Debt crisis, austerity moves, bail outs, political leadership changes, markets on a pogo stick – these are the “new normal” in a “new economy.”

As I find update myself with the world economic events, it makes me think I am in some bizarre new world order. Time was we only concentrate on the economic impact of the warring Middle East but it seems that the four corners of the globe have been sucked up by some economic tornado. In the western hemisphere, the U.S. in a lopsided battle against a sluggish economy still reeling from the devastating effects of the sub-prime crisis.

It appears that the astonishing amount of bailouts has not done much for the world’s largest economy and there has been political pressure on the Obama government. The Wall Street protests are an indication of the sentiment of many Americans and their nation is polarized.

Macroeconomic indices has not been rosy for the American front either – lackluster economic growth plus high unemployment rate is a recipe for economic disaster. On the European front, Portugal, Italy, Ireland, Greece, and Spain with their debt scares continues to give a lot of people sleepless nights (most of them bankers). Changes in political leadership in Greece and Italy might turn the tides to their favor but that remains to be seen.

Watching the developments in that region is akin to watching our “telenovelas” – lots of action, cliff hangers and more so, drama. Moving to the Far East – one the world’s largest economy, Japan, can’t seem to wake up from economic slumber. The once mighty Japanese economic empire is slowly losing preeminence with virtually no economic growth for many years and the recent devastating earth quakes puts a heavy toll on an already burdened economy.

Pockets of economic upheavals also erupted in many areas … the ongoing strife in the Middle East keeps the price of oil up further giving inflationary upward pressure on the world. The ever precarious Israel-Palestine relationship is a time bomb waiting to explode. National disasters are erupting more frequently and cuts across the globe, leaving untold physical and economic damages. China and India are strong economies but one would be foolish to think they will not be affected by the economic slowdown of the Euro-American economy – their biggest market.

What then of the Philippines? How do we fit in this “new normal” or the “new economy”? If first world countries are in a rut, what then for a country like ours? Aren’t we also struggling with a debt issue? Aren’t we also struggling with poor economic growth?

Firstly, let me ease the reader’s concern with our debt issue. The US, Italy, France, Spain, Greece and many others have an extremely high percentage of their debt payments as against their GDP – over 90% and some close to 100%. By comparison, the Philippines debt payment to GDP ratio is only a little over 50%. While we are still at risk in the global economic skirmish, I believe the present situation also opens up a lot of opportunities for us to take advantage of. In the arena of outsourcing, we have a big talent pool of skilled Pinoys who can do the job and do it well at cheaper costs. Our heroes, the Overseas Filipino Workers are ready to take on any job at any given time and in any place. Our banking system remains to be a stable one with good check and balance measures thanks to the Central Bank and surprisingly good legislation. I believe that the whole economic situation created some vacuums and voids a nation like the Philippines can fill, own and thrive at. This is clearly an example of the many advantages of being small, if only we rid ourselves of small mind thinking. In a new economy, one can get lost and forgotten – yet one can find a place to achieve many of her aspirations and goals.

I am generally a positive thinker and not fond of gloom and doom predictions; yet if I am to be objective and if I am to read the writings on the wall, I say that man’s economy is not going anywhere north anytime soon. How do I get to sleep with all these knowledge and understanding? My answer is very simple: I chose to subscribe to God’s economy instead.  Amidst all these, my faith in my creator gives me all the hope and security I need and my personal experiences have validated that I was correct in my subscription. In His presence, I fear no recession, no inflation, no debt crisis, no unemployment – all I experience is peace.

“Trouble and distress have come upon me, but your commands give me delight.”  – Psalm 119:143, NIV.

* Also appears in Moneysense November-December 2011 issue

I have yet to find a person who will sincerely say that he does not want to be wealthy. While there may be those who claim they prefer not to be wealthy, I really doubt that they really meant what they say.

Being in this line of profession, I’ve met a lot of wealthy people. I’d like to believe that many of them seem happy, although some aren’t. I also noticed that it is not the level of wealth that dictates their level of happiness. Why is this so? This got me wondering and prompted me to write about it in this blog.

A few years ago, I read the book Till Debt Do Us Part by Chinkee Tan. I hope my friend will not mind if I take out a few words from his wonderful book (I highly recommend the readers getting a copy of this book).

“Wealth gives people a sense of security. The philosophy behind it is the more money you have, the more secure your future will be. That life will be easier and be more stress-free because you don’t have to worry about money and the things that money can buy.”

When you read Chinkee’s words, it really sounds logical. How many times have we worried about money? How many times have we been so stressed because of our need for money? If you are like me, that’s a lot of times. However, Chinkee disproves this philosophy.

“Actually, this is a myth. This myth takes many forms. Usually, it takes the form of ‘If I only had a newer car, if I only had a larger house, if I only had another few millions per year, if I only had a new phone, if I only had some better clothes, if I only had a better education.’”

If the purpose of wealth is that it gives you a false sense of security, you will never have real peace of mind.

Wealth is important not because of wealth, per se. Wealth becomes important because of the purpose of wealth itself. It is why we need to be wealthy that really gives it true importance.

For some, wealth is associated with something evil. Many people find power with wealth. There is even a common saying that money is the root of all evil and a majority of crimes being perpetuated are due to the need to accumulate or the need for money.

Well, money is also needed to survive. Even primitive civilizations saw the need to use money for many things. Yet, money and wealth seem to have always had a bad reputation.

Is accumulation of wealth really a bad thing? If you look at the Bible in Matthew 19:24, it is written: “Again, I tell 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.”

If you take this verse to heart, you will never want to be wealthy. I am not a theologian, I’m not even religious… but I think what was really meant in that verse is about our real purpose of acquiring wealth. If the accumulation of wealth is something that consumes you, then maybe wealth can be considered as evil.

In my opinion, wealth and money are amoral. It is neither right nor wrong. Just like a knife—in the hands of a chef, it is a good tool; but in the hands of a criminal, it is a bad tool.

Besides, money being the root of all evil has often been misquoted. The correct verse is found in 1 Timothy 6:10, “For the love of money is the root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many grieves.”

The wealthy people who seemed to be genuinely happy are those who are not consumed in their quest to accumulate wealth. The wealthy people who seem unhappy despite their wealth are those that are consumed by money—finding happiness in what their wealth can afford them. Wealthy people aren’t really bad people, even our Lord Jesus Christ had wealthy friends like Nicodemus.

Being wealthy is important. We need peace of mind. We need to provide for our family. We need to have enough so we can share. For us to give, we need extra. For us to have extra, we must provide more than our needs. Having more than our needs is having wealth. Having wealth allows us to live the life we deserve, a victorious life that each one of us should be enjoying.

I sincerely doubt that God wanted us to live a life of hardship and a life of mediocrity. In fact, if you read Deuteronomy 15:4, it says, “However, there should be no poor among you, for in the land the Lord your God is giving you to possess as your inheritance, He will richly bless you.”

So what I am saying is, wealth is not bad. In fact, it is important. How we acquire our wealth and what we do with it will speak about our character—it will define who we really are.

How does one become wealthy? Well, that would be a nice topic for another day, but here’s some basic tips that I am sure you’ve heard or read already: spend less than what you earn; be disciplined in your money management; save – invest – save – invest; take risks (calculated ones)—and, most important, follow simple common sense in dealing with your finances.

There are a lot of folks out there who’d settle for a 2-percent per annum placement but will not think twice about buying something through his/her credit card and use the deferred option that charges five to eight times more than his/her savings placement—or worse, use the revolving scheme of his/her credit card that will be charging more than 15 times his/her placement’s yield! You can check out the other entries in this blog site for more tips on personal finance.

Be wealthy, but do it for the right reasons. If we have the resolve, many of us can be wealthy. All we need is the right attitude, the passion and, most important, the time. Did you know we are destined to be wealthy? Don’t doubt my words. Pick up the Book and read Jeremiah 29:11, which says, “For I know the plans I have for you,” declares the Lord. “Plans to prosper for you and not to harm you, plans to give you hope and a future.”

Enjoy your quest for wealth; it really is important if you your purpose is godly and noble… and we must also understand the other things that are likewise important.

Oh… most importantly, you should know where the real source of wealth really comes from.

Want to learn practical Financial Planning? Timeless principles of money management that is proven to work. Nope, you can’t learn it from me as I’m pretty clueless — learn it from this kid. Amazing!

Elijah Offering Video from Elevation Church on Vimeo.