plans to work. From an investment standpoint, most people fail because they panic. They sell at times of pessimism and overinvest in times of optimism. A Dalbar study recently confirmed this fact. From 1984- 2002, the average equity investor earned 2.57% per year on their money while the S&P 500 index earned 12.22% per year. From a giving standpoint, I agree with Dave Ramsey in that the reason people don't give is that they are overspent. They have no savings and too much debt, therefore giving among Christians is less than 3% of net income annually.

In saying all of this, I don't want to advocate ever putting your trust in cash. There is only One who is worthy of your trust- a God who saves us out of the trials and adversities we are sure to face. Acts 14:22, "We must go through many hardships to enter the kingdom of God." But cash is a good thing- it allows the faithful steward to maximize resources in times of need and opportunity.

Are you building up your short-term cash reserves on a monthly basis? Are you living below your income level? If your outflow exceeds your income, then your upkeep becomes your downfall. Are you aggressively working to retire debt? Are you working towards a simpler life free from the entanglements that distract us so that you can be more available to God's calling?

For His Glory,

Ashley Hodge

Tender and Tough

One of the ideas that has revolutionized the way that I view the Bible and the Christian life is the balance of tender/tough. John Piper presented this idea to me in his biographical series- Men of Whom the World is Not Worthy. Piper challenges us to read the Gospels and record every tender statement that Jesus makes. And also record every tough statement He makes. There is a remarkable balance.

The Christian life is designed to be a delicate balance between grace/truth; mercy/holiness; tenderness/toughness. I was reminded of this in hearing stories of Avery Johnson- the head coach of the potential World Champion Dallas Mavericks.

Avery has modeled and transferred mental toughness to the Mavericks- a team that has been talented in the past but also labeled as "soft". Dallas' star- Dirk Nowitzki- has been transformed from a jump shooting 7-footer to a guy who will do whatever his team needs to win- rebound, get to the foul line, drive the ball to the basket, defend, etc... Avery Johnson said something profound, "The players have responded to criticism well because they know how much I love them. They know my motivation is to make them better players and people."

My goal as a parent is to carefully preserve this balance of tenderness/toughness. I am caught up in Dallas Mavericks fever as many in the Dallas/Fort Worth area are. I enjoy the NBA playoffs because the playoffs are a war of attrition. The toughest teams usually win- because they are able to persevere through times when the mind is willing but the body is fatigued. Dallas is proving that they are the toughest team. There are many heroes.

Without DeSagan Diop's defense against Tim Duncan in OT of game 7, Dallas would not be playing for the championship. Jason Terry has been clutch. Josh Howard is a budding superstar who can lock down opposing players at key points. Devin Harris gave the Spurs problems. Jerry Stackhouse has been huge in key situations. Dirk Nowitzki dropped 50 on Phoenix along with his normal superstar play- including a 3-point play against the Spurs when Dallas looked like it would blow a large lead. Eric Dampier shut down Shaq in Game 2 of the Finals. Perhaps Shaq regrets calling Dampier "Erica". But no one deserves more credit than Avery Johnson.

Avery is an outspoken advocate of Christianity. I love how he models the tenderness and toughness of Christ. The Christian life is dependent on the daily radical grace of God. And the Christian life is war- persevering faith in the midst of trials, temptations and doubt. Our stewardship in areas of money, abilities, time and health have eternal implications.

"As each has received a gift, use it to serve one another, as good stewards of God's varied grace: whoever speaks, as one who speaks the words of God; whoever serves, as one who serves by the strength that God supplies- in order that in everything God may be glorified through Jesus Christ." 1 Peter 4:10-11.

For His Glory,

Ashley Hodge

Dire need for stewardship

There is a problem in this nation. It is a problem that should drive every Christian to his/her needs daily in prayer. This is a nation of poor stewards. The visible church of Christ in America by every indication is no different from the general population in areas of stewardship.

We have squandered God's resources. We have allowed comfort and affluence to become our god. We need revival in this land. We need to learn and practice biblical stewardship.

Consider these sobering statistics on American life:

• Average credit card balance in 2005: $9,312 (cardweb.com)
• Savings rate in 2005: negative for first time since Great Depression (marketwatch.com)
• 80% of workers feel that strengths/talents are not being utilized in current work (Now, Discover Your Strengths)
• Amount of television Americans watch daily: over 4 hours (tvturnoff.org)
• 10% of US population is addicted to pornography (International Bible Society)
• 7% of the US population have gambling addictions (National Gambling Impact Study Commission)
• 65% of US population is overweight or obese (obesity.org)

Christians are different, right? George Barna- researcher- had these findings:

• 40% of the US claims to be "born again" but only 4% of the population has a Christian worldview
• Christians give less than 3% of income to the work of Christian ministry
• Less than 3% of Christian parents said that their children's conversion to Christ was the top priority
• No significant statistical difference between Christians and non-Christians in the following areas: divorce, use of pornography, visiting a psychic, getting drunk and having serious debt issues

Stewardship is the essence of the Christian life. Excellent daily management of God's resources: money, ability, time and health are the mandates for a follower of Christ. Why aren't more churches talking about whole-life stewardship? If we could get this right, everything else would fall into place.

"From everyone who has been entrusted with much, much will be demanded." Luke 12:48.

For His Glory,

Ashley Hodge