Today on MoneyLife

Chuck Bentley begins today's MoneyLife broadcast telling listeners that he tries to read every e-mail and reply to them himself. He recently got a message from a listener that challenged him.

Dear Chuck,

I’m with you on the period of prayer and fasting, but I have a comment.  Let’s put things in perspective.  It’s depressing to listen to you.  Can we get a break from you telling us how bad it is?  How about some encouragement?  It’s bad for some people absolutely.  But there’s a large segment of the population – 94% -- that are still paying their mortgages and getting by.  In comparison to what many Christians go through in this world, we have nothing to complain about.  I’m not a big complainer, but it’s been depressing to listen to you over the past couple of weeks.

Chuck: Ouch! I'm trying really hard to keep a balanced perspective. We hear from a lot of the people in the 6% who are hurting and looking for help, hope, and insight. I'm trying to be a voice of God’s perspective, to bring His wisdom to you. God faces things head on; He doesn’t gloss anything over. Our hope should never be in money. If you’re in the 94% who are getting by, you still need God’s wisdom and to live by the truth of His Word.

Chuck tells listeners they can always write him directly at ChuckBentley@Crown.org. He cites Ecclesiastes 7:12.

After the break, Chuck continues answering listeners' email.

Q. Is it wise to keep money in the bank or should I take cash out and put it in a “safe” place or buy coins in this economic crisis?

Chuck: God has made the good times and the bad times. God is in control of the future. During times like this, the tendency is to go from one extreme to another. We're trying to avoid extremes on this program or pretending to know the future. All we know is that times are bad. So, I'm not sure what you should do with your money right now. There are two schools of thought right now:  one is deflationary, the other is inflationary. Deflationary means everything will come down:  prices, wages, economy will shrink. If you have a lot of debt when the economy shrinks, it can be painful if you get stuck with personal debt. Inflationary means everything goes up. We want to present both scenarios, because we’re not sure which one will happen. We need to be diversified and prepared for either scenario. So I'll answer this question both ways. In a deflationary period, it's wise to stock up on cash. In an inflationary period, it's best to be in commodities that have value like silver and gold. A balanced position would be some of both. I have money in a safe bank but also keep a month’s worth of cash at home in case the money in the bank is not available. I also have a small amount of gold and silver coins and I'm stocking up to have a one month food supply. The best protection is the ability to generate revenue, to be skilled at something others need. Most important, you've got to be out of debt. See also Ecclesiastes 7:14 and Ecclesiastes 7:18. Also, you can can check your bank’s rating out at BankRate.com. I also encourage you to visit our blog and consider participating in our fast.

Q. I’m 30 years old and my wife is 29.  We have a baby due in less than a week.  We have a mortgage of $63,000 on a home that’s worth about $200,000.  I also owe $14,000 in student loans, but I have no other debts.  I have no savings, but I have a $20,000 coin collection that includes silver and gold. What should I do?

Chuck: Congratulations on the upcoming birth of your baby. I'll pray it goes well. You may have a lot of equity in your home, but it sounds like you have little or no financial margin. Don’t borrow against your equity to pay off your other debts. Get a Money Map and follow it. You need short-term emergency savings, $1,000 first, then save 3-6 months of living expenses. Hang on to your gold and silver, may go up in value. Don’t borrow any more money, start saving, and paying off debt as rapidly as possible. Protect your source of income and develop secondary sources of income. Your wife may be able to do something from home.

Q. I’m a born-again Christian who takes care of an 89-year-old widow who has no one.  Her husband passed away in December.  She has an eye disease, and she now can’t read or write.  I help take care of her finances.  She has $250,000 in a mutual fund, and we’re wondering if we should take it out and put it in a CD.

Chuck: Yes, it would be wise to take her money out of the market and put it in a CD because at her age the goal should be to protect her assets and produce income rather than to grow her assets. Because of the economic rescue plan that recently passed, the FDIC is insuring up to $250,000 per individual account. Thank you for taking care of someone in need. We’re in a time when the Body of Christ has to be more willing to take care of people in need. Find someone you can be a blessing to--God wants us to help others.

Q. We recently made a 20% down payment on an $85,000 mobile home.  Was that a wise move in the current market?  If not, should we try to get rid of it or keep it?  We’re a young couple that’s debt-free.

Chuck: This sounds like a typical case of "buyer's remorse," perhaps brought on by declining home values. Real estate is down right now and you have to have a place to live, so stay put. The good news is that your monthly payments are low; you'd probably have to pay as much in rent. Mobile homes aren’t an appreciable asset, so you need to look at it as a place to live, not an investment. It's not a bad decision, so don’t panic. Take care of your job and pay off this debt as quickly as possible, and ask God to help you.

In the final segment, Chuck gives some closing thoughts:

No man knows the future. We're vulnerable right now to someone who claims they know the future. Believe the Bible. I think we’re going to go through a deflationary period or an inflationary period. Either will be devastating to our economy and very painful for people.

Our government and our citizens are in a lot of debt. The middle class has been living beyond its means. There's no need to fear or panic; God is in control. We need to do the things God teaches us in His Word, pay off debt, protect your income (job skills), and look to the Lord.

There are too many humanistic thoughts in our minds right now. Those who know the Lord truly need to cry out to Him and ask Him to solve these problems. Embrace God’s values and his way of managing money. If you go into God’s Word, you’ll see God can deliver His people no matter how bad things get. That should give us great hope and peace.

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