Dear Chuck,
I’ve been wondering lately what the balance is between being a good citizen and a good steward. I want to be a good citizen and buy American-made products. But I also want to be a good steward and find the lowest cost for products. Does “buying American” really matter in today’s economy?
Patriotic Steward
Dear Patriotic Steward,
This is a great question since there is a heightened concern over trade wars in our country now. I am not for closing our borders to imports; an open economy with competitive options is good for everybody, but given equal product choices, buying domestically-made products makes a lot of economic sense for any nation.
Specifically, buying American-made products contribute to our nation’s economic stability and supports local businesses, local communities, and individual states. When American businesses flourish, they can expand, hire more employees from the community, and contribute more tax dollars to the local government.
The nonprofit group, Reshoring Initiative, reported that 171,000 jobs were brought back to the United States in 2017. “We believe the huge increases were largely based on anticipation of greater U.S. competitiveness due to expected corporate tax and regulatory cuts following the 2016 election.”
Consider the textile industry. William McCrary, Jr., chairman of the National Council of Textile Organizations (NCTO) reported that 550,000 Americans are employed in the textile sector of the United States and that 2017 exports of American-made textiles and apparel equaled $28.6 billion.
If all your purchases are American-made but you don’t provide for your family, give, save, or invest, then you are not a good steward. Stewardship means surrendering your finances to God and recognizing yourself as a manager, not owner of all you have. It’s part of your identity, not just your behavior.
Stewardship is not ordering your finances in a way that you can spend whatever you want. It’s ordering your life in such a way that God can spend you however He wants.
In a few years, everything you have will be thrown away, given, or sold to someone else. Everything! Our time here on earth is limited, but believers are promised eternity in heaven. That must be our main focus. An eternal perspective will give us the motivation to wisely steward our resources here on earth.
When it comes to spending money, buy what you need and avoid an indulgent lifestyle. Balance can be achieved by supporting local businesses whenever possible and avoiding debt. For big-ticket items, I recommend researching to determine quality brands that will last. If you can buy American, then do it!
When Nebuchadnezzar had the residents of Jerusalem exiled to Babylon, the prophet
Jeremiah wrote them saying, “…seek the welfare of the city where I have sent you into exile, and pray to the Lord on its behalf, for in its welfare you will find your welfare.”
That same principle of being a good citizen applies today. When we support local artisans, manufacturing firms, and American companies, we help grow our nation’s economy. Consider the following reasons to buy American when you have the choice.
When money is invested in products made here, the manufacturing sector will grow more, creating more jobs and putting money into the economy which will reduce the deficit. The Economic Policy Institute estimates that 1.4 jobs are supported by every U.S. manufacturing job. These include construction firms, accountants, energy suppliers, etc.
The health and dignity of children and adults are violated by lack of standards and exploitative working conditions in many countries. It is estimated that over 160 million children are engaged in child labor worldwide with children as young as six some places, and the possibility of 12 million between the ages of 10-14 employed in China. Unfortunately, child labor leads to child trafficking. Laws and safety regulations protect the most vulnerable.
Excellence and longevity can be enforced here. In addition, the safety for consumers is protected when controls are in place. For example, toxins have been found in imported pet products and children’s toys, along with faulty Christmas lights.
Purchasing American-made products grants an increased sense of security when not relying on imports from other countries.
Our technology and laws aim to protect our land and water for today’s families and future generations. Many countries with large manufacturing operations have polluted their air, land, and water due to lack of controls and safety measures.
If you desire to purchase genuine products, look for a flag and “Made in America” label. Did you know that “Made in the USA” labeling requires only 75 percent of a product’s components to be USA-sourced? Also, look for an inconspicuous Country of Origin label, a requirement by the regulatory agencies often missed by those who are committed to buying American.
God does not prohibit us from enjoying the benefits of this world. Rather, we are admonished not to get entangled in them to the point that we are not able to fulfill our primary purpose of serving Him. The purpose of resources is to free us to do more for Christ, not less. Focusing on the pursuit of “things”, regardless of where they are made, is one of the greatest dangers we face in America. Our great abundance threatens our requirement to be faithful stewards.
Originally published on the Christian Post, June 29, 2018
Dear Chuck,
I’m having a difficult time getting my husband on the same page to stop accruing debt and begin to pay it off. We have both read money help books and I am ready for financial freedom, but he is resistant to sticking to a budget. I tithe faithfully and would love to give more as we are called to do, but I can’t because of his spending. He is not a believer so he does not fully understand nor agree with biblical financial standards. Any help is greatly appreciated.
Ready for Freedom
Dear Ready for Freedom,
It is interesting how similar this is to our story! Although I was a Christian, my wife and I were not on the same page about money for the first twenty-one years of our marriage, so we wrote a book about what we learned and how we have changed since.
When a couple is not on the same page financially, there will inevitably be stress. I can empathize with you here – it’s often overwhelming and very difficult. Here are some practical steps you can take now:
Be the first to apologize (even when it’s not your fault). Speak healing words and learn your husband’s love language. Seek to quickly resolve misunderstandings and differences of opinion, and honor him in word and deed.
Philippians 4:8 says, Finally, brothers and sisters, whatever is true, whatever is noble, whatever is right, whatever is pure, whatever is lovely, whatever is admirable–if anything is excellent or praiseworthy–think about such things.
When times are most trying, remind yourself of that truth. Don’t allow your mind to get caught up in the trap of comparison, bitterness, or resentment. Renew your mind with Christ.
Express your gratitude for all he does and demonstrate contentment. Often a man tries to please his wife by buying things he thinks will impress or make her happy. Affirm him, serve him, and do not nag him. Most importantly, pray for him faithfully.
God sees your heart to give and motivation to get out of debt. But the Bible also gives this mandate in 1 Peter 3:1-2:
Likewise, wives, be subject to your own husbands, so that even if some do not obey the word, they may be won without a word by the conduct of their wives, when they see your respectful and pure conduct.
Your desire to get out of debt and give are not in contradiction to the Bible’s commandments. You’re not on an easy journey, so be encouraged by 2 Samuel 15:22 – it is better to obey than to sacrifice. Be obedient to Scripture and exhibit the Fruits of the Spirit in your words, actions, and attitude toward your husband. Never come at him with a guilt trip, when you’re frustrated, or when you feel insecure. Again, pray for him faithfully.
I commend you for wanting to budget! I’ve learned the importance of a budget and have come to love it, but it’s not natural for me. When couples are united in their finances, things like budgeting, giving, saving, and investing are easier to accomplish because you’re working toward a goal together.
Even though your husband is resistant, keep trying and continue praying. Ask him what financial goals he wants to achieve so he can find the motivation to work together and move forward. If he continues to resist, then you continue to budget, pay off debt, save, give, and live as a steward.
You can’t control his spending, but you can control yours. If you’re able, cut out some of your own expenses and use that surplus to pay off debt. Make it easy for him to want to live like you.
Can you recruit a wise older couple for encouragement and needed accountability? Possibly they can serve as mentors to help the two of you unite and make progress.
The key to financial success is putting what you know into action. Try to get on the same page so you can establish goals together or you will simply drift along hoping it all works out. Focus on the areas you agree on. Then, set goals and work towards achieving those together. Do your part with joy and trust God as you serve your husband daily.
It sounds like your first goal needs to be an emergency savings account. I recommend everyone start with $1,000 set aside for emergencies only and then work up to 9-12 months’ worth of living expenses. Do this before attacking debt to keep you out of debt in the future.
Even if you are the only one contributing to this savings fund, don’t keep it a secret from your husband. Financial infidelity is sadly common but absolutely detrimental. Continue to be honest and upfront with him about all your financial goals.
Once you have $1,000 in an emergency fund, attack your debt. We have a helpful mini video series that walks you through simple steps to get out (and stay out) of debt. Would your husband be willing to just watch the videos with you? Use the debt snowball calculator to create your payoff plan. And if you have overwhelming credit card debt, contact Christian Credit Counselors.
Of course, reaching your saving and debt-payoff goals will require a disciplined budget. We have some helpful tips on how to cut down on expenses.
There is hope for you. My wife will tell you it took a miracle but God answered her prayers to get my attention, unite our hearts, and align our financial plans. This happened by taking a Crown course together! You can learn about our online study here. Let me know how it goes. We will pray for you. Thanks for writing.
Let us not become weary in doing good, for at the proper time we will reap a harvest if we do not give up. (Galatians 6:9)
Originally published on the Christian Post, June 22, 2018
Dear Chuck,
I have hit rock bottom with my finances. My wife and I got divorced last year and all the fallout from that forced me to file bankruptcy. As many do when they hit rock bottom, I’m trying to get back up but not sure where to start. I want to learn more about what God says about money but am faced with extremely challenging day-to-day financial decisions. I need some encouragement and advice.
Broken and Struggling
Dear Broken and Struggling,
I am so sorry that you have experienced this level of loss and pain. My hope is that I can give you great encouragement and direction for getting back on your feet again.
Brokenness is a condition that forces us to wholly depend on God. And though it’s incredibly difficult at times, the Bible advises us to look at our circumstances through a different filter than the way we may feel at the time. Count it all joy, my brothers, when you meet trials of various kinds, for you know that the testing of your faith produces steadfastness. (James 1:2-3)
Though I can’t fully understand your pain, I know the God who does.
Blessed be the God and Father of our Lord Jesus Christ, the Father of mercies and God of all comfort, who comforts us in all our affliction, so that we may be able to comfort those who are in any affliction, with the comfort with which we ourselves are comforted by God. (2 Corinthians 1:3-5)
God’s Word offers the best counsel in good times and in bad. People can change their methods, plans, and techniques with money but true transformation comes through embracing what God says is financially best for us. So let’s walk through the basics so you can identify a starting point and direction for rebuilding your life after bankruptcy and divorce. It will take self-control, a faithful heart, and disciplined hands to get there.
You must first acknowledge that God owns it all and you are the steward of what He’s given you. When you surrender everything to His lordship, you will discover new peace, freedom, and joy.
Despite your pain, you must make yourself get up and work. Great satisfaction can be found in using your talents and abilities in the workplace. Seek employment that is a good fit for your gifts and talents so that you can flourish. If you are not content with your current situation, consider taking Crown’s Career Direct assessment and talking with a trained counselor.
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 32:23-24)
It is likely that you have very little money remaining following the bankruptcy. The key is to spend less than you earn, live frugally and save like never before. Go to a cash-only system, recording every dollar you spend on a notepad or smartphone. This will help you analyze your spending habits.
Give up eating out, going through the drive-thru, entertainment, and other indulgences so you can effectively appropriate every dollar you earn. Eat at home, make your own coffee, and only buy what is essential. Seek inexpensive housing by thinking outside the box. Rent a room, basement, or garage apartment in exchange for yard work or home maintenance. Or, take in a renter or roommate where you currently live. Seek cheap transportation options. Use the library, attend free events in your area, exercise outdoors, and spend time with encouraging, spiritually-accountable friends.
These may seem like drastic measures but look at them as temporary means to an end. Once you have your finances back on solid ground you can live more freely within your budget. These money-saving tips may be helpful.
Begin building an emergency savings account. Determine to save $1,000 as quickly as possible, and eventually three to six months of living expenses. This money is for true emergencies only, not gifts or vacations. It will be your protection against debt in unexpected circumstances.
The wise man saves for the future, but the foolish man spends whatever he gets. (Proverbs 21:20)
Crown has a free, easy-to-use guide that walks you through the process of making a budget so it’s neither overwhelming nor intimidating. Whether you use an app, a spreadsheet, or a notebook to budget, the Easy Guide to a Budget You Love can help! If you have an inconsistent income, check out this information.
Invest aggressively, if possible, especially if your employer offers a matching contribution to a 401k or 403b. Diversify, choosing investments that align with Biblical values. Plan to postpone retirement to the latest possible date that your health will allow. Anticipate working in some capacity even if it won’t be your current job. If you don’t have an employer-sponsored retirement plan, you’ll need to create your own savings strategy.
People are living longer, and the cost of living continues to escalate. So adopt a working mentality and choose to enjoy each day the Lord gives you. I personally hope to work as long as the Lord can use me.
Avoid get-rich-quick schemes. Instead, seek wise counsel, set long-term goals, and pray for discernment.
Proverbs 23:4-5 warns, “Do not wear yourself out to get rich; do not trust your own cleverness. Cast but a glance at riches, and they are gone, for they will surely sprout wings and fly off to the sky like an eagle.”
Romans 5 offers a process that will lead you to reestablish hope as you begin the journey ahead. It says when we suffer that will lead us to learn to persevere; when we learn to persevere we will develop character; and when we have strong character, we will be able to live with hope in the midst of our challenges.
Exercise self-control. Have a faithful heart and disciplined hands. Keep moving forward. Day by day you will see hope return. Hope will not disappoint you because God’s love will be poured into your heart.
Originally published on the Christian Post, June 15, 2018
Dear Chuck,
My husband and I fell on rough times and as a result, ended up with a LOT of credit card debt. We have prayed, worked hard, and paid it down as much as we can but still have some left. Together we have approximately 15 credit card accounts but only two have balances on them. Would it be best to close the unused accounts or leave them available/open? How would this impact our credit score if we closed them or if we left them open?
Desperately Getting Out of Debt
Dear Desperately,
I’m sorry you have experienced hard times. There is always a good lesson the Lord teaches us through our pain and it sounds like you have been very motivated to escape the trap of credit card debt.
Paying down 13 credit cards so far is excellent! I admire your perseverance and the progress you have made. It is certainly harder paying it off than accumulating it. You now know what Proverbs 22:7 means:
The rich rules over the poor, and the borrower is the slave of the lender.
You ask a very good question. Navigating the complicated world of credit scores and reports can be overwhelming. I’m sure you would like to be rid of any reminder of financial pain. Just know that closing your credit cards will not raise your score. In fact, your credit score could be negatively impacted, but we will talk more about that after some explanation.
Consider this: If your open accounts have positive credit data, it can stay on your credit report indefinitely. However, zero balance, closed accounts without negative history can remain on the report 10 years from the date the accounts is closed. This allows the positive information to remain longer than most negative information. Bad marks, like late payments and foreclosures, will come off after seven years under the Fair Credit Reporting Act.
High credit scores come from having much more credit availability then you have used. Your balance-to-limit or “credit utilization ratio” is what lenders and credit bureaus are primarily interested in. A low ratio is usually a good credit risk. For example, a $1,000 balance on an account with a $10,000 limit equals a 10% ratio. This is much better than having a $1,000 balance on a $2,000 available limit or a 50% ratio. Thus when you close accounts, your “available credit” is greatly reduced so your ratio will likely increase and your credit score will decrease.
Here are 5 factors that affect your credit score:
Once you get to a zero balance, you can close cards because your credit utilization ratio will be zero. If you’ve established good credit, the impact of card closure should be minimal and short-lived.
I recommend that you operate with only one credit card so long as you have the self-discipline to avoid running up a large balance. So, here is my advice for deciding which accounts to close.
Don’t close these credit card accounts:
Which credit accounts to close:
The longer you and your husband can live without using credit cards, the less likely you will depend on them later. Managed wisely, a credit card can be very useful. People typically spend less when using cash and it may be a good idea for you to switch to an all-cash budget for the time being.
While I understand your primary concern is your credit score, the most important asset you have is your character and integrity. By paying down these accounts, you have shown the diligence and strength to do the right thing. Your credibility score is high and pleasing to God.
To avoid mistakes like this in the future and to be prepared should more hard times come, I recommend that you establish an emergency savings account.
An emergency account will grant you the funds for unexpected expenses and prevent you from using your credit card in a crisis. If you have not already done so, open a savings account at your local bank that will be available to you immediately without penalty or cost for withdrawals. This money is for emergency use only.
Begin to save a portion of your gross income using automatic deductions from your paycheck until your fund reaches at least $1,000. Once you reach that, aim for three and then six months of living expenses.
God wants us to save and have extra resources to take care of our families and be in a position to serve Him and others so that He will be made known and glorified. It’s an opportunity to honor Him and experience His blessings.
In addition, make giving your first and most important financial priority. Commit a percentage of your income to tithe, and do it consistently. When you acknowledge that it’s all His, you can joyfully give to His work. It’s a matter of consciously paying Him first and will help you keep your overall priorities straight.
Remember these three basic rules for using credit cards in the future:
Knowing you worked hard to get your debt paid back, I hope you will make every effort to live differently. Aim to do as Paul wrote in Romans 13:8: Owe no one anything, except to love each other, for the one who loves another has fulfilled the law.
If you need expert advice regarding any of these accounts or a debt management plan to deal with your final two credit card accounts, please contact our friends at Christian Credit Counselors.
Originally published on the Christian Post, June 8, 2018
Hello Chuck,
I love hearing stories of working class people who lived modestly but silently saved and invested over the years. Upon their deaths, people are shocked to learn of the sizable gifts given to different institutions. But I’m concerned about a recent report that charitable giving is down. Any insight?
Generous But Worried
Dear Generous,
Like you, I am always encouraged when I learn of humble people who have secretly stored away dollars to bless others. While it comes as a shock to their friends and neighbors, it really shouldn’t shock us that the humble and frugal are also often the most generous.
I read a recent story about Sylvia Bloom, who worked at a law firm for 67 years and retired at the age of 96. During those years, her boss had her make stock purchases for him. After she had made the purchases for her boss, she would also buy a smaller amount for herself, trusting he knew what he was doing.
A child of the Depression, she and her husband, a NYC firefighter, teacher, and part-time pharmacist, lived modestly. At her death, she left some money to friends and relatives, but the bulk of her $9 million estate was directed to scholarships for the disadvantaged.
There are other similar stories of generous people living quiet lifestyles and leaving millions to a cause close to them. There are even greater examples that God give us in the Bible to follow. Remember early Corinthian church and how they gave “beyond their ability” even in the middle of extreme trial and generosity? They pleaded with the apostle Paul for the privilege of sharing with the Lord’s people!
There are plenty of examples of generosity in the Old Testament as well. We read in Exodus about how the people of God brought more than enough in free will offerings for the construction of the Lord’s sanctuary. They gave so much that Moses had to restrain the people from bringing more!
All of these examples have something in common. The givers lived modestly, sometimes in poverty. They didn’t advertise their wealth or hoard it. They simply worked hard, saved diligently, planned long-term, and gave generously.
The problem I see today is that people aren’t thinking properly about money. They may work hard but don’t know how to spend properly so they can give, save, and invest. Many are loaded with consumer debt and student loans that hold them in financial bondage. Others, with mortgages too big for their budget, car loans, and untamed buying habits, desperately think things will grant them status or acceptance. Then there are others that earn a living but consume all of their limited resources on personal needs or wants.
What does God desire from us?
Work was God’s plan for man as recorded in Genesis 2:15. The Lord God took the man and put him in the garden to work it and keep it. Of course, the Fall impacted work. But when we use the gifts and talents He’s given us, work can be very satisfying. It provides the means to sustain our families and can be a vehicle for our spiritual growth. Our work is where we often learn to trust God and depend on Him as we serve others. We glorify Him when we give Him our best effort.
As Paul told the Colossians, 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
Christians need to remember that in light of eternity, we are only here a short period of time. We must live Kingdom-minded with gratitude for all God’s provided. Humility comes when we recognize that all we have is because of His great mercy. We say no to things of today so we have money to invest for tomorrow. We have to be reminded daily that God owns all that we have.
Everything in the heavens and earth is yours, O Lord, and this is your kingdom. We adore you as being in control of everything. Riches and honor come from you alone, and you are the ruler of all mankind; your hand controls power and might, and it is at your discretion that men are made great and given strength. O our God, we thank you and praise your glorious name, but who am I and who are my people that we should be permitted to give anything to you? Everything we have has come from you, and we only give you what is yours already! For we are here for but a moment, strangers in the land as our fathers were before us; our days on earth are like a shadow, gone so soon, without a trace. (1 Chronicles 29:11-15 TLB)
Diligent saving over a period of time becomes a habit and impacts our lifestyle. Saving must be planned, investments must be studied.
In the Parable of the Talents, those who multiplied were commended by the master’s words:
Well done, good and faithful servant. You have been faithful over a little; I will set you over much. Enter into the joy of your master. (Matthew 25:21)
We should live in such a way that we multiply what God provides whenever possible. Solomon gave us several tips.
The plans of the diligent lead surely to abundance, but everyone who is hasty comes only to poverty. (Proverbs 21:5 ESV)
Know well the condition of your flocks, and give attention to your herds, for riches do not last forever; and does a crown endure to all generations? (Proverbs 27:23-24)
The Lord taught us that it is better to give than to receive. Like the examples of people who have lived modest, quiet lives planning to give to others rather than to consume their wealth on fleeting pleasures, we too should have such a plan. However, like the examples in the Bible, don’t wait until you die to let go of your earthly treasures.
Make generosity your highest financial priority now. Put it into practice daily, weekly, monthly, and yearly. You will find that money loses its grip over your heart, you experience less stress, greater joy and by God’s mysterious ways, you will find He has faithfully provided your every need. This example may not make the headlines but matters in eternity since God has the final say in whether we lived as generous or stingy.
Then the righteous will answer him, ‘Lord, when did we see you hungry and feed you, or thirsty and give you something to drink? When did we see you a stranger and invite you in, or needing clothes and clothe you? When did we see you sick or in prison and go to visit you?
The King will reply, ‘Truly I tell you, whatever you did for one of the least of these brothers and sisters of mine, you did for me. (Matthew 35: 37-40 NIV)
Originally published on the Christian Post, June 1, 2018.
Dear Chuck,
I try to be responsible to recycle, use a non-plastic water bottle, and do all the “right things” when it comes to taking care of the earth. There was recently an article about how hotels are getting rid of their small shampoo and conditioner bottles to save plastic, and it got me thinking – what is too far? Sometimes it’s more expensive to take care of the earth, so how does stewardship of the earth and our money intersect?
Trying to Do My Part
Dear Trying,
Really good question that was informative to me! I travel a lot so I’m always bringing home those little toiletry bottles from hotels. But apparently not for much longer!
InterContinental Hotels and Marriott International cited several reasons for phasing out the use of the small bottles:
But these bottles are only one part of the trash in our landfills. It is indeed a problem that needs to be addressed and balanced with financial realities.
Christians should be the best stewards of the earth. It is God’s beautiful and bountiful creation. If we believe the Bible is the infallible Word of God, then we know God is the Creator.
In the beginning, God created the heavens and the earth. (Genesis 1:1).
The earth is the Lord’s and the fullness thereof, the world and those who dwell therein… (Psalm 24:1)
We are His managers, so protecting the environment that He created and that supplies us with our needs to stay alive should be a priority for all of us.
For by him all things were created, in heaven and on earth, visible and invisible, whether thrones or dominions or rulers or authorities—all things were created through him and for him. (Colossians 1:16)
The Lord God took the man and put him in the garden of Eden to work it and keep it. (Genesis 2:15)
God called his creation good – multiple times. Seeing our planet as a beautifully created gift from God, we should be motivated to care for it, protect it, and use its resources wisely.
But our worship must be directed to the Giver, not the gift. It is our privilege to manage it wisely and give glory to God in the use of all He has provided us. We must protect it for those coming after us and think about our stewardship eternally.
“And this, I think, is our challenge: to treat the planet today as we will treat the new earth, exercising dominion without pillaging, exploiting without destroying, faithfully stewarding God’s great gift.” Tim Challies
It is important that we each do our part and teach others to do likewise. In our home, we recycle, shred paper and use it in the garden, try to compost, and avoid products packaged with excess paper or plastic. My wife carries reusable bags for her grocery shopping. We avoid the use of chemicals on our property and have the most “organic lawn” (i.e weeds) on our street because they’re ultimately not good for us or the earth.
Tom Hennigan, co-author of The Ecology Book, writes, “People most concerned with creation care should be those who have been reconciled with Christ. Their motivation is to share the gospel, protect human life, and steward and appreciate the creation in a way that realigns us back to worship and obedience to Christ.”
When the earth suffers because of our apathy, greed, materialism, and selfishness, we sin against our Creator. Gratitude for our planet and the role He’s assigned us, coupled with an eternal perspective, brings an awareness and desire to care for creation. May our concern grant opportunities to share the gospel with those who love the earth but desperately need to know and love the One who made it.
Stewarding well does not have to be expensive. There are some upfront and ongoing costs – like recycling fees, purchasing reusable grocery bags, and investing in eco-friendly products (like water bottles).
But in the long-run, you should save money by stewarding the earth well. Cut down on the disposables you buy, reuse what you have, and grow what you can yourself.
Stewardship is far more than managing time, talents and money. It is being faithful to God with all He has entrusted to our care. Caring for this temporary home is one way we can be found faithful to our great Creator, the Father of all these natural beauty and resources.
If you’re looking for biblical encouragement and practical financial guidance, sign up to receive the daily God is Faithful email devotional.
Originally published on the Christian Post, May 25, 2018
Dear Chuck,
I want to pay off my mortgage! My financial advisor says no since I am 1 year into my cancer healing journey and about to be laid off in June. But I’ll have 6 months savings in my emergency fund even after paying off my mortgage. Should I be debt free or hold off?
Nervous Mortgage Holder
Dear Nervous,
Praise God a year of cancer is behind you! That certainly must have impacted your priorities.
I can understand your desire to pay off that mortgage, especially before being laid off! It’s admirable that you have enough saved to pay off your mortgage AND have an emergency fund with 6 months of living expenses! Your faithfulness will serve you well as you navigate these difficult circumstances.
For your situation, I would consider how long you conservatively believe you will be unemployed and what insurance and medical expenses you will be facing. You will need a larger emergency fund if unemployment is likely to be for an extended period.
You want your emergency fund to include enough money to cover true emergencies (including the loss of income). This means, even with your mortgage paid off, you need enough money to cover property taxes, insurance, utilities and emergency home repairs. In addition, food, transportation, insurance, medical bills, and personal expenses have to be covered as well.
Without knowing the details, I would suggest that you save 18 months of funds saved when your employment ends to cover your expenses and any expected out of pocket expenses for health issues.
Assuming you have a low-interest rate on your mortgage I would recommend you continue your monthly payments and try to build that emergency fund. By continuing to make mortgage payments, rather than paying off the house right now, you will have a cushion to carry you until you land your next job. This margin will help you avoid extra stress. Once you start a new job, you could pay the mortgage off while continuing to save.
This chart offers pros and cons of mortgage payoffs. You may want to read about mortgage refinancing or recasting options as well. When considering paying off a mortgage, I always advise:
If I understand your scenario correctly, you may be able to achieve these savings goals then pay a significant amount of your mortgage off and reduce your pay-off timeline. This may be the best case option for you now.
A year into your cancer journey means you probably went through some fearful times yet you are still faithful to manage your finances like a good steward. Well done!
Often we fall into the trap of making financial decisions motivated by fear instead of trust in God. But we read in Hebrews 11:1, Now faith is the assurance of things hoped for, the conviction of things not seen. God knew we should have some needs in order to develop faith in Him. It is necessary that we view our future needs as opportunities to exercise and develop our faith.
Thank you for reminding us all to put our faith in God – whether it’s with our finances, health, or future.
Also, thanks for writing and let us know how you are doing.
Originally posted on the Christian Post, May 18, 2018
Dear Chuck,
In reading Proverbs 31, I was struck by the number of financial lessons in the passage. What wisdom can you shed on the financial principles in that passage and how they apply to us today?
Aspiring to Proverbs 31
Dear Aspiring to Proverbs 31,
Thanks for your insights and question. I feel it is only appropriate to say that I have the privilege of being married to a wonderful woman that I often refer to as a “Proverbs 32 Woman”…meaning she has gone beyond the already high standards set in Proverbs 31! I have learned so much from watching her emulate these characteristics.
You are spot on correct that in Proverbs 31 we find a woman who is an excellent example of character, planning, and good stewardship. She worked hard, spent wisely, planned ahead, and gave generously. Let’s break it down to answer your question of how her virtuous example can apply to our finances today.
The heart of her husband trusts in her, and he will have no lack of gain. (v. 11)
Today, it can be common for wives (and husbands) to hide purchases or even bank accounts from their spouse. Spouses should be able to trust each other in every area, including finances. Trust is foundational to marriage and more valuable than money. Establish and maintain it with one another in order to be prosperous.
She seeks wool and flax, and works with willing hands. (v13)
She rises while it is yet night and provides food for her household. (v15)
She perceives that her merchandise is profitable. Her lamp does not go out at night. (v18)
She makes linen garments and sells them; she delivers sashes to the merchant. (v24)
She looks well to the ways of her household and does not eat the bread of idleness. (v27)
The way you earn your money is just as important as the way you spend your money. Colossians 3:23-24 says, Whatever you do, work at it with all your heart, as working for the Lord, not for human masters, since you know that you will receive an inheritance from the Lord as a reward. It is the Lord Christ you are serving.
That means that no matter what your work is – at home, on the assembly line, or in a corporate office – work hard. God created us to work and it is intended to be a blessing to us. Yet too many Christians are robbed of the joy of their work and see it only as a means to an end.
Proverbs 31 outlines the standard of a work ethic we should embody. There is monetary and spiritual value in the work you do and God has given you specific, unique gifts to use for His glory. You’ll find fulfillment when your work and talents intersect…whether that work is in the home or outside the home.
She is like the ships of the merchant; she brings her food from afar. (v14)
She considers a field and buys it; with the fruit of her hands she plants a vineyard. (v16)
Bargain hunting has been around since Bible times! The Proverbs 31 woman looked for the best deal and was patient before making any investments.
We should continue to do the same! Before you purchase an item, determine if it’s a need or a want. Then pray about the decision, verify it fits in your budget, and ask if it would honor the Lord. Planning ahead and resisting the urge to make impulse buys is critically important to managing your finances well.
She opens her hand to the poor and reaches out her hands to the needy. (v20)
As busy as the Proverbs 31 woman is, she doesn’t miss an opportunity for generosity and serving others. We should always be on the lookout for those who need help. Generosity is like a muscle – if you don’t use it, it starts to atrophy. But the more you use it, the stronger it becomes and the more it’s able to sustain.
If generosity isn’t part of your regular life right now, take the first steps by just giving something. It doesn’t have to be much, but get yourself into the habit. Then continue to grow in your generosity.
She is not afraid of snow for her household, for all her household are clothed in scarlet. She makes bed coverings for herself; her clothing is fine linen and purple. (v21-22)
Just as we can’t build a home without blueprints, we can’t have solid financial structure without plans. A good and faithful steward is one who can live on a budget, a short-term financial plan. And when we look to the future to make note of eventual needs and find ways to meet them, we have a long-term plan.
We should all be prepared for the unexpected, especially financial surprises. It’s not a question of “if” surprise expenses will arise, but “when”. Count on them happening and prepare for when they do!
Start with at least $1,000 in an emergency savings account that you can’t touch. Then work towards saving up to 12 months’ of living expenses. It will take time to reach that goal, so be patient!
You should also create a retirement plan if you don’t already have one. Most Americans don’t save enough to retire; plan ahead now so you can be generous and stress-free later!
God’s word advises us to plan for reasons beyond building a savings account or avoiding indulgence. Planning takes time and discipline but is a necessary ingredient to wise stewardship. We plan our grocery lists, our vacations, and our kids’ sports schedules….so why not our finances too?
When we plan ahead, we have less stress and more margin in our lives. The margin and freedom we gain enable us to further God’s work here on earth.
She speaks with wisdom, and faithful instruction is on her tongue. (v26)
A new survey from Varo Money found that when it comes to getting financial advice, Americans will turn to their mother (23%) over a professional financial advisor (13%) or their father (19%).
One of the characteristics of a Proverbs 31 woman is that she can give solid, biblical advice and wise instruction. This applies not only to women or mothers, to all of us. Romans 12:2 says, Do not conform to the pattern of this world, but be transformed by the renewing of your mind. Then you will be able to test and approve what God’s will is–his good, pleasing and perfect will.
Resisting the temptation to conform to the world’s way of spending, speaking, and acting will help you grow as a steward and discern what God’s will is.
There are many more godly characteristics to learn from the Proverbs 31 woman. But many of them apply to our finances since money is an integral part of every person’s life. May we learn from the Proverbs 31 woman to grow in strength and dignity, to plan and work hard, to be prepared so we too can laugh at the time to come.
Originally published on the Christian Post, May 11, 2018
Dear Chuck,
Like many other curious investors, I was tempted to buy bitcoin but thankfully didn’t, now that it’s plummeted. How do you decide when something is a good investment?
Burdened About Bitcoin
Dear Burdened,
Bitcoin has been a hot topic in the news for some time! It’s a controversial investment and investors have all had very different experiences and opinions.
I want to give you three recommendations that are intended to help you and all investors in general.
The Biblical principle to follow is Proverbs 27:23 – Be sure you know the condition of your flocks, give careful attention to your herds. In other words, if you invested in sheep, you better know how to keep them alive, multiply them and market their wool. If not, don’t invest in sheep.
Bitcoin is a digital currency that is limited in supply but, unlike gold, has no other real use except as money – which at the present is very limited. The assumption that it would become a currency of choice initially caused the demand for Bitcoin to soar among speculators and the reason for the surge in price. It has also gained the attention of criminals because of the lack of regulation around it.
Robert Shiller and Warren Buffett have voiced their warnings about cryptocurrencies because they’re unsound investments characterized by extreme and quick volatility. Shiller told CNBC earlier this month, Bitcoin “has no value at all unless there is some common consensus that it has value.” That’s why Shiller said Bitcoin “might totally collapse and be forgotten.”
Stefan Hofrichter, head of global economics and strategy at Allianz Global Investors, recently said Bitcoin’s price drop is not surprising. “Bitcoin has no intrinsic value: it is a claim on nobody – unlike sovereign bonds, equities or paper money – and doesn’t generate any income.” He joins others who doubt the value of digital currency. Economist Nouriel Roubini called it the “biggest bubble in human history.” Bill Harris, former PayPal CEO, calls Bitcoin a scam.
However, as recently as January, when Bitcoin had crashed to less than half of the December 2017 value, some were still optimistic, with claims the price could reach $100,000 by the end of 2018.
On April 2, The U.S. Securities and Exchange Commission said it will not approve any cryptocurrency exchange-traded funds for listing on a major U.S. exchange until fund operators can convince the commission that investors will be protected. On that date, The Bitcoin Investment Trust (GBTC) was down 52.6 percent in 2018. Other countries are clamping down.
According to Philip Booth, professor of Public Policy and Ethics, St. Mary’s University, UK, “speculation designed simply to make more money can lead to the temptation to sin and to market abuse. We should be wary of chasing speculative bubbles which have no clear economic rationale.” This applies to more than Bitcoin.
Prices soared when people bought it assuming they could sell it for more money in the future. Speculative bubbles arise when people believe that demand will increase and prices will continue to rise. And the root of that is greed.
Savings is money that is protected and preserved so it is available in an emergency. Conversely, investments are funds intentionally placed at risk in hopes of higher returns. The higher the risk, the higher the potential reward. Bitcoin offered a potentially high return but at a very high risk.
Of course, you don’t want to lose money. But wise investors sometimes have to cut their losses and move on. Our attitude must be one of dependency upon Christ to prevent us from making foolish decisions to avoid loses.
Proverbs 30:8-9 is a helpful guide: Remove far from me falsehood and lying; give me neither poverty nor riches; feed me with the food that is needful for me, lest I be full and deny you and say, ‘Who is the Lord?’ or lest I be poor and steal and profane the name of my God.
Like a living plant, investments need time to grow. We need to be patient for a long period to determine if we have made a good investment or bad investment. A friend recently shared with me a long list of all the stocks that he once owned but sold too soon! He followed the crowds of buying when the stocks were “hot” and selling when the stock turned “cold.” This has cost him the loss of tremendous returns on his investments had he stayed in for the long haul.
Warren Buffett reported that his company, Berkshire Hathaway, has lost 50% of its market value three different periods, but always bounced back stronger! Now that is true patience.
Remember what Solomon taught us about investing, Wealth gained hastily will dwindle, but whoever gathers little by little will increase it. (Proverbs 13:11 ESV)
So be patient. Trust the Lord. Do you sell now? I can’t tell you whether to stay or get out.
It is possible that cryptocurrencies will eventually benefit the global economy overall by driving down the cost of business and increasing productivity. I am watching and waiting to see what happens with Bitcoin and learning as much as I can. I believe cryptocurrency may become widely used but I’m not sure bitcoin will be it. Remember, I only give biblical advice, not investment advice. You, ultimately, must determine what the Bible is speaking to you.
We have more helpful resources on what the Bible says about all aspects of your finances. The online MoneyLife Personal Finance course consists of 10 Life Lessons that will walk you through everything from debt, to saving, to investing, and leaving a Kingdom legacy. Learn more about how to feel confident in your finances here.
Originally posted on the Christian Post, May 4, 2018
Dear Chuck,
I saw Paul Ryan won’t seek re-election as Speaker of the House so he can spend more time with his family, and I can identify. Last year I got a big promotion. The new job has been great, but it’s required me to travel for the majority of the week and is extremely stressful. I have a wife and 3 kids at home and it’s really difficult to leave them to travel so much. Recently, I’ve been considering leaving my job so I can spend more time with them. This job seems like God’s faithful provision for us financially, but there’s a major cost to it too. What do I do?
Torn about Traveling
Dear Torn,
Paul Ryan has children at home that are nearing the age that he was when his father died. He knows life is precious and that our days are numbered. And children grow up fast. While there may be more factors pressing his decision to step down, his circumstance is one so many of us face. How well I personally understand! I choose to limit my travel at this stage of life because I still have a teenager at home and love being with him and my wife.
My oldest son is self-employed and had to face the same issue last year. In June, he stopped traveling and started working from home so he could be there every day/night for his wife and four children. He no longer has to miss birthdays, sporting events, and milestones in the kids’ lives. It was a financial risk when the decision to cut back on his travel was made, but God has faithfully provided for their needs.
Congratulations on landing a big promotion! Enjoying your work and benefiting financially is a great blessing. Yet, you shared several red flags that signal potential long-term problems: “Gone majority of week…extremely stressful…really difficult to leave them to travel so much”.
In order to be an effective shepherd, a husband and father must keep his priorities in order. God must be first, family second, and work third. Work that keeps you away from home the majority of the week restricts your impact in the life of your family. It requires intentionality in communicating regularly and effectively with your wife and children during your absence. That alone adds to the stress of the job.
Consider asking your employer to establish some limits to how much you are required to travel. In today’s world, technology solutions have allowed for more effective meetings with anybody, anywhere, anytime. You may be able to find a happy balance with the demands of your position.
You’re right, there is a cost to being away; but there’s a cost to every decision you make, which should draw you to the Lord, the input of a wise spouse, and Godly counsel of others. You must weigh your options, the cost and benefits of each, and seek the wisdom of God.
Ask God for guidance during a time of prayer and fasting. Ask your wife and a brother in Christ to join you. Pray for a specific solution. Don’t make a job change unless you and your wife are in total agreement and have peace about the true costs vs. rewards.
If you like your current company perhaps there is a position that allows you to travel minimally. If not, then you may need to seek new employment. It would be wise to explore the available jobs near your home before speaking to your current employer. Your network is a great source for news of potential employment. You will need to update your resume and allow time to adequately prepare for interviews.
Are you willing to move? It’s an important question to consider, and you and your wife should weigh all the pros and cons as you seek the Lord’s guidance.
If a new job doesn’t pay as well as the one you have now, you may have to adjust your lifestyle. Remember children value experiences more than things.
Create a workable budget based on the potential earnings. Downsize if necessary, see where you can cut back, and sell any valuables or things you just don’t need.
Work is a gift from God and a means to bring Him glory. Finding or creating a job that allows you to do that will be fulfilling. It will give you the privilege of providing for your family and being an example of Christ in the workplace.
Colossians 3:17-18 – 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.
I sincerely believe if we live this out and work with excellence, no matter what the job or task, God will take care of our needs and our families. Keep God first and work hard. You will see the faithfulness of God whether you turn to the left or right.
Originally published on the Christian Post, April 27, 2018
