“A wise man thinks ahead; a fool doesn’t, and even brags about it!”
Proverbs 13:16
Short Term Pain Vs. Long term Problems If there is one topic that everyone in my world is talking about, it's interest rates. During the past 16 years, the financial markets and consumers have become somewhat addicted to low interest rates – very low interest rates. Buying power increased across the board and consumers have been able to comfortably afford homes, vehicles and other items that are not as easily accessible today. Why? Increased consumer demand, along with ongoing supply chain issues, brought about record inflation. Who knew a dozen eggs would cost $5+! The Goal The Federal Reserve has made it very clear; they have a mission to slow the rate of inflation. Thus they have increased interest rates at a rapid rate over the past 18 months. They are open to short term pain, in order to avoid record inflation for the long term. For example, the average 30 year mortgage has increased from 3% to 7%. This breaks down to an extra $12,000 in interest per year on a $300,000 mortgage! Economists everywhere are trying to figure out what the next 12-24 months looks like, but the fact is that we just don’t know. Stay Responsible and Generous However, one thing is certain. We have to be diligent with what we have been given, plan ahead and provide for our household. “But if anyone does not provide for his own, and especially for those of his household, he has denied the faith and is worse than an unbeliever.” I Timothy 5:8 I encourage you to continue supporting God’s mission, even when things get tight, don’t neglect supporting the worthy causes that are presented to you.
Jon Ross Henderson MD5 Facilitator