Dear Chuck,
With the reelection of Donald Trump, what economic changes do you think we should expect now?
Opportunistic Investor
Dear Opportunistic Investor,
In what has been described as “the greatest comeback in American political history” by VP elect J.D. Vance and a host of others, the election results on November 5th will go down in history. Americans and the world at large watched in shock as President Trump overcame the improbable odds of his re-election. He won not only the Electoral College but also the popular vote. Plus, both the House and Senate will have a Republican majority. A clear pathway has been established for the sweeping changes that are likely ahead.
Personally, I was praying that we would avoid a contested election leading to political instability. I thank God for answering my prayer. Many economic changes are ahead. Some will work; some will not. Some will benefit; others will be displaced. If you think of economics as a “study in human behavior,” as I often call it, you will be able to anticipate the opportunities ahead.
Three Potential Economic Shifts
During the course of President Trump’s many campaign rallies, I noted three potential policy shifts that sound almost too good to be true. Keep in mind, many things are said during a campaign that may or may not be implemented.
Tariffs vs. Income Taxes
In a recent interview, President Trump said that he thought the word tariff was “the most beautiful word in the dictionary.” In other words, he is very excited about using tariffs. He believes that enforcing tariffs on foreign goods will bring more jobs to the United States, will fund a portion or potentially all of the federal budget, and could lower or even eliminate personal federal income taxes. He certainly had my attention because this would have an impact on all of our lives, both directly and indirectly.
I had to learn more about what tariffs are intended to accomplish. In a summary by Dartmouth economist Douglas Irwin, tariffs have served three primary purposes: “to raise revenue for the government, to restrict imports and protect domestic producers from foreign competition, and to reach reciprocity agreements that reduce trade barriers.”
The direct benefit of low or no personal income taxes would lead to an economic boom for American small businesses, particularly the housing sector, as disposable income would skyrocket. Obviously, it would create pain for some industries that are service providers for adherence to tax laws.
I suspect this policy will meet strong resistance from those who stand to be injured. It will require careful analysis and measured implementation. My guess is that it will be an uphill battle. However, the indirect benefit could provide far greater leverage over foreign nations that presently produce our goods, like China and India. It will likely demand their cooperation, or they will lose access to the strongest market in the world.
Other Tax Policies
President Trump spoke about eliminating taxes on tips and income earned from overtime pay and allowing a tax deduction for interest paid on a car loan if the car was/is manufactured in the United States. These changes will be music to the ears of our hard-working contract laborers who will have increased disposable income. While the idea of a tax benefit for interest paid on a car loan sounds reasonable, it is likely to drive up the cost of automobiles as borrowers shift their interest saved into higher loan amounts.
These policy promises may be addressed early after the inauguration. However, they will become null and void if the federal income tax system is dismantled through the tariffs mentioned above.
Reduce One-Third of the Federal Spending
Uncle Sam has been overspending by 1/3rd of its income for more than 25 years. This is economic suicide and must be changed. See last week’s column. Elon Musk will likely be named the Government Efficiency Czar, as promoted on occasion by President Trump. This will be an unofficial, volunteer position to look to stop government waste and inefficiency. Elon Musk has recruited Ron Paul to help with the task. Former Congressman Ron Paul has been a lone voice in the wilderness for his entire career sounding this alarm. The two will make quick work of finding money that can be permanently eliminated from the budget.
My outlook is that this will cause shock among government agency leaders, lifelong bureaucrats, and staff alike, as many will fight to justify their survival. I expect public revolts as job security is threatened. However, the long-term benefits of a fiscally sound government will far outweigh the short-term adjustments. We can only imagine the growth that could result when the good faith and credit of the United States government is fully restored.
A Golden Age of Prosperity?
Some of the economic experts that I read, like Adam Kobeissi and John Mauldin, who are both capable sources for market trends, sense we could be heading toward the golden age of American prosperity. Of course, we live in a fallen world, so the road will be paved with enormous challenges politically, socially, and spiritually.
We must keep our eyes on Christ, not the government, to provide our peace, security, and purpose in life. This is not our home. Regardless of what lies ahead, let us continue to lay up treasures in Heaven, where the streets will be paved with gold—tax-free.
Similar to Uncle Sam, if over-spending and debt have you or someone you know in a financial bind, a trusted partner of Crown is Christian Credit Counselors. They are a valuable resource to help consolidate debt and get on the road to financial freedom.
This article was originally published on November 8, 2024.
Dear Chuck,
I am really concerned with what Elon Musk said about America heading toward bankruptcy. Do you think there is anything we need to do if he turns out to be correct?
Concerned American
Dear Concerned American,
Elon Musk has repeatedly said that the ever-expanding Federal debt is leading America toward bankruptcy. I have linked here and here to some of the publications where he has been quoted about this concern. Here is an excerpt from his actual comments during a recent All-In Summit hosted by the All-In Podcast:
“America is going bankrupt extremely quickly, and everyone seems to be sort of whistling past the graveyard on this one.”
My concern is not that Elon Musk said this or believes this. My concern and the concern for all Americans—and the rest of the world for that matter—should be that our elected officials are not making this their top priority to address and resolve. The vast majority of their time, attention, and energy is consumed by matters that will pale in comparison to the devastation to the global economy and world order should America indeed find itself unable to pay its debts.
The price of gold has risen dramatically in the past 12 months. I view this as an indication of the fear and uncertainty around our political and economic challenges. No doubt, we need the Lord’s wisdom to turn our fiscal ship in the right direction.
Modern Monetary Theory
I wrote in my book Seven Gray Swans that without ever taking a vote, our political leaders on both sides of the aisle, liberal and conservative alike, are practicing the nonsensical economic theory some call MMT or Modern Monetary Theory. Others have taken to calling it Magic Money Theory or even Monopoly Money Theory to criticize the premise that debt does not matter to a nation that prints its own currency because it can always print more money to pay its debts. Proponents cite the insulated and unlimited power of the “banker” in the game of Monopoly to support the concept. They also espouse that if an oversupply of money becomes inflationary, they can pull money out of the economy with higher taxes.
Well, we are not playing a game of Monopoly. In the real world, people expect to be paid back with sound money when they buy the debt (treasury bonds) issued by our government. If our government does not pay its debts (with sound money), then the good faith and credit of Uncle Sam will be destroyed. Also remember that the government, both federal and state combined, accounts for roughly 1/3rd of the economic activity of our nation.
This Danger Is Not New
President Lincoln warned, “You cannot keep out of trouble by spending more than you earn.” He also said you cannot:
Before him, Thomas Jefferson also warned, “I place economy among the first and most important of Republican virtues, and public debt as the greatest of the dangers to be feared. To preserve our independence, we must not let our rulers load us with perpetual debt.” Yet, today, government largesse and rampant overspending has ballooned to numbers once reserved for astronomy courses.
We are playing with fire, and we need our leaders to wake up. This June 9th article at GoBankingRates.com states:
“The government CAN pay their loans due to their unlimited ability to borrow—for now—or print more money, as long as other countries and investors will continue to buy our bonds,” says Les Rubin. “However, if someday the country cannot borrow money, we will have to default, leading to severe consequences. I think of the U.S. debt as a Ponzi scheme since there is no source to pay the principal on the debt and interest except to borrow more money. The Ponzi scheme will collapse when people won’t buy our debt. When this happens, we will face economic catastrophe.”
What Can You and I Do?
The government needs a massive reduction in spending, we need to live on a budget, and we need to concentrate on reducing our debts to reestablish confidence in our fiscal management of this nation’s vast wealth. Essentially, we need our political leaders to become good stewards of our national resources. In my view, this is the foremost skill needed by a local, state, or national elected office holder.
Elon Musk has also said he is willing to volunteer his help in reducing the bloated federal budget by as much as 1/3rd. While this may strike fear in some hearts, the alternative of doing nothing should be far more worrisome.
In my opinion, America will find a way to turn back from the current path of economic destruction that we are on, but it will not be without pain. Let’s pray for our nation to come to its senses, restore principles of sound money, and regain the trust of the world in the good faith and credit of Uncle Sam.
Next week, I will share what some experts are advising for personal preparation as we navigate the persistent pain of inflation.
I’d like to invite you to join a free Crown Bible study on the YouVersion app. We have several devotionals regarding money and stewardship that will provide encouragement by bringing God’s Word into your daily life.
This article was originally published on The Christian Post on November 1, 2024.
Dear Chuck,
What advice would you give for using money to impact our children and build a strong family? We have limited funds and want to be wise as well as strategic.
Investing in Our Children
Dear Investing in Our Children,
I love the heart behind this question! Although you may have limited funds, you are not limited in the fun approaches you can take to impact your children and build a strong family. I see it all as a form of investment for future returns. Let’s look at investing in a budget, activities, work experiences, skills, generosity, and their financial future.
Invest in a Budget
The easiest way to maximize limited funds is to invest a few hours into setting goals and establishing a budget. Spending less than you earn will provide stability and margin. If budgeting is new to you, consider investing in a series of weekly Money Dates. This will enable you to enjoy the process of getting unified and building your plan. Crown’s step-by-step program lays out what to cover on each date.
Invest in Activities
Activities will vary from one family to another, but prioritize your time together. Add to your budget the money needed for what you want to emphasize.
A wise friend of mine once told me that buying a boat when his children were young was “the best money he ever wasted.” He explained that the boat created a place for lifelong memories that his family cherishes.
Another friend purchased fixer-upper old cars that he and his boys would work to restore on the weekends. The cars were the basis for lessons in stewardship and were given to the boys when they reached driving age. He told me, “This investment in old cars kept my boys off the streets, off of drugs, and close to our family. It was worth every penny I ever spent on one, even if we lost money on the car.”
Enjoying activities together will positively influence your children.
Here are a few examples that will not hurt your budget: hiking, biking, gardening, running, cooking, playing board games, enjoying academic competitions, working out, reading aloud, listening to audiobooks, working puzzles, drawing, painting, building, camping, learning foreign languages, going on mission trips, visiting zoos and museums, and serving neighbors, older family members, and the church.
You don’t have to buy all the equipment to enjoy more elaborate experiences. Many times, it is best to rent the equipment if these activities will not occur on an ongoing basis.
Investing in Their Work Experiences
Besides having fun, teach them the value of work. They can learn to earn more and contribute to their own financial needs early in life. Larry Burkett wrote a great devotional on this topic.
Have them talk to older couples and families you admire so that they can learn from their experiences and land an internship or a future job.
Invest in Their Skills
What skills can you pass on to your children? What are their interests? What skills do they need to develop? Can you involve extended family?
My second son was an Eagle Scout who went on to serve in the military as a Ranger Medic. We spent many nights sleeping in tents! One day, he called and jokingly complained that I had not taught him the “3 Essential Man Skills” before he got to the military: how to drive a stick shift, how to back a trailer, and how to ride a motorcycle. We got a laugh out of it; but the truth is, I knew how to do all of those things. I had just failed to teach them to him before he left home!
Invest in Generously Serving Others
Today’s giving in church is usually done online. Unfortunately, children do not experience putting the giving envelope in the plate each week. Supporting the church needs to be talked about and emphasized. Encourage them to give off the top of their income.
Serving in the church, your neighborhood, and beyond can involve the entire family. Make it fun! Ask them to help you participate in secretly leaving gifts for the needy or helping widows or elderly neighbors with projects. Allowing them to join in discussions on your family’s decisions about the generosity of time and money will leave a lasting impression.
Invest in the Financial Future of Your Children
Enjoy your children as you help them develop self-confidence and a healthy identity in an environment of love and acceptance. Investing early in their lives will create loyalty and strength. It will also model for them the financial management that you want them to be able to carry into their lives and families as adults. The money you invest today will pay dividends for generations to come.
No Guarantees, but Nothing Is Wasted
Raising children involves the wise stewardship of money, time, and talent. God gives us children to steward as well! Invest time in praying for the wisdom, love, and strength to raise them for His glory. While there are no guarantees, being intentional will likely help you build a stronger family than simply hoping for the best. I like to remind my wife that Adam and Eve had the best Father, but they still decided to disobey. Don’t beat yourself up if things are not going well right now. Trust the Lord, and see each day as a new opportunity to build stronger unity in your family.
“Behold, children are a heritage from the Lord, the fruit of the womb a reward. Like arrows in the hand of a warrior are the children of one’s youth.”
Psalm 127:3–4 ESV
Do you want more tools and tips on financial stewardship? Are you interested in receiving ministry updates from around the world that you can share with your children? Sign up to receive the Crown Newsletter emails by using the form on the homepage at Crown.org.
This article was originally published on The Christian Post on October 25, 2024.
Dear Chuck,
The company I work for was destroyed as a result of Hurricane Helene. We are surviving, but things are very tight financially, and we are emotionally overloaded. What should we do to work our way out of this crisis?
Surviving, Not Thriving
Dear Surviving, Not Thriving,
Many people are trying to navigate the trauma of Hurricane Helene and now Milton. I am so very sorry for your loss but grateful that you have survived and can begin to rebuild your lives.
The destruction we have witnessed reminds us that everything man has or can build is very, very temporal. It reminds us to do what God said:
“Set your minds on things that are above, not on things that are on earth.”
– Colossians 3:2 ESV
Overwhelming Needs
The horrific destruction so many have experienced in the past 30 days has created many levels of need, so for this article, I will focus only on five steps for starting a crisis budget.
Before you begin, ask God to help you steward the limited resources you have right now. Do not worry about the future. Instead, live one day at a time. Help guard your emotions by focusing on the present. The future is in God’s hands. Cling to Him. See Matthew 6:25–34.
Resolve not to dwell on your loss but to be grateful for what you have. Turn each temptation to grumble into praise. It helps to begin and end each day with thanksgiving.
Ask God for wisdom to stretch every dollar and for ways to increase your income and decrease your expenses. Read the Bible, and ask Him to impress upon your heart His financial principles.
How to Implement a Crisis Budget
Step 1
Determine your current monthly income:
Step 2
Make two written commitments:
Step 3
Prioritize essential needs:
Step 4
Delay all non-essential expenses:
Step 5
Analyze monthly subscriptions:
Step 6
Ask others to join you:
How to Live Post-Crisis
I pray that your company will be able to reopen for business soon and can help you with supplemental income needs. Consider asking for help from your church or family as you seek reemployment and wait on the Lord to provide.
Take the lessons you learn and the habits you establish to steward wisely from here on. Allow God to use you to minister in the lives of those He puts in your path. And remember to give God the glory for every victory—no matter how small it seems.
Here are some helpful resources at Crown:
https://www.crown.org/all-resources/7-steps-to-recover-from-a-crisis-2/
https://www.crown.org/get-help-now/?section=with-your-money-and-finances#section-one
If you need outside support to implement your new budget, Crown’s online Budget Coaching program matches you with a certified coach who will work with you to develop a customized plan and provide much-needed encouragement while you rebuild your lives.
This article was originally published on The Christian Post on October 18, 2024.
Dear Chuck,
My wife and I started over-spending after receiving a big raise. Since then, we have realized how wasteful we’ve become with God’s money. We are worried about living without a safety net. What steps would help us get back on track?
Big Spenders
Dear Big Spenders,
You may not know that what you have described is one of the most common financial mistakes anyone makes—increasing your lifestyle with every increase in income. Don’t heap too much guilt on yourselves; it is a very hard challenge to even notice. For many, this ever-increasing lifestyle is the proverbial frog boiling in the pot—by the time he realizes his mistake of resting in the warm, cozy water, it is too late.
Get Disciplined
Discipline is the ability to say “no” to what you want today so you can say “yes” to what you need tomorrow. Let me give you an example that will relate to your challenge. In 2015, I decided to drink only water for the entire year . . . no coffee, tea, juice, soda, smoothies, or lattes. Nothing but H2O! For full disclosure, I made it the entire 365 days and felt so good. My only deviation was an occasional water with carbonation.
What difference did it make? For one, it helped my budget! I broke the habit of buying coffee or tea at the airport or for meetings. Cutting sugar and caffeine also caused me to enjoy water, sleep better, and improve my overall health. We can apply that same type of thinking to our finances.
Small decisions can make a walloping impact on our financial health. Here are five basics that can help everybody. They are my personal favorites.
Honor God Off the Top
Right now, you are honoring someone or something first with your finances. It might be the government, Amazon, your mortgage lender, your landlord, or your utility company, but someone is getting the first portion of your income. Replace whoever or whatever is currently first by giving off the top of every source of your income to your church and other ministries that build His Kingdom.
If you cannot give a full 10%, which I think is the appropriate beginning standard, start with what you can do cheerfully. Increase the amount as you are able, and see what a difference it makes in your life. “Trust me on this one!” These are God’s words paraphrased from Malachi 3.
Save Something from Every Paycheck
Pick a day and declare, “No more! I will not go another month without saving something from my next paycheck!” Make the decision and then start saving something—no matter how small the amount. Save something from every single paycheck or any other source of income. Resolve not to spend everything you have by setting up automatic deposits into a savings account. This habit will make you wise like the ant from Proverbs 6:6. Little by little, you will have money saved for emergencies, stress will go down, and financial stability will become a reality.
Stop Getting Tax Refunds
People celebrate tax refunds as if Uncle Sam is rewarding them for their good behavior! While I never like to discover that I owe the IRS money, I don’t like to get a tax refund either.
Let’s say you receive a refund of $3,600. That means you loaned the US government $300 a month for an entire year and waited for them to reimburse you without interest.
By adjusting your withholding or quarterly payments, you pay only what you owe or expect to owe—nothing more. This grants a steady cash flow while also providing funds for giving and saving each month.
Use Cash
Study after study proves that we spend more using plastic. Using cash makes us more aware of when and where our money goes.
It may sound like going back to the Depression era, but the old-fashioned way of cashing a payroll check, dividing the cash into budget categories, and putting the money in an envelope will never go out of style because of its effectiveness! It works! Consider using cash for groceries, Costco, Sam’s, and any place you are tempted with impulse buying. If you usually overspend at restaurants, take a limited amount of cash.
Some people I know, who are really great with money, continue to use the envelope system, though they no longer need to. They say that it allows them to spend worry-free!
Reduce Expensive Debt
Start with a fresh outlook on debt. Ask yourself, “Do I really have to be in debt?”
Far too many people jump from one debt to another and from one card limit to another. They cannot comprehend the freedom of being debt-free. That is why I emphasize paying off the most expensive debt first. Get one paid off. Then do it again . . . and again . . . and again. The major payoff is freedom—freedom from worrying about the future, about income, and about making it to the end of the month. Check out the snowball and avalanche methods of eliminating debt, or get in touch with Christian Credit Counselors.
Summary
These five basic steps will change your relationship with God, your financial well-being, your relationships, and much more! But allow me to add one more: implement a budget. It’s a tool that is designed to help you through thick and thin and protect you from wasting what God provides.
“Moreover, it is required of stewards that they be found faithful.” (1 Corinthians 4:2 ESV)
I’d like to invite you to join a free Crown Bible study on the YouVersion app. We have several devotionals regarding money and stewardship that will help bring God’s Word into your daily life.
This article was originally published on The Christian Post on October 11. 2024.
Dear Chuck,
My wife says that I don’t keep track of our money well enough. I think she’s right. I need an easy way to get things under control.
Bad at Budgeting
Dear Bad at Budgeting,
Don’t be too hard on yourself. It is easy to lose track of money. In fact, I read some years ago that 60% of people said they would “like to live on a budget,” but only 20% did. That likely means that only 10–15% of people use a real budget now.
As a young married couple, a budget was that “thing” I tried to avoid. The very word put me on the defensive. I thought it was my wife’s way of trying to restrict my way of running the home. It took lots of pain for me to come to my senses. I hope I can help you and your wife avoid that pain.
Budgeting Is Good Stewardship
The truth is, we all need a financial plan—one that we live by day after day. We need a tool that helps us in Biblical consistent living in order to reach our goals. If you read what I write or listen to me on the radio, you know that a budget is a simple spending plan. It is a flexible tool that enables us to manage money wisely.
Everything we have is a gift from God, and a budget helps us to be faithful. It eliminates the fear and anxiety of wondering if bills can be paid. It can bring peace and unity in marriage while breaking the bonds of slavery to money and debt.
It is easy to put off planning in favor of other activities. I know! I earned a degree in procrastination. But Solomon said, “The plans of the diligent lead surely to abundance,” (Proverbs 21:5 ESV). Since he is the wisest man who ever lived, we should pay attention to those words. A budget takes a few hours to prepare, but the benefits are countless.
Any Budget Is Better Than No Budget
Spending Decisions Must Be Reviewed
If you need to cut way back, consider moving or driving a less expensive vehicle. See how you can reduce variable expenses like food, clothing, and entertainment. How about your utility bills? Examine any compulsive, emotional, or instant gratification shopping, and establish habits to control it. Ask the who, when, where, how, and why of spending. Some lifestyle changes can make a big difference.
Drive-throughs, coffee shops, carryout, and birthday gifts add up. Entertainment is a major expense for some people: concerts, athletic events, youth sports, the theater, etc. Streaming services cost both time and money.
In August, Forbes reported that 99% of all U.S. households pay for at least one or more streaming services, averaging $46 a month. That’s $552 a year that could instead help fund an emergency account. Determine what video, music, and video-game streaming is really necessary for your family. 45% of those surveyed by Forbes canceled at least one service in the past year due to high costs.
To avoid overspending, set some purchasing rules. Initially, these might be challenging, but when implemented over time, they can become healthy habits that save you money for years to come:
Extra Tips:
I pray your wife and you can get united on a budget and move forward with joy as you recognize the responsibility and privilege of stewarding everything that passes through your hands.
“Moreover, it is required of stewards that they be found faithful.”
1 Corinthians 4:2 (ESV)
Set and achieve your goals with the help of a personal business coach. Crown’s online Budget Coaching program matches you with a certified coach who will work with you to develop a customized plan to put you on the road to financial freedom.
This article was originally published on The Christian Post on October 4, 2024.
Dear Chuck,
When our child was born two years ago, my wife and I decided that she should temporarily become a stay-at-home mom. Since then, we have struggled financially—oftentimes living paycheck to paycheck. We want to break out of this cycle but need your help.
Struggling Small Family
Dear Struggling Small Family,
Congratulations on starting a family and doing your best to support all of your responsibilities as a husband and father. At Crown, we have helped families break out of this cycle for more than 48 years. There are brighter days ahead.
Living Without a Safety Net
The expression “paycheck to paycheck” describes the situation in which a salary is devoted to cover expenses, with no margin for error. If income is lost, bills cannot be paid, and that applies to people at all income levels. The Covid pandemic exposed the millions of Americans who had to live without a financial safety net because they simply did not have adequate savings.
In April 2024, a CNBC and SurveyMonkey poll reported that 65% of Americans live paycheck to paycheck. In August 2024, a Bankrate survey found that one in three workers are living paycheck to paycheck. 59% are uncomfortable with their level of emergency savings. Of those who carry credit card debt, 67% are trying to maximize their card rewards. The exact number of people living paycheck to paycheck is difficult to determine. Suffice it to say, many—far too many—are experiencing financial pain.
“For Americans, it likely feels akin to walking a tightrope with no safety net,
where the balance between expenses and earnings becomes a delicate dance.”
– Sarah Foster, Bankrate Economic Analyst
God’s Money Managers
This kind of financial strain is not the way God created us to live. When you count down the days until your next payday, feeling anxious every time you buy groceries or pay your bills, you are letting money control you. It is crucial that you retrain your mind to see yourself as a manager, not the owner, of all that you have.
Imagine hiring someone to manage your finances. What would you look for? What kind of habits or characteristics would you desire to find? If someone were to be solely responsible for every cent spent, what questions would you ask them in an interview? Would you hire someone to handle money the way you do? Personally, I would be pretty frustrated if the person I hired to manage the money I earned could not make it last through the end of the month. If he or she depended on my credit card for daily expenses, I think I would find a new manager!
This is how we should see ourselves every day—as managers hired by God and responsible for the time, talents, and treasures He gives us. Our resources here on Earth are not for us to squander away or use simply for our own benefit. Yes, we must take care of our needs and lovingly support our families, but we do not take a house, clothing, or cars with us to Heaven.
Instead of building our own kingdom on Earth, God said to view money as a resource to build His Kingdom. Use the money He provides for things of eternal value, not just earthly value.
Whether you earn $10,000, $100,000, or $1,000,000 a year does not matter to God if gained in a righteous manner. What matters is how faithfully you manage what He provides.
Change Your Mind and Habits
When you receive a paycheck, give to God first, pay yourself second (save), and then pay everyone else (spend); eventually, multiply (invest) the surplus. If you commit to getting your priorities in order, you will soon develop healthy habits. Do not despise new beginnings. Do not worry about starting small. Just start!
God will see your efforts and the sacrifices you make. For money to last beyond your paycheck, you will have to either increase your income or decrease your spending. A combination of these two could provide temporary relief.
Here are a few ways to make that happen:
Becoming financially literate will increase your confidence in managing money wisely. Crown offers online courses and budget coaches. Do not suffer alone; we are here to help. Blessings to you, your wife, and your child.
A trusted partner of Crown is Christian Credit Counselors. They are a valuable resource to help consolidate debt and get on the road to financial freedom.
This article was originally published on The Christian Post on September 27, 2024.
Dear Chuck,
I am worried about our family’s finances and don’t know how we can ever get ahead. As a husband and father, I need hope and a plan.
Worried About Money
Dear Worried About Money,
Constant financial stress is a miserable condition for you, your spouse, and your children. It is especially troublesome when it is based upon a projected future condition rather than a present reality.
It’s been said, “You can’t change the past, but you can ruin the present by worrying about the future.”
In March 2024, Bankrate surveyed U.S. adults. Roughly 47% of them admitted to worrying about money. It’s so serious that it is impacting mental health. The top issue among those surveyed is the difficulty paying for everyday expenses. Although inflation is trending downward, consumer prices are still high. Those without emergency savings are struggling with increased debt.
Don’t Worry
Many people worry about money: how to make it, how to keep it, and how to grow it. Worry takes a toll on our overall health. It affects our relationships and job performance but solves nothing. Worry has been described as sitting in a rocking chair; you expend energy but make no progress.
In Matthew 6, Jesus told us not to worry about anything and to achieve this by taking one day at a time. We have no guarantee of tomorrow.
Only by trusting God and living by His financial principles will we find freedom. Proverbs 21:5 declares, “The plans of the diligent lead surely to abundance, but everyone who is hasty comes only to poverty.” Here are two practical steps to get you started.
Step 1: Pray
You will never know freedom from financial stress and anxiety until you surrender it to God. Dedicate time to praying about your specific situation, and ask God to take control. Remind yourself of the promises of God in Matthew 6, and start thinking of yourself as a manager, not an owner, of all you have.
Step 2: Make a Budget
This may seem too simple or obvious, but knowing in advance that you can cover your daily, weekly, monthly, and yearly expenses will bring you freedom. Budgeting allows you to see where every dollar goes. You assign a purpose to each dollar, and when it is used correctly, stress is alleviated. It takes a routine, discipline, and planning to be successful, but it is not complicated or burdensome.
Budgeting is an essential part of stewardship. Our Easy Guide to a Budget You Love will get you started. In addition, Crown’s Financial Workbook will be helpful. Be diligent, and you will make progress! With a little up-front investment of time and weekly adjustments as needed, anyone can adapt to living within their means.
Be Hopeful
Replacing worry with hope will help you move forward with confidence. Accept where you are, knowing God is bigger than your circumstances. Live one day at a time in complete dependence on Him. If you have made mistakes, acknowledge them, and take steps toward living as a responsible steward. Daily faithfulness to small goals will lead to big results. Make every effort to live beneath your means to alleviate debt and build savings. Learn to be thankful, and you will discover true joy and contentment.
If you journal, watch for and record God’s blessings. Then go back and review His faithfulness. Share what you experience with your children, friends, co-workers, or anyone in need of encouragement. Whenever you are tempted to worry, ask for faith to trust Him more. Get your eyes off your situation, and focus on Him. As the Apostle Paul said in Philippians 4:6–7:
“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.” (ESV)
Set and achieve your goals with the help of a personal business coach. Crown’s online Budget Coaching program matches you with a certified coach who will work with you to develop a customized plan to put you on the road to financial freedom.
This article was originally published on The Christian Post on September 20, 2024.
Dear Chuck,
I like nice cars. However, I just paid off a new car that I purchased, and I learned what depreciation means—the hard way. I am determined to drive it as long as I can. Do you have any tips to help me avoid financing one in the future?
Car Depreciation Drives Me Crazy
Dear Car Depreciation Drives Me Crazy,
I am sorry you have had to learn the hard way about the steep depreciation of a new car. It is so costly that I don’t think the average purchaser would agree to do it if they calculated the amount in advance. A great outcome of this experience is that you never have to repeat it!
Here is the plan: take great care of the car you have, save money to buy your next car (used) with cash, and escape car payments and new car depreciation from now on.
Here are some helpful tips to be a good steward of your vehicles.
Keep Cars Well Maintained
Routine oil changes and maintenance are key. The car will run better, you will get better gas mileage, and expensive repairs can be avoided. Besides prolonging the life of the car, you will increase safety, knowing it will not break down unexpectedly. Here is a good guide for scheduling maintenance.
We typically do whatever maintenance our trusted mechanic tells us is essential. We prefer to spend money on prevention than to be caught with inopportune repairs. For example, we just spent over $1,000 on new tires. The ride is smoother and quieter, but at that price, I want to take care of them by rotating regularly and inflating properly.
Hand wash and wax it. You can save yourself hundreds of dollars with these 20 Cleaning Secrets Only Car Detailers Know. Drive-through washes can actually damage a vehicle. DIY washing protects the paint job while removing dirt, sap, salt, and more. Experts say to wash biweekly, or as needed, and wax every one to three months. I use a shop vac and an inexpensive pressure washer. Initially, you will need to invest in some supplies. If you live near saltwater or where roads are salted in winter, get some salt-removing spray or vinegar. Condition leather seats every one to two months, along with interior surfaces. A little elbow grease goes a long way in protecting both the inside and outside of your vehicle.
Consider where you park. When on dirt, the undercarriage is exposed to dampness, which can cause rust. When exposed to the sun, a windshield shade will guard the dashboard and decrease interior temperatures.
Prevent rodents and insects. A few years back, squirrels ate through the hoses under the hood of our car, costing me several hundred dollars to replace. Keep the interior of your car clean, and set any traps inside and outside when necessary.
Use your senses. Don’t ignore things you see, smell, or hear that are out of the ordinary. Procrastination can be expensive!
Do not carry unnecessary weight in the car. Simply decluttering your trunk and cargo area will eliminate extra stress on the engine, mechanical system, and suspension parts of your car. Plus, you will get better gas mileage!
Extend the Life of the Battery
Here is a list of ways to prepare your car for fall.
Budget for Repairs and Maintenance
Start with $100/month for newer vehicles, more for older ones. Anticipate what needs to be done in the future, and set aside extra money when possible. Take advantage of tire sales, and find a reputable mechanic or dealership that you can trust.
When to Replace a Car
When it comes time to replace a vehicle, October, November, and December are good months to consider buying. Dealers need to move old models since new ones are arriving on their lots. See these tips for optimal times to buy. AAA reports that the price of new car ownership continues to climb. That is why I recommend buyers try to find a dependable used car if at all possible. Check out this study of cars, trucks, and SUVs that are most likely to last more than 250,000 miles. Hint: the top five are all Toyotas.
Now that yours is paid for, you can begin socking away money in a replacement vehicle account. Consider applying your car payment to an account specifically dedicated for cars. This way you will be prepared to purchase one in the future without having to pay interest. You learned a valuable lesson on depreciation. So move forward with joy along with the responsibility and privilege to steward that vehicle—and everything else that passes through your hands.
“Moreover, it is required of stewards that they be found faithful.”
1 Corinthians 4:2 (ESV)
I’d like to invite you to join a free Crown Bible study on the YouVersion app. We have several devotionals regarding money and stewardship that will help bring God’s Word into your daily life.
This article was originally published on The Christian Post on September 13, 2024.
Dear Chuck,
I helped my parents downsize this year. It took months because they had accumulated many things throughout their marriage. I was deeply convicted. How can I avoid the same problem and teach my children to live differently? Is it Biblical to be a “minimalist”?
Seeking to Minimize My Stuff
Dear Seeking to Minimize My Stuff,
Minimalism is a philosophy of life that stresses “less is more” through simplicity and self-denial. It has its roots in Eastern mysticism and is not supported by the Bible. So, no, I don’t think “being a minimalist” is Biblical. However, I think minimizing the control materialism has over our lives is supported by the Scripture!
It is easy to purchase things we do not need simply because we can. A friend who cleaned out her deceased mother’s clothing told my wife she found 30 pairs of black pants, some new with tags. Now why would a woman need that many? Thirty pairs is enough to rotate once each day for an entire month! This discovery of black pants was among the multitude of clothing and unwanted household items that were donated.
We should ask ourselves the same question? Do I need five hammers, four staplers, three hair dryers, eight brown belts, twelve pairs of jeans, etc.? Here are a few reasons why we accumulate too much stuff:
A helpful question for our overstuffed closets is, Why do we fail to do something about it? Here are some common excuses:
A Biblical Perspective on Stuff
The accumulation of things takes a toll on us. In addition to the stress of disorganization, or lack of storage space, things can distract us from fulfilling our purpose and strain our relationships. Deeper still is the fact that many unknowingly try to find their identity in things. That can put a toll on finances and rob us of the riches found in Christ. Jesus gave this warning in Matthew 6:10–21:
“Do not lay up for yourselves treasures on earth,
where moth and rust destroy and where thieves break in and steal,
but lay up for yourselves treasures in heaven,
where neither moth nor rust destroys and where thieves do not break in and steal.
For where your treasure is, there your heart will be also.”
Ways to Prevent Buying What You Do Not Need
Get Uncluttered
It is worth spending a weekend each month decluttering. Start with a closet, the kitchen, or the garage. Just start somewhere! Have a plan on what to do with it all. Here are your choices: trash, donate, or sell. This article may be helpful on simplifying with children.
I remember a story written by the chief accountant for John D. Rockefeller—one of the wealthiest men who ever lived. When asked how much his client, Mr. Rockefeller, left behind after his death, he replied, “Everything.”
Like Rockefeller, we, too, will leave everything behind. No matter how much or how little we have, we cannot take it with us. In 1 Timothy 6:7, Paul said, “For we have brought nothing into the world, so we cannot take anything out of it either.” Our stuff will not matter in eternity. What does matter is how we use the time, money, and possessions that God has given us.
We’re told in Psalm 24:1, “The earth is the Lord’s, and everything in it, the world, and all who live in it.” If we believe that God owns everything, then we have the privilege and responsibility of managing all that we have according to His principles. In fact, the first step to faithful stewardship is knowing what God says about money. How we manage money and possessions determines how we will manage greater things.
God not only owns our stuff, but He also owns you and me! Our lives reflect what we believe. If we truly understand that we are His, then we should naturally want to honor Him with our obedience. The standards He set are ultimately for our good and His glory!
When we renew our minds with Biblical financial truths, we fulfill what God desires in a wise and faithful steward. That is why we must turn again and again to the truth in Psalm 90:12:
“So teach us to number our days that we may get a heart of wisdom.”
The accumulation of stuff can often cause a lot of debt. If you or someone you know are struggling with credit card debt, a valuable and trusted resource is Christian Credit Counselors. They can help consolidate debt to get on the road to financial freedom.
This article was originally published on The Christian Post on September 6, 2024.
