Dear Chuck,
We’re trying to decide if now’s the time to buy a house. We’ve been outbid numerous times, and our landlord wants to raise our rent. Should we wait or keep trying?
Squeezed by Rising Rent
Dear Squeezed by Rising Rent,
My answer is yes—to both. Exactly if or when to stop renting is not a decision I can make for you, but I can offer some advice.
The value of real estate continues to be determined by the age-old maxim: “location, location, location.” Since I have no knowledge of the market that you are in, I will respond with some market insights and a few tips from my own experiences. You and your spouse can decide the answer to your question, but it is good to be patient (wait) and keep trying.
The Market Is Cooling
Numerous professionals say the housing market is cooling. High home prices (driven by Covid, remote work, and a supply/demand imbalance), a doubling in mortgage rates, inflation/recession, and a shaky stock market are contributing to slower sales. There is a slowing of appreciation as well: homes in areas that appreciated 10% or more may only rise 5% in the year to come, or even 0%. CoreLogic expects home prices to rise 4.3% from June 2022 to July 2023 on a year-over-year basis. This should be helpful in determining the likely costs of waiting.
Characteristics of a Cooling Market
Depending on your city or region, you may begin to see the effects of a cooling market, which are listed below. These should work to your advantage:
Are We in a Housing Bubble?
What we see today is different from what we experienced back in 2007–2008. That was a housing bubble defined by rampant speculation, a huge run-up in prices, and too many homes for sale without significant demand. Another factor was the number of homes sold with questionable loan financing to subprime borrowers. Many borrowers had no equity, used an option ARM, or were not qualified buyers. The only factor we have in common in today’s market is high prices.
A Housing Recession?
An article here states that The National Association of Realtors reports that housing affordability has plunged to the lowest level since 1989. According to Redfin, the median sale price was $371,125 in the August timeframe, up 6% from the previous year. However, sale prices dropped 6% after peaking in June when the median price was $394,775. Industry experts are calling this a housing recession, which does not mean the market is crashing.
Realtor.com reports that homes may remain on the market longer, but they still spent 26 fewer days on the market this July than in 2017 and 2019.
Natalie Pace reports that home builder D.R. Horton had cancellation rates of 24% in 2nd Q 2022, up from 17% a year ago. Redfin warned that 60,000 home-purchase agreements were canceled in June—the highest percentage of buyers backing out of deals since 2017. Inspections and appraisal contingencies allowed buyers to exit. Others walked away when they no longer qualified for a loan or could not come up with a down payment. A third of June sales were first-time buyers while 16% were from investors and 2nd home purchasers. Since families prefer to move during the summer months, more price corrections may be noticed during the upcoming seasons.
These 10 cities had the highest number of price drops in July, per Redfin: Boise, Denver, Salt Lake City, Tacoma, Tampa, Sacramento, Indianapolis, Phoenix, San Diego, and Portland.
These are the cities where actual home prices are falling the most, per realtor.com: Toledo, OH; Rochester, NY; Detroit, MI; Pittsburgh, PA; Springfield, MA; Tulsa, OK; L.A., CA; Memphis, TN; Chicago, IL; and Richmond, VA.
Realtor.com says a house may be overpriced if:
The cooling housing market impacts sellers, carpenters, landscapers, and other businesses in building and renovation. Declining sales, inflation/recession, and the higher cost of consumer goods will reduce many homeowners’ desire (and ability) to remodel, update, or make important repairs.
Buyers
Buyers are beginning to experience FUD (fear, uncertainty, doubt). Coupled with low cash reserves, some are choosing to stay put in their current housing situation. This will work to your disadvantage as many will choose to continue renting, thus giving landlords the leverage to increase rents.
Don’t Overpay
Buying too big of a house or overpaying for one can negatively affect your finances for years. Many people are experiencing buyer’s remorse because they got caught up in the real estate frenzy and are now underwater or unable to keep up with the expenses of home ownership. Pandemic checks have been spent, and consumer debt is up. Combine that with maintenance, repairs, higher utilities, groceries, etc., and it is easy to understand the discouragement.
Patience Is Good
The good news is that qualified buyers who have waited patiently may soon be able to find what they can afford. Whether hoping to sell or desiring to buy, trust the Lord, and seek wise counsel.
“Rejoice in the Lord always; again I will say, rejoice. Let your reasonableness be known to everyone. The Lord is at hand; do not be anxious about anything, but in everything by prayer and supplication with thanksgiving let your requests be made known to God. And the peace of God, which surpasses all understanding, will guard your hearts and your minds in Christ Jesus.” (Philippians 4:4–7 ESV)
While seeking the Lord’s guidance and patiently waiting, one way to improve your finances is to reduce or eliminate credit card debt. Christian Credit Counselors is a trusted source of help toward financial freedom.
This article was originally published on The Christian Post on September 16, 2022.
Dear Chuck,
I am now a remote worker (since COVID), and I find myself “always on.” It was easier when I could leave the office, go home, and get away from the stress of my job. Now home is my office so the stress seems 24/7. I am considering trying the “Quiet Quitting” method but want your input first.
Quietly Quitting
Dear Quietly Quitting,
This is a big topic right now and likely more complex than you may realize. To explain, I will discuss Quiet Quitting, Quiet Firing, and Quiet Returning.
Quiet Quitting
For those who may not know the term, quiet quitting is a trending phrase to describe the practice of setting boundaries at work and not doing any more unless compensated fairly. It is not about quitting your job, slacking off, or cheating your company while working from home—all common misconceptions. However, as I understand it, some view it as a call to do the bare minimum for what they are paid to do in order to get their lives back.
For some employees, the concept deeply resonates. They are tired of “hustle culture” or the nonstop demands of modern work life controlled by invasive technology. Some employers strongly disagree, believing that giving more—not less—is what propels people in their careers. Kevin O’Leary of “Shark Tank” calls quiet quitting “a really bad idea” and “the dumbest idea I’ve ever heard.” Employees say that clear boundaries allow them to work smarter and be more productive during their business hours. Others contend that quiet quitting is a boost to one’s mental health which helps in all areas of personal and professional performance. See Healthline’s list of pros and cons.
Quiet Firing
Quiet Quitting may be trending, but Quiet Firing has been going on for some time. It is a passive-aggressive way to get unwanted employees to quit by giving poor performance reviews, assigning menial tasks, overloading with unimportant projects, avoiding one-on-one meetings, changing roles, and not giving raises. It saves time and money for the company: no severance and no 90-day trial/improvement process. It is dishonoring, negatively impacting others.
Cause and Effect?
I have to wonder if, in the bigger context, some of these cultural shifts in the workplace are due to giant misunderstandings brought on by poor communication during the dramatic change to working remotely. Is this why some people are quietly quitting, or is this why some employers are quietly firing? Is there a chicken vs. egg question to ponder?
On the Other Hand, “Quiet Returning”
Before one assumes that the labor shortage will continue, thus providing hired workers more leverage to craft their own job descriptions, another trend is at play that could change that. Joseph Coughlin at Forbes reports that retirees are returning to work—but on their terms. Approximately 2.4 million people retired during the first year and a half of Covid and are now in a stage of quietly returning. Many discovered that they missed the community, structure, purpose, and income. A survey of 500 retired job seekers by Joblist revealed that a majority of retirees are happily going back to work for a variety of reasons:
Coughlin writes, “They are not simply unretired, they are pioneers. These older adults are inventing something that is neither our current idea of retirement or of work. They are quietly creating something else—a new life stage altogether that sees the retirement age of today as a mile marker, not an exit.”
Retirees offer decades of experience and talent that will impact younger workers and help cover labor shortages. Some were laid off and look forward to working again. Others want to delay social security in order to draw a higher check later. Some desire health care coverage. Others are starting their own business or coming alongside someone else. Regardless, retirees are a wealth of information and inspiration. However, the return for many creates the fear of whether they will be accepted by younger coworkers. Others know they need to update skills.
Quiet Questioning First
Work As Unto the Lord
While I sympathize with your desire to “get your life back,” be sure you maintain a Christian attitude towards your employer and a grateful heart for the work you have. Larry Burkett, the late founder of Crown, said:
“Work plays a very important role in our lives as believers. It provides the opportunity to put into practice spiritual principles that otherwise would be mere academics.
The way we do our work day by day provides the best exterior reflection of our commitment to serve the Lord in a real, physical way.
It doesn’t matter whether that work is in the home, on an assembly line, or in a corporate office. Our true Christian beliefs will be reflected more clearly there than in any other environment outside of the immediate family relationships.”
Expect Fair Compensation
Employees deserve to be paid fairly for their work. If you believe that you are unfairly compensated, try explaining to your superior all the work that you are doing. Ask for help and understanding so that you can live within boundaries.
The Bible advises employers to be careful in their treatment of those they employ. Romans 13:7–8 is applicable to employers today, since many employees are underpaid and unable to keep up with rising costs: “Pay to all what is owed to them: taxes to whom taxes are owed, revenue to whom revenue is owed, respect to whom respect is owed, honor to whom honor is owed.”
Quietly Pray
Pray for a godly attitude and for your employer, your colleagues, and your customers. God will help you with healthy boundaries and with accomplishing your daily tasks. Remember to
work as unto the Lord, bringing Him glory and honor while shining light into the workplace.
I want to thank my wife, Ann, for researching this topic and crafting my reply. She helps me every week, so I don’t want her to quietly quit!
If you are unsatisfied at work, take a Career Direct Assessment. It is a practical tool to discover the way you are wired and find a career that will fit your unique design.
This article was originally published on The Christian Post on September 9, 2022.
Dear Chuck,
I am bitter that I just paid off my federal student loan last year, after ten years of working a side job to do it! Seems grossly unfair that, all of a sudden, some people are getting a free ride. Shouldn’t Christians refuse this free money?
Bitter About Free Money
Dear Bitter About Free Money,
Congratulations on paying off your student loan in full! The student loan forgiveness program announced by President Biden is a hot and very divisive topic right now! I had several radio interviews about it last week, and many feel the same way as you. Below, I have summarized some of my responses to the questions during those interviews.
Real Problem, Wrong Solution
Student loan debt in the United States is 2nd only to mortgage debt. Millions of people bet on their future income and continue to drag around heavy loads of debt after graduation with a degree that did not lead to the kind of compensation that would justify what it cost for their degree. We need to have empathy for those who are in pain while factually, without bitterness or drama, acknowledging that the proposed solution is not fair or very helpful.
Real Costs: I originally read that the estimated cost would run $500 billion a year if 75% of eligible people accept the offer. Wharton thinks the move will come closer to $1 trillion when loan forbearance, the income-driven repayment (IDR) program, and behavioral changes are taken into account. This exceeds the government’s entire military and defense budget for 2021, which was $800 billion.
Inflationary: Harvard’s Jason Furman, former chair of former President Barack Obama’s Council of Economic Advisers, says he believes this will put more reliance on debt. “Pouring roughly half trillion dollars of gasoline on the inflationary fire that is already burning is reckless.”
Larry Summers, former director of former President Barak Obama’s National Economic Council, said, “Student loan debt relief is spending that raises demand and increases inflation. It consumes resources that could be better used helping those who did not, for whatever reason, have the chance to attend college. It will tend to be inflationary by raising tuitions.”
Is It Legal or Biblical?
Some argue that since Jesus canceled our debts, we should rejoice that the government is canceling our debts in a similar way. That is not a logical analogy. Jesus was the One who had the power to forgive the debt, and He shed His blood to show us unmerited mercy and grace. The US taxpayer should be the one to determine if the debts should be forgiven, not a person or entity that is not responsible for the original loan.
When we examine Scripture in Luke 16, Jesus declared the unrighteous servant to be shrewd, but dishonest, for forgiving debts that were owed to another. Further, when the widow in 2 Kings 4:1–7 had overwhelming debt to pay, the prophet Elisha told her exactly what to do; she had to work. God didn’t just give her the money or erase her debt. She had to believe and act on what the prophet told her: “Go, sell the oil and pay your debts and you and your sons can live on the rest.”
Student loan debt is based on the premise that work, resulting from education, will be the avenue to pay back borrowed funds. Expecting someone else to pay the loan is wrong.
Psalm 37:21 addresses the issue clearly: “The wicked borrows but does not pay back, but the righteous is generous and gives…” (ESV)
Charlie Cooke at the National Review believes it is likely not legal. He wrote it transgresses: “the Constitution, which vests legislative power in Congress, not the president…to Congress, which has not given the executive branch the authority to give $10,000 each to millions of college students…to the Department of Education, which found last year that it ‘does not have statutory authority to provide blanket or mass cancellation, compromise, discharge, or forgiveness of student loan principal balances…’”
Should Christians Accept Free Money?
It is wrong to be bitter about anything. Jesus taught us to forgive those who owe us and those who mistreat us, even our arch enemies. Most Americans received unsolicited money from the government during Covid and made decisions how best to steward it. Many donated it to others in greater need. I see this in a similar way. Why not receive the funds and be a good steward of the loan forgiveness? Do not judge or condemn those who may see it as a blessing; they have to make their own decision.
For those who may receive it, there are some caveats: a) Some states may treat it as income and therefore taxable, b) If the Justice Department declares it unconstitutional and Congress does not approve it, the funds may have to be returned, and c) It may bother your personal conscience to know others are treated unjustly.
My Recommendations
Early reactions to the proposal seem to agree on three things: 1)This is an inflationary move, 2) It is clearly unfair, and 3) It does not solve the problem of out-of-control tuition costs that are harming the risk/reward value proposition of higher education in America.
My recommendations:
Thanks for writing. I hope you can see this issue in a new light.
If you want to consider more ways in which you can effectively steward God’s resources, the Crown Stewardship Podcast may be a valuable resource for you. You can subscribe for alerts of new episodes. I hope you find it beneficial.
This article was originally published on The Christian Post on September 2, 2022.
Dear Chuck,
I grew up in a dysfunctional home. I have friends with fathers, uncles, or brothers who regularly give them wise financial counsel. I desperately want that but don’t have those kinds of relationships in my life. What can I do?
Looking for Wise Counselors
Dear Looking for Wise Counselors,
While I am sorry for the pain you are experiencing, I am also super encouraged that you have identified your need for counsel and are willing to listen! I spent too many years thinking I did not need counsel, even when it was available!
Proverbs 12:15 says, “The way of a fool is right in his own eyes, but a wise man listens to advice.” (ESV)
Like you, so many young people who want or need wise advisors feel they don’t have anywhere to turn. A 2019 Pew Research study reveals that 23% of American children under age 18 live in single-parent homes—three times the world’s average. We’re seeing the damage of loneliness and the lack of trusted adult figures in Gen Z young adults. According to Springtide Research Institute, 27% of young people have only one, if that, adult they can turn to in times of need. More than a fourth of Gen Z feel they have few, if any, wise leaders to turn to. Read more here.
Look for a Capable Mentor
While wise counselors can help you with an occasional question or insight, I suggest you look for a true mentor. In the Bible, we see that Jethro mentored Moses, and then Moses mentored Joshua. Elijah mentored Elisha. Jesus mentored the disciples; Paul mentored Timothy, Titus, and others; and Priscilla and Aquila mentored Apollos. Besides spiritual mentoring, there are times in life when we need financial, business, parenting, and marriage mentors. But what exactly is a mentor?
An article titled The Power of Mentorship at Forbes explains, “A mentor is simply someone who helps us get unstuck, a non-judgmental person who listens with an open mind to help us steer clear of the mistakes they themselves made (and wish they’d had a mentor to help avoid.) A mentor helps us accelerate our growth by showing us a clearer path with fewer distractions and obstacles.”
According to Henry Cloud, “A mentor is somebody who is where I want to be, or has been where I want to go, has done what I want to do, or in some other way is able to be my guide to get there.” His video series on successful mentoring relationships at RightNowMedia.org can be very helpful.
Where Can You Find Them?
We are all designed to experience life in community with others. We need the Body of Christ to function well in this broken world. To begin your search for a mentor, do a quick inventory by answering a few questions: Who do you know who could offer you godly advice? Do they have a solid reputation? Do they come recommended to you? Start with a short list of prospects.
Next, go to people you trust and admire. Don’t rule out mothers, aunts, or sisters. Ask if they would be willing to meet and share their wisdom with you on a regular basis. Let them know of your motives and expectations.
If you can’t come up with any prospects for a mentor, ask trusted friends for recommendations. Would your pastor or people in your Sunday School class or small group know people willing to come alongside you? Anyone in your line of work who might be willing to share? How about a coach or co-worker?
Pray, and ask the Lord to bring the right person into your life. Until you have a true mentor in place, I suggest that you read … a lot! Make the Bible not only your textbook but also a letter of inheritance from your loving Savior. Treasure it. Read it, listen to it, and memorize portions of it. Allow it to transform you from the inside out. Seek to read great biographies and Christian material on personal finances and spiritual growth. Spend extra time in the Proverbs. Subscribe to podcasts, blogs, and newsletters that will give you a biblical perspective on finances.
Verses That Recommend Seeking Counsel
“Without counsel plans fail, but with many advisers they succeed.” (Proverbs 15:22 ESV)
“The purpose in a man’s heart is like deep water, but a man of understanding will draw it out.” (Proverbs 20:5 ESV)
“Iron sharpens iron, and one man sharpens another.” (Proverbs 27:17 ESV)
“Give instruction to a wise man, and he will be still wiser; teach a righteous man, and he will increase in learning.” (Proverbs 9:9 ESV)
“Whoever walks with the wise becomes wise, but the companion of fools will suffer harm.” (Proverbs 13:20 ESV)
Want a Financial Mentor?
Crown’s online Budget Coaching program matches you with one of our certified coaches to thoroughly analyze your financial situation. Your coach will work with you from the convenience of your home to help you with your specific challenges. He or she can serve as a beginning point for advice until the Lord helps you find a mentor.
The Crown Stewardship Podcast may be a valuable resource for you. It is a wonderful tool to help guide you in the many facets of God’s financial principles. You can subscribe for alerts of new episodes. I hope you find it beneficial.
This article was originally published on The Christian Post on August 26, 2022.
Dear Chuck,
If we’re headed towards an economic downturn, how can I recession proof our finances?
Recession Proofing
Dear Recession Proofing,
Many economists believe we are headed toward major economic challenges. Consider just three reasons:
78% of Americans are worried about losing their job if we are indeed entering a recession, says Insight Global’s recent survey. 56% of American workers say they are not financially prepared or “don’t know how to prepare” for a recession.
The reality is that recessions are a normal part of economic cycles, and we should always be prepared for them. For basic information, see Investopedia’s Guide to Economic Recession. There is a big difference in recession proofing your finances and your career; however, since they are interrelated, let’s talk about both.
Recognize Any “Signs of Trouble” with Your Employer
Even if you see yellow or red flags, don’t leave a job until you have another in place, unless you are aware of illegal activity.
Consider Recession-Proof Industries
Laurence Ball, economics professor at Johns Hopkins University, and Karen Dynan, economics professor at Harvard and former chief economist at the U.S. Treasury, say the following four industries offer strong job security during economic downturns:
Julie Pollak, chief economist at ZipRecruiter, says the following jobs are recession proof:
Each of these occupations added tens of thousands of jobs during the 2009 and 2001 recessions, according to data from Zip Recruiter and the U.S. Bureau of Labor Statistics. Jobs that depend on consumer spending will be most threatened because people cut back on services not necessary to maintain a basic standard of living. Think retail, restaurants, hotels, and even real estate.
Upgrade Your Career Options
Now is a great time to update and learn new skills. Upon certification or completing any courses, update your resume. Consider how these skills can help you in your present career or future job search:
If your company is doing well during a recession, approach your boss about internal training opportunities to improve your job skills or job security. Ask what training would further your career. The company may be willing to sponsor you. Check out free options on YouTube, TED Talks, and virtual lectures or workshops, or source ideas through LinkedIn profiles of successful people in your industry. Coursera is popular for many busy people because lectures are 10 minutes or less and can be done on a mobile device.
Recession Proof Your Finances
Having a job or business that is not disrupted by a recession is a great blessing; however, there is more to “recession proofing” that needs to happen with your finances. Consider some of the following:
Do Not Fear the Future
We all have a natural tendency to fear the future since we cannot know what tomorrow holds. Our mind creates many scenarios that will likely never happen. God’s Word reminds us to avoid this trap, which is akin to expending energy in a rocking chair but making no forward progress. Instead, trust the Lord, make a plan, take action, and be grateful for what He provides regardless!
“Better a little with the fear of the Lord than great wealth with turmoil.” –Proverbs 15:1 NIV
While seeking the Lord’s guidance, another way to prepare for a recession is to reduce or eliminate credit card debt. Christian Credit Counselors is a trusted source of help toward financial freedom.
This article was originally published on The Christian Post on August 19, 2022.
Dear Chuck,
Jesus commended a steward for being dishonest. Does the Bible endorse bending the rules, like when the IRS is weaponized against Christians?
Sick of High Taxes
Dear Sick of High Taxes,
Thank you for your question. No, the Bible does not commend dishonesty or endorse a bending of the rules to avoid taxes for any reason. Let’s take a look at what the Bible does say about stewardship of our funds.
First, you are likely referring to the Parable of the Shrewd Manager in Luke 16:1–9. A careful reading of the passage is clear that Jesus commended the subject for being shrewd, not dishonest. There is a vast difference between the two characteristics! Let me explain.
The word shrewd has a variety of meanings that I have pulled together here:
Notice that one can be shrewd without being dishonest. Also, notice that Jesus never commended this steward for dishonesty—but for his clever scheme to get out of his painful circumstances.
“The master commended the dishonest manager because he had acted shrewdly. For the people of this world are more shrewd in dealing with their own kind than are the people of the light.” Luke 16:8
Second, Jesus said that we are to pay our taxes, by declaring in Mark 12:17, “Give back to Caesar what is Caesar’s and to God what is God’s.” Caesar may take the money, but our hearts should belong to God and God alone.
We should never be dishonest about paying taxes, but we can be shrewd. We must be discerning and precise while trying to find lawful ways to minimize our taxes. One way to do that in America is to be generous. Our law allows us to itemize certain financial transactions that reduce our taxable income, such as interest paid on a mortgage or qualified charitable donations. This means we can give to our churches and support our favorite ministries while simultaneously reducing our tax liabilities. I find great joy in this and try to take full advantage of the opportunity each year.
Anti-Christian Discrimination
Your reference to the IRS being “weaponized” against Christians is vague to me. There are many laws protecting us from religious discrimination. If you truly experience this type of persecution, please report it to an appropriate agency that specializes in defending our freedom of religion in this country. However, even if we were to be singled out and we suffer loss of money, assets, or freedom, we should never lose our joy. I take comfort in this passage in Hebrews 10:32–35:
“Remember those earlier days after you had received the light, when you endured in a great conflict full of suffering.
Sometimes you were publicly exposed to insult and persecution; at other times you stood side by side with those who were so treated.
You suffered along with those in prison and joyfully accepted the confiscation of your property, because you knew that you yourselves had better and lasting possessions. So do not throw away your confidence; it will be richly rewarded.”
God promises that “better and lasting possessions” are coming. The logical conclusion is that what we have on Earth is temporal and inferior to what He has planned for those He loves. Imagine being rewarded by our great God for trusting Him when someone takes our temporal possessions!
Look Around You
We often forget some of the good that happens with our national, state, and local taxes. We have great highways, the convenience of electricity, clean water, efficient sewage and garbage systems, and some secure borders. While there is excessive waste in most government systems, much good is also being accomplished that we tend to take for granted. Thank God for the blessings you have.
If you believe that everything you have belongs to God and know that Scripture says to pay your taxes, then why try to cheat the government out of what God says is rightfully theirs? Don’t look to the government to provide for you. Be faithful to the Lord, and allow Him to bless you. His gifts far exceed Uncle Sam.
Our citizenship is in heaven. Let us not forget that we have been given the ministry of reconciliation. We may not agree with all our government does with our taxes, but one day, we will stand before the King who rules with total justice, purity, and love. So keep an eternal perspective, remembering that our time here is brief.
So let Caesar take what Caesar demands. There’s no use getting sick over it. But give your heart only to Christ, and preserve your joy.
If you’re looking for a simple way to save money, I recommend Squeeze—a trusted Crown partner. The company shops household bills to bring you the lowest rates and best deals. Savings are quick and can last a lifetime. Sign up for free, and squeeze your first bill in under five minutes.
This article was originally published on The Christian Post on August 12, 2022.
Dear Chuck,
My wife is really organized, but I am not. When it comes to finances, she gets stressed if we go over budget a little here or there. How do I help her chill out?
Stressed-Out Wife
Dear Stressed-Out Wife,
It might surprise you, but I think you may be placing the blame for her stress on the wrong person. Having an organized wife is a blessing, not a problem! But like you, I once lived with a “no big deal” attitude about living on a budget. I think I can help resolve this.
Let me make a case for changing your mind about how best to help reduce her stress.
Stewards Are Managers
Did you know that one of the most frequently mentioned habits of high achievers is organization? Whether one keeps a “To-Do List” or devotes certain hours in weekly planning, developing habits of organization is crucial to stewardship. The Merriam-Webster dictionary defines a steward as “one employed in a large household or estate to manage domestic concerns (such as the supervision of servants, collection of rents, and keeping of accounts).” In other words, the essence of being a steward is to manage well.
Costs of Financial Disorganization
Unorganized people lose hundreds and thousands of dollars on fees, interest, and unopened checks. Take a look at a partial list of consequences:
In addition, unorganized people often suffer the emotional toll of stress, guilt, depression, anxiety, frustration, and embarrassment which eventually lead to relationship issues. In your case, you are not stressed about it because you have the luxury of your wife doing all she can to keep the wheels on the bus going round and round.
Benefits of Financial Organization
Faithfulness as God’s steward requires financial organization, and many benefits flow from this:
Tips to Develop Organizational Habits
When the pain in our finances got very intense, it captured my attention. My organized, picky, careful wife needed me to get organized, too, and start helping us live within our means. I had to learn to get more organized to help her get more chill! Here are some tips to help the unorganized make the leap to the other side.
Prioritize your tasks, take small steps, set a timer, and remove distractions (phone, TV, etc.) Work when you are most productive, then reward yourself after a set time. Develop daily, weekly, monthly, and annual routines.
Never Slack Off
“A slack hand causes poverty, but the hand of the diligent makes rich.” (Proverbs 10:4 ESV) This verse makes it clear that the diligent—those committed to following through to complete their responsibilities—are rewarded. Those who simply avoid the vital task of getting organized will suffer.
I hope this helps. It sounds like you have what I call a Proverbs 31 wife. Be grateful, and honor her by doing your part to keep your finances on track.
Another useful tool I recommend is Squeeze—a trusted Crown partner. The company shops household bills to bring you the lowest rates and best deals. Savings are quick and can last a lifetime. Sign up for free, and squeeze your first bill in under five minutes.
This article was originally published on The Christian Post on August 5, 2022
Dear Chuck,
My spouse thinks we need another credit card. We’ve been getting by just fine with one. Who do you agree with?
Divided Over Credit Cards
Dear Divided Over Credit Cards,
It is not wise to step into the middle of a dispute without hearing both sides. So my first reaction is to recommend that you find agreement with your spouse apart from a third party arbitrator like me. Since I have recently been through a similar discussion with my wife, Ann, it will be easy to share our journey that may help the two of you get united.
One Card or Many Cards?
It has been my position and practice for years to have only one credit card. There are lots of benefits to this practice: racking up bonus miles, less vulnerability to run up debt, easier to track one account, to name just a few.
Someone recently stole our credit card number. We received an alert and initially thought it was a scam. Upon returning home, we checked our online account. Sure enough, someone was having fun shopping at Nordstrom’s in a completely different part of the country.
My position on having just one card has officially changed! If you are a responsible spender, pay your bill in full each month, or maintain a very low balance, you should consider a second credit card—not many credit cards, just two! The average American has four cards; some have many more. Manish Dhameja of India holds a Guinness World Record for 1638 cards in 2021.
Backup Card
A backup card is important in the event you lose a card or, like me, have your account number stolen. Until my replacement card is received, I am forced to use cash or a debit card. I do not like this option, especially when traveling. So before you read on, be sure and see my qualifiers above. If—only if—you meet those conditions, having two cards has multiple benefits.
Access Different Networks
Visa, Mastercard, Discover, and American Express are the four payment networks. Visa and Mastercard are widely accepted, Discover finds acceptance in the United States but not internationally, and American Express has the lowest acceptance globally. It is suggested that you carry cards from different networks.
Earn Rewards
Combine cards to earn higher rewards on your spending. Analyze the rewards offered by cards to maximize your returns. Cards vary. Some offer rewards for travel, cash back, or zero interest.
Your spending habits will influence your decision. We like to earn travel miles on our cards.
Reduce Credit Utilization Ratio
How much credit you are using impacts your credit score. Lenders like to see you are not maxing out your available credit. Another card can reduce your ratio (balance-to-credit limit) by spreading your purchases over multiple cards. This increases your credit score unless undisciplined spending is an issue.
Balance Transfer
You can save money by moving the balance of a high-interest card to one with a low rate. Just make sure you read the fine print to avoid penalties and fees.
Emergencies
Two cards can prevent a large expense from hurting your credit score. It can also help if you reach a limit on one card in a time of distress. Just make sure you have the means to pay them off, or the penalties will far outweigh any rewards/benefits.
The Negatives of Two or More Cards
Manage Your Cards
Watch your balances, and investigate alerts. Record your number in a safe place along with a contact number/website in the event of loss or theft. Devise a system that notifies you when payments are due.
Credit card companies make money by charging high interest rates and late fees. Avoid getting trapped in an endless cycle of debt by carrying balances. Do not attempt to open multiple cards within a short time frame because it can damage your credit score.
Lenders like to see a long credit history, so think before closing an old card. Inactive cards may be closed which can damage your credit score as well. Check your credit report regularly. Look for errors, and fix them quickly. You can request a free copy from the 3 reporting agencies.
Pay on time, and don’t overspend. Let these verses be your guide:
“The rich rules over the poor, and the borrower is the slave to the lender.” (Proverbs 22:7 ESV)
“Pay to all what is owed to them: taxes to whom taxes are owed, revenue to whom revenue is owed, respect to whom respect is owed, honor to whom honor is owed.” (Romans 13:7 ESV)
So this is my revised position! Ann and I are in agreement to open another credit card account. My hope is that this will be helpful to you and your spouse as you seek to unify your preferences.
If credit card debt is a source of pain for you or someone you know, Christian Credit Counselors is a trusted source of help toward financial freedom.
This article was originally posted on The Christian Post on July 29, 2022.
Dear Chuck,
Many of my single friends (divorced, widowed, and lifelong singles) are struggling to make ends meet. Is there an approach to managing money for those who are single and may never marry?
Advice for Lifelong Singles
Dear Advice for Lifelong Singles,
Thank you for the question. This is a very important trend that needs our attention. According to the U.S. Census Bureau, 28% of our population consists of one-person households. In 1960, that number was 13%. Today, half of American adults live with a spouse, down from 52% a decade ago. The number of those over 18 living with a partner but not married is up to 8%, double the number twenty years ago. People are delaying marriage and making critical life decisions later than previous generations. Birth rates have been dropping for decades, referred to as the “baby bust.” The number of younger people living with parents is also up. (Stats are from this article.)
Some singles delay marriage in hopes of getting their finances in order. Others have financial challenges as a result of divorce, death, pregnancy outside of marriage, or frivolous lifestyles.
Singles often miss the traditional milestones of buying a home, having children, and long-term financial planning. They must be extra cautious with their income and expenses while fully trusting God.
Financial Considerations for Singles
Living on one income today in preparation for tomorrow requires wisdom. My advice to singles, young and old, is to learn how to steward money. Handling money from a Biblical point of view will enable one to face the future without fear. Here is an approach that will help:
“Listen to advice and accept instruction, that you may gain wisdom in the future.”
(Proverbs 19:20 ESV)
Find trusted advisors who can direct one to take a short- and long-term view of finances. Goals must be set, and the same principles I give to others apply to singles:
Good Housing Decisions Are Key
Many singles cannot afford to buy a home nor have the resources to maintain one. Housing tends to be the largest fixed expense. Downsizing or relocating can eliminate some of the financial stress. Rising rents are now a problem; consider alternative housing options. If in a large home, it may be necessary to sell or rent out a portion. Temporary measures can be taken. Here are a few other options. Find a roommate, or move in with family members. If it’s an amicable relationship, one might be able to build and occupy a guest house on their property which will bless children and grandchildren for decades. Form a pod. It can serve to help everyone who lives together.
At one point, one of our sons and his wife lived in a big home with two other couples from their church. Each had their own wing, and it worked fine—until they started having babies. Living with others can solve loneliness and provide a measure of accountability. Housing prices and property taxes vary greatly across our country, so relocating can help if one can work remotely.
Living near family is important, but one must seriously consider the cost of living. Here are a few links to help make better decisions of where to live:
Prepare for Economic Turbulence
Inflation and recession are concerns for all of us, single or married. We do not know what the future holds, but we know that economic conditions are always fluctuating. Abiding by Biblical financial principles and making wise choices can cushion the fallout we may experience in the coming months.
In addition, variable expenses should always be closely analyzed. Look back over credit card and bank receipts to see how much is being spent on food, prescriptions, utilities, and entertainment. Seek discounts, eliminate waste, and make some cost-saving sacrifices. I am not a kill-joy; I just know that many people need to find creative ways to reduce their spending. Record all spending for 30 days to see where dollars go. We are facing uncertain economic times, so we need to be extra savvy. Frugality does not mean misery. It can provide freedom!
More Resources
Here is additional information for older adults:
I know an older woman who rotates time living with her adult children and their families. She does not have a permanent residence. It is a mutual blessing for her, the children, and grandchildren. Others are lovingly cared for by nieces or nephews. Sometimes siblings or close friends choose to live together and split bills.
New widows and widowers have to manage money while dealing with grief. It is a difficult time. Here are some tips for survivors. Organized files and records are a gift for those left behind at death.
Thank you for a great question! My hope is you can share this article with those you are trying to help.
A trusted source of guidance for those dealing with credit card debt is Christian Credit Counselors. They can help get anyone on the road toward financial freedom.
This article was originally published published on The Christian Post on July 22, 2022.
Dear Chuck,
I am a single parent trying to manage life on a limited budget. I am extremely fearful about being unable to provide for my two children with the high cost of everything. I have a decent job, but I need to figure out how to afford childcare! It is getting crazy.
Stressed Single Mom
Dear Stressed Single Mom,
I am so sorry. This inflation has taken a toll on so many, but for single parents, it is especially difficult.
My Mom’s favorite verse was Romans 8:28. She actually had a business card with this verse printed on it and her name and phone number beneath it:
“And we know that for those who love God all things work together for good, for those who are called according to his purpose.” (ESV)
Before I give you my tips, I suggest that you memorize this wonderful promise. It brought my Mom through many difficult challenges.
A Childcare Crisis
My wife recently talked with our new dental tech and learned that she is a single mom. When asked what her biggest challenge was, she immediately answered, “Childcare. It’s so expensive.” She proceeded to tell her story of going through an unwanted divorce and living with her parents until her newborn started pre-school. Her mother cared for him during the day so that she could work. She now has her own place. Last year, she gave up childcare for financial reasons, and her 8-year-old went home to an empty house until she got off work.
Cost of Childcare
Parents are concerned with the cost, availability, and quality of care for their children. Many say that we’ve gone backwards in each of these areas. Care.com conducted a cost-of-care survey this year. It revealed that childcare is more expensive now for a majority of parents. Thousands of daycares closed between December 2019 and March 2021. As a result of this and the economic situation of our nation, childcare centers have increased costs and are taking fewer children.
More than half of the families in America plan to spend more than $10,000 a year on childcare. This amounts to more than the average cost of in-state college tuition. Half of the parents surveyed say they spend more than 20% of their annual household income on childcare. 72% report they spend 10% or more. According to the U.S. Department of Health and Human Services, childcare is considered affordable at 7% of the budgeted household income.
The average cost for one child per week in 2021:
Childcare centers across the country are having to raise their prices. One center in Georgia reported that they have had to adjust wages for their employees to cover high gas prices and food. The cost for school supplies at centers has nearly doubled in the past year. Covid and inflation have impacted parents, children, and employees in countless ways.
Effect on parents:
Financial Advice
Becoming Aware and Available
The Body of Christ must be sensitive to the needs of single mothers, fathers, grandmothers, or grandfathers who are entrusted with raising children today. Assistance with housing, cars, insurance, legal issues, and yes, childcare, can bless generations. May God open our eyes to the needs around us. For all single parents and grandparents, may He be your source of strength and wisdom.
“Trust in the Lord with all your heart, and do not lean on your own understanding.
In all your ways acknowledge him, and he will make straight your paths.”
(Proverbs 3:5-6 ESV)
While seeking the Lord’s guidance, if credit card debt is adding to your financial pain, Christian Credit Counselors is a trusted source of help toward financial freedom.
This article was originally published at The Christian Post on July 15, 2022.
