Dear Chuck,
I need to save some money this year, but I feel like a failure every time I try. What does the Bible offer that will help me achieve my goal?
Struggling to Save Money
Dear Struggling to Save Money,
You are not a failure; you are just delayed in reaching your goal. All those past efforts have likely taught you some valuable lessons. Nothing is wasted in God’s economy. Plus, you’ve taken a great first step by facing reality and asking for help! Let’s look at the big picture and then get into some helpful tips from Scripture that will guide you in reaching this important financial goal.
Americans Want to Save More This Year
Statista released findings of the most popular New Year’s resolutions in the U.S. this year.
The majority of those surveyed want to save more money:
Bankrate shows similar findings. More than half of Americans who are working in some capacity feel behind in their retirement savings. 48% of people with a specific retirement goal do not think they will be able to save that much due to high interest rates, a weakening job market, and the high cost of day-to-day essentials. A Bankrate survey in May of 2024 revealed that 59% are uncomfortable with their emergency savings.
A Biblical Framework for Saving More Money
Pray
To develop a radical saving habit, you’re going to need the power of God acting on your behalf. Proverbs 16:9 states, “The heart of man plans his way, but the Lord establishes his steps.” Get Crown’s daily email devotional for encouraging biblical principles and financial advice, straight to your inbox every morning!
Ask Chuck Majority Of Americans Want To Save More Money
Write Down Your Goal
Jesus noted that big plans without careful planning are doomed to fail. In Luke 14:28–29, we read: “Suppose one of you wants to build a tower. Won’t you first sit down and estimate the cost to see if you have enough money to complete it? For if you lay the foundation and are not able to finish it, everyone who sees it will ridicule you.”
Be specific. How much do you want to save? What kind of saving? Emergency? Down payment for a house? Paying cash for a car? Retirement? Write it down, and post it where you will see it regularly. Put a copy in your wallet, in your car, and on your bathroom mirror. Record your progress in a notebook or on a spreadsheet to keep you motivated.
Here is an example: With the Lord’s help and a disciplined budget, I will put $400/month in an emergency savings account until I reach my goal of $5,000.
Make Your Plan
Proverbs 29:18 observes, “Where there is no vision, the people perish.” In this case, a vision is an expression of a better future. Stay motivated by focusing on the benefits of achieving your goal. I can name a few benefits to consider: lower stress, greater freedom, more generosity, and the joy of knowing your finances are getting healthier.
Example: With the Lord’s help and a disciplined budget, I will have $5,000 in an emergency savings account by December 31, which will reduce my worry and increase my ability to be more generous.
Get Practical
Do you need to open a new bank account? Established automated deposits? These can prevent excess spending and cause you to become more saving-conscious.
What to Look for in a Savings Account:
Track your income and expenses so you can create a workable budget. The sooner you eliminate high-interest debt (like credit cards), the more you will be able to save. You can simultaneously build an emergency fund to avoid adding debt when unexpected expenses arise.
Where can you cut expenses? Learn to recognize the difference between needs and wants. Then deposit excess money into your savings accounts.
If you struggle with budgeting or planning, this guide may be helpful.
Recruit a Friend or Group of Friends
Proverbs 15:22 says, “Plans fail for lack of counsel, but with many advisers they succeed.” Going it alone won’t work for most significant accomplishments. As it says in Ecclesiastes 4:9–10: “Two are better than one because they have a good reward for their efforts. For if either falls, his companion can lift him up; but pity the one who falls without another to lift him up.” Find someone to “lift you up” or encourage you when you stumble toward your goal… and do the same for someone else. Maybe a relative, close friend, or small group will want to join you in this effort.
Celebrate Achievements
Recognize small victories on your journey, and thank God and friends for help in your progress.
As Christians, we press on in hope, knowing that we are more than conquerors through Christ who loves us. Don’t allow any past failures to alter your certainty that nothing is impossible with God. Make a God-directed resolution, be faithful, and persevere to victory.
If overspending and debt are holding you back from saving, a trusted partner of Crown is Christian Credit Counselors. They are a valuable resource to help consolidate debt and get on the road to financial freedom.
This article was originally published on The Christian Post on January 10, 2025.
Dear Chuck,
We are tired of living on the edge. We want to get our financial house in order in the New Year. Can you give me a framework that my husband and I can rally around to finally get focused and make real progress?
Financial Resolution in 2025
Dear Financial Resolution in 2025,
Happy New Year! Yes, I am excited to give advice to help you and your husband. I think resolutions are a great way to get focused on a unifying goal. The framework I propose will help you make spiritual and financial progress. In essence, it will define what it means to be a faithful steward of your resources.
Switch From an Owner to a Steward
First and foremost, remember that you are a steward entrusted with what God provides. Everything is His; we simply manage it for a short time on Earth. The goal of a steward is to be faithful to the Lord with all that He provides. Meditate on these two verses at least once a week in the coming year.
“Yours, O Lord, is the greatness and the power and the glory and the victory and the majesty,
for all that is in the heavens and in the earth is yours.
Yours is the kingdom, O Lord, and you are exalted as head above all.
Both riches and honor come from you, and you rule over all…”
1 Chronicles 29:11–12a ESV
“The earth is the Lord’s, and everything in it, the world, and all who live in it.”
Psalm 24:1a NIV
Control Your Spending
Establish a budget to eliminate the fear and anxiety of wondering if bills can be paid. Debt can set you back months, years, and even decades, with interest payments and missed opportunities to save and invest. A budget prevents you from spending more than you earn. A variety of good methods to budget are available. Each will take some time to prepare, but the benefits are countless.
WalletHub compared 17 different budgeting apps. Several are free and don’t require linking your bank accounts. Read online reviews before deciding on one. Spreadsheet programs like Microsoft Excel, Google Sheets, or OpenOffice Calc are also beneficial tools for budgeting. For additional help, go to Crown.org.
Establish Emergency Savings
Start by setting a goal of $1,000 with automatic transfers to an account that you refuse to touch except for true emergencies. Try to end the year with one to three months of your current expenses in this fund. Money set aside for this purpose will prevent you from having to use a credit card when the unexpected hits—which it will! You might as well learn to expect the unexpected! An emergency fund grants you financial protection and lowers your stress.
Pay Off Credit Cards
Assuming you have a credit card or two, resolve to never carry a balance. Paying 25% or more for this kind of debt is financial suicide. Set a goal to pay off balances as quickly as possible. Use the avalanche or snowball methods and possibly a balance transfer. Crown offers online courses, and we recommend Christian Credit Counselors when needed.
Carry Adequate Insurance
Life is unpredictable, and insurance provides protection from unforeseen losses and contingencies. I have provided links to the five types of insurance that will help you avoid a catastrophic loss:
Manage Your Health
Be proactive in taking care of your mental and physical health. Eat healthy food, work out, take time off, spend time with friends, get outdoors more often, get more sleep, and guard against worry.
The financial savings add up when you consider protection from long-term disease, fewer doctor visits, lower absenteeism at work, and a reduced incidence of catastrophic injury or death. Ask the Lord to break the strongholds of unhealthy addictions. Seek accountability, then fervently pray for self-discipline and the motivation to glorify God in your body—the temple of the Holy Spirit.
Learn to Be Content
Ignore the world’s pull to stretch your finances with bigger and better things. A bigger house and newer car come with hidden costs that can threaten your financial well-being years from now. Recognize that this life is temporary. Spending less creates the ability to increase giving, saving, and investing. Now is the time to prepare for the future both here and into eternity. In practice, say no to things you want today so you can say yes to what you need for tomorrow.
Be Slow and Steady
It is easy to fall for “get rich quick” schemes or to look for shortcuts to accelerate your progress. I have found all of those gimmicks to be financial traps. Beware of “once in a lifetime” opportunities. Urgency, exaggerated language, guaranteed income, or the requirement to recruit people to earn more money are red flags. When profit-making details are missing or cloudy, question the deal. Flee job opportunities that require money upfront or guaranteed results with no skill or experience required. Think the lottery is harmless? For most people, the return is only the paper on which the tickets are printed. That goes for any kind of gambling. Don’t do it.
“Steady plodding brings prosperity; hasty speculation brings poverty.”
Proverbs 21:5 TLB
Keep an Eternal Perspective
You will make great progress uniting around this framework. Set practical goals, and don’t give up or turn back. I also want you to think about your eternal future. Operating as God’s faithful steward reaps true riches and lasting treasures in Heaven. I can’t think of any greater aspiration.
“Keep your life free from love of money, and be content with what you have, for he has said, ‘I will never leave you nor forsake you.’”
Hebrews 13:5 ESV
This verse implies money will leave us—but Jesus won’t! That is great news for the New Year and for all eternity!
To jumpstart your financial framework, consider a Crown budget coach. Your coach will work with you to develop a customized spending plan and debt-elimination strategy to put you on the road to financial freedom!
This article was originally published on The Christian Post on January 3, 2025.
Dear Chuck,
I am 28 years old and in my first professional position in IT. I am trying to figure out how to make use of our company’s 401(k) plan. Right now I can only afford to contribute $100/month.
Struggling to Save
Dear Struggling to Save,
Congratulations that you are already thinking about long-term savings this early in your career! Maximizing the use of a company 401(k) plan is a very wise decision that has many advantages. Let’s get into some details that will help you gain the highest benefit.
History
The term for this account comes from the section of the Internal Revenue Code that was added in 1978, which allowed for “pre-tax” contributions directly from employee paychecks to be matched by funds from the employer. Intended at the time to help those receiving large bonuses or shares of stock in their compensation plan, the 401(k) has since become the dominant source of retirement savings for most Americans. Today, more than six trillion dollars are estimated to be held in these accounts by more than 80 million workers.
Employees receive two significant benefits from 401(k) plans and other tax-exempt retirement accounts: first, there is the obvious tax benefit. Second, employees have a way to protect their retirement savings from losing real purchasing power through inflation. On the downside, 401(k) plans are riskier for employees as the market rises and falls. Active management of these funds is provided by a third-party administrator.
Biblical Motivation
Throughout the Bible, we find examples that highlight the importance of saving. Joseph instructed Pharoah to save during the good years to be prepared for a prolonged famine. Ants are pointed out as examples that gather food during harvest to be prepared for the coming winter. The motivation is not to get rich but rather to show wisdom through constraint and preparation for an unknown future.
“The wise man saves for the future, but the foolish man spends whatever he gets.”
Proverbs 21:20 TLB
First Things First
Often, young people get involved in a long-term savings program by making deposits in tax-exempt accounts but neglect to establish an emergency fund first. The sting comes when an emergency happens and funds are needed, but they are not available without a penalty for early withdrawal or significant interest required on a loan from those accounts.
Before you maximize your long-term savings, be sure you have or are simultaneously building your emergency fund. This money is kept in an interest-bearing account, such as a money market account, that can be accessed immediately without penalty. I suggest you have at least one month of your current salary set aside in this fund before contributing to your 401(k). If you are earning $60,000 per year, you would need to have $5,000 in your emergency fund. Once that is achieved, begin to make deposits into the company plan while simultaneously continuing to build your emergency fund up to three months of expenses, or $15,000 in my example.
Start small. Be consistent. Make it a lifestyle choice to save before spending. Establishing an emergency fund may take you a while, but don’t get discouraged. It is an important step that will pay lifetime dividends in reduced stress and learning to live beneath your means. When this is accomplished, you can accelerate your long-term savings goals.
401 (k) Strategy
Your goal should be to maximize the amount of contribution that you make to your 401(k). Seek to receive the highest available match that your employer offers. You can ask a company representative to help you understand the specific amount offered by your firm. The maximum allowed 401(k) contribution is set by the IRS annually. In 2025, the limit is $23,500 or $31,000 for those over 50.
An article at Yahoo Finance provides a helpful example taken from Fidelity:
The employer might match 100% of your contributions up to 3%, plus 50% of your contributions on the next 2%.
Under these rules, you would contribute at least 5% of your salary to get the full employer match. If you make $60,000 annually, the math looks like this:
In other words, if you contribute $3,000 annually, you get $2,400 in free contributions, paid for by your employer.
Obviously, it will take you some time to grow from your current contribution of $100/month, or $1200/year to reach this amount. However, you are on the right track, and starting early is a great step.
Let me be careful to add here that any retirement plan that has tax advantages also comes with serious complexities. I recommend you seek the advice of a professional advisor as your account grows. Actively managing how your 401(k) funds are invested is very important. Pay close attention, even when managed by professionals.
If credit card debt is a financial strain that is hindering your ability to save more, consider reaching out to Christian Credit Counselors, a trusted partner of Crown. They are a valuable resource to help consolidate debt and get on the road to financial freedom.
This article was originally published on The Christian Post on December 27, 2024.
Dear Chuck,
I thought Bitcoin was a joke until now. My wife and I are thinking of putting some of our retirement funds into it but wonder if we are too late? Maybe gold is better?
Bitcoin or Gold
Dear Bitcoin or Gold,
Gold Fever was the term for the mass migration of fortune seekers to California from 1848 to 1853. As we know from history, more money was made by the vendors serving the gold miners than the vast majority of those doing the hard work. The question on millions of investors’ minds right now is similar to yours: Is it too late, or could it be a great time to jump in and buy Bitcoin or a related investment at this historic price level? In some ways, we are witnessing what we could call Bitcoin Fever. Let’s see what Michael Finke, the Frank M. Engle Distinguished Chair in Economic Security at The American College of Financial Services, said in a recent Yahoo Finance article:
“People tend to get attracted to things that have gone up recently,” Finke said. “And that’s attractive to anybody who’s investing, but particularly those who tend to be more sentiment-driven investors. They see the price go up and they think they want to be part of it. There’s always that fear of missing out.”
I am not against gold or Bitcoin; I have written numerous times about both in the past. You can read the articles here and here. However, I am against making speculative, reactionary decisions instead of measured investments. FOMO, or “fear of missing out,” is a very real fear that prompts people to follow the crowd. I think you are wise to be asking questions. Let’s get some context, and then I will offer my advice.
Bitcoin and Gold Soar
Bitcoin (BTC-USD) continues to shatter records in 2024 after a brutal crypto winter that began two years ago. The world’s largest cryptocurrency reached beyond $107,000 for the very first time early in the morning on December 16. Bitcoin’s record price puts it up about 53% since the presidential election in November! Gold has also had impressive growth in 2024. On January 1, gold was trading at $2,063.73 per ounce. Fast forward to December 16th, and the price soared to $2,670 per ounce. This represents a remarkable growth of 31% this year. So both gold and Bitcoin have had spectacular returns this year.
Bitcoin is far more volatile than the overall stock market. That can be exciting when the price is on a tear, like the one we’ve seen in recent months. But when times are bad, Bitcoin’s price often takes a much harder fall compared to stocks. Take 2022, which was, in general, an awful year for stocks, with the S&P 500 plunging around 19%. In the same year, Bitcoin lost over 60% of its value. Gold tends to move at a slow and steady pace. While not driven by manufacturing demands, it has historically been viewed as a safe store of value.
But what is driving the current growth of both, and will it continue?
What Is Causing Bitcoin and Gold to Increase So Rapidly?
Does the Bible Address the Issue?
The Bible gives us numerous principles to follow in answer to your question:
My Advice
Bitcoin and other cryptocurrencies are speculative investments (like gambling), which are assets that people put money into hoping the price will rise rapidly. Gold investments tend to experience slower but steady growth through the years. If you and your spouse are in agreement, move a small percentage of your retirement funds into a gold and Bitcoin ETF, but don’t plan on striking it rich; it could turn into fool’s gold overnight.
I’d like to invite you to join a free Crown Bible study on the YouVersion app. We have several devotionals regarding money and stewardship that will provide encouragement by bringing God’s Word into your daily life.
This article was originally published on The Christian Post on December 20, 2024.
Dear Chuck,
I received a Christmas bonus from my company and feel led to give to the Lord first. With so many places to give and so many requests this time of year, I’m having a hard time knowing which are reputable, trustworthy, and safe. I want to give before year-end for tax purposes.
Does Crown have any guidelines?
Cautious Giver
Dear Cautious Giver,
Praise the Lord for your bonus and desire to be generous. First, my disclaimer: I work for the best not-for-profit ministry in the world and think everyone should support Crown’s ministry! Okay… now for an unbiased answer to your great question!
Giving Brings Life
Charitable giving reached a high of $557.16 billion in 2023. A generous life requires the discipline to cap one’s lifestyle in order to tithe and give joyfully. Winston Churchill said, “We make a living by what we get, but we make a life by what we give.”
“As for the rich in this present age, charge them not to be haughty,
nor to set their hopes on the uncertainty of riches,
but on God, who richly provides us with everything to enjoy.
They are to do good, to be rich in good works, to be generous and ready to share,
thus storing up treasure for themselves as a good foundation for the future,
so that they may take hold of that which is truly life.” (1 Timothy 6:17–19 ESV)
Numerous studies prove the physical, psychological, and professional benefits of a life of giving.
During the holidays, people are happy helping others, feel good making a difference, enjoy being connected to something positive, and want to take advantage of tax deductions.
Years ago, I met a man who lived in the poor part of town in his very poor country. To look at his home, you would declare him to be poor. To look at his face, you would declare him to be rich. What immediately struck me was not his lack of material possessions, but his abundant joy. His beaming smile reflected a genuinely joyful heart. As I got to know him, I learned that he was a generous giver. In spite of what some would consider miserable poverty, he was free from the distractions of the world and focused on serving and giving to others.
How to Know Where to Give
Pray about giving, and make sure your motives are pure. In other words, don’t give hoping for something in return, even recognition. Determine what you genuinely care about, where you have received benefit, or what problems you hope to see solved in the world. This will help narrow your options to the organizations that you should research.
To ascertain the effectiveness of organizations, determine if they’re credible, legitimate, and really making a difference. Choose only those that are open and transparent, operate with integrity, and represent Biblical values. Support only those that adhere to best practices in governance and accountability, are wise with their funds, and measure/report their results.
Ministry Watch and Guidestar are helpful websites where you can check a ministry’s reputation. For more information, contact the organization to ask questions about their needs and where/how funds will be used. Although the above resources do not always recognize the full impact of an organization, they are a good place to start. For example, Crown receives millions of dollars of donated radio air time and impact via a network of global partners. Those elements of our model are not recognized by these charity services, so always dig deeper.
Giving Methods
Legitimate organizations have options for donating securely. Do not give over the phone. You can make a pledge, but never give your credit card number or personal information. Be careful giving via text.
Do not ignore red flags! Scammers commonly choose names that sound like well-known organizations. They cannot provide proof that it is a tax-deductible group. They may thank you for a pledge you did not make while making you think you forgot then pressuring you to donate. They may ask for cash or for you to wire money; they may even offer to send someone to collect! Never give personal information to someone calling, emailing, or texting to solicit a donation.
Technology has simplified the giving process with secure online options. Donations made by December 31st are tax deductible (for those who itemize their charitable giving). Gifts made by credit card are deductible this year, even if not paid until next. Those made by check must be postmarked by the 31st even if not cashed until 2025. Allow extra time to process gifts of stock, real estate, or other assets. And keep records to verify your giving.
Check with your employer to see if they match employee contributions. I encourage business owners to consider matching gifts to inspire staff generosity that reflects company values.
Establish a will or living trust naming your favorite organization as the beneficiary of some of your assets. A trust can pay out over a period of years instead of one lump sum. Consider a giving strategy by working with our friends at NCF (National Christian Foundation) or Trust Bridge Global.
Giving Cheerfully
Giving is a tangible way to show God’s love to the world. So make a list of where your heart is leading you to give. Check it twice, and do your research. Then give—generously and cheerfully. And remember Jesus in all your celebrations this season. He said, “It is more blessed to give than to receive.” (Acts 20:35 NIV)
Updated December 15, 2017 article
Do you want more tools and tips on financial stewardship? Are you interested in receiving ministry updates from around the world? Sign up to receive the Crown Newsletter emails by using the form on the homepage at Crown.org.
This article was originally published at The Christian Post on December 13, 2024.
Dear Chuck,
I am really stressed about Christmas expenses this year due to a layoff a few months ago. My new job starts in January, and I want to be generous and yet frugal. I have heard you talk about this on the radio and would like to get your list of tips.
Stressed Santa
Dear Stressed Santa,
I am sorry you are entering the Christmas season under financial stress, but rejoice that your new job starts soon. You are correct; I have been talking about reducing holiday-related financial stress during my radio broadcasts and am happy to share my perspective and tips.
Christmas Spending Is Up
An October Gallup poll found that consumers planned to spend an average of $1000 this holiday. The National Retail Federation expects spending to set a record. This includes food, decorations, and other seasonal items, but the majority will be spent on gifts for family members. They anticipate that 62% will finish their shopping in December.
The key to celebrating well is to plan early and ignore the world’s take on Christmas. The example we, as parents, set for our children is enormous. Many of my sweetest memories cost nothing.
Gift Giving from What You Have
Giving should not create financial stress if you follow a realistic budget and determine not to spend more than you can afford. This way you won’t be burdened with excess debt in 2025. Besides, you’ll enjoy the holidays more and set an example for others.
The perfect gifts may be things that you own. If they’re still meaningful to you, they’ll be especially meaningful to those to whom you pass them down.
One year, my dad’s boss gave me his own wristwatch—a very nice one. He had it engraved for me. Recently, I passed it down to my eldest son who shares my name. He appreciated it and the story behind how it was originally given to me.
Ask God to show you what would demonstrate your love for someone special. Then go through your home, your jewelry box, or even old scrapbooks. Are there books, paintings, or family heirlooms you could give? How about special pictures you could have framed?
Budget-Friendly Christmas Tips
Love, affirmation, joy, and hope can be given without going into debt. So gather the family and discuss everyone’s favorite traditions, record them for reference, and get to work. Be sure to shop without your credit card if you fear you will not be able to pay the balance in full when you get the statement in January!
Some years ago, I asked my wife, Ann, to help me with some of her best ideas for any family as she is the pro in our home at making Christmas meaningful without overspending. This is probably the list you are asking for. Here you go!
If you decorate, allow each generation to express themselves. Life is short—enjoy one another. Make this memorable with special food and music. Share the history of special ornaments and decorations. Your parents may have stories that are new to you!
Collect your recipes, make your menus, and plan your grocery shopping list. Shop sales, and freeze ahead when possible. Bake cookies together. And try mocha punch. It’s an unhealthy favorite at our house!
December can be a flurry of activity with recitals, concerts, and parties. That’s why it’s important to plan family times. Include the lonely, sick, or grieving in your planning to build compassion in the hearts of your young people.
Start a Christmas memory journal, and encourage all to write or draw their contributions. Bring out photo albums and family movies of Christmases past.
Make an advent wreath or a paper chain to count down the days. Share Jesse Tree or Advent readings each evening. Sing Christmas carols—the words are beautiful and timeless.
Host a Carol Sing or potluck Open House. A White Elephant Gift Exchange can be hilarious or deeply meaningful, depending on your intent. Enjoy acting out the 12 days of Christmas. Attend community Christmas concerts, plays, and programs. Many are free!
Hold an affirmation night where you express words of appreciation for each family member. Allow time to prepare thoughtfully. Memorize Luke 2 together, and recite it by candlelight on Christmas Eve.
Have Monopoly marathons, or play other board games. Read good books aloud. Teach the younger generation a skill or craft over the holidays.
Give adults personal time to exchange gifts or spend together. Remember family members who can’t be with you.
Plan a New Year’s Day walk, ending with a special brunch or breakfast. Bless the new babies and marriages. Pray for families who send you Christmas cards, focusing on one each day.
Pray blessings aloud over each person on Christmas Eve. Write a keepsake letter to each family member to give on Christmas morning. If you choose to exchange gifts, draw names to keep the costs down. Or make gift cards like lessons in a skill you can teach, a special outing, housework, yard work, or painting a room.
Pick a needy family or individual to bless anonymously. Pass down decorations, and have your family collect money during the month to contribute to their financial needs.
Our Priceless Treasure
This Christmas, I pray that everyone in your home celebrates the birth of our Lord. It’s an opportunity to live and share your faith, the most priceless gift. Guard the good deposit entrusted to you (2 Timothy 1:14 ESV), and celebrate Christ’s birth, the one …who is and who was and who is to come, the Almighty (Revelation 1:8 ESV).
I’d like to invite you to join a free Crown Bible study on the YouVersion app. We have several devotionals regarding money and stewardship that will provide encouragement by bringing God’s Word into your daily life.
This article was originally published on The Christian Post on December 6, 2024.
Dear Chuck,
My fiancé and I are making slow progress in saving for the down payment of a home. Can you help us with a better plan?
Saving for a First Home
Dear Saving for a First Home,
I applaud you for setting a goal to own a home, saving money for the down payment, and making plans before you are married to pursue your goals together—well done! I do have some advice and information that will be helpful to achieve your goals.
Buying a house can be a great decision early in life—if purchased right. It is not a decision to be rushed. Homeownership remains one of the largest and most important assets for the majority of Americans. Be patient and content as you make steady progress.
“For I have learned in whatever situation I am to be content.
I can do all things through him who strengthens me.”
– Philippians 4:11b,13 ESV
Location will have a major impact on the needed down payment. Realtor.com reports that the median down payment for homes purchased from July to September averaged 14.5%, or $30,300, down from last quarter’s historic peak of 14.9%, or $32,700. The drop can be attributed to the fact that fewer homebuyers have more leverage. The smallest down payments occurred in affordable areas with plenty of inventory. San Antonio, TX, and Virginia Beach, VA, topped the country with the lowest money down. They are military markets where buyers can use a VA loan, which requires as little as a $0 down payment.
California, on the other hand, is home to four out of five cities with the highest down payments. It is one of the most expensive housing markets in the country. Boston, MA, #4, joins cities that tend to have wealthier, higher-earning residents capable of putting more money down on a home.
More buyers depend on inheritance. A survey by the National Association of Realtors found that Americans who bought homes between June 2023 and June 2024 were older and wealthier than in previous years. A record number used an inheritance to help with the down payment on their first home purchase in 2024. Repeat buyers are older and have greater down payments than first-time consumers.
Tips to Accelerate Your Goal for a Down Payment
Expenses other than down payment:
How to get the best mortgage rates:
Big homebuilders offer buydowns (lower mortgage rates) to attract buyers. It’s a way to move inventory without having to drop prices. Buyers can benefit from lower interest rates for the first few years while preparing for the permanent rate to lock in. This explains how it works.
Before You Buy Your Home
I recommend you have 20% or more for a down payment before buying a home. Devote no more than 28% of your gross monthly income to a mortgage or 36% to overall debt. Less debt is always best. 15-year mortgages will save you lots of money. Being ready to buy your first home may take much longer than you expect. Be very patient as mortgage rates and real estate values change dynamically. Being careful is far better than becoming house poor.
Some couples strategically use only one spouse’s income for mortgage qualification purposes so they can save and invest with the other. This provides margin during childbearing years and any income interruptions.
Adopt conservative spending and saving habits now. Do not abandon these when it comes time to buy. You will start your marriage off with less stress and enjoy your life more even if you are never able to buy a home.
If credit card debt is a financial strain for you or your fiancé, consider addressing that together now by reaching out to Christian Credit Counselors, a trusted partner of Crown. They are a valuable resource to help consolidate debt and get on the road to financial freedom.
This article was originally published on The Christian Post on November 29, 2024.
Dear Chuck,
I grew up going to Black Friday sales and always looked forward to the day. I want to save money while my husband wants to ignore it to focus on “quality” time with our children and extended family. What would you do?
Family Time or Black Friday Shopping
Dear Family Time or Black Friday Shopping,
Certainly, I am for the two of you agreeing and enjoying your Thanksgiving together. Let’s look at the big picture before I give my advice.
Extended Sales Season
Bain and Company is forecasting U.S. retail sales to hit $75 billion between Black Friday and Cyber Monday. A poll conducted by Croud on LinkedIn found that limited-time offers are the most compelling to Black Friday shoppers. Flexible payment options follow at a distant second.
Black Friday falls on November 29th, which is later than usual this year. Consumers will still have plenty of time for deals because sales are beginning early and lasting beyond Cyber Monday. In fact, sales are forecasted to extend through the entire first week of December. You no longer have to anticipate just two days of major sales. Some deals are only minutes long, while others may last until the inventory is gone.
Inflation Pain Lingers
With lingering inflation, many Americans are also struggling to make ends meet. If your budget is tight, perhaps your husband is trying to protect you and the entire family. Aim to discuss the topic at a deeper level when the children are not present. Pray together, and prioritize your unity as you discuss the pros and cons. From my perspective, you have plenty of days to shop before Christmas. I propose exchanging the time you would invest to find a good deal for time that cannot be replaced. I would skip Black Friday shopping and joyfully be with your family. What did you enjoy about Black Friday shopping in the past? Was it the companionship of friends or family or the deals themselves? Share your heart. It may be that a compromise with your husband would enable you to do both.
Shopping Alternatives
Rest is a tradition many should consider! A Gallup poll reports that stress is rising for Americans and that a majority do not get enough sleep. You may be so conditioned to work, work, work that resting is easier said than done. Let me suggest some alternatives to shopping that your family might enjoy together.
REI is closing its stores on Thursday and Friday and paying 15,000 employees to Opt Outside. They encourage customers to choose nature therapy as opposed to retail therapy. Patagonia’s website states, “Black Friday doesn’t sit well with us. Let’s slow our roll and consider our impact.” Here are a few alternatives we should all consider:
A Few Shopping Tips
Couples should honor one another when deciding how to spend their holidays. Establishing new traditions can breathe fresh air into the relationship. Keep those that strengthen your family as a whole, and eliminate those that create stress. Adopt new ones that reflect your priorities.
Holidays are a gift that should be used to deepen your walk with Christ, one another, and those around you. Spending time together and being thankful will be a priceless gift.
“Rejoice always, pray without ceasing, give thanks in all circumstances; for this is the will of God in Christ Jesus for you.” (1 Thessalonians 5:16–18 ESV)
“In ordinary life, we hardly realize that we receive a great deal more than we give and that it is only with gratitude that life becomes rich.” – Dietrich Bonhoeffer
“When it comes to life the critical thing is whether you take things for granted or take them with gratitude.” – G.K. Chesterton
“The soul that gives thanks can find comfort in everything; the soul that complains can find comfort in nothing.” – Hannah Whitall Smith
“Thanksgiving creates abundance.” – Ann Voskamp
“Every time we decide to be grateful it will be easier to see new things to be grateful for. Gratitude begets gratitude, just as love begets love.” – Henri J.M. Nouwen
I’d like to invite you to join a free Crown Bible study on the YouVersion app. We have several devotionals regarding money and stewardship that will provide encouragement by bringing God’s Word into your daily life.
This article was originally published at The Christian Post on November 22, 2024.
Dear Chuck,
We refinanced our house a few years ago and just learned that people refinance cars too! How should we go about that?
Lowering Car Loan Rate
Dear Lowering Car Loan Rate,
My quick response is that you need to be very careful about refinancing a car loan! This is not something I have ever done, so the Crown team did some research to provide us with a look at the pros, cons, and alternatives.
Auto Loan Refinancing
If you have a bad auto loan or payments that are too high, you may be able to reduce your monthly payment by refinancing. This involves replacing your current loan with one that has a lower rate and a different length. You may be paying a high rate if you financed a vehicle through a dealer. Your credit score will have a significant impact on the rate that you qualify for. See this chart for the possible rates available by credit score. Refinance only if lower interest rates are available or if your credit score has improved, which may qualify you for a better rate.
Be careful. Extending the life of the loan may increase the overall interest you will pay. Shortening the loan’s length reduces the amount of total interest paid, but you must count any added fees. An auto refinance calculator can help you with the decision.
“For which of you, desiring to build a tower, does not first sit down and count the cost, whether he has enough to complete it?”
(Luke 14:28 ESV)
Get educated. Check with different banks, credit unions, and online lenders. Those that offer pre-qualification with a soft credit check will not affect your credit score until making your final decision. The score may drop temporarily, but a history of timely payments will correct it. Compare all terms, rates, and fees.
If you currently have a prepayment penalty, it could reduce or cancel any possible savings.
If a new lender pays off the old loan, follow up to verify. Some lenders provide funds for you to pay off the debt. Also, some will transfer the title, but you may need to re-register the vehicle.
You may not qualify if:
You need the following:
Try checking auto refinancing rates here:
The Better Option
The best alternative is to sell the car and buy one you can afford—with cash. If you can’t make that happen, continue to make payments on time, and get prepared to avoid borrowing for a car in the future.
Once the current vehicle is paid for, continue making payments into a savings account designated for future car replacement, as if the loan had not been paid. Drive your paid-off car as long as you safely can or until you can sell it for a decent price; then aim to pay cash for the next one. Buying one that’s a couple of years old means that someone else pays for the depreciation.
If You Are in Dire Straights
When there’s an emergency need for cash, a cash-out auto refinance loan or cash-back refinancing is available. You tap into the equity (the difference between value and amount owed) for cash. I recommend this for emergencies only. The risk is high of getting upside down on payments or having an accident and insurance only covering the current value of the car. You are at the mercy of the insurance company, and you have to pay the remainder of the loan. The interest rates can be extremely high. Let me emphasize that this would be the worst-case scenario and option of last choice.
Be Patient
We are in a rising interest rate environment right now. Many are forecasting much lower lending rates over the next twelve to eighteen months. I hope you will take the opportunity to not only avoid refinancing but also to avoid financing a vehicle in the future. My wife and I have not paid interest on a car loan for almost 25 years by paying cash for used cars. It has been a blessing for us and will be for you as well.
Do you want more tools and tips on financial stewardship? Are you interested in receiving ministry updates from around the world? Sign up to receive the Crown Newsletter emails by using the form on the homepage at Crown.org.
Dear Chuck,
With the reelection of Donald Trump, what economic changes do you think we should expect now?
Opportunistic Investor
Dear Opportunistic Investor,
In what has been described as “the greatest comeback in American political history” by VP elect J.D. Vance and a host of others, the election results on November 5th will go down in history. Americans and the world at large watched in shock as President Trump overcame the improbable odds of his re-election. He won not only the Electoral College but also the popular vote. Plus, both the House and Senate will have a Republican majority. A clear pathway has been established for the sweeping changes that are likely ahead.
Personally, I was praying that we would avoid a contested election leading to political instability. I thank God for answering my prayer. Many economic changes are ahead. Some will work; some will not. Some will benefit; others will be displaced. If you think of economics as a “study in human behavior,” as I often call it, you will be able to anticipate the opportunities ahead.
Three Potential Economic Shifts
During the course of President Trump’s many campaign rallies, I noted three potential policy shifts that sound almost too good to be true. Keep in mind, many things are said during a campaign that may or may not be implemented.
Tariffs vs. Income Taxes
In a recent interview, President Trump said that he thought the word tariff was “the most beautiful word in the dictionary.” In other words, he is very excited about using tariffs. He believes that enforcing tariffs on foreign goods will bring more jobs to the United States, will fund a portion or potentially all of the federal budget, and could lower or even eliminate personal federal income taxes. He certainly had my attention because this would have an impact on all of our lives, both directly and indirectly.
I had to learn more about what tariffs are intended to accomplish. In a summary by Dartmouth economist Douglas Irwin, tariffs have served three primary purposes: “to raise revenue for the government, to restrict imports and protect domestic producers from foreign competition, and to reach reciprocity agreements that reduce trade barriers.”
The direct benefit of low or no personal income taxes would lead to an economic boom for American small businesses, particularly the housing sector, as disposable income would skyrocket. Obviously, it would create pain for some industries that are service providers for adherence to tax laws.
I suspect this policy will meet strong resistance from those who stand to be injured. It will require careful analysis and measured implementation. My guess is that it will be an uphill battle. However, the indirect benefit could provide far greater leverage over foreign nations that presently produce our goods, like China and India. It will likely demand their cooperation, or they will lose access to the strongest market in the world.
Other Tax Policies
President Trump spoke about eliminating taxes on tips and income earned from overtime pay and allowing a tax deduction for interest paid on a car loan if the car was/is manufactured in the United States. These changes will be music to the ears of our hard-working contract laborers who will have increased disposable income. While the idea of a tax benefit for interest paid on a car loan sounds reasonable, it is likely to drive up the cost of automobiles as borrowers shift their interest saved into higher loan amounts.
These policy promises may be addressed early after the inauguration. However, they will become null and void if the federal income tax system is dismantled through the tariffs mentioned above.
Reduce One-Third of the Federal Spending
Uncle Sam has been overspending by 1/3rd of its income for more than 25 years. This is economic suicide and must be changed. See last week’s column. Elon Musk will likely be named the Government Efficiency Czar, as promoted on occasion by President Trump. This will be an unofficial, volunteer position to look to stop government waste and inefficiency. Elon Musk has recruited Ron Paul to help with the task. Former Congressman Ron Paul has been a lone voice in the wilderness for his entire career sounding this alarm. The two will make quick work of finding money that can be permanently eliminated from the budget.
My outlook is that this will cause shock among government agency leaders, lifelong bureaucrats, and staff alike, as many will fight to justify their survival. I expect public revolts as job security is threatened. However, the long-term benefits of a fiscally sound government will far outweigh the short-term adjustments. We can only imagine the growth that could result when the good faith and credit of the United States government is fully restored.
A Golden Age of Prosperity?
Some of the economic experts that I read, like Adam Kobeissi and John Mauldin, who are both capable sources for market trends, sense we could be heading toward the golden age of American prosperity. Of course, we live in a fallen world, so the road will be paved with enormous challenges politically, socially, and spiritually.
We must keep our eyes on Christ, not the government, to provide our peace, security, and purpose in life. This is not our home. Regardless of what lies ahead, let us continue to lay up treasures in Heaven, where the streets will be paved with gold—tax-free.
Similar to Uncle Sam, if over-spending and debt have you or someone you know in a financial bind, a trusted partner of Crown is Christian Credit Counselors. They are a valuable resource to help consolidate debt and get on the road to financial freedom.
This article was originally published on November 8, 2024.
