I must start out by apologizing if this column is a bit disjointed. It’s incredibly hard to concentrate as I write this. The noise outside my office in the buildup to Jerusalem Day is deafening. My office is located just off Zion Square, and there are radio stations broadcasting live and blaring their music along with teenagers singing as they walk down Jaffa Road for the parade. The noise has my head pounding.
While some see this parade as a display of extreme nationalism, I think it’s beautiful. Seeing tens of thousands of our youth celebrating something of substance, in the era of social media and smartphones, is very moving. Perhaps those who are against the parade are actually jealous at the outpouring of our youth participating in celebration of the unification of the holiest city in our religion?
This week is Shavuot. I must admit that this year I am conflicted about the holiday, when dairy foods take center stage. I couldn’t care less about lasagna and Bulgarian cheese in a salad. I will take meat any day. It’s cheesecake that’s the problem. I LOVE cheesecake, but I am also on a diet. Will I give in to the blueberry-topped delicacy, or will I stay strong?
Although various cheesecake and blintz recipes get top billing, Shavuot actually celebrates the Jewish people receiving the Torah. The unification of the Jewish people at Sinai allowed for the receiving of the Torah. An extension of unity is the concept of each person’s responsibility to take care of one another. This has many ramifications in Jewish law. Rabbi Raphael Katz writes, “The Talmud in Shevuot 39a explains the verse, “And a man will stumble because of his brother’s iniquity. This teaches “shekol yisrael areivim zeh bazeh” – that all Jews are guarantors for one another.” This principle is called “arvut.”
In Rosh Hashana 29a, we find the “positive” formulation of the concept of arvut. There the Talmud states that one who has already fulfilled his obligation can nevertheless cause others, who have yet to discharge their obligation, to fulfill the mitzvah. For example, one who has already fulfilled the mitzvah of kiddush on Shabbat, can repeat the kiddush on behalf of someone else who has not yet recited it, and the repetition is not considered as having mentioned Hashem’s name unnecessarily. This Halacha is based on the above concept that every Jew is a “guarantor” for his fellow Jew’s observance.”
I want to take this concept of being a guarantor for each other and apply it to finance. Sadly, I see individuals make financial mistake after mistake, and the result is hardship. I will do my part of unity and provide some tips that will enable you to start making smart financial decisions and get on track towards financial independence.
Smart financial decision tips to help you become financially independent
- Budget – Take control over your spending. Track income and expenses and then you can start a realistic savings plan and start building wealth.
- Get out of debt – Credit card debt is the No. 1 obstacle to getting ahead financially. It’s a lot better to take those interest payments and plow it into savings, than to keep paying the credit card company.
- Emergency fund – You may need dental work, have a flat tire or be out of work. By creating an emergency fund, you will be able to handle surprise expenses. Keep 3-4 months of income in a short-term deposit or something similar to have it available at a moment’s notice in case you need it.
- Invest – There is no shortcut to building wealth. You need to start investing and with discipline, the wonders of compound interest and the growth of the stock and/or real estate market, over time you will create a comfortable nest egg.
- Maximize your retirement account contributions – There is no better investment than a tax-deferred investment. Make sure you are maximizing contributions to your keren hishtalmut and keren pensia. Keep the money invested and you will be surprised at the long-term growth of those accounts.
Rabbi Katz continues, “On the eve of Yom Yerushalayim, it is appropriate to recall, that Yerushalayim has the power to evoke this awareness of the essential unity and intermingling of Am Yisrael’s soul. In the words of... David: ‘Jerusalem built up is like a city joined together’ (Psalms 122:3). As our sages commented, ‘It is a city that joins/makes all of Israel into friends and colleagues.’”
The information contained in this article reflects the opinion of the author and not necessarily the opinion of Portfolio Resources Group, Inc. or its affiliates.
Aaron Katsman is the author of Retirement GPS: How to Navigate Your Way to A Secure Financial Future with Global Investing. www.gpsinvestor.com; aaron@lighthousecapital.co.il.