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Thinking Outside the Box to Fix 5 Common Money Mistakes

Thinking Outside the Box to Fix 5 Common Money Mistakes

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Tuesday, 01 November 2016 07:20 AM Current | Bio | Archive



As a Wall Street executive, Obie McKenzie knows how to manage money but when he is not working at one of the largest American global investment management corporations in mid-town Manhattan, his passion is applying spiritual solutions to every day financial problems.


“There's 2,300 scriptures in the Bible about finances, which are counter cultural to what mankind says about making money on Wall Street,” McKenzie told Newsmax Finance.


In his book "Bible Economics," McKenzie discusses five common financial challenges and how to fix them with spiritual principles.

No retirement savings.

Although retirement savings is on the rise, some 55% of Americans are still unprepared to cover basic living expenses in retirement, such as housing, healthcare and food, according to a Fidelity Investments study.

With some 10,000 baby boomers expected to retire in the next 10 years, the country is facing a potential problem especially with 45% of baby boomers, born between 1946 and 1964, saying they have absolutely nothing saved for retirement, according to IRI data.

Such an overwhelming problem requires a radical solution, which McKenzie doesn't shy away from.

“The Bible is all about sharing,” McKenzie said. “Workers without retirement income will have to share resources and start preparing for that reality now before they retire.”

Stock market returns are a rollercoaster ride.

According to a NerdWallet study, millennials will earn a 5% return over the bulk of their investing lifetimes instead of 7% due to a drop in stock market returns, which means they may be required to save 22% of their annual income to make up the gap compared to the current recommendation of saving only 15% of annual income. Obie advises relying on the Bible’s inherent investment policy guidelines rather than the investment marketplace which makes up the stock market.

“Every investment on Wall Street has an investment policy guideline whether it’s large cap stocks, small cap stocks, bonds or hedge funds,” said McKenzie. “They all have return expectations but so does Bible’s mutual fund, which is contained in those 2,300 scriptures advocating a life lived along spiritual lines.”

Lack of enough earning to cover expenses.

Some 63% of Americans do not have enough savings to pay for a $500 or $1,000 emergency, which indicates the majority aren’t earning enough. Instead of turning to their incomes, 23% are forced to cut back on spending in other areas, 15% would turn to charging their credit card and another 15% would borrow from friends and family in order to meet the cost of an unexpected event, according to a Bankrate.com study.

McKenzie flips to Deuteronomy 8:18 in the Bible, which states: The Lord your God gives you power to get wealth." What this means is that God gives each of us intellectual power, physical power and the energy to get a higher paying job, to come up with an idea for a business or to write another book,” McKenzie said. “Many of us don’t realize our gifts and there’s a stream of revenue tied to each talent that we can tap into. We need to spend more time discovering and leveraging those talents.”

Overwhelmed with debt.


The average American household has $132,158 in debt, according to NerdWallet. Some $15,675 is carried on credit cards and $48,591 is in student loans. In fact, the average debt burden for students is on the rise, according to College Investor.Graduates in the Class of 2016 are saddled with $37,172 in student loan debt, on average, while those in the Class of 2003 had an average of $18,271 to pay back upon graduation.


McKenzie advises younger generations to prioritize paying off student loans and not using credit cards because interest rates and purchases are rooted in compound interest, which is a miracle.

“Credit cards put you on the wrong side of compound interest and unless you earn premium income as you establish that debt, you’re likely unable to handle debt as it adds up with interest,” said McKenzie. “It's like a mortgage. The root word for the word mortgage is mort, which is death, and gage is a pledge. So, a mortgage is a pledge unto death.”

No disposable income to share

Although times might be tough financially, giving is timeless, priceless and never goes out of style regardless of a person’s income, according to McKenzie. That’s where the idea of giving 10% of gross income and faith comes in.

“The Bible teaches in Micah 3:10 that whatever we give will be given unto us with good measure, which means when we give unconditionally, there are tremendous and infinite blessings that await us on the other side when we give,” said McKenzie. The average donation to religious organizations was $1,703 compared to $863 gifted to secular entities, according to the Non Profit Almanac.

Although fewer households make charitable donations of $25 or more to religious vs. secular organizations, households that do contribute to religious organizations tend to give double the amount. But it’s not clear whether that’s because those households earn more money overall. “That which most of us call God gives to us so that we may be comforted and we, in turn, give to somebody else so that they may be comforted but don’t give because you want something in return” said McKenzie.

“Give because it’s a spiritual principal that will open up new channels of income in your life. God can only give back what you invest.” 

Juliette Fairley is an author, lecturer and TV host based in New York.

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JulietteFairley
As a Wall Street executive, Obie McKenzie knows how to manage money but when he is not working at one of the largest American global investment management corporations in mid-town Manhattan, his passion is applying spiritual solutions to every day financial problems.
money, mistakes, box, think
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2016-20-01
Tuesday, 01 November 2016 07:20 AM
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