Dear Chuck,
A young man recently asked to marry my eldest daughter. I have three girls, so I know that the way we do this first wedding will likely set a precedent for the following ones. I am not a wealthy man, but I want my family to celebrate this occasion in a beautiful way. Do you have advice on how to save money on a beautiful wedding?
Frugal Father of the Bride
Dear Frugal Father of the Bride,
Well, I have four sons. I’ve never bought a wedding dress or paid for a wedding, but I’ve been to some pretty extravagant ones, and I have officiated a few that were way out of my comfort zone when it comes to expense. So you are my kind of guy. You want to honor your daughter and future sons-in-law but within proper financial constraints!
Even though a wedding is a special day—an event that should be a once-in-a-lifetime experience—there is no reason to go into debt for a beautiful covenant-making ceremony before God and man. That is the baseline, but let’s get more specific.
Weddings are Expensive
Most couples today anticipate sending invitations to between 130–150 guests. They willingly spend thousands for the perfect venue. A wedding planner is hired, along with a caterer, photographer, and videographer. Then there’s the cost of flowers, a cake, music, hair, make-up, dress, shoes . . . and the list goes on and on! Add in the cost of transportation to a destination wedding, and it is easy to see how people accumulate major debt for a wedding. The average wedding expense for couples marrying in 2022 was $30,000.
The $100 Wedding
That is why I like the story of Ellie and Carson Simon. I don’t know them, but my wife found their story online. They were married during Covid, so only 16 guests were invited. The venue was outdoors in Glen Canyon—a drive accessible for both families.
Ellie found a dress for $20, borrowed a veil from a friend, and went barefoot. Her three sisters had fun doing her hair and makeup in the car. She picked her bouquet from the side of the road. A pre-wedding picnic was prepared by a friend of the family for everyone. Then Ellie’s grandfather performed the ceremony while guests took photos with disposable cameras. The entire wedding cost a mere $100.
Many people cannot imagine asking friends and family to help with such an event. And, yet, this is what can make a wedding all the more special. Most people I know would find great joy and purpose in helping if simply asked.
The Frugal Part
An article at NerdWallet.com references average cost figures based on The Knot’s annual Real Weddings Study. They offer a significant number of ways to save money. It is worth the read to see where costs can be reduced.
Unfortunately, debt often begins before the wedding occurs. Couples may bring consumer debt, student loans, and other financial issues into their marriage. Transparency must be established and honest communication practiced. Contrary to the way proposals took place back in my era, more and more couples rely on professionals and costly engagement rings. This can cause financial stress before the wedding even takes place.
Make a budget, and stick to it. Refuse to be influenced by what the world says a great wedding should be. Rather, look to the Word, and encourage your children to focus their time, energy, and finances into becoming a godly couple. This special day can be celebrated without the glitz and glamor promoted by the wedding industry.
Dad, you (and your spouse) should ask the Lord for guidance. Seek the advice of older people in your church or family. Will your daughter be paying for anything? How about the groom or his family? How much can they realistically afford? Stress that the focus should be on the marriage covenant made before God, not on a ring, a dress, a venue, or anything else. There is great value in keeping things simple. The bride and groom will experience less stress, enabling them to thoroughly enjoy their wedding day and the days leading up to it.
The Beautiful Part
A simple ceremony that I remember well is a small one where the wedding party sang the favorite Christian songs of the bride and groom as they entered and departed the chapel. Weddings are a reflection of our relationship with the Lord. The Bible begins and ends with a wedding. The most beautiful part of a wedding is the bride and groom’s commitment to the Lord and each other. When people experience a beautiful, God-glorifying ceremony, they are touched and inspired, regardless of the budget.
Let your daughters know what you can afford without debt. Ask them to be creative in using those funds, and whatever your budget, aim to glorify God. Be sure to thank Him for providing what you are able to afford.
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This article was originally published on The Christian Post on September 8, 2023.
Dear Chuck,
I have friends living in Canada. They say the cost of living is so high that many people feel like they cannot afford to live there anymore. Those who had savings are drawing down to make ends meet. What advice would you offer me that I can use to encourage them?
Looking for Financial Tips
Dear Looking for Financial Tips,
I have read about the suffering in Canada, and it is well-documented to be a serious problem. I hope we can encourage your friends or others who are desperate right now.
The Bank of Canada has raised rates several times to try to curb inflation, but it remains a problem. People have taken to TikTok to express their pain and frustration. Many Canadians are being forced to make difficult decisions. Even middle-class families are having to choose between buying food or paying their bills. A survey from Food Banks Canada revealed that nearly one in five people went hungry over the last two years. Today, many are living paycheck to paycheck, unable to save, and foregoing vacations, extra-curricular activities for their children, and nutritional supplements.
The Angus Reid Institute, a not-for-profit, non-partisan research foundation, reported on the problem in April. They said two-thirds of Canadians were cutting back discretionary spending. 40% had to take money from accounts they try not to touch, while 35% say they had to defer contributions to their RRSP or TFSA (retirement and savings accounts). 13% borrowed from friends and family, 11% sold assets, and 8% sought a bank loan. 34% said they were in either “bad” or “terrible” shape, a 6-point increase from July 2022. However, not all areas of the nation reported financial pain.
Inflation is often called “an invisible tax” because it takes money out of our pockets and is non-productive. Two areas creating problems for Canadians are the high cost of housing, particularly the financing costs for homeowners, and food costs.
Adjustable Rate Mortgages
1/3 of Canada’s residential mortgages are adjustable loans with no fixed interest rate. Lenders typically require borrowers to make fixed payments. So, when interest rates rise, more of the payment goes toward paying interest rather than principal, extending the amortization period.
Some Canadians have extended their amortization periods to more than double the typical 25 years—and some as long as 90! Lenders are doing it automatically to protect households from greater monthly payments. However, the higher debt load is a concern to regulators. Higher interest could hit the trigger rate—where interest exceeds the fixed payment. This could lead to forced home sales, higher delinquencies, or a depressed housing market.
Extending amortizations was a temporary solution to prevent higher payments. But lenders will eventually force customers to pay down the principal. If not, homeowners will have generational mortgages: mortgages that are passed on to children. These keep borrowers in debt and increase the amount paid in interest. Fortunately, Canada’s lenders require borrowers to return to their original amortization upon renewal. An initial 25-year note extended to 60 years would return to a 20-year note upon renewal after five years.
Food Costs + Mortgage Rates
The Financial Post reports that a record increase of 30.6% in mortgage interest costs, along with higher grocery prices, have severely impacted the growth in inflation despite the fact that energy prices are lower than a year ago. Even though the Bank of Canada expects inflation to return to a 2% target by 2025, economist Tiago Figueiredo believes it will be a “long time” before prices are brought back into balance. “As time passes more mortgages will renew at higher rates and any excess savings will be exhausted which should weaken demand going into the latter half of the year.”
My Advice for Your Friends
When times get tough, families must come together and attempt to care for one another. If stuck with an adjustable rate mortgage that is no longer affordable, sell the house, and seek creative and economical places to live, like tiny houses or garage apartments; you can also trade skills for rental fees.
In a similar way, seek solutions to lower the cost of the food you eat. Older cooks should teach the younger ones how to fix frugal, nutritious meals. One Canadian website shared grocery shopping tips here:
Another website offered these tips:
These tips are helpful for anyone wanting or needing to reduce their grocery costs.
Prepare for the Future
We should all prepare for difficult times. Since no one knows the future, we should live like the ant in Proverbs 6: “Without having any chief, officer, or ruler, she prepares her bread in summer and gathers her food in harvest.” She works and saves for the days to come.
Canadian borrowers should prepare for a spike in mortgage payments, assuming rates remain high. Find ways to increase income or reduce expenses in anticipation of higher payments. Fund an emergency savings account, and reduce consumer debt. When possible, begin paying extra toward the principal every month.
Sacrifices will be necessary, but trusting God in the process and seeking His guidance will build resilience and hope for the future. This may be a time to effectively share the Gospel.
Hopefully, Prime Minister Trudeau and his new cabinet will develop an effective plan to help relieve the nation’s suffering before Parliament meets in September. May the Body of Christ serve with love and compassion during this time.
Let us pray for our brothers, sisters, and friends to the north.
The Crown God Is Faithful devotional offers inspiring and practical Biblical wisdom. Subscribe to receive daily devotionals that will help transform your finances and provide much-needed encouragement. May it be a blessing to your family, friends, and you!
This article was originally published on The Christian Post on August 31, 2023.
Dear Chuck,
My brother and sister-in-law worked very hard to build a highly successful business. They know the Lord and have everything money can buy, but they are very unhappy people. How can I help them?
Rich Yet Poor Family
Dear Rich Yet Poor Family,
I have met people all over the world who chased the dream of having it all by striking it rich. It is an empty pursuit as old as time itself.
Some that I have known put their entire identity in money. Some lost spouses and families in the pursuit. Some committed suicide when they lost their business or wealth. Some got so preoccupied with business that they failed to see the needs of the poor. It reminds me of the parable of the sower. Jesus referenced the seed that was sown among thorns: “…this is the one who hears the word, but the cares of the world and the deceitfulness of riches choke the word, and it proves unfruitful.” (Matthew 13:22 ESV, emphasis mine)
Introduce Them to Biblical Financial Principles
This is not an easy topic to broach with anyone—especially family. Yet you can see that money has not brought them what they truly need. There is a deep emptiness when one discovers, with disappointment, the unfulfilled promises of money. The Bible warns of this and offers a way of living that brings joy and future rewards. My advice is to get them into God’s Word to discover the true riches He promises to faithful stewards.
“If then you have not been faithful in the unrighteous wealth, who will entrust to you the true riches?” (Luke 16:11 ESV, emphasis mine)
The Deceitfulness of Riches
Poverty is not God’s norm, but neither is lavishness and selfishness. It is clear from God’s Word that affluence presents the greatest threat to one’s walk with the Lord. “For where your treasure is, there your heart will be also.” (Matthew 6:21 ESV) Perhaps nothing in our society reflects this better than when the wealthy who have lived for themselves face the end of life, look back, and realize their entire lives were spent in futility.
In the Parable of the Rich Fool, Jesus said, “Take care, and be on your guard against all covetousness, for one’s life does not consist in the abundance of his possessions.” The rich man was referred to as a “fool.”
Consider The Rich Man and Lazarus. The rich man dressed in purple and fine linen and feasted sumptuously every day. But he had no regard for poor Lazarus, who desired to feed off what fell from the rich man’s table. The rich man suffered in Hades and desired that his five brothers be warned about the life to come for those who lived with selfish indulgence.
“If riches increase, set not your heart upon them.” (Psalm 62:10b ESV)
“Whoever trusts in his riches will fall, but the righteous will flourish like a green leaf.” (Proverbs 11:28 ESV)
Misplaced Treasures
“Do not lay up for yourselves treasures on earth, where moth and rust destroy and where thieves break in and steal, but lay up for yourselves treasures in heaven, where neither moth nor rust destroys and where thieves do not break in and steal. For where your treasure is, there your heart will be also.” (Matthew 6:19–21 ESV)
“For what will it profit a man if he gains the whole world and forfeits his soul? Or what shall a man give in return for his soul?” (Matthew 16:26 ESV)
“But those who desire to be rich fall into temptation, into a snare, into many senseless and harmful desires that plunge people into ruin and destruction. For the love of money is a root of all kinds of evils. It is through this craving that some have wandered away from the faith and pierced themselves with many pangs. . . . 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. (1 Timothy 6:9–10, 17 ESV)
The Solution: Give Generously
Most people of wealth are challenged when they hear the Parable of the Rich Young Ruler, who asked Jesus what he must do to have eternal life. Jesus knew his heart and told him to sell his possessions and give to the poor, and he would have treasure in heaven; then follow Jesus. He challenged his identity, his security, and his temporal view of wealth, and it appears the young man failed the test and tried to hang on to his position, power, and money in this world. But God’s Word does not end there. Many more passages show us that the issue is to become unselfish and generous.
The Apostle Paul said, “In all things I have shown you that by working hard in this way we must help the weak and remember the words of the Lord Jesus, how he himself said, ‘It is more blessed to give than to receive.’” (Acts 20:35 ESV, emphasis mine)
“Whoever gives to the poor will not want, but he who hides his eyes will get many a curse.” (Proverbs 28:27 ESV)
“Each one must give as he has decided in his heart, not reluctantly or under compulsion, for God loves a cheerful giver. And God is able to make all grace abound to you, so that having all sufficiency in all things at all times, you may abound in every good work.” (2 Corinthians 9:7–8 ESV, emphasis mine)
Approximately two-thirds of the New Testament references on giving apply to helping the poor, suffering, and persecuted Christians. In 2 Corinthians 8–9, the Apostle Paul addressed the topic to raise financial aid for suffering believers in another location, possibly due to persecution. He commended the Corinthians but challenged them to give:
“But since you excel in everything—in faith, in speech, in knowledge, in complete earnestness and in the love we have kindled in you—see that you also excel in this grace of giving.” (2 Corinthians 8:7 NIV, emphasis mine)
Ask the Lord to give you the opportunity to share with your brother and sister-in-law. Pray they will have eyes to see the poor. May they develop compassion for the persecuted church, the suffering, and the oppressed. Pray that they will desire to excel in giving and, in so doing, find joy beyond measure and the true riches promised to God’s faithful stewards.
The Crown God Is Faithful devotional offers inspiring and practical Biblical wisdom. You can subscribe to receive daily devotionals that will help transform your finances and provide much-needed encouragement. May it be a blessing to your family and you!
This article was originally published on The Christian Post on August 25, 2023.
Dear Chuck,
A friend from work is burdened with medical bills due to multiple emergency room visits with their young child. Their daughter is fine, but the bills have stressed them out. How can I help them?
Crazy Medical Bills
Dear Crazy Medical Bills,
I am sorry to say that I hear this story far too often. Unfortunately, the cost of health care in America is a serious burden for many. According to a 2021 Census Bureau study, 19% of households could not cover medical care when needed. A Consumer Financial Protection Bureau report in 2022 revealed that when debt collectors contacted consumers, the reason was typically for medical debt. I will provide advice for you that you may pass on to your distressed friends.
The Big Picture
In February of 2022, a survey of 1,250 American adults by Affordable Health Insurance found that 56% have medical debt. 25% owe $10,000 or more. Emergency room visits were a factor for 44% of Americans. One-third of those with medical debt say it is very unlikely that they will be able to pay off the debt in their lifetime.
More than half a million families seek bankruptcy protection from medical bills annually. But bankruptcy is not always the best choice for those seeking relief. It is very hard on your credit; Chapter 7 bankruptcy can remain on credit reports for up to ten years from the filing date, and Chapter 13 can remain for seven. Thankfully, medical debt is now being handled differently by the major credit reporting agencies. Paid-off medical debt that was formerly in collections will not appear on reports. A one-year grace period is given before unpaid medical debt is listed, and debt less than $500 will not show up on credit reports.
Know Your Options
The number one source of medical debt is emergency room (ER) visits. The cost is high due to high-tech equipment and time-sensitive testing. You will pay more than if you went to an urgent care center or primary care physician. I recently took my wife to an urgent care center while we were on vacation, and it was much nicer than any hospital or doctor’s office that we have visited. The care she received was not substandard either.
ER visits average around $2,600 without insurance. But that varies depending on location, time of day, and severity of the condition. Prices typically run less in rural areas. Daytime visits cost less than nighttime visits due to the cost of staffing. The number of treatments, tests, and medications will naturally impact the total cost. The key is knowing your options for care before they become necessary.
Urgent care clinics are good for cases that are not emergencies but too distressing to make it through the weekend or overnight. Primary care physicians are best for non-life-threatening concerns. If they can’t help, they’ll refer you to someone who can. Many provide call-in advice after hours. Telemedicine is the most economical option and is understandably surging in popularity.
Ask Chuck Help For Crazy Medical Bills
Cost of Medication
A report from the Moran Company reveals that hospitals are charging an average of 500% of what they pay for medicines. One patient researched her costs and discovered a $700 charge for each push of an IV. The average cost at the time was $200. She found that a similar drug was available in tablet form for the price of a cup of coffee!
Always ask for generic drugs if you need a prescription filled. See if the doctor can provide samples. Ask what discounts the pharmacy can provide.
Learn to advocate for yourself and your family. Upon receiving a hospital bill, do not rush to pay it. Instead, plan to negotiate a lower bill or a reasonable payment plan. You, however, must come prepared to defend yourself with records and solutions.
Negotiate for Lower Bills
Here’s how to lower your bill:
Expect to spend some time in the process. Always conduct yourself as an ambassador of Christ. Be winsome in your communication, and glorify God in all that you say and do. If you are unable to get satisfactory answers, keep trying.
Medical costs are crazy expensive. So pray for good health, know your options in advance of the need, and work toward avoiding high-cost care.
If credit card debt is a burden, Christian Credit Counselors is a trusted source of help for a debt management plan. They can help you get on the road to financial freedom.
This article was originally published on The Christian Post on August 18, 2023.
Dear Chuck,
My wife and I have decent jobs but spend everything we earn. My parents recently told us that we don’t spend money wisely. I was offended at first, but I am rethinking our habits. I heard you on the radio talking about this. What do you suggest we do to change our habits?
Young and Broke
Dear Young and Broke,
I respect your humility in admitting your situation. You are not alone! Many people today do not handle money wisely and, therefore, live from month to month on the edge of a financial disaster. The government, friends, and family enable people, but in many cases, basic financial tools are not known or are simply ignored. God’s financial principles are the answer to poor financial habits. I call them the economic virtues of working, giving, saving, spending, and investing. Let’s consider Warren Buffet’s example to inspire you to better spending habits.
Warren Buffett is one of the richest people alive today. He is CEO of Berkshire Hathaway and a world-famous investor. The company is worth hundreds of billions of dollars. Buffett, 92, has exercised frugal habits in his personal life. Yahoo Finance recently reported the things he says people should avoid if they want to better their financial condition. My comments are indented and italicized.
Neglecting Personal Development
Invest in your skills and education to boost your earning potential.
Take advantage of any extra training or certification offered at work. Become a reader, listen to podcasts, seek a mentor, and become a life-long learner.
Relying on Credit Cards
Avoid carrying a balance due to high interest rates. Control your spending.
Some cards carry up to a 29.99% variable rate! That adds nearly 30% to every purchase unless you are dedicated to paying off your cards every single month. To work your way out of credit card debt, choose the snowball or avalanche method or a balance transfer, or work with the Christian Credit Counselors. Here is help for getting debt under control. Utilize a budget to help manage your money and reach specific goals.
Frequenting Bars and Pubs
Choose affordable social gatherings. Gather at homes to save money.
People spend more money while under the influence of alcohol. There are numerous reasons to consider giving up the habit if you want to positively impact your wallet and improve your health and quality of life!
Chasing the Latest Technology
Buffet chooses functional over flashy. Carefully assess whether a technology upgrade is a need or a want.
This takes self-control. Postpone purchases until the need outweighs the want.
Buying New Cars
Buy pre-owned, and drive as long as they are reliable. Avoid the depreciation of new vehicles.
Routine maintenance can extend the life of your cars. Deposit an average monthly car payment into a dedicated account so that you have the funds to buy when the time comes.
Unused Gym Memberships
Free or low-cost fitness routines at home work well if practiced regularly.
Invest in some basic equipment, and follow a YouTube instructor. If you need the accountability of a gym or trainer, then join a healthy environment where you are sure to go.
Unnecessary Subscriptions
These can be costly! Review regularly, and cancel those not used frequently.
Check your bank/credit card statements for those you may have forgotten.
Over-Reliance on Skincare Products
Find a simple, effective routine.
Be discerning with social media influencers and aware of FOMO (fear of missing out). Use basic products regularly, and protect yourself from the sun.
Regular Nights Out
This gets expensive. Try budget-friendly home-cooked meals and movie nights.
Budget for quality time with your spouse. Seek friends who share similar values and financial priorities.
Gambling
Understand the odds. Seek long-term wealth accumulation, not momentary thrills.
Choose to invest wisely and carefully rather than gambling to try to gain money quickly.
Smoking
This is a costly habit. Quitting will save you money and possibly lengthen your life.
A carton of cigarettes can cost as much as $100 or more. The long-term costs are significant. Ask God for help to break this habit.
Ask Chuck Practical Advice For The Young And Broke
The Golden Key to Managing Money
The key to financial margin is to live beneath your means. Learn to be content by giving thanks for all you have. Rather than seeking more, see what you can live without. Challenge yourself to make some sacrifices. Try dropping subscriptions, driving older cars, living in smaller quarters, postponing expensive vacations, or putting off buying new clothes. Look at this not as punishment but as an intentional way to reach financial goals and, thus, improve your financial life. Enjoy the progress you make each month, and celebrate milestones!
Proverbs 10:4 says, “Lazy hands make for poverty, but diligent hands bring wealth.” (NIV) Think of the enormous contrast here. Keep busy working hard, serving others, and taking care of the things you own. This will keep you from wanting to spend.
Ask like-minded friends to join you, and encourage one another on the journey. Your parents may be the best encouragers of your new direction and habits! You may need to make significant lifestyle changes. Godly stewardship matters because we are managing God’s property. We don’t own anything—it all belongs to Him! How we manage the resources He provides ultimately impacts our eternal destiny, so be faithful.
I would like to invite you to our Crown Reunion in Ridgecrest, North Carolina, from October 12–15, 2023. Here, you will learn more about financial stewardship, meet our staff and some of our international partners, and grow spiritually with new friends. More information is available here: https://www.crown.org/reunion/.
This article was originally published on The Christian Post on August 11, 2023.
Dear Chuck,
I run a small business. Some of my employees are struggling financially. Inflation has stretched their paychecks, but I suspect they have no knowledge of Biblical financial principles. What can I do to address this problem?
Helping With Inflation
Dear Helpling with Inflation,
It is easy to get so caught up in caring for customers or other details of business while somehow overlooking the needs of employees. Many people today are suffering from financial difficulties and not just from inflation. This impacts marriages, work productivity, and businesses. I believe it is a great opportunity to show real care and concern for the people you work with.
Larry Burkett, the founder of Crown (originally Christian Financial Concepts), wrote Business by the Book. He believed that Christian business people should do unto others as they would want them to do to them and gave six basic business minimums:
“Fairness is both a responsibility and an opportunity. Employers who practice fairness are able to share Christ with their employees because they ‘practice what they preach,’ as the old saying goes… Fairness is usually related to issues of pay and benefits in the work environment, but that is not the total picture. Fairness also involves attitudes and relationships… The first step in establishing the principle of fairness is to recognize that all people are important, regardless of income or education… If you find that you can’t give the same honor and regard to the lowest-ranked employee in your business, you need to stop right here and resolve this issue with the Lord. The second chapter of James covers this issue thoroughly summing it up in one verse: ‘But if you show partiality, you are committing sin and are convicted by the law as transgressors.’ (James 2:9)” Larry Burkett (Business by the Book)
When employees are under your authority, it is your responsibility to pay them well and provide appropriate benefits. When they know their work is recognized and compensated fairly, they are more likely to work with excellence and pride. Monetary rewards can improve morale and productivity. You will create a healthy culture that retains and attracts talent. If a raise or one-time bonus is not in the budget, offer other incentives like more paid time off. Budget for cost-of-living raises and bonuses in the future. Provide small rewards of appreciation and recognition. This article at indeed.com discusses ways to develop and care for employees.
Scripture Addresses This Topic
“You shall not oppress a hired worker who is poor and needy, whether he is one of your brothers or one of the sojourners who are in your land within your towns.” (Deuteronomy 24:14 ESV)
“Come now, you rich, weep and howl for the miseries that are coming upon you. . . . Behold, the wages of the laborers who mowed your fields, which you kept back by fraud, are crying out against you, and the cries of the harvesters have reached the ears of the Lord of hosts. You have lived on the earth in luxury and in self-indulgence… (James 5:1–5 ESV)
“Do nothing from selfish ambition or conceit, but in humility count others more significant than yourselves. Let each of you look not only to his own interests, but also to the interests of others.” (Philippians 2:3–4 ESV)
Implement a Program
We have worked with many companies in the United States and around the world that not only fairly compensate their employees but also are intentional about giving them an opportunity to learn Biblical financial principles. Last year, I conducted a series of five lessons on financial management and stewardship as the guest lecturer at a “Lunch and Learn” in a local small business. Employees opted in at no cost. The class was very popular, with 90% of the staff attending either in person or online. I taught for 30 minutes and then conducted a question-and-answer session. Other companies I know pay for Crown courses or books for employees willing to take advantage of personal growth opportunities. One company even offers to match employee payments to those who get on a debt-elimination plan up to a reasonable amount!
Some Options to Consider
Educate yourself on the financial pain of employees so you know how to help. Then follow some of these ideas:
Another helpful and trusted source is Christian Credit Counselors. They can help consolidate debt and get your employees on the road to financial freedom.
This article was originally published on The Christian Post on August 4, 2023.
Dear Chuck,
My wife and I have two little ones. I love Christmas but always regret the financial stress it creates for our family. We finally paid off our Christmas debt from last year! Can you give me some ways to avoid doing it all over again?
Debt-Free Christmas?
Dear Debt-Free Christmas?
Congratulations on getting your debt paid off! Your wish for a debt-free Christmas can come true, but it will take some planning and work—starting right now.
Debtmas is Coming!
Last October, a study on holiday spending was conducted on behalf of Credit Karma. Because so many were unable to afford the holidays, the article reported, “It’s beginning to look a lot like debt-mas.” You know that pain and should be extra motivated to prepare for the holidays long before they come. So let’s get a plan started.
Here are some “who, what, where, when, and how’s” to get you started on prepping for next Christmas without debt.
WHY Give Without Debt?
For six months, you have lived with self-inflicted stress. Proverbs 22:7: “The rich rules over the poor, and the borrower is the slave of the lender.” It is so fun to give gifts but much, much more joyful if you do so and avoid becoming a financial slave!
WHO Do You Want to Include?
Make a list, and check it twice. Carefully narrowing who you include in gift-giving can keep you within your budget. Think back to former Christmases. To whom did you give? Family, friends, employees, neighbors, teachers, pastors, and more? Make a specific list; then add or delete as needed.
WHAT Can You Spend?
Do you have a rough idea of how much you spent last year? If not, look back over bank and credit card statements. Include Thanksgiving, especially if you host or if you carry food and hostess gifts for that holiday. Did you have travel expenses? Try to include anything that comes to mind. It is better to overestimate your costs than come up short. Be sure your budget will allow you to be generous and start the New Year without credit card debt.
WHERE Will You Celebrate?
Thinking this through will help you plan in a variety of ways. You may be able to reduce travel expenses, added costs of hosting, or eating out. Begin shopping now for airfares, Airbnbs/VRBOs, car rentals, etc., so you know what to expect.
WHEN Can You Start Shopping?
Christmas is less than five months away. You can begin now and save on finding the best deals! Look at your list, and brainstorm gift ideas. Copy it, and carry it with you. That way, when you spot items on sale or find things in garage sales or thrift stores, you can avoid the last-minute shopping frenzy. Many people completely blow their budget by not preparing wisely. Carrying cash is one way to limit credit card spending.
My wife added: If you need wrapping paper or ribbon, keep an eye out for anything that can pass for “Christmas” on clearance racks. You can buck traditional red, green, and white by using other colors, fabric, scarves, or newspaper with twine and herbs for beautiful wrapping.
Go through your home, and determine if there are things you can give that will express your love to others. Family heirlooms accompanied with a note of history can be a priceless gift. A work of art, photographs, a piece of jewelry, china, and books are all possibilities.
HOW Creative Can You Be?
This is an opportunity for you to ask God for ways to stretch your dollars. He knows what you have and your earnest desires and can provide in unimaginable ways. When we ask and wait patiently, we often discover the beautiful means in which He provides. On the other hand, when we step out ahead of Him with credit cards or other forms of debt, we miss experiencing answers to prayers. God can give you creativity. Ask Him for eyes to see potential in sale or used items and for ways to bless those you want to honor.
Come up with a theme, and try rallying your friends, family, and coworkers in this venture. Some ideas might include: “Nothing New Under the Tree,” “Stocking” gifts—things that will only fit in a stocking—or “Handmade” gifts. “White Elephant” gift exchanges can be fun. Gift cards for experiences with you can be especially delightful: trip to the zoo, arboretum, museum, art show, concert, sporting event, book store, coffee/tea, and so on. Look for special events and free or special prices to make this possible. Another idea is to give your time or talent: babysitting, cooking, art classes, music lessons, tutoring, carpool driving, etc.
General Budget Help
If you read my articles or listen to my radio spots, you know that I preach a simple strategy: spend less than you earn, set goals, get on a budget, and follow a financial plan. Try cutting back on non-essential spending to free up dollars, and deposit this regularly into a savings account dedicated to your Christmas budget. Making sacrifices now will reduce future stress. Plus, you may discover the joy in cutting back and find that it is really not so painful.
For additional support with credit card debt, Christian Credit Counselors is a trusted source of help to get on the road to financial freedom.
This article was originally published on The Christian Post on July 28, 2023.
Dear Chuck,
I’m 26 and single and would like to complete my business degree. I actually have a great job but keep thinking the degree would help me in the long run. Do you think it is worth it? (I would need a student loan for the entire amount of the degree if I decide to go full-time.)
Degree or No Degree?
Dear Degree or No Degree?
I’ll break this down into “Maybe” and “No” regarding your two questions: 1) Should you get a college degree in business? and 2) Should you get a student loan to attend school full-time?
Do You Need a Degree in Business?
Well, it depends. I don’t know what kind of field or role that you are currently in. If you are a specialist and need more education in business law or accounting expertise, I might respond differently than if you are in sales, marketing, or management or are a skilled tradesman.
Undergraduate and graduate degrees are common among the world’s top CEOs. Many earn an MBA to strengthen management and leadership skills. However, Bill Gates and Mark Zuckerberg are college dropouts. In fact, many CEOs don’t have any college degrees.
While David Kang was a professor at Dartmouth College’s Tuck School of Business, he began collecting data on where CEOs attended college. He told Fortune: “The results were stunning. Like everyone else, I thought Ivy Leagues would dominate. But the largest place they had gone to was no college at all.” Of the 500 CEOs on his list, those without an undergraduate degree exceeded any one institution. The Ivy League schools did not rank highest. In fact, he found that an elite degree is not as important as resilience, perseverance, and ability. Although 75% of the Fortune 500’s top 20 CEOs had a graduate degree, some did not attain it until after achieving some professional success.
The CEOs of five top-20 companies have no graduate degree, including Craig Jelinek at Costco and Mike Wirth of Chevron. Others go back to school after getting a start in business. In the right situation, some companies will pay for the education in exchange for a promise of loyalty to the company for a season after graduation.
On-the-Job Education
An article at Harvard’s Business Review explains that CEOs without college degrees proved themselves by excelling in three ways:
Consider Alternative Forms of Education
Applying yourself in business is a great form of education and training. The Bible instructs us: “Whatever you do, work heartily, as for the Lord and not for men, knowing that from the Lord you will receive the inheritance as your reward. You are serving the Lord Christ.”
(Colossians 3:23–24)
Your unique talents, abilities, and willingness to work very hard will help you excel in careers where those are important. When a superior notices your accomplishments or praises your efforts, express your gratitude and the desire to take on more responsibility. Ask if they have any suggestions for you. Accept and pray through them with a humble, teachable heart.
It is important to keep a resume current. When there is no degree to reference, highlight certifications, skills, accomplishments, and volunteer positions held. Organize it according to strengths, with the most current/relevant data first.
Instead of going into debt to get a college degree, either go part-time and pay as you go or seek affordable alternatives. Here are at least 40 jobs that don’t require a college degree. Also, check out optional routes to training you may need:
Additionally, Crown has many online courses available to help you find freedom in your finances and career. Each of our courses is Biblically based, practical, and empowering.
This article was originally published on The Christian Post on July 21, 2023.
Dear Chuck,
My wife and I made more than our share of financial mistakes early in our marriage and are still making up for losses. Can you give us some tips on how to catch up?
Catching Up Financially
Dear Catching Up Financially,
As I said last week, I could write a book on all the financial mistakes I have made, and I addressed these common financial mistakes:
Today, I want to acknowledge a few more mistakes to avoid in order to make up for past losses.
Buying New Cars
Many people are financing new cars that they could not otherwise afford. A June 27th report revealed that average new car payments hit a record high of $725 in the first quarter of 2023. That is up 11% over 2022, although car prices are up just 4.7%. $40,851 is the average amount borrowed on new vehicles. Auto loans are the 3rd highest debt, surpassed only by mortgages and student loans. If financing is necessary, find a dependable used car with low payments, and apply the difference you would pay on a new one to an automobile fund. In the future, you will be able to pay cash for cars.
“The rich rules over the poor, and the borrower is the slave of the lender.” (Proverbs 22:7 ESV)
While you may not see borrowing for a new car as slavery, many do so by sacrificing giving, saving, or investing that they could be doing by driving a lower-cost car.
Buying a House, Upsizing, and Downsizing
Buying a home is a good financial decision. Staying in it for life can also be a blessing.
Warren Buffet bought his house in 1958 for $31,500 and still lives there. The 1921 home, five minutes from Berkshire Hathaway’s corporate headquarters, is now worth about $1.2 million. He says, “I’m warm in the winter, I’m cool in the summer, it’s convenient for me. I couldn’t imagine having a better house.”
My wife’s sister and husband bought their modest ranch house 40 years ago. They never upsized, even with four children, and now have no need to downsize. As a result of simply staying put, they were able to put their children through private schools, give, save, and invest. One must weigh the hidden financial costs of buying big houses until you must ultimately downsize.
Paying PMI (Private Mortgage Insurance)
PMI provides the means to buy a house without a 20% down payment. I highly recommend avoiding it for these reasons:
Aside from saving for a 20% down payment or buying a less expensive home, a mortgage professional can possibly help you review and find other options.
Long-Term Storage Rentals
One in five Americans use self-storage. The average rate is $128 for a 10X10 unit. The most common reasons are not enough space at home, moving, downsizing, changes in household size, storing for business reasons, or home renovation. The most popular items stored are furniture and clothing, followed by home appliances and equipment, sports and hobby gear, vehicles, RVS, boats, business items, and more. Besides the monthly fee, there is the added cost of insurance to cover stored items. And, at some point, you (or your heirs) must clear out the contents. Unless you have a buyer for the items, this can cost more time and money. For many, the cost of storage exceeds the real value of the items being stored. We try to use storage units for less than six months if needed, or we simply dispose of the items.
Get-Rich-Quick Schemes/Scams
Con artists promise opportunities with unrealistic returns. They often play on fears or greed that make people ignore common sense. Beware of those who promote “once in a lifetime” opportunities or a sense of urgency. Avoid promos with exaggerated language, guaranteed income, or the requirement to recruit people to earn more money. Profit-making details that are missing or cloudy are questionable. Flee work that requires 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.
Not Taking Care of Your Health
Being proactive in taking care of your health pays countless dividends! The financial savings alone adds up, with protection from long-term disease, fewer doctor visits, lower absenteeism at work, and a reduced incidence of catastrophic injury or death. That is in addition to a higher quality of life. Protect yourself physically, mentally, and emotionally with a healthy diet, sleep, exercise, and stress management. This kind of self-care requires discipline and motivation. If you struggle with unhealthy addictions (tobacco, caffeine, alcohol, drugs, sex, etc.), ask the Lord to break the stronghold. Pray for self-discipline and the desire to glorify Him in your body—the temple of the Holy Spirit.
Obviously, I have lots to say about mistakes that I have made and ones that I hope you can avoid! Take one day at a time. You will be surprised by how quickly you can catch up and reverse the damage from past financial mistakes by being faithful with small decisions.
For additional help with financial difficulties, Crown’s online Budget Coaching program matches you with one of our certified coaches to thoroughly analyze your financial status. They will work with you to develop a customized spending plan and debt elimination strategy to help put you on the road to financial freedom!
This article was originally published on The Christian Post on July 14, 2023.
Dear Chuck,
My wife and I made more than our share of financial mistakes early in our marriage and are still making up for losses. Can you give us some tips on how to catch up?
Catching Up Financially
Dear Catching Up Financially,
Ha! You and me both! I could write a book on all the financial mistakes I have made. To answer your question, I’ve compiled a short list of common financial mistakes to avoid.
First and foremost, remember that you are a temporary steward entrusted with managing what God provides.
“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)
Mistake: Spending More Than You Earn
Now that you know your role and responsibility, never spend more than you earn. It’s the quickest way to end up in debt and will set you back months, years, and even decades with interest payments and missed opportunities to save and invest. Imagine playing limbo every month—the bar represents your income, and you represent control over your spending.
Mistake: No Emergency Savings
When spending less than you earn, you can fund an emergency savings account. The 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! Things happen that may catch you off guard: a flat tire, a lay-off, a medical issue, etc.—so having an emergency fund grants you financial protection.
“Go to the ant, O sluggard; consider her ways, and be wise.
Without having any chief, officer, or ruler, she prepares her bread in summer and gathers her food in harvest. How long will you lie there, O sluggard? When will you arise from your sleep? A little sleep, a little slumber, a little folding of the hands to rest,
and poverty will come upon you like a robber, and want like an armed man.”
(Proverbs 6:6–11 ESV)
Mistake: Streaming Services That Waste Time and Money on Entertainment
Last year, CNBC reported that consumers spend an average of $133 more each month on subscriptions than they realize. 85% of US households have at least one video streaming subscription, and 60% have at least one paid music streaming subscription. These are usually auto-paid, and users fail to notice the cost. Many are charged for subscriptions they do not use. As a result, many consumers underestimate how much they spend on subscriptions each month: mobile phone, internet, TV/movie streaming, Amazon Prime, music streaming, miscellaneous digital subscriptions, gaming, news, and others. Cutting back on streaming can save you money and time. Closely monitor bank and credit card statements to avoid paying for what you do not use (or need).
Mistake: Carrying a Balance on a Credit Card
Assuming you have a credit card or two, never carry a balance. Current interest rates are ridiculous, and more than half of Americans are paying them. Do you want to pay 25% more for debt you carry over each month? This is financial suicide. Set a goal to pay off balances as quickly as possible using the avalanche or snowball methods, a balance transfer, or a combination of these methods. Try Crown’s online courses, work with one of our Budget Coaches, or contact Christian Credit Counselors.
“Owe no one anything, except to love each other, for the one who loves another has fulfilled the law.” (Romans 13:8 ESV)
Mistake: Taking Expensive Vacations
When I was growing up, vacations were spent driving to visit out-of-town family or a National Park. They were never expensive but always fun! Today, people fly to destinations, even if they are in debt. One survey showed that despite inflation and credit card debt, consumers have a “treat yourself” mentality, indulging in drinks, experiencing new activities, and purchasing expensive souvenirs. FOMO, hidden costs, under-estimated extras, and more can lead to post-vacation debt. Budgeting and planning ahead prevent overspending. Pray about a trip you want to take. Then work and save together. God can provide in amazing ways that you would miss if you choose to go into debt.
“Trust in the Lord, and do good; dwell in the land and befriend faithfulness. Delight yourself in the Lord and he will give you the desires of your heart. Commit your way to the Lord; trust in him, and he will act.” (Psalm 37:3–5 ESV)
Practice Contentment And Improve Your Finances
“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)
When we realize that this life is so very temporary, we learn to be content, which leads to far less spending. Less spending creates more giving, saving, and investing, which reduces stress and accelerates the ability to catch up.
Thank you for your question. Due to the importance of this topic, I plan to cover more mistakes next week.
I would like to invite you to our Crown Reunion in Ridgecrest, North Carolina, from October 12–15, 2023. Here, you will learn more about financial stewardship, meet our staff and some of our international partners, and grow spiritually with new friends. More information is available here: https://www.crown.org/reunion/.
This article was originally published on The Christian Post on July 7, 2023.
