Today on MoneyLife with Chuck Bentley

Wednesday, February 3, 2010

Answering Your Email

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We're answering your email today. I really appreciate the questions and feedback you send to ChuckBentley@Crown.org. It helps us know what kind of teaching programs and interviews to do.

Dear Chuck, I always hear you discuss the importance of a husband and wife being one in their financial purpose, but here’s my dilemma. My wife is disabled, so I have to make almost all our financial decisions on my own. We discuss the finances, but my wife can’t grasp the concepts, so, she usually tells me to do what I feel is right. But I feel many times that I’m going against God's will by not discussing every move with my wife. Am I handling this right or should I be doing something different?

You are a faithful husband. You love your wife and you attend to her needs. I appreciate your heart for your wife. Since your wife is unable to participate right now, I recommend you seek to put together a group of godly counselors. You should be able to find some men in your church that you can trust and share your plans with. Write your decisions down in a journal that she or others could read. It will show you’re making every effort to do what’s right in making financial decisions.

Dear Chuck, I have bought $3,000 worth of gold coins. But a friend of mine, who owns much more, noticed that James 5:3 says in the last days, silver will canker and gold will rust. Has that ever happened? Is that what’s going to happen in the future? I’d like to hear your interpretation of that verse. - Rick

That's a great question. This is on the minds of many. The gold rush is going on right now. People are buying gold. Gold is at a record high price. I'm concerned people are buying at the top of the market. Their fear is driving the price of gold up. People are afraid our currency will fail. This verse speaks to putting your confidence in something of this world that you think has value. God says that is not a good decision. Gold and silver will one day be worthless. Security and protection can only be found in God. You need to find a balance between faith and practicality. Hoarding gold is unwise, but we should be prepared for the future. It's okay to diversify into gold and silver, but don’t put your confidence in them. Have a diversified portfolio. It's wise to have a month’s food supply on hand, and one month’s expenses in cash at home. The Church needs to be ready to help people too.

Dear Chuck, I have a question about following the plan on the Crown Money Map. If I save up three months of living expenses and then I have to buy a new car, should I use my three months of living expenses to pay for the new car and then start saving up the three months of living expenses all over again? – Tracey

We want you to be successful following the plan on the Money Map. It's very easy to follow. The purpose of emergency funds is to use them for an emergency. If you have no other means of transportation, use the fund to get a car instead of borrowing money. Try to buy a car for less money than you have in your emergency fund, so you don’t completely empty it. Then, start rebuilding your fund.

Dear Chuck, what is the difference between Crown Mvelopes^® and the Crown's Money Map Financial Software? I registered for Mvelopes, and I’m currently on a free trial of the service. Are there any significant differences whereby it would be worth having the software too?

You don’t need both tools. It depends on how you prefer to do your budgeting. Crown Mvelopes^® allow you to do online banking, saving you time entering data. Crown's Money Map Financial Software is safe, effective and stores data on your computer.

Dear Chuck, thank you so much for your ministry. My husband and I used to listen to Larry Burkett, then Howard Dayton, and now you. I have learned so much from all three of you and continue to listen to MoneyLife and MyMoneyLife through podcasting. God has used the Crown Money Map to help us become debt free, have 2-to-3 months of living expenses, and start saving for future purchases.

I have a question about credit cards. My husband and I believe we should consolidate and hold as few cards as possible. We are thinking about cutting down to three cards with each having a specific use. Two of the cards we’re thinking of canceling are in my husband’s name, so we’re not sure if we should keep them to protect his credit. He’s self-employed, but not working currently. Would it be okay to cancel the cards that we don’t use rather than leave them open with no activity and to cancel the cards that are the only credit in my husband's name? - Laurel in North Olmsted, Ohio

I'm encouraged by the progress you’re making, Laurel. Praise the Lord for your faithfulness. I like your idea to reduce the number of credit cards you have. Ann and I only use one. It would be hard for your husband to obtain credit if he’s unemployed. Keep one card in your name, one in your husband’s name. Cancel the others. Limit the transactions you use the card for. Credit cards aren’t evil but they must be handled carefully. Don’t be dependent on a credit card. Use them when convenient.

Dear Chuck, My husband and I want to open a small Japanese/Korean Restaurant, but we need help in getting additional financing. I've heard about the SBA (Small Business Administration), I but don't know much about it. My husband has been a sushi chef for 10 years. We found a deli restaurant that recently closed and has all the equipment we need. The lease price is $3,000 a month with a $5,000 deposit. It seems reasonable for the location, which is on one of the main streets in Fort Myers, Florida. However, some improvements in the facilities will be needed such as enclosing the kitchen. Is there any programs or grant that we can apply to for financial help to open a restaurant? Our credit is not the best due to some short sale properties. - Sookie

I like your entrepreneurial ideas, Sookie, but I'm concerned about a few things. It will be hard to get SBA assistance if you have poor credit. You may not have enough cash flow to start a business. Don’t try to get a loan if you don’t have the cash reserves. You need to be well prepared financially/ Instead of borrowing money, consider starting on a small scale. Do catering or prepare meals for a grocery store from home. Find a restaurant where your husband could go to work to help build another business. He could earn a share in the business. Look for financing among family and friends who would give you favorable loan terms.

Dear Chuck, I own my own business, and about a year-and-a-half ago, my business starting going down. I needed to take home less money, so I cut back in all areas of my business and home expenses. About a year ago, I tried to do a modification on my mortgage while using credit cards to stay current. Now, I have no more credit to use, and I’m making late payments. I’ve had my home for sale for a couple months, but I’m about $100,000 upside-down on it. My realtor is suggesting I move towards a short sale. I want to honor God, and I’m not sure what to do. What do you think? – Jason in Florida

You're making a wise decision to downsize. A short sale may not be the answer, as there are a lot of challenges in doing that. If you want to honor God, go back to lender and ask lender to restructure your mortgage to give you better terms. If you can get some relief, you can stay in the home. That would honor God. Be faithful and persevere. It demonstrates character over time.

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Don't forget about the God Provides™ film tour coming to Atlanta Thursday, February 11 and Chattanooga, Thursday, February 18. I'll be teaching, too. These events are family friendly and free, so bring your children. We'll be showing Abraham and Isaac and the Widow and Oil films. You can register here.

This is not a fundraising event and there's no charge to attend. I encourage you to see God as your provider during these difficult economic times. I hope you’ll make plans to be there if you live in those areas. If you do, please say hello and let me know you're a MoneyLife listener.

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