Dear Chuck,

My husband and I have not been married very long. We grew up in homes where the holidays were celebrated in a grand way. I’m feeling pressure to do the same but my husband refuses to go into debt to do so. We have student loans and he wants those paid off as soon as possible. This has become a very emotional topic because our friends and family will likely be giving us very nice gifts at Christmas and we won’t be able to do much for them this year.

Holiday Stress Has Begun

Dear Holiday Stress,

I am so glad you wrote to me about this. Holiday stress is a terrible problem and can take the focus away from what truly matters. But you don’t have to live with it. There’s great hope for your family and I have some practical advice to help.

By the way, you are a very fortunate woman. In 2017, 74% of Americans admitted they failed to budget for the holidays and ended up an average $1,054 in debt. Give thanks for a husband who cares about eliminating debt. That will bless your marriage far more than you know right now.

Thanksgiving and Christmas are times for believers to celebrate the love and grace of God. It’s historically a time to be joyful, to savor favorite foods, to begin new traditions and keep the old, to give with no expectation of return. It’s truly a time to rejoice.

I grew up with a dog-eared Sears catalog that marked the pages of the things that my brother, sisters and I were dreaming would be under the tree. Even though Mom and Dad had a limited budget, they made sure we were able to get at least one thing we really wanted each Christmas.

Today, people both young and old have more than a catalog at their disposal. Magazines, social media, television, computer ads, radio and billboards attempt to extract as much out of our budget between Thanksgiving and Christmas as possible. Many individuals suffer with self-induced pressure to decorate and make purchases to satisfy a longing to keep up or impress others. The fear of missing out plagues our society, plunging many into unnecessary debt, and even anxiety and depression.

To reduce or eliminate any pressure, give yourself a little margin by creating and sticking to a holiday budget. Ignore what the world says to do, and choose to honor your husband. You will experience peace and unity in your home, which is far better than expensive gifts under the tree. Ask God to unite your hearts and give you a common desire to observe the upcoming holidays.

Plan Ahead

• Pray for discipline, creativity and joy
• Save money by eating at home
• Cook inexpensive meals
• Keep a holiday grocery list handy to buy items on sale
• Practice hospitality
• Make gifts and decorations
• Shop thrift stores
• Read a Christmas devotional together

Ask Yourself:

• Am I coveting what I do not need?
• Why do I want to buy or do this?
• What benefit will it give me or others?
• Does it have a lasting impact?
• Does it glorify God?
• Can I rejoice with others who have it without my needing to have it also?
• Can I stay on budget?

Don’t Compare

One of the greatest threats to our walk with God is the trap of materialism. We must work at not being lured away from Him and spending money on our own desires so that we are no longer able to fulfill our primary purpose – to glorify God.

At first glance, the scriptural warnings about riches and their dangers might suggest that we should avoid all luxuries. But that’s simply not true. God does not prohibit us from enjoying the benefits of this world; after all, they are His.

The tenth commandment, Do not covet (Exodus 20:17) is an easy one to overlook because it happens in the heart. Rather than desiring what others have and are able to do, rejoice with them! Avoid judging them or feeling sorry for yourself. Give thanks and praise God for His mighty provision in your life and theirs.

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)

We can unintentionally get sucked into the grip of materialism and comparison in the midst of parties, pageants, and presents. We must choose to forego the notion of perfect families, decorations, and gifts. Nostalgia and media create expectations we cannot and should not strive for. It’s a matter of guarding our hearts and practicing what Paul told the Romans: Do not be conformed to this world, but be transformed by the renewal of your mind (12:2a)

The truth is that most of us can hardly remember what we received for Christmas last year or the year before. The most lasting of all gifts are those that convey true love and appreciation; even though they might not cost much money, the receiver will consider them priceless. Avoid debt this Christmas! If you’re already struggling with overwhelming credit card debt, contact Christian Credit Counselors today. 

Originally published November 16, 2018

Dear Chuck,

I have friends who retired a few years ago. Several are thriving while others seem to wish they were back at the careers they left behind. I thought retirement was supposed to be the best years of our life. I am trying to determine: a) should I retire and b) when? Any thoughts?

Close to Retirement

Dear Close to Retirement,

This is a great question and one we should all wrestle with. Retirement, American style, is a problem I have observed as well so I am happy to share some of my thoughts about it.

We Were Made to Work

The upsides of retirement are made to look as if you leave all your headaches and stress behind, take up your favorite activities full time and live a peaceful, blissful life until the end.

Very few advertisements will tell you that the beach or sunny golf course or favorite pastime will easily become boring with overuse. As Proverbs 27:7 says, One who is full will loathe honey… Too much of anything is not good for us and we will eventually lose interest.

Many of the patriarchs, prophets, and apostles worked hard until the day God took them home. Some did their greatest work after the time we would have considered them to be “old men.” Moses, Joshua, and Paul each understood their God-ordained purpose and served until their dying days.

Moses was 120 years old when he died. His eye was undimmed, and his vigor unabated. (Deuteronomy 34:7)

Now Joshua was old and advanced in years, and the Lord said to him, “You are old and advanced in years, and there remains yet very much land to possess.” (Joshua 13:1)

Paul said:  For to me to live is Christ, and to die is gain. If I am to live in the flesh, that means fruitful labor for me. Yet which I shall choose I cannot tell. I am hard pressed between the two. My desire is to depart and be with Christ, for that is far better. But to remain in the flesh is more necessary on your account. (Philippians 1:21-24)

Time to Rethink Retirement

Retirement is mentioned once in the Bible (Numbers 8:23-26), concerning the retirement of the Levites from the tent of meeting.

Chris Farrell, author of Unretirement: How Baby Boomers Are Changing the Way We Think About Work, Community and the Good Life, wrote:

Boomers are healthier and better educated than previous generations, eager to stay engaged at the workplace and in their communities, exploring options that range from bridge jobs to starting their own businesses.

Bank of America Merrill Lynch conducted a study in 2014 that found:

72 percent of pre-retirees want to work after they retire. Kevin Crain, of the firm, says 60 is no longer old. (I agree!) But, the increasing concern about Alzheimer’s is causing many to remain active with hopes of avoiding cognitive decline.

“Repurposing”

Christians must look at retirement differently and repurpose our talents, experiences, and skills.

Going from structure to total flexibility is often a shock. Boredom can lead to destructive behaviors and addictions that prevent people from finishing well. Many seniors admit to being lonely and fear the loss of independence, physical health, and financial well-being. Mental health issues like depression arise when there is no purpose to the wealth, knowledge, experience, and wisdom accumulated during the decades of a career.

In his book, Rethinking Retirement, John Piper wrote:

Finishing life to the glory of Christ means finishing life in a way that makes Christ look glorious…not living in ways that make this world look like your treasure…. It means being so satisfied with all that God promises to be for us in Christ that we are set free from the cravings that create so much emptiness and uselessness in retirement. Instead, knowing that we have an infinitely satisfying and everlasting inheritance in God just over the horizon of life makes us zealous in our few remaining years here to spend ourselves in the sacrifices of love, not the accumulation of comforts.

Consider These Repurposing Options

Don’t think of yourself as “elderly” but as an “elder.” The knowledge, experience and wisdom elders accumulate over a lifetime can be shared with the younger generation. The Bible emphasizes helping the younger generation to grow in faith, to live godly lives and to strengthen the family unit.

• Consult: Use what you know to create a small business that allows you to work with clients and still remain flexible with your time commitment.
• Start up: Consider starting a business or working part-time. This grants purpose, structure, and extra income that can alleviate some of the financial stress of healthcare or housing.
• Phase Out: Professionals accustomed to heavy responsibility should consider a gradual reduction in responsibility as they phase out of their career. For instance, a doctor may work part-time, take medical mission trips or do volunteer work in the inner city.
• Go: Get involved in missions. I just met a widow that spends six months a year in Tanzania serving in an orphanage. She loves it!
• Disciple: Take up the challenge to disciple your grandchildren or other young people in your life. Plan events and activities for their spiritual growth.  I know a retired couple that has dedicated their lives to this task. With 16 grandchildren and some great-grandchildren, they are busy! Everyone is benefitting from this repurposing.
• Learn: Develop new skills that can be useful to support your children’s business or career. One friend learned QuickBooks to be able to manage the finances for his son’s growing automotive repair business.
• Volunteer: Consider schools, churches, foster programs whose kids are aging out, ESL programs, Crown, or organizations that help refugees, immigrants or the poor in your community.

A Career Direct assessment helps individuals of all ages to discover their purpose and passion so they can do what they love. It is especially helpful to direct those with the time and flexibility of a new season of life.

Originally published on the Christian Post, November 9, 2018

Dear Chuck,

My husband and I would love to buy a home before our second child is born next spring. We are seriously considering a subprime loan since we don’t have a down payment. We have a few years left on our student loans and a car payment. We’ve been told that renting is like throwing money away every month. What are your thoughts?

Primed for a Home

Dear Primed,

Well first, congratulations on the good news that you have another child on the way!

A subprime loan is a mortgage loan offered to those who wouldn’t be eligible for a conventional mortgage for a number of reasons, including a low credit score, or in your case, no down payment. Because these loans are offered to individuals who pose a higher risk to the lender, they also come along with high interest rates, dramatically increasing what you pay over the lifetime of your loan.   

To be straightforward, subprime loans are not a good idea and I would strongly advise against one. I want you to carefully consider the dangers of a subprime loan and some of the options I offer below.

Background and Trends

A decade ago, Lehman Brothers Holdings Inc. collapsed when mortgage delinquencies and the market slump turned their assets sour. It propelled the government and central bank into rescue mode. But, today there are rumblings of new risks on the horizon, including another recession.

In 2006, real estate prices began falling and by 2008, many homeowners owed more on their house than it was worth. They were “underwater” due to job loss, other bills or insufficient income to begin with, and could not sell the homes to pay off the mortgage. So, many defaulted.

Today, similar to 10 years ago, the more highly leveraged the household, the greater the possibility of default or foreclosure. In more basic terms – the more you owe the bank, the less likely you’ll hold on to your house, especially in the case of economic turbulence. Any tremor or shock in the economy can totally disrupt a homeowner’s ability to cover expenses.

Consider Your Options

I’m familiar with the common advice that you should avoid renting since it’s just “throwing money away” and while I understand the intention of this advice, I think it oversimplifies a complicated decision.

First of all, your rent pays for a place for you to live, which, in my opinion, is a dollar well-spent! Your rent is not building any equity for you, but it gives you flexibility if your job or income changes, exempts you from condo/HOA fees, and puts the responsibility of any maintenance and repairs on your landlord. Your insurance is cheaper, you don’t have closing or selling costs, and you’re not on the hook if your dishwasher breaks. Often (and hopefully) your monthly rent is less than a mortgage would be, so it should allow you to save and live with financial margin.

Furthermore, home ownership is not for everyone and comes with a laundry list (pun intended) of responsibilities and financial commitments. Before you apply for a single loan, take the following into consideration.

Principles of Borrowing

In recent decades, debt has become a way of life for many people. Personal, corporate, and government debt have skyrocketed, putting families, companies, and citizens at risk.

God’s Word doesn’t specifically say, “Do not borrow.” However, it does contain warnings about borrowing. Following are some principles that you, as a borrower, should know.

• Debt is not normal. The U.S. economy has become virtually dependent on a constant expansion of credit. But God’s people should manage their finances differently. Instead of being servants of lenders, we need to be servants of God.
• Avoid long-term debt. In Israel, the rule was: “At the end of every seven years you must cancel debts” (Deuteronomy 15:1 NIV). Today, the typical mortgage is for 30 years. Christians should make every effort to pay off a mortgage early.
• Avoid surety. Proverbs 6 warns against accepting an obligation to pay for someone’s loan if you lack a guaranteed way to make the payments. The only way to avoid surety is by backing up what you borrow with collateral that covers the debt if needed.
• Pay what you owe. Paying back a debt may be painful, but it will add great blessing to your life when you maintain your credibility by paying everyone that you owe.

Questions to Answer Before Buying

• Is my job stable?
• Are my health and marriage secure?
• Do I have enough financial margin to make payments and cover maintenance, repairs, landscaping, decorating, HOA fees, and utilities?
• Do I plan on living here more than 5 years?
• What is the cost of living and the economic outlook for the area?
• What is the rate of real estate appreciation or depreciation in the area? At what rate are prices and rents expected to increase or decrease in the area over the next several years?
• Are home prices falling?

Buying Guidelines

• No more than 40% of your Net Spendable Income (your income after tithe and taxes are taken out) should be allocated to housing.
• Make sure you understand everything you need to know about mortgages.
• Make a large enough down-payment (at least 20%) to avoid Private Mortgage Insurance (PMI) and save thousands of dollars over the life of your mortgage.
• After down payment and closing costs, you should ideally have 3-6 months of living expenses in a savings account. This will allow you to take care of unexpected expenses without depending on a credit card.

If you can buy as cheaply as you can rent (considering all costs of home ownership) then buy. But, be mindful of the guidelines above to minimize your risk of long-term financial stress and loss!

Your home is a lifestyle decision that requires prayer, research and counsel. This is the largest financial decision most families make. Seek the wisdom and experience of others who have gone before you. Be patient and don’t get caught in the comparison trap or assume you’re missing out by renting.

Keep in mind these Biblical warnings:

“The rich rule over the poor, and the borrower is servant to the lender.” (Proverbs 22:7)

“Without counsel plans fail, but with many advisers they succeed.” (Proverbs 15:22)

Thanks for the question and may the Lord direct your steps.

Originally published on the Christian Post, November 2, 2018

Dear Chuck,

There is a lot of talk lately about the potential profits to be earned by investing in cannabis (marijuana) opportunities. Personally, I think it is wrong, though some of my Christian friends see it as an appropriate way to invest. As a parent of teenagers, I am very concerned about the likely legalization for recreational use. Where are you leaning on this issue?

Not Riding the High

Dear Not High,

This is a loaded question! Sorry for the bad joke. It is actually a serious topic that I have been asked to respond to by a number of my friends as well.

A friend reported to me that he attended a party in a state where medical marijuana is legal now. At the party, he was offered “a drink or a joint” by his Christian hosts. Although he declined both, he said it was eerie how much of a non-issue his friends now consider smoking marijuana.

One of my acquaintances is a licensed, legal grower. He got into the business because medical marijuana helped reduce his young daughter’s seizures from many per day to only a few per week. He sees the good it can do for those that have found no other medical solution to their issues. On the other hand, I recently sat on a plane next to a man that was an early investor in a California-based growing operation. He said he lost money and would never make another investment in a cannabis operation. When I asked him why he lost money, he said the workers were stealing too much of the product all along the distribution chain.  

Market Size

Some have predicted that the marijuana business could reach $22 billion by 2022 due to states legalizing recreational use and the promotion of medicinal marijuana. The US beer market is approximately $100 billion in annual sales and the market for painkiller medications is estimated to be $300 billion by comparison. Interestingly, many Christians invest in companies that own or produce these products (alcohol and painkillers) which are also addictive and in many cases harmful.

Whether legal or on the black market, the sale of marijuana is big business.

For Christians, we should never allow the lure of money and big returns to cause us to compromise our values. Greed and a get-rich-quick mentality are terrible reasons to justify any investment.

General Thoughts

Because research still remains to be conducted, I will refrain from specifically addressing the use of medical marijuana. I am only addressing here the question if Christians should generally invest in the cannabis market regardless of how the product will be used.

Canada legalized cannabis across their county, with recreational sales to begin this month. That is pretty close to home.

Many are interested in the future of marijuana stocks. Some believe these stocks are in a bubble like we saw with the hype over Bitcoin. In our rapidly changing country, many states face a difficult decision as they weigh the pros and cons of legalization. Marijuana ETFs (Exchange-traded funds) are struggling partly because many banks are not willing to hold the underlying securities due to regulatory uncertainties.

States desire the tax benefits of the products to prop up their public schools and pension funds.

Yes or No on Investing?

Since your main question is an investment one, I sought advice from Jerry Bowyer, a trusted friend who is a Christian, an economist and professional investment advisor. Jerry said, “It seems to be [Not High’s] view that other Christians who do invest in these stocks (for medical purposes) are wrong. I think that takes things too far. I think that liberty of conscience is the main thing here. Seems as though at arm’s length, investments in publicly traded companies are more like meat sacrificed to idols, or what Lutheran theologians call ‘adiaphora,’ things neither forbidden nor commanded…”

My Personal Perspective

I don’t believe the economic benefits will be able to cover the problems our society will experience from a wide-spread legalization of cannabis for recreational purposes. Make no mistake, large corporations will lobby for their ultimate goal to make it available as easily and broadly as possible.

Coca-Cola is considering infusing beverages with an ingredient in marijuana that eases pain without inducing a high. Heineken, Corona, and Coors are interested in marijuana-infused alcohol along with Lagunitas “IPA-inspired” sparkling water products. Wonder why they’re investing?

Marijuana has an ingredient known as THC (Tetrahydrocannabinol) – the cannabinoid which produces the euphoria or “high” that users want. Today’s marijuana has a much higher THC level than decades ago. Scientific modification has altered the plant. One article (a must-read, in my opinion) outlines some of these differences.

The dangers associated with recreational use have been documented despite the growing belief that it is harmless because of legalization. Consider the negative effects of our opioid epidemic. Legalized marijuana will change our nation.   

• This process of legalization is associated with an increasing trend for many risky behaviors in youth as observed in Centers for Disease Control (CDC) reports. Binge alcohol consumption, extramarital sexual activity, and increasing use of narcotics are among the associated behaviors.

• Marijuana is addicting, has adverse effects upon the adolescent brain, is a risk for both cardio-respiratory disease and testicular cancer, and is associated with both psychiatric illness and negative social outcomes.

• Participants who used cannabis heavily in their teens and continued through adulthood showed a significant drop in IQ between the ages of 13 and 38 – an average of eight points for those who met criteria for cannabis dependence.

• Teen abuse is perhaps the most worrisome—17 percent of adolescent users become addicts, and 76 percent of adolescent admissions to publicly funded addiction treatment centers in 2014 were marijuana-related. One study of a Colorado children’s hospital found that cannabis-related emergency room visits for youth ages 13-21 quadrupled there from 2005 to 2014.

• With the use of a Magnetic Resonance Imaging Device (MRI), doctors are able to identify visible changes in the brain’s information highways after ingestion of the drug. THC clogs receptors acting as switching stations, resulting in memory reduction, slowed reaction time, loss of motivation, and reduced peripheral vision. In short, the brain is temporarily incapacitated.

I wonder if proponents of recreational public use have asked themselves the following:

• Would you want your employees using marijuana on their breaks or over lunch?
• Would you approve the use by child care workers or school bus drivers?
• Would you mind medical personnel, nurses, surgeons or pharmacists partaking?
• Would you mind if coaches or teachers use?
• Would you trust an Uber driver or airplane pilot who uses? How about the truck driver in the lane next to you?

In an article last year, my friend, Randy Alcorn said he would not want his grandsons to try marijuana. Why? He says, “Because I love them and don’t want them to go where it leads. Even if it doesn’t become the gateway to other drugs (which it very well may), it would mess with their minds and bodies, dull their consciences, and impair their walk with Jesus and testimony for Him.”

We, God’s stewards, are called to conduct our lives in such a way that honors God. Our Biblical worldview should be evident in the way we spend and the way we invest our resources. And, we are called to be sober-minded and alert, which is contrary to what cannabis does to the mind.  

For you are all children of light, children of the day. We are not of the night or of the darkness. So then let us not sleep, as others do, but let us keep awake and be sober. For those who sleep, sleep at night, and those who get drunk, are drunk at night. But since we belong to the day, let us be sober, having put on the breastplate of faith and love, and for a helmet the hope of salvation. (1 Thessalonians 5:5-8)

Marijuana effectively serves to alter our perception of reality. This mind-altering effect can be compared to the warnings of drinking to excess in Proverbs 23:29-35. How much better would it be to help others learn to enjoy reality.

I hope this has been helpful. I will continue to watch this trend and others like it as I try to help Christians to make wise financial choices.

Originally published on the Christian Post, October 26, 2018

Dear Chuck,

I’m hearing and reading murmurs of a coming recession. My investments took a beating in the last one, and our property value has finally recovered. I’m feeling uneasy and would love your advice on how to adequately prepare?

Getting Nervous

Dear Nervous,

The idea of preparing for hardship is timeless. Noah built an ark. Joseph stored grain. Moses and the Israelites stocked up before leaving Egypt.

The truth is that we never really know when tough times or calamity will strike. So God, in His infinite mercy and wisdom, has warned us to always be prepared for the unexpected: The prudent see danger and take refuge, but the simple keep going and pay the penalty. (Proverbs 27:12)

Recession or Continued Economic Growth?

There is good reason for the rumors you are picking up on about the increasing potential for a recession. The current bull market is the second longest in history. However, a recent report revealed that economists with the IMF (International Monetary Fund) expressed their concerns that America’s chances of a recession are growing. This is due to factors that include trade tensions, rising interest rates, and predicted slower growth. If so, our public wealth could be cut by around $5 trillion.

A recession is technically two consecutive quarters of negative GDP growth. The Great Recession, from December 2007 to June 2009 was our last downturn. They have generally occurred every eight years on average in our modern era with 10 years being the longest period between recessions. In March of 2019, this bull market will celebrate its 10th birthday. But recent market volatility has had some experts wondering if it will make it to the 10th birthday. No one knows when, but a downturn is certain.

The warning signs include bubbles. Recall the real-estate bubble that led to the 2008 recession and the stock market bubble prior to Black Friday in 1929. Last year,  George Friedman said,  “The precursors to a depression — such as irrational exuberance of asset classes, rising interest rates, a negative yield curve, and proclamations that ‘this time, it’s different’ — have at most been modestly appearing. But the clock is ticking.”

Danger is Greater for the Unprepared

As a nation, Americans are woefully unprepared for another recession. High levels of debt have become an accepted lifestyle and the personal savings rate, which was actually negative before 2008, has not improved substantially since the Great Recession. We need to prepare but not be paranoid. In fact, preparation should dramatically reduce fears of the uncertain future we will all face.

Effects of a Major Recession:

• Debt and deficits would increase in Washington.
• Worldwide governments would be impacted.
• People will default on mortgages and student loans.
• States and towns would have to cut spending, which would further drag down the economy. This would cause shortfalls in pension funds to increase, leaving less money for retirement than planned.
• Interest rates could escalate.
• Stock and real estate prices could collapse.
• Sovereign debt could jump.
• Net worth could drop.

Prepare Wisely

• Reduce your debt.
• Reduce spending and lifestyle overhead.
• Buy less than what the bank says you can afford if you have to borrow money.
• Build an emergency fund to cover 3 to 6 months of living expenses. (Allow more for bigger families.)
• Transfer money regularly to a savings account.
• Secure your job by making yourself valuable: learn new skills, attend courses, gain new certifications. Take on leadership roles.  
• Multiply your income streams in case you lose your job.
• Diversify investments and consider how much you’re willing to risk based on your age and time to retirement.
• Prepare your family for the ramifications. Ask for family participation for inexpensive ways to bond: activities that don’t cost anything like hikes, bike rides, going to the park or community events, volunteering together.
• Update your resume.
• Don’t worry or panic.
• Renew your mind on God’s Truth. He is in control.

Prepare to Prosper

Many can actually prosper during a downturn. Here are a few strategies:

• When stock prices decrease, it is a great time to increase your investment in quality companies that will grow while other weaker companies may shrink or fail. Look at an economic downturn as stocks going on sale! Many great investors have learned to buy when everyone else is afraid.  
• Retirees should consider putting some money in CD and accounts that pay higher rates to attract bigger deposits.
• If you’re motivated to buy a home before rates rise higher, don’t stretch to do so. A recession is a great time to buy depressed properties.

• Continue to steadily invest – recessions can be great time to invest in the stock market, buy depressed real estate, make large purchases or do renovations if you have the extra cash.

Prepare to Preserve

We are to prepare to weather any coming storms. But we are to do it as the salt of the earth.

We are to be God’s preserving agents filled with love and surplus resources that we can share with others who are suffering.

A recession could be the greatest opportunity for demonstrating the love of Christ and sharing the Gospel that we will see in our lifetimes. Financial AND spiritual preparation will enable you to be the compassionate representative of Christ’s interests during a time of need.

Don’t Worry

Psalm 112, verses 1 and 7 assure us, Praise the Lord.  Blessed are those who fear the Lord, who find great delight in his commands…. They will have no fear of bad news; their hearts are steadfast, trusting in the Lord.

Originally published on the Christian Post, October 19, 2018

Dear Chuck,

I’ve made many mistakes with money over the years. I live in regret of how I squandered so much and failed to prepare for the future. My wife is insecure and concerned that we don’t have enough saved or invested for retirement. We need to move forward but are making zero progress. Can you help me/us over the hurdle?

Painfully Stuck

Dear Stuck,

You are not alone. The truth is that we all mishandle money at some point in our lives. Few of us were taught what God says about money in the Bible and as a result, we flounder around trying to do the best we can. The good news is, that once we realize the Truth, we can identify our mistakes and learn from them to avoid making the same mistake over and over again. God’s mercy far outweighs any financial loss and we can trust in His unfailing love to guide our decisions in the remaining years of our lives.

Don’t despair. Only 20% of American adults claim they have no financial regrets, while the rest admit to making their share of financial mistakes. Of the 80% who have financial regrets, here’s what they regret most:

• Not saving for retirement early enough – 20%
• Not saving for emergencies – 16%
• Too much credit card debt – 9%
• Too much student loan debt – 9%
• Not saving enough for children’s education – 8%
• Buying more house than they could afford – 2%
• Something else – 7%

The solution does not lie in reliving the past or dwelling on the negative feelings. It rests in the forgiveness of God and the knowledge that He promises to work all things together for good, for those who love Him and are called according to his purpose. (Romans 8:28)

It is never too late to begin to work together and make a fresh start. Financial mistakes can be a severe mercy God uses to reveal the idols, self-indulgence, or wrong attitudes about money that we have allowed to control our lives. It’s how He got my attention!  

My wife and I were in much the same boat that you describe when we turned forty. It was then that we attended a Crown Bible Study and united our hearts to fight the financial problems instead of each other. We made a plan to align our marriage and our finances with God’s Word. We changed from the inside out: what we believed about money, how we communicated with each other and how we looked to the Lord to show us His ways to become better stewards. We have made great progress over the past 21 years and you can, too!

My Advice

In our marriage, we discovered that we have different strengths. My wife is VERY good at financial defense. She watches our budget, carefully shops for good deals, pays our bills on time and protects our money to ensure we are always making progress towards our goals. I am better at financial offense. I take on the responsibility to earn our household income, invest it wisely and help it to grow. We have united as a couple around these roles for managing money and it has worked very well for us. Of course, we talk about each other’s role and seek counsel as needed but we try not to get in each other’s way.  

I’d encourage you to believe that you do not have to do this alone. Invite your wife to help you in this journey and use her strengths plus your strengths to make progress. It will require total transparency, humility, and sacrifice, but it will bless your finances and your marriage. Talk about who can play offense and defense with your finances and start practicing.  

Make a Plan

Once you have agreed on how your dynamic will work, start putting things into place. The best financial advice I can give you is to honor God with the first of all your income. (Proverbs 3:9) Begin giving to God as your top financial priority. If you and your wife can agree on this, it will begin to help you align on many other financial decisions you will make together.

It’s also vital you establish a budget and start using it immediately. We have free tools and resources to get you started.  

The first goal of your budget should be to establish an emergency savings fund. Start with $1,000 and put it somewhere you aren’t going to touch it. That money is to be set aside for true emergencies only.

Once you have your emergency fund, start attacking your debt. I find both the debt snowball and debt avalanche methods to be extremely helpful. You can learn more by watching our 5 Steps to Debt-Free Living mini video series. If you’re dealing with overwhelming credit card debt, get in touch with Christian Credit Counselors.

After that, invest wisely for retirement. You do have some catching up to do and won’t have the luxury of decades of compound interest working on your side. But you CAN do it! Don’t allow what the world says you need for retirement scare you. Start to save aggressively now. Trust God and work as unto Him. He’s more than capable to bless your efforts and guide your decisions.

Don’t Listen to the World

The ability to save and invest quickly may be determined by how much you can increase your earnings and decrease your expenses. Retirement is a decision about lifestyle – it will dictate the amount of money you have available to put to work for you. The habits you develop now can carry you through retirement. Learn to be faithful in little so you will be faithful in much. (Luke 16:10)

By prioritizing giving in your budget, you protect yourself from the infectious disease of greed and pride. It’s a directive close to the heart of God and one that blesses both giver and receiver.

Learn to be content with what you have by being thankful in all things and fully depending on God.

Ask God to reveal the root of your fear that has gripped your heart so that you can experience freedom from regret and doubt. Align your desires with God’s and He will teach you to speak and act in accordance with the truth.

Make all financial decisions with the desire to please God as your foremost goal. Recognize His majesty and power. He wants you to acknowledge that He is your Provider, Sustainer, Redeemer, and Friend. Identify your fears and concerns, give them to God, and you will find peace.

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)

Originally published on the Christian Post, October 12, 2018

Dear Chuck,

My wife and I do not agree on giving. In fact, we’ve had a few heated arguments over the matter. She says we need to give 10% of our income. I don’t know where we could come up with that much. We give every month, but it varies in amount, depending on what we have available after I’ve paid our bills. What should we do to come to an agreement?

Feeling Frustrated

Dear Frustrated,

I hear your pain. It was not too many years ago that I was in your same place! Spoiler alert — I think your wife is right, but let me give you some background before I offer my advice.  

I used to really dislike it when preachers taught on giving, especially if I brought guests to church with me! It wasn’t that I didn’t believe in giving. I did! It’s just that I did not think I had enough money nor did I like parting with it until Ann and I learned, through a Crown Bible Study, that it wasn’t my money in the first place. It was God’s!

When I recognized and began to appreciate His love and provision, I wanted to give out of a heart of gratitude. It was like God gave me a totally different mindset. For the first time in my life I saw giving as an opportunity, not an obligation. And the benefits I experienced convinced me that giving first to the Lord is indeed a divine priority.

To be transparent, our giving went from 2.6% of our gross annual income to 10% of our gross annual income and even more as we are able. This required a lot of adjustments to our spending habits, but it has been a wonderful decision on spiritual and financial levels.

The Tithe

God intended giving to bless both the giver and the receiver. The word “tithe” repels some because they do not understand its true meaning. The tithe is a testimony to God’s ownership. Abraham acknowledged this when he gave a tenth of his spoils back to God before the law was ever given (Genesis 14:20). Why? Because he loved God. Convicted that the tithe belonged to God in the first place, he gave. He was a true steward, able to surrender everything, including his precious son, Isaac.

The amount of the tithe is not important to God; He owns everything. The amount is important to us! Many verses in Scripture point to the promise of blessings and warnings about giving. Ultimately, we are the ones who miss out when we fail to give out of love and obedience to the One who so generously gives to us.

God does not need our money. But receiving our gifts in return is His way of allowing us to share in His work. God honors the attitude more than the amount as evidenced in Luke 21:1-4:

Jesus looked up and saw the rich putting their gifts into the offering box, and he saw a poor widow put in two small copper coins. And he said, “Truly, I tell you, this poor widow has put in more than all of them.  For they all contributed out of their abundance, but she out of her poverty put in all she had to live on.”

Americans are generous people. We enjoy giving to ourselves and don’t mind going into debt to do it. We need to reverse that mentality and joyfully give to God first, for that’s where true joy is experienced. Paul said: Each one must give as he has decided in his heart, not reluctantly or under compulsion, for God loves a cheerful giver. (2 Corinthians 9:7)

How

• Acknowledge that God owns everything and we are His stewards.
• Praise and thank Him daily.
• Give to God first, not what is leftover. (Proverbs 3:9)
• Save. It makes us better givers because it creates margin.
• Set aside a portion to give every week to remember whose it is. Make it the highest priority or that money will be spent elsewhere.
• Give bountifully and cheerfully. (2 Corinthians 9:6-8)

Where

• The local church to support those who teach and provide resources for ministry use.
• Organizations that are committed to helping the poor and spreading the gospel.
• Organizations that operate with integrity. ECFA accredited organizations are trustworthy.

Benefits

• Lower blood pressure
• Increased self-esteem and peace
• More love
• Less depression, more joy
• Increased feelings of happiness and reduced anxiety
• Lower stress levels
• Longer life
• Self-control, a fruit of the Spirit, is exercised
• Conforms us into the image of Christ
• God promises to reward us
• Laying up treasures in Heaven

Whoever is generous to the poor lends to the Lord, and he will repay him for his deed. (Proverbs 19:17)

Giving for the right reasons makes us more grateful, generous, and loving people. Throughout Scripture we are reminded to give because much has been given to us. Give sacrificially and without earthly expectation. Keep your eyes on God and look to Him for your reward.

So here is my advice: Stop arguing and fighting about the amount. Make peace with your wife and agree to work together to begin to give a full 10% of your household income as soon as you are able. Thank God for all He has given you, especially for your generous and wise wife.

Originally published on the Christian Post, October 5, 2018

Dear Chuck,

My wife and I are working really hard to get out of debt. We are overwhelmed with 5 credit cards, 2 car loans, student loans for both of us, a mortgage, and furniture that we financed. We now clearly see the mistakes we made and the dangers debt can present. I’ve been doing some research to figure out the best way for us to pay off the debt without going bankrupt and am confused between debt consolidation vs debt settlement. Can you explain and recommend which is best?

Drowning in Debt

Dear Drowning in Debt,

I am so sorry for the pain and stress you are experiencing. That kind of financial burden can be crippling and have devastating effects on your health, relationships, and financial future. My wife and I suffered under crushing debt early in our marriage so we are compassionate toward those who have made similar mistakes.

The good news is that you CAN work your way out of this. Debt consolidation and debt settlement options are tempting because they seem to lance the pressure. But, I do not recommend either one. Here’s why.

Debt Consolidation

This is a process where debts are combined into one loan, making it easier to pay one bill than several. But it has some major drawbacks:

• There is no guarantee that your overall interest rate will be lower
• Your interest rate is influenced by past payment history and credit scores
• They promote low interest rates but usually increase them after a period of time
• Even though your debt is restructured and your payments are lowered, the term of your loan is lengthened, so the total amount you pay will be greater
• It will not work if there is too much debt or if you continue to accumulate debt

Other Forms of Debt Consolidation:

• Transferring Your Balance

Transferring your balance on a high-interest credit card to a low-interest credit card can be an option, but only for those with excellent credit scores (above 700). Again, even this option comes with hefty drawbacks: you may be charged a fee of up to 5% of the balance, you cannot miss or fall behind on any payments, and interest kicks in after 12-18 months. You can read more about it here.

• Personal Loans

Personal loans via banks, credit unions or online lenders charge a lower fixed rate than credit cards. Origination fees, prepayment penalty, and collateral (home or car) may be involved. Your new loan will have a fixed interest rate and a fixed monthly payment.

• Home Equity Loans

Home equity loans are secured by your house. The danger with these is that you could lose the house if you don’t keep up with the payments. They typically have lower interest rates than an unsecured loan and do not require good credit, but repayment terms can be 10 years or longer.

• 401K Loans

401(k) loans have significant drawbacks. With lower interest rates than unsecured loans, you are borrowing from yourself. The loan is not counted on your credit report. However, it reduces your retirement fund, and charges heavy penalty and fees if you cannot repay. If you lose or leave your job, the loan is due in 60 days. Ouch!

Debt Settlement

This is a dangerous method that entices desperate consumers. Avoid it!

Supposedly, companies negotiate with creditors so people can pay less than what is owed. The settlement company charges you before they settle or reduce your debt. The Federal Trade Commission has been involved in numerous cases where companies simply walk away with the fee.

Pursuing debt settlement is risky, and I would say unwise, for several reasons. First, you’re using debt to solve a debt problem. While I understand how desperate and overwhelming debt can become, turning to these last-resort solutions puts you in greater danger and prevents you from making more progress.

Additionally, the debt settlement process can take two to three years, accruing late fees and penalties during that time. It negatively impacts your credit score and remains on your credit report history for seven years. Typically, you’ll pay a fee of about 20-25% of the final settlement and may be taxed for the amount forgiven. You can get sued if you haven’t paid; you’re not guaranteed that the creditor will agree to the settlement, and settlement companies are never motivated by your best interests.

Income – Expenses = Savings

Below are a list of suggestions to help you find more money in your budget to pay off debt. Some are extreme, and could even be painful, but remember that your goal is to get out of debt as fast as you can. The overwhelming pain and stress you’re feeling now is worse than any of these solutions!

I suggest you choose to live like your poor. That doesn’t mean you will be miserable. In fact, the benefits far outweigh the stress of debt. These are temporary remedies that will alleviate some of the immediate pressure and help train you to handle money responsibly.

• Increase your income and apply the extra money toward your debt.
• Sell your cars and carpool with your spouse, neighbors, coworkers, or friends.  
• Sell other valuables or have a garage sale.
• Reduce expenses to necessities only to save like never before.
• Live with family/friends for a year and apply rent/mortgage to your debt.
• Stop eating out and cook inexpensive meals at home.
• Sell your pets to eliminate food, boarding, vet, and grooming costs.

Plan for Progress

A debt management plan is typically a three- to five-year program involving counseling and education so you don’t find yourself in the same predicament a decade from now. You’ll pay back the loans without creating more debt. I highly recommend Christian Credit Counselors; they’ve been our trusted partners for years and can walk you through this process the right way. Get in touch with them and start a free debt analysis today.

How Christian Credit Counselors’ (CCC) Program Works:

1. Lowered Interest Rates:
   Through pre-negotiated agreements with creditors, they can secure significantly reduced interest rates, typically between 1% and 12.50% APR. These reductions help you pay off your debt faster and often lower your monthly payments.
   
2. Simplified Payments:
   You’ll make a single monthly payment to CCC, which they distribute directly to your creditors. This approach streamlines your financial obligations and helps maintain or improve your credit score by ensuring consistent, on-time payments.
   
3. Faster Debt Repayment: 
   As individual accounts are paid off, the funds previously allocated to those accounts are redirected to accelerate repayment of your remaining debts. This snowball effect speeds up the process of becoming debt-free.
   
4. Flexibility for Extra Payments:
   If your financial situation allows, you can make additional payments at any time without prepayment penalties. The more you pay, the faster you’ll complete the program.
   

Summary:

Things that you can start on your own:

1. Make a budget
2. Use the Debt Snowball Method
3. Go through the 30-Day Money Reset

Credit should never be “normal” for Christians. The only debt that it good for us is found in Romans 13:8 and, that should be your ultimate goal in your debt payment plan: Owe no one anything, except to love each other, for the one who loves another has fulfilled the law.

We have many free resources to help you in your journey out of a bad financial situation. Take it one day at a time. Start small and don’t give up until you are free!  

Originally published on the Christian Post, September 28, 2018

Dear Chuck,

My husband and I anticipate graduating in May. I’ve read that our resumes are extremely important. While he has part-time job and internship history, mine is very limited. We have student loans and hope to land great jobs as soon as we can. Could you tell me what employers are really looking for when hiring new graduates and how to land the right job?

Hoping to be Employable

Dear Employable,

Congratulations! My wife and I married our senior year of college and entered the workforce full-time together. It’s an exciting season of life: full of hopes, dreams, and many decisions.

Here’s my bullet point advice:

• Know what you can do to add value to an employer.
• Don’t embellish your résumés.
• Know your “Why.”

Here are some key attributes employers look for in recent graduates. Compare this list against an inventory of your strengths and talents.

Work Ethic

Always approach work with the opportunity to give glory to God.

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 ESV)

An internship or experiential opportunity demonstrates work ethic and provides credible references. Employers and hiring managers want to see a proven track record of success. Any projects you worked on as an intern could make the difference between landing a great post-graduation job or being stuck on the hunt for the next six months.

Industry-Relevant Skills

Employers know that most recent college graduates may not be prepared for the workforce and will need some on-the-job training. This costs company time and resources. But if you are equipped with the necessary skills and knowledge to contribute from day one, you will make a great impression.

I do not suggest you invest in career skills at the expense of your formal education. Prioritize your coursework. But during your Christmas or spring break, enroll in an open online course (MOOC) through Coursera or edX. Learn a new programming language, a popular accounting software, or a skill-set related to your field of work. Focusing on trending careers that are in high demand can also make you more employable.

Ambition

Although work ethic and ambition often go hand in hand, they are different. Someone with a great work ethic might be willing to show up early and stay late to get a project done, but, may not be driven to achieve greater and greater feats.

Industries evolve, and employers hire candidates who seek new challenges. Share a list of self-directed achievements or goals you have accomplished in the past or want to pursue within a company. Some campus activities may be applicable. This reveals to employers that you are highly driven and eager for advancement opportunities.

Character, Integrity, and Emotional Intelligence

Employers prefer not to waste time with employee conflicts or bruised egos. They want new hires who will work hard with humble hearts.

Regardless of your intelligence or experience, there is a lot to learn when starting a new job. If employers suspect you will blame others for your failures or need constant praise for little effort, they may consider dismissing you from your position. Recruiters and hiring managers also study social media to glean insights into a candidate’s personality. Your profile says a lot about you.

Landing a job is only the first of many steps toward building a fulfilling career. After you are hired, you must collaborate with co-workers and communicate effectively with managers. Develop your emotional intelligence (EQ) now. It will enhance your job performance and strengthen your ability to build strong relationships.

In fact, self-awareness is a huge advantage in the workplace. Crown’s Career Direct assessment was created to help students and adults alike discover their unique design and God-given abilities.

An Honest Resume

Finding a job can be tough, especially when many positions require years of experience for you to even be considered. But trust me, embellishing your résumé is not the way around that challenge.

Employers know when you “fudge the numbers,” and dishonesty is a red flag. Rather than trying to appear more seasoned than you are, I recommend being strategic in the months and years leading up to your job search. A little work will position you both as competitive candidates.

It’s never too late to start building your resume. You mentioned you don’t have as much experience as your husband, so I’d encourage you to seek that experience now. Call family friends or peers and ask about any projects they need help with. You’ll gain valuable experience and a good reference! Spend time doing volunteer work, learning all you can, and building up any experience you can include on your resume.

Your “Why”

Each of my suggestions are recommended to lead you into a fulfilling career that will give you deep satisfaction.

That is why cultivating these attributes is so important. People who foster strong professional relationships and revel in new challenges rarely feel bored or dissatisfied in their careers. When you are grinding away at a MOOC or spend entire weekends submitting internship applications and resumes, connect those tedious actions with your bigger “why”.

Remember why you chose your degree, why you’re pursuing this career path, and why you want to grow your skills. If you envision the life you’re trying to create, it becomes abundantly clear that all of the extra effort is more than worth it. In time, you will see results and find opportunities for advancement and growth.

If you or your husband struggle in your job search and in your skills-development journey, come back to the ultimate “why” in Psalm 90:17: Let the favor of the Lord our God be upon us, and establish the work of our hands upon us; yes, establish the work of our hands!

Originally published on the Christian Post, September 14, 2018