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.
Dear Chuck,
I am really concerned with what Elon Musk said about America heading toward bankruptcy. Do you think there is anything we need to do if he turns out to be correct?
Concerned American
Dear Concerned American,
Elon Musk has repeatedly said that the ever-expanding Federal debt is leading America toward bankruptcy. I have linked here and here to some of the publications where he has been quoted about this concern. Here is an excerpt from his actual comments during a recent All-In Summit hosted by the All-In Podcast:
“America is going bankrupt extremely quickly, and everyone seems to be sort of whistling past the graveyard on this one.”
My concern is not that Elon Musk said this or believes this. My concern and the concern for all Americans—and the rest of the world for that matter—should be that our elected officials are not making this their top priority to address and resolve. The vast majority of their time, attention, and energy is consumed by matters that will pale in comparison to the devastation to the global economy and world order should America indeed find itself unable to pay its debts.
The price of gold has risen dramatically in the past 12 months. I view this as an indication of the fear and uncertainty around our political and economic challenges. No doubt, we need the Lord’s wisdom to turn our fiscal ship in the right direction.
Modern Monetary Theory
I wrote in my book Seven Gray Swans that without ever taking a vote, our political leaders on both sides of the aisle, liberal and conservative alike, are practicing the nonsensical economic theory some call MMT or Modern Monetary Theory. Others have taken to calling it Magic Money Theory or even Monopoly Money Theory to criticize the premise that debt does not matter to a nation that prints its own currency because it can always print more money to pay its debts. Proponents cite the insulated and unlimited power of the “banker” in the game of Monopoly to support the concept. They also espouse that if an oversupply of money becomes inflationary, they can pull money out of the economy with higher taxes.
Well, we are not playing a game of Monopoly. In the real world, people expect to be paid back with sound money when they buy the debt (treasury bonds) issued by our government. If our government does not pay its debts (with sound money), then the good faith and credit of Uncle Sam will be destroyed. Also remember that the government, both federal and state combined, accounts for roughly 1/3rd of the economic activity of our nation.
This Danger Is Not New
President Lincoln warned, “You cannot keep out of trouble by spending more than you earn.” He also said you cannot:
Before him, Thomas Jefferson also warned, “I place economy among the first and most important of Republican virtues, and public debt as the greatest of the dangers to be feared. To preserve our independence, we must not let our rulers load us with perpetual debt.” Yet, today, government largesse and rampant overspending has ballooned to numbers once reserved for astronomy courses.
We are playing with fire, and we need our leaders to wake up. This June 9th article at GoBankingRates.com states:
“The government CAN pay their loans due to their unlimited ability to borrow—for now—or print more money, as long as other countries and investors will continue to buy our bonds,” says Les Rubin. “However, if someday the country cannot borrow money, we will have to default, leading to severe consequences. I think of the U.S. debt as a Ponzi scheme since there is no source to pay the principal on the debt and interest except to borrow more money. The Ponzi scheme will collapse when people won’t buy our debt. When this happens, we will face economic catastrophe.”
What Can You and I Do?
The government needs a massive reduction in spending, we need to live on a budget, and we need to concentrate on reducing our debts to reestablish confidence in our fiscal management of this nation’s vast wealth. Essentially, we need our political leaders to become good stewards of our national resources. In my view, this is the foremost skill needed by a local, state, or national elected office holder.
Elon Musk has also said he is willing to volunteer his help in reducing the bloated federal budget by as much as 1/3rd. While this may strike fear in some hearts, the alternative of doing nothing should be far more worrisome.
In my opinion, America will find a way to turn back from the current path of economic destruction that we are on, but it will not be without pain. Let’s pray for our nation to come to its senses, restore principles of sound money, and regain the trust of the world in the good faith and credit of Uncle Sam.
Next week, I will share what some experts are advising for personal preparation as we navigate the persistent pain of inflation.
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 November 1, 2024.
Dear Chuck,
What advice would you give for using money to impact our children and build a strong family? We have limited funds and want to be wise as well as strategic.
Investing in Our Children
Dear Investing in Our Children,
I love the heart behind this question! Although you may have limited funds, you are not limited in the fun approaches you can take to impact your children and build a strong family. I see it all as a form of investment for future returns. Let’s look at investing in a budget, activities, work experiences, skills, generosity, and their financial future.
Invest in a Budget
The easiest way to maximize limited funds is to invest a few hours into setting goals and establishing a budget. Spending less than you earn will provide stability and margin. If budgeting is new to you, consider investing in a series of weekly Money Dates. This will enable you to enjoy the process of getting unified and building your plan. Crown’s step-by-step program lays out what to cover on each date.
Invest in Activities
Activities will vary from one family to another, but prioritize your time together. Add to your budget the money needed for what you want to emphasize.
A wise friend of mine once told me that buying a boat when his children were young was “the best money he ever wasted.” He explained that the boat created a place for lifelong memories that his family cherishes.
Another friend purchased fixer-upper old cars that he and his boys would work to restore on the weekends. The cars were the basis for lessons in stewardship and were given to the boys when they reached driving age. He told me, “This investment in old cars kept my boys off the streets, off of drugs, and close to our family. It was worth every penny I ever spent on one, even if we lost money on the car.”
Enjoying activities together will positively influence your children.
Here are a few examples that will not hurt your budget: hiking, biking, gardening, running, cooking, playing board games, enjoying academic competitions, working out, reading aloud, listening to audiobooks, working puzzles, drawing, painting, building, camping, learning foreign languages, going on mission trips, visiting zoos and museums, and serving neighbors, older family members, and the church.
You don’t have to buy all the equipment to enjoy more elaborate experiences. Many times, it is best to rent the equipment if these activities will not occur on an ongoing basis.
Investing in Their Work Experiences
Besides having fun, teach them the value of work. They can learn to earn more and contribute to their own financial needs early in life. Larry Burkett wrote a great devotional on this topic.
Have them talk to older couples and families you admire so that they can learn from their experiences and land an internship or a future job.
Invest in Their Skills
What skills can you pass on to your children? What are their interests? What skills do they need to develop? Can you involve extended family?
My second son was an Eagle Scout who went on to serve in the military as a Ranger Medic. We spent many nights sleeping in tents! One day, he called and jokingly complained that I had not taught him the “3 Essential Man Skills” before he got to the military: how to drive a stick shift, how to back a trailer, and how to ride a motorcycle. We got a laugh out of it; but the truth is, I knew how to do all of those things. I had just failed to teach them to him before he left home!
Invest in Generously Serving Others
Today’s giving in church is usually done online. Unfortunately, children do not experience putting the giving envelope in the plate each week. Supporting the church needs to be talked about and emphasized. Encourage them to give off the top of their income.
Serving in the church, your neighborhood, and beyond can involve the entire family. Make it fun! Ask them to help you participate in secretly leaving gifts for the needy or helping widows or elderly neighbors with projects. Allowing them to join in discussions on your family’s decisions about the generosity of time and money will leave a lasting impression.
Invest in the Financial Future of Your Children
Enjoy your children as you help them develop self-confidence and a healthy identity in an environment of love and acceptance. Investing early in their lives will create loyalty and strength. It will also model for them the financial management that you want them to be able to carry into their lives and families as adults. The money you invest today will pay dividends for generations to come.
No Guarantees, but Nothing Is Wasted
Raising children involves the wise stewardship of money, time, and talent. God gives us children to steward as well! Invest time in praying for the wisdom, love, and strength to raise them for His glory. While there are no guarantees, being intentional will likely help you build a stronger family than simply hoping for the best. I like to remind my wife that Adam and Eve had the best Father, but they still decided to disobey. Don’t beat yourself up if things are not going well right now. Trust the Lord, and see each day as a new opportunity to build stronger unity in your family.
“Behold, children are a heritage from the Lord, the fruit of the womb a reward. Like arrows in the hand of a warrior are the children of one’s youth.”
Psalm 127:3–4 ESV
Do you want more tools and tips on financial stewardship? Are you interested in receiving ministry updates from around the world that you can share with your children? Sign up to receive the Crown Newsletter emails by using the form on the homepage at Crown.org.
This article was originally published on The Christian Post on October 25, 2024.
Dear Chuck,
The company I work for was destroyed as a result of Hurricane Helene. We are surviving, but things are very tight financially, and we are emotionally overloaded. What should we do to work our way out of this crisis?
Surviving, Not Thriving
Dear Surviving, Not Thriving,
Many people are trying to navigate the trauma of Hurricane Helene and now Milton. I am so very sorry for your loss but grateful that you have survived and can begin to rebuild your lives.
The destruction we have witnessed reminds us that everything man has or can build is very, very temporal. It reminds us to do what God said:
“Set your minds on things that are above, not on things that are on earth.”
– Colossians 3:2 ESV
Overwhelming Needs
The horrific destruction so many have experienced in the past 30 days has created many levels of need, so for this article, I will focus only on five steps for starting a crisis budget.
Before you begin, ask God to help you steward the limited resources you have right now. Do not worry about the future. Instead, live one day at a time. Help guard your emotions by focusing on the present. The future is in God’s hands. Cling to Him. See Matthew 6:25–34.
Resolve not to dwell on your loss but to be grateful for what you have. Turn each temptation to grumble into praise. It helps to begin and end each day with thanksgiving.
Ask God for wisdom to stretch every dollar and for ways to increase your income and decrease your expenses. Read the Bible, and ask Him to impress upon your heart His financial principles.
How to Implement a Crisis Budget
Step 1
Determine your current monthly income:
Step 2
Make two written commitments:
Step 3
Prioritize essential needs:
Step 4
Delay all non-essential expenses:
Step 5
Analyze monthly subscriptions:
Step 6
Ask others to join you:
How to Live Post-Crisis
I pray that your company will be able to reopen for business soon and can help you with supplemental income needs. Consider asking for help from your church or family as you seek reemployment and wait on the Lord to provide.
Take the lessons you learn and the habits you establish to steward wisely from here on. Allow God to use you to minister in the lives of those He puts in your path. And remember to give God the glory for every victory—no matter how small it seems.
Here are some helpful resources at Crown:
https://www.crown.org/all-resources/7-steps-to-recover-from-a-crisis-2/
https://www.crown.org/get-help-now/?section=with-your-money-and-finances#section-one
If you need outside support to implement your new budget, Crown’s online Budget Coaching program matches you with a certified coach who will work with you to develop a customized plan and provide much-needed encouragement while you rebuild your lives.
This article was originally published on The Christian Post on October 18, 2024.
Dear Chuck,
My wife and I started over-spending after receiving a big raise. Since then, we have realized how wasteful we’ve become with God’s money. We are worried about living without a safety net. What steps would help us get back on track?
Big Spenders
Dear Big Spenders,
You may not know that what you have described is one of the most common financial mistakes anyone makes—increasing your lifestyle with every increase in income. Don’t heap too much guilt on yourselves; it is a very hard challenge to even notice. For many, this ever-increasing lifestyle is the proverbial frog boiling in the pot—by the time he realizes his mistake of resting in the warm, cozy water, it is too late.
Get Disciplined
Discipline is the ability to say “no” to what you want today so you can say “yes” to what you need tomorrow. Let me give you an example that will relate to your challenge. In 2015, I decided to drink only water for the entire year . . . no coffee, tea, juice, soda, smoothies, or lattes. Nothing but H2O! For full disclosure, I made it the entire 365 days and felt so good. My only deviation was an occasional water with carbonation.
What difference did it make? For one, it helped my budget! I broke the habit of buying coffee or tea at the airport or for meetings. Cutting sugar and caffeine also caused me to enjoy water, sleep better, and improve my overall health. We can apply that same type of thinking to our finances.
Small decisions can make a walloping impact on our financial health. Here are five basics that can help everybody. They are my personal favorites.
Honor God Off the Top
Right now, you are honoring someone or something first with your finances. It might be the government, Amazon, your mortgage lender, your landlord, or your utility company, but someone is getting the first portion of your income. Replace whoever or whatever is currently first by giving off the top of every source of your income to your church and other ministries that build His Kingdom.
If you cannot give a full 10%, which I think is the appropriate beginning standard, start with what you can do cheerfully. Increase the amount as you are able, and see what a difference it makes in your life. “Trust me on this one!” These are God’s words paraphrased from Malachi 3.
Save Something from Every Paycheck
Pick a day and declare, “No more! I will not go another month without saving something from my next paycheck!” Make the decision and then start saving something—no matter how small the amount. Save something from every single paycheck or any other source of income. Resolve not to spend everything you have by setting up automatic deposits into a savings account. This habit will make you wise like the ant from Proverbs 6:6. Little by little, you will have money saved for emergencies, stress will go down, and financial stability will become a reality.
Stop Getting Tax Refunds
People celebrate tax refunds as if Uncle Sam is rewarding them for their good behavior! While I never like to discover that I owe the IRS money, I don’t like to get a tax refund either.
Let’s say you receive a refund of $3,600. That means you loaned the US government $300 a month for an entire year and waited for them to reimburse you without interest.
By adjusting your withholding or quarterly payments, you pay only what you owe or expect to owe—nothing more. This grants a steady cash flow while also providing funds for giving and saving each month.
Use Cash
Study after study proves that we spend more using plastic. Using cash makes us more aware of when and where our money goes.
It may sound like going back to the Depression era, but the old-fashioned way of cashing a payroll check, dividing the cash into budget categories, and putting the money in an envelope will never go out of style because of its effectiveness! It works! Consider using cash for groceries, Costco, Sam’s, and any place you are tempted with impulse buying. If you usually overspend at restaurants, take a limited amount of cash.
Some people I know, who are really great with money, continue to use the envelope system, though they no longer need to. They say that it allows them to spend worry-free!
Reduce Expensive Debt
Start with a fresh outlook on debt. Ask yourself, “Do I really have to be in debt?”
Far too many people jump from one debt to another and from one card limit to another. They cannot comprehend the freedom of being debt-free. That is why I emphasize paying off the most expensive debt first. Get one paid off. Then do it again . . . and again . . . and again. The major payoff is freedom—freedom from worrying about the future, about income, and about making it to the end of the month. Check out the snowball and avalanche methods of eliminating debt, or get in touch with Christian Credit Counselors.
Summary
These five basic steps will change your relationship with God, your financial well-being, your relationships, and much more! But allow me to add one more: implement a budget. It’s a tool that is designed to help you through thick and thin and protect you from wasting what God provides.
“Moreover, it is required of stewards that they be found faithful.” (1 Corinthians 4:2 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 help bring God’s Word into your daily life.
This article was originally published on The Christian Post on October 11. 2024.
Dear Chuck,
My wife says that I don’t keep track of our money well enough. I think she’s right. I need an easy way to get things under control.
Bad at Budgeting
Dear Bad at Budgeting,
Don’t be too hard on yourself. It is easy to lose track of money. In fact, I read some years ago that 60% of people said they would “like to live on a budget,” but only 20% did. That likely means that only 10–15% of people use a real budget now.
As a young married couple, a budget was that “thing” I tried to avoid. The very word put me on the defensive. I thought it was my wife’s way of trying to restrict my way of running the home. It took lots of pain for me to come to my senses. I hope I can help you and your wife avoid that pain.
Budgeting Is Good Stewardship
The truth is, we all need a financial plan—one that we live by day after day. We need a tool that helps us in Biblical consistent living in order to reach our goals. If you read what I write or listen to me on the radio, you know that a budget is a simple spending plan. It is a flexible tool that enables us to manage money wisely.
Everything we have is a gift from God, and a budget helps us to be faithful. It eliminates the fear and anxiety of wondering if bills can be paid. It can bring peace and unity in marriage while breaking the bonds of slavery to money and debt.
It is easy to put off planning in favor of other activities. I know! I earned a degree in procrastination. But Solomon said, “The plans of the diligent lead surely to abundance,” (Proverbs 21:5 ESV). Since he is the wisest man who ever lived, we should pay attention to those words. A budget takes a few hours to prepare, but the benefits are countless.
Any Budget Is Better Than No Budget
Spending Decisions Must Be Reviewed
If you need to cut way back, consider moving or driving a less expensive vehicle. See how you can reduce variable expenses like food, clothing, and entertainment. How about your utility bills? Examine any compulsive, emotional, or instant gratification shopping, and establish habits to control it. Ask the who, when, where, how, and why of spending. Some lifestyle changes can make a big difference.
Drive-throughs, coffee shops, carryout, and birthday gifts add up. Entertainment is a major expense for some people: concerts, athletic events, youth sports, the theater, etc. Streaming services cost both time and money.
In August, Forbes reported that 99% of all U.S. households pay for at least one or more streaming services, averaging $46 a month. That’s $552 a year that could instead help fund an emergency account. Determine what video, music, and video-game streaming is really necessary for your family. 45% of those surveyed by Forbes canceled at least one service in the past year due to high costs.
To avoid overspending, set some purchasing rules. Initially, these might be challenging, but when implemented over time, they can become healthy habits that save you money for years to come:
Extra Tips:
I pray your wife and you can get united on a budget and move forward with joy as you recognize the responsibility and privilege of stewarding everything that passes through your hands.
“Moreover, it is required of stewards that they be found faithful.”
1 Corinthians 4:2 (ESV)
Set and achieve your goals with the help of a personal business coach. Crown’s online Budget Coaching program matches you with a certified coach who will work with you to develop a customized plan to put you on the road to financial freedom.
This article was originally published on The Christian Post on October 4, 2024.
