Dear Chuck,
I’m encouraging my 16-year-old to get his first real job. It is not easy to do these days. My goal is to make the experience of looking for and landing a job as positive as I can. How can I encourage and prepare him?
Determined Dad
Dear Determined Dad,
Good for you! I cannot overemphasize the importance of encouraging and helping teens find a job in a healthy environment. Study after study shows that learning to work outside of the home earlier than later will benefit them for their entire life.
Benefits Gained by Working as Teens
The Downside of Working as Teens
Types of Work
Set Some Motivating Goals
Certainly for a teenager, getting good grades in school should not be compromised as a result of taking on an outside job. Explain the joy of earning money to save toward a car, college, or costly hobby. It can be a way for them to purchase clothes and gifts, build their own business, or cover gas and car insurance.
What to Look for in a Job
Suggest that they seek advice from those they respect. Teachers, coaches, neighbors, family friends, and your church community can be reliable resources and provide references. They may also know of job openings.
Even though a teen may have never held an official job, he/she can create a resume that highlights any prior work and volunteer experience, mission trips, awards, accomplishments, special skills, or interests. A cover letter expands details of the resume and explains why they are interested in working for “XYZ” company. Make it interesting and sincere so they will be remembered. Do not do for them what they can do for themselves. For example, show them a sample resume, but let them write their own by themselves. Then you or a trusted individual can offer tips to improve it. You may also want to help them set appointments or network among your friends to find opportunities.
Prepare for an Interview
Interviewing is a skill that improves with practice. Have your teen read and discuss the following articles: 4 Steps to Nail an Interview, 10 Things You Should Never Say in an Interview, and What Employers Really Look For.
When teens get contacted for an interview, prepare them with a variety of questions. Why are you interested in this particular job? Why do you think you would be a good fit? What do you know about our company? What are your career aspirations? If interviewed, tell them the importance of sending an appreciation message. If they do not hear back after the application is submitted, send a follow-up message expressing interest.
Encourage Entrepreneurship
If no jobs become available, consider helping them start their own business. While this can be a very challenging way to get experience, if they have the drive and determination, they will make far more money than by being an employee. Jobs like window washing, mowing yards, cleaning up debris and junk, detailing cars, or painting house numbers on curbs can be low-cost and lucrative.
Learning to Work and Manage Money
Apart from the financial benefits, learning to work with diligence and doing tasks to the best of your ability and in a timely manner is priceless. Diligence encompasses honesty, purpose, energy, excellence, and enthusiasm. All work should be as unto the Lord so that He can be seen through us. Aim to be a positive witness for the Kingdom of God.
“Whatever you do, work heartily, as for the Lord and not for men, knowing that from the Lord you will receive the inheritance as your reward. You are serving the Lord Christ.”
Colossians 3:23–24 (ESV)
Emphasize good stewardship habits with the money they earn. Teach your teenager to give, save, and invest. The habit of tracking spending, creating a budget, and making short and long-term goals will prepare them for life regardless of the job they take or the education they pursue.
Do you want more tools and tips on financial stewardship? Are you interested in receiving ministry updates from around the world? Sign up to receive the Crown Newsletter emails by using the form on the homepage at Crown.org.
Dear Chuck,
I own a small business that I want to operate with Christian principles. I know Larry Burkett wrote “Business by the Book” years ago. Can you point me to some frameworks that will guide me? We have four employees but are growing rapidly.
Small Business Owner
Dear Small Business Owner,
Larry Burkett, our late founder, did write Business by the Book in the early ‘90s. It was one of his bestsellers and is still relevant to this day because God’s principles are timeless.
In James 1:22, we are told to be “doers” of the Word. A business is the perfect environment for living out this truth. It is a means for both providing for your family and employees and demonstrating the truth of the Gospel in action. I am happy to provide some frameworks for you and examples of those who have lived out these principles in the marketplace for many years.
Your Identity
As a business owner, you must establish a proper identity. Start with an honest answer to these questions: Are you a business owner practicing Christianity? Or are you a Christian practicing business? There is a profound difference between these choices. In the first choice, our identity is in the world; in the latter, it is firmly fixed on the world to come.
Christians need to recognize that we are merely temporary managers of God’s businesses. Everything belongs to Him, and He’s the source of it all.
“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.”
– 1 Chronicles 29:11–12 (TLB)
Ask Chuck God’s Principles For A Small Business
Your Policies
The policies governing a business’s actions reveal whether it is actually being used to serve God. Owners and managers who operate the business as God’s stewards run the business according to His principles and precepts. This requires an understanding of those principles and precepts so that business decisions will yield God’s wisdom and peace.
The purpose of businesses run by Christians is to glorify God. Every decision, from hiring to firing to paying to promoting, must be made in harmony with Scripture under the direction of the Holy Spirit. Each must be done with excellence and integrity.
Your Minimums
Most people think the Ten Commandments are the basic guidelines. These definitely apply, but several others set a business dedicated to God apart from the business world. They are not lofty obscure goals. They are simple ways to honor employees, customers, and the Kingdom of God:
Your Priority
Early on, the urgent thing is to make payroll. Later, it becomes urgent to earn a greater profit or build a bigger company. There will always be stress and pressure as you compete in the marketplace. Yet, most of these will be trivial the second after we die, which is why it is vital that we strive to keep an eternal focus day to day.
The top priority of a business should be to always glorify the Lord. However, if all other business disciplines are ignored in pursuit of this, the work will be short-lived. Discipleship, caring for one another, and setting an example of integrity are crucial. But so is creating an excellent product or service, ensuring fair pricing, and treating your employees, customers, and investors well.
Therefore, the priorities of a business boil down to this:
Compared to eternity, the profile of a business is rather trivial, and a lifetime of work is rather insignificant. If used wisely, though, a business can be used to change the lives of people forever. I suggest you find a group of mentors or a board of advisors to help you maintain your focus on Christ while meeting the demands of a growing business. There are many excellent marketplace ministries that can help you do that. Check out Faith Driven Entrepreneur or C12.
Your Examples
The following companies are a few examples that operate with excellence and use all that they have to glorify the Lord. They bless their employees who, in turn, serve their customers with excellence. Check out their mission statements and values; they are very inspiring.
Your Heart
Growing a business involves risk and the potential for loss. Always remember that the business is neither your identity nor your provider. Keep Jesus in your heart during the ups and downs; He will supply your every need and guide you through the storms.
“And my God will liberally supply (fill until full) your every need according to His riches in glory in Christ Jesus.”
– Philippians 4:19 (AMP)
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 August 23, 2024.
Dear Chuck,
Most of my retirement is invested in the stock market. My fear skyrocketed when things went crazy recently. I realize I need to make some changes for my physical and emotional health. How can I keep calm when the market is not?
Nervous Jitters
Dear Nervous Jitters,
Thank you for your honest email and request for some Biblical perspective. Financial markets are certainly volatile right now, but you and I can be at peace in the storms. Let’s look back at what just happened before we look forward.
Volatility Spikes
On Monday, August 5th, the Japanese stock market suffered its worst day in 37 years. It fell 12.4%, causing U.S. stocks to drop 3%. The VIX fund (index of volatility) jumped to its highest level since 2020 in the early pandemic days. The very next day, things calmed down, and the fear factor dropped significantly.
A Wall Street Journal article by Jason Zweig on August 9th explained it this way: “The simplest explanation of all: Markets went haywire early this week because markets consist of people, and crazy behavior is contagious.”
A Forbes article by Bill Stone on August 11th said this: “Investors should be prepared for continued volatility due to uncertainty about economic growth and the upcoming election. A recession is not the base case in the short term, but it is appropriate to give notice to the rising risks from slowing job growth and restrictive monetary policy from the Federal Reserve.”
To paraphrase Mark Twain, truth is stranger than fiction because fiction has to make sense.
Markets don’t.
When Stocks Go On Sale
A friend of mine once said that when the markets begin to drop, he sees it as stocks “going on sale” and the best opportunity to buy. Unfortunately, we tend to follow the crowds and sell when everyone is selling and buy when everyone is buying. We should work to set our emotions aside and do the inverse, which is to buy low (when stocks are dropping) and sell high (when prices are rising).
“Financial marketers grab and hold your attention online by playing on your emotions, especially fear and anger. . . . You don’t have to try to make sense of markets that make no sense. And you certainly shouldn’t listen to anyone trying to make you panic. Learning how to talk back to statistics is your first line of defense—and the best way to maintain an even keel when markets go bonkers,” said Jason Zweig.
A Money Watch article by Aimee Picchi on August 9th said this: “The roller-coaster in stocks carries some key lessons for investors and consumers alike. First, expert[s] say, it is important to resist the urge to join the herd of panicked investors rushing for the exit. Second, investors should be preparing for expected rate cuts from the Federal Reserve.”
“Here are five lessons from investment experts about this week’s market swings: don’t try to time the market; have a long-term plan; volatility is normal; watch the economic data; and prepare for Fed interest-rate cuts,” said Aimee Picchi.
My advice:
A Foundation That Cannot Be Shaken
In the parable of the house upon the rock in Matthew 7:24–27, we learn that nobody is exempt from storms. In fact, we should expect them. The wind and rain will come for each of us. These give us an opportunity to have our foundation tested. If we have built our house upon the rock (Jesus Christ), we will be able to endure the storms. It does not guarantee we will not lose money, but we cannot lose that which is more precious than silver or gold—our eternal salvation from sin and death through faith in Him. The following verses will help you renew your mind during market storms:
Keep your life free from love of money, and be content with what you have, for he has said, “I will never leave you nor forsake you.” So we can confidently say, “The Lord is my helper; I will not fear; what can man do to me?” (Hebrews 13:5–6 ESV)
“Set your minds on things that are above, not on things that are on earth.” Colossians 3:2 ESV
“Rejoice always, pray without ceasing, give thanks in all circumstances; for this is the will of God in Christ Jesus for you.” (1 Thessalonians 5:16–18 ESV)
Do you want more tools and tips on financial stewardship? Are you interested in receiving ministry updates from around the world? 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 August 16, 2024.
Dear Chuck,
Our adult son, age 30, still relies on us for money. We send him about $1000/month to cover shortfalls caused by inflation. We are debating whether we are enabling or empowering.
Supportive Parents
Dear Supportive Parents,
You are among millions of families in the same predicament. Many Millennials (adults between the ages of 27 and 42) and Gen Zers (adults between 18 and 26) are still financially dependent upon their parents. Let’s examine the data and trends; then I will offer my advice.
Adults Still Supported by Their Parents
A recent Axios survey conducted by The Harris Poll in June reports that 1/3 of Millennials and over 60% of Gen Z consumers rely on parents for some financial support. 65% admit the need is due to overspending on non-essentials. A majority of those surveyed believe it is better to treat themselves instead of holding off; they say they deserve more expensive purchases “after surviving the last few years.” 43% are trying to keep up with friends.
According to recent census data reported in Knowledge at Wharton, nearly half of 18-to-29-year-olds are living with their parents—the highest number since the Great Depression era from 1929–1941. The main reason is the delay of marriage and families. Plus, income is not keeping up with housing costs.
A Pew Research Center study published in the New York Post reveals that more than half of those aged 18–34 depend on some form of allowance from their parents; only 45% are completely independent. A Harris Poll commissioned by DailyPay shows that only 1/4 of Gen Zers are able to pay all of their bills on time. Rather than having parents send money, many choose to live with them. One in five adults ages 30–34 have parents helping with household bills.
In 2022, Matt Schulz, chief credit analyst at Lending Tree, told the New York Post, “We’re likely to see young adults continue to put off important financial and personal milestones because they just can’t afford them. They’ll keep waiting longer to marry, have kids, buy a house or start a business…” Some can’t. Others won’t.
According to a survey conducted by Experian, published in the Business Insider, more than half of Millennials and Gen Zers are financially dependent on their parents. 70% of Millennials feel ashamed when asking their parents for financial support. 60% of the younger group feel the same way.
Set Boundaries Now
In 2020, Northwestern Mutual published an article for parents who were helping young adults during the Covid-19 crisis. They listed five important things to consider when providing financial support:
Provide an Off Ramp
Parents often provide money for food, cell phones, housing, transportation, insurance, medical expenses, and student loans. For the good of both parents and their children, a level of accountability and a cut-off date can motivate the younger generation to live within their means. I recommend that parents and their children learn to apply Biblical financial principles. They are timeless and grant freedom and protection. Crown offers online training, budget coaches, and many other resources. Learning to track spending and create a budget is essential for discovering where money goes and reaching financial goals. For help, go to “How to Make a Budget” and “The Easy Guide to a Budget You Love.”
An alternative to giving financial assistance is setting up a family loan. You can find more on the topic at Crown, Bankrate, and NerdWallet.
Empowering or Enabling?
Every family is different. It is common for adult children in other nations to live at home while working and contributing to household expenses. Here in our own country, it can be beneficial for both parents and their children. Open dialogue, proper boundaries, and mutual respect are necessary to make this a comfortable living situation.
It is important to realize that some parents provide in ways that others cannot. Unfortunately, some jeopardize their financial future by continuing to pay for things their children should cover. Wise parents allow their children to grow up and take responsibility for their spending habits. This provides the young adult with a means to gain much-needed dignity. Of course, there are exceptions. Even I have stepped in to help on occasion. The point is that there is a time to let go. When it becomes a dependency and an expectation, you have reached the point of enabling. You and your spouse can probably agree when that point has been reached. Then agree to make a plan to bring it to a peaceful end.
Thankfully, many young adults are self-sufficient and stepping in to help their parents and grandparents. What we see happening in America is a wake-up call for families. Parents must set an example by managing their own finances wisely. Children observe how we work, give, save, spend, and invest. The manner in which we live day to day speaks louder than words.
If credit card debt is holding your young adult children or you in bondage, 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 August 9, 2024.
Dear Chuck,
Our politicians have escalated strife and division in America. I am concerned we are now the “Divided States of America.” How can Christians make a difference?
Holding My Tongue
Dear Holding My Tongue,
While your question may not appear to be financially related, the strife and division created in the public arena have both personal and national economic consequences. We need to offer a better way—to rebuild trust and unity among our family, friends, and neighbors.
In 2008, Os Guinness wrote the following in The Case for Civility: And Why Our Future Depends on It: “Name-calling, insult, ridicule, guilt by association, caricature, innuendo, accusation, denunciation, negative ads, and deceptive and manipulative videos have replaced deliberation and debate. Neither side talks to the other side, only about them; and there is no pretense of democratic engagement, let alone a serious effort at persuasion.”
On July 23, Dr. Jim Denison wrote, “If the political turmoil of these days is stressing you, you’re not alone. In an American Psychiatric Association poll, nearly three-quarters of respondents said they’re feeling anxious about the election. Another poll found that nearly 40 percent are depressed or anxious about the election season, and a similar share said they are ‘checked out’ by the amount of news and social media attention on politics and the upcoming election. We have good reason to feel the way we do: fueled by rhetoric that demonizes political opponents, our politics are more visceral than ever and thus more violent.”
The loss of civility in our land can be reversed. But those who identify as Christians must begin to speak with words and in ways that reveal a genuine faithfulness to Christ. I attended a gathering at the Heritage Foundation, where Os Guinness was the keynote speaker. He noted that we need true statesmen to rise up and help us find our common ground. We should celebrate what unites us instead of what divides us.
Stewarding Our Words
Words are powerful! Solomon wrote that “death and life are in the power of the tongue,” (Proverbs 18:21 ESV). James, the brother of Jesus, said the tongue “is a restless evil, full of deadly poison. With it we bless our Lord and Father, and with it we curse people who are made in the likeness of God. From the same mouth come blessing and cursing. My brothers, these things ought not to be so,” (James 3:8–10 ESV).
Christ reconciled us to Himself, made us His ambassadors, and gave us the ministry of reconciliation. In all of our verbal interactions, we should be conscious of the fact that we represent the Lord wherever we go and to whomever we speak. The way we communicate at home, on social media, or in the marketplace is being observed and often modeled.
It is mandatory, therefore, that we think before we speak. “The heart of the righteous ponders how to answer, but the mouth of the wicked pours out evil things,” (Proverbs 15:28 ESV).
Regardless of whether we are confronted with an angry customer, in a conflict with our spouse, or trying to reason with a belligerent teenager, let us not return curse for curse, condemnation for condemnation. Rather, let us speak in a way that we want others to speak to us. We have been raised with Christ and called to put away anger, wrath, malice, slander, and obscene talk (Colossians 3).
Ponder These Admonitions from Proverbs 15
“Know this, my beloved brothers: let every person be quick to hear, slow to speak, slow to anger; for the anger of man does not produce the righteousness of God.”
(James 1:19–20 ESV)
How to Make a Difference
Let’s look inward first. Our speech and language must be more than civil. It must flow from a heart transformed by the love of God. We must intentionally saturate our hearts and minds with His Word. In true humility, let us count others more significant than ourselves. When insults were hurled at Jesus, He did not retaliate. He entrusted Himself to the Father, knowing He would judge justly. Let us love our enemies by wisely stewarding our words to glorify God in every situation we encounter.
“Put on then, as God’s chosen ones, holy and beloved, compassionate hearts, kindness, humility, meekness, and patience, bearing with one another and, if one has a complaint against another, forgiving each other; as the Lord has forgiven you, so you also must forgive. And above all these put on love, which binds everything together in perfect harmony. And let the peace of Christ rule in your hearts, to which indeed you were called in one body. And be thankful.”
(Colossians 3:12–15 ESV)
If we put these principles into practice, our tongues will be used to build up, not tear down. I pray for our nation and for every believer who can be used by God to restore civility.
For encouragement during this divisive time in our nation, 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 August 2, 2024.
Dear Chuck,
I am a new elder at our mid-sized church, serving on the finance committee. I’ve learned that our church is on the verge of financial trouble. We need a turnaround to survive the next five years. Can you give me some counsel from your experience helping churches?
Feeling the Burden for Our Church
Dear Feeling the Burden for Our Church,
Outreach Magazine published the results of the 2024 State of the Church Giving Survey. This was one of their key findings: “Despite an overall increase in giving, the report showed that 55% of churches reported a decrease in giving due to inflation.”
I shudder to think of the impact on our nation and the world should Christian generosity decrease as our economic challenges increase. This is an important issue for all of us who care about the Gospel and sharing God’s truth with the world, whether it is support for small, mid-sized, or large churches or strategic missions and ministries.
Steps for a Financially Troubled Church
Over the 48 years of our existence, we have served hundreds of thousands of churches in the United States and around the world through our materials and programs now available in more than 60 languages. God has shown us what will be helpful to the transformation of your church. I will lay out a few of my suggested steps and offer helpful resources.
First, meet with your elders, pastors, and church staff to pray for God’s wisdom and direction. There is usually no quick fix. Seek to get everyone aligned in trusting the Lord and following a plan together.
Second, it is vital to roll out a vision to the congregation while maintaining credibility and hope.
Integrity with donors, suppliers, the community, employees, and staff is key. If the church makes promises, deliver on them. Otherwise, credibility will rapidly decline, and it will take years to reestablish what was lost.
Third, be sure systems are in place to control cash flow. Positive cash flow is essential. The first priority should be payroll, followed by utilities, rent, or mortgage. After these obligations are met, partial payments should be made to vendors who provide vital goods and services, who threaten to pursue collection procedures, or whose survival is threatened because of payments owed by the church. Sometimes, a difficult decision is made to eliminate or restrict money to certain ministries or departments that consume cash but produce very little.
Next, review the overhead carefully. You may need to suggest that a hiring freeze is implemented until revenues are improved. Do not quickly add new staff or replace those who leave. Employees may have to take on multiple responsibilities; consider using volunteers. Examine the spending practices, attitude, and dedication of staffed positions. Is each needed to fulfill the ministry goals of the church?
Clear and honest communication is essential. Leaders, staff, department heads, and the congregation should be informed and updated regularly. Offer suggestions on ways to improve the situation, encourage their commitment to help, and allow them to voice opinions.
Look for ways to generate cash without putting pressure on your congregants. Sell unnecessary assets and temporarily eliminate any activity that involves a financial obligation. Retreats, trips, outings, etc., must be restricted until the crisis is solved.
Seek outside help and counsel. Be careful not to be taken in by consultants who may or may not be able to help. Receive, evaluate, pray over, and discuss all ideas and suggestions; then vote to move forward in faith and unity.
Stewardship Training Is Essential
It is a pastor’s responsibility to help the congregation learn Biblical financial principles. The topic of money, possessions, and management is addressed in the Bible more than any other subject except that of love. It seems quite obvious that God emphasized financial stewardship training as an integral part of a well-rounded spiritual education. Christians should be the best managers of money because of the guidelines provided in His Word.
The church must first recognize that God owns everything. All blessings come from Him. Money is not our possession; it is God’s. We are merely stewards (managers). He allots different amounts to us based on His plan and purpose for our lives, and we will be held accountable for the way we manage it. When leadership understands this, they will more effectively project that truth to those whom God has placed under their spiritual care.
A pastor must challenge and motivate his flock to apply God’s method of handling money. Many are not equipped and silently suffer from personal financial challenges. There are a number of financial lessons on which to concentrate, but four are particularly important for churches:
One way to radically impact a church is by training a dedicated group of people to lead small groups. A church-wide rollout on Biblical financial training can be taught at all age levels for all socioeconomic groups. Crown.org provides online small group facilitator training here. More materials can be found here.
Additional Resources for Pastors or Elders
Thank you for your question. Let us know if we can be of any direct help in implementing these suggested steps. We have seen God completely transform lives and entire congregations following these guidelines. I pray it will be the same for you.
Do you want more tools and tips on financial stewardship? Are you interested in receiving ministry updates from around the world? 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 July 26, 2024.
Dear Chuck,
My elderly father recently asked why so many young people have credit card debt. He commented, “Seems like they’re so preoccupied with the present they can’t think about their future?” Can you give me some facts and insights to prepare me for my next talk with him?
Credit Card Facts
Dear Credit Card Facts,
I understand your father’s concern. He is from a generation that would never consider borrowing money to go out to dinner or buy clothes. America has moved from a nation that feared debt to a nation that embraced debt as normal to a nation that has become addicted to debt.
When people carry a credit card balance month to month, they are borrowing, with interest, to pay for basics like food and clothing. Inflation has taken a toll on many households, but phones, computers, and television have radically impacted the way people spend money. For many, their purchases have become their meaning and purpose in life.
Bankrate.com reports that over half of Americans are in debt. 36% have more credit card debt than emergency savings, and 35% would have to borrow to pay for an emergency expense greater than $1000. See more debt data here. Good debt is backed by assets and can increase in value or generate income over time. Bad debt is used to purchase items that lose value. When bad debt strains resources, it negatively impacts the individual, their family, their legacy, their community, and their nation. But don’t get lured into the “good debt” trap either.
God provides resources for us to manage according to His financial principles, not to spend as we desire. When we take our eyes off the Lord and His leading, money becomes the driving force of life. Because of this, it is important to examine our financial motives.
“All the ways of a man are pure in his own eyes, but the Lord weighs the spirit.”
(Proverbs 16:2 ESV)
Answering a few questions is helpful to understand my point about our motivations regarding money.
Motives Matter
It is vital to consider whether the decisions you make truly please God or yourself. Many people work, give, spend, save, and invest without ever considering their motives—the reasons why they do what they do.
Rich or poor, we all have the same responsibility: to keep our priorities straight, to commit our work to the Lord, to avoid wasting our lives on things that will not last into eternity, and to be good and faithful stewards.
16th-century theologian Martin Luther wrote that as a practical matter, there are three conversions a person must experience to be fully committed: a conversion of the heart, a conversion of the mind, and a conversion of the purse.
Every dollar spent on materialistic consumption is a dollar less to invest. In the long run, there are consequences.
“A society that tends to focus greater attention on investment than on personal consumption tends to be a more prosperous society in the long run. This is true whether that investment is aimed toward meeting the needs of others (through charity), through reinvestment in production or market investments (which, in turn, create wealth), or through savings. This focus on creation of wealth through investment (as opposed to the reduction of wealth caused by over- consumption), when combined with an attention to the needs of others, allows for a greater ability to meet those needs and a fulfillment of the creative capacity inherently placed within humans as they were made in the image of our Creator,” explains Ken Boa.
“If you read history you will find that the Christians who did most for the present world were just those who thought most of the next. . . . It is since Christians have largely ceased to think of the other world that they have become so ineffective in this. Aim at Heaven and you will get earth ‘thrown in’: aim at earth and you will get neither.” (C.S. Lewis, Mere Christianity)
Your father’s comment, “Seems like they’re so preoccupied with the present they can’t think about their future,” reminded me of this verse, which instructs us to keep an eternal perspective:
“If then you have been raised with Christ,
seek the things that are above, where Christ is, seated at the right hand of God.
Set your minds on things that are above, not on things that are on earth.
For you have died, and your life is hidden with Christ in God.
When Christ who is your life appears, then you also will appear with him in glory.”
(Colossians 3:1–4 ESV)
If credit card debt is holding someone you know in bondage, a valuable and trusted resource is Christian Credit Counselors. They can help consolidate debt to get one on the road to financial freedom.
This article was originally published on The Christian Post on July 19, 2024
Dear Chuck,
My wife and I have lived frugally from the day we married. As a result, we have no debt, except for low monthly house payments. Could you give me some advice on proper goals for our long-term investing?
Senior Investors
Dear Senior Investors,
Congratulations on your good stewardship. It is a joy to offer you counsel from a Biblical perspective, with a few tips of my own.
Goal setting is a necessary prerequisite to effective investing. Each of us is expected to wisely manage the money God puts in our hands. However, we are warned not to make money the object or purpose of our lives.
“Do not toil to acquire wealth; be discerning enough to desist.
When your eyes light on it, it is gone,
for suddenly it sprouts wings, flying like an eagle toward heaven.”
(Proverbs 23:4–5 ESV)
We should seriously pray, seek wise counsel, and decide where we want to end up financially. Although money should not be an end in and of itself, it is a tool to be used to accomplish short and long-term goals.
Perspectives on Investing
Seekingalpha.com defines long-term investing as a strategy of buying and holding investments for a period of over 10 years. They list the following benefits:
A Gallup poll conducted in April shows that Americans rank the best long-term investments as follows:
Risk
A general rule is that the closer you get to retirement, the less you should put at risk. Diversify, for we cannot predict the future. As King Solomon wisely penned in Ecclesiastes:
A certain level of risk is involved. In Matthew 25, the stewards put their master’s money to work and were commended. How you pursue your long-term goals will ultimately depend on your temperament and your personal tolerance for risk.
Avoid Procrastination
According to a 2023 Bankrate survey, more than half of working Americans think they’re behind where they should be with their retirement savings. More than one in three say they are “significantly behind” on their retirement savings. One in four have not contributed to retirement in over a year. Only 16% feel they are ahead of where they should be in contributing to their retirement plan, including 6% who feel “significantly ahead.” 21% feel they are right on track. “Compared to our survey about a year ago, there has been no progress on this front. Those closer to retirement age are among those feeling this sense of urgency the most,” said Mark Hamrick, Bankrate Senior Economic Analyst. Check out Bankrate’s retirement plan calculator.
Here are several reasons for investing that need to be determined before setting goals:
Goals must:
As you establish goals, check your motivation, and consider the following:
The most important thought to consider is how to invest in eternity. Don’t let the things of this world dim your vision of your eventual destination.
“Do not lay up for yourselves treasures on earth,
where moth and rust destroy and where thieves break in and steal,
but lay up for yourselves treasures in heaven,
where neither moth nor rust destroys and where thieves do not break in and steal.
For where your treasure is, there your heart will be also.”
(Matthew 6:19–21 ESV)
Store up treasures in heaven. It is the one investment that guarantees rewards!
“As for the rich in this present age, charge them not to be haughty,
nor to set their hopes on the uncertainty of riches,
but on God, who richly provides us with everything to enjoy.
They are to do good, to be rich in good works, to be generous and ready to share,
thus storing up treasure for themselves as a good foundation for the future,
so that they may take hold of that which is truly life.”
(1 Timothy 6:17–19 ESV)
Do you want more tools and tips on financial stewardship? Are you interested in receiving ministry updates from around the world? 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 July 12, 2024.
Dear Chuck,
I’m in a pickle. My wife and I both drive very nice cars. The problem is that I’ve fallen behind on payments, and my wife doesn’t know it. Should I sell the car?
Behind on Car Payments
Dear Behind on Car Payments,
Open up to your wife—sooner is better than later. Ask for her counsel and help before you make a rash decision. Transparency builds trust. Having both of you praying, talking, and seeking the best solution together is a double win.
Without knowing more about your overall financial picture, my sense is you need to sell one or both as soon as possible. Then buy something used and dependable that you can afford by paying all cash. Or try doing what my wife and I did. We got by with one vehicle for an entire year by simply planning ahead. It took some effort, but it was worth the challenge. If public transportation is an option for you, try doing without two vehicles as you work to get your finances healthy.
Understanding the Cost of Owning Your Car
The typical cost of owning a car comes to $762 a month. That adds up to $9,144 per year, including payments, insurance, taxes, repairs, and gasoline.
Four Reasons Owning a Car Can Make You Poor:
From a GOBankingRates article published at yahoo!finance:
A $69/Month Car Payment?
Buying and driving good used cars has many financial benefits:
I had been driving a 2007 Toyota that I purchased in 2009 during the “cash for clunkers” initiative implemented by the federal government. They incentivized dealers to overvalue trade-ins in an effort to get older cars off the road due to their higher contributions to air pollution. This drove the price of used cars down significantly. I was able to buy the vehicle I wanted for $3,000 under full retail value at that time. Follow me here. After driving the vehicle for 15 years, the used car market had completely changed. COVID caused a shortage of new cars which drove the price of used cars much higher. The value of my 2007 Toyota, now 17 years old, was now only $5,000 less than I originally paid for it!
I never paid any interest on a loan or any major repairs. My cost per mile driven over 15 years was very, very low. Consider this. Driving the same car for 180 months that only cost me $5,000 would be the equivalent if I had financed the car at zero percent interest for $69/month for 72 months. My cost per month over the period of ownership would be the equivalent of paying $27 each month besides gas and maintenance.
Avoid Becoming “Car Poor”
Rebecca Lindland, Cars Commerce auto data and insights director, thinks consumers should focus on the total cost of a vehicle instead of just the sticker price. “Go into your car shopping journey understanding what payment you’re comfortable with, understanding what size vehicle you need, really knowing your requirements and then not overspending, because just like, there’s nothing worse than being house poor, there’s nothing worse than being car poor,” she advises.
She says that because trade-ins are in short supply, shoppers may receive great offers. The downside is that buyers are looking at higher prices for used cars or trucks.
“There’s a shortage of specifically one to five-year-old vehicles. But the silver lining is that if people are trading in a vehicle from one to five years old, it’s actually worth almost 23% more than it would have been in 2020,” she adds.
Strategy for Eliminating Car Payments
Many cannot imagine paying cash for a car, so here are some tips.
If you’re currently making payments on a car:
If you have no payments but want/need to buy a newer/different vehicle:
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 posted on The Christian Post on
July 5, 2024.
Dear Chuck,
We want to renovate our home by using some of the equity we’ve accumulated. Our home is in a highly desirable area and has tripled in value. We have several years left on our current mortgage. How can we be good stewards of this renovation?
Renovation Without Regrets
Dear Renovation Without Regrets,
I take it you are considering a 2nd mortgage for the renovations. Let’s focus on what it looks like to be a wise steward if you choose that financing option.
Understanding 2nd Mortgages
Home equity increases with each mortgage payment, certain home improvements, the location of the home, and inflation. It is the difference between what a home is worth and how much is still owed on it. If a house is worth $400,000 and $200,000 is still owed, the equity is $200,000. Most lenders will allow you to borrow 85% of a home’s value (including the 1st mortgage).
Far too often, people borrow against the equity in their home and use it for unwise purchases, like an RV, a vacation, or a business startup. Keep in mind that it is called “2nd” because if a bankruptcy or foreclosure occurs, it is paid off after the original mortgage. If the sale of the home only covers the payoff of the 1st mortgage, the 2nd mortgage is viewed as a personal loan that you are responsible for paying. Although the cash given in this kind of loan can be used for anything, it is safest to use equity to build more equity.
What Is a 2nd Mortgage?
Types of 2nd Mortgages
Wise Stewardship of the Renovation
First, determine if you can afford this project. Establish a budget for what the total renovation will cost. Next, look at your budget. Apply your debt-to-income ratio (debt payments divided by monthly income) to determine how much of your monthly income should go to housing. Lenders like a ratio of less than 43%. You should be comfortably beneath this ratio for the 1st and 2nd mortgages combined. Otherwise, abandon the idea of using any type of 2nd mortgage, and wait until you have saved enough to pay cash. Because you may be close to paying off the 1st mortgage completely, consider waiting until you own the home without a 1st mortgage.
If you are comfortable increasing your debt with a 2nd mortgage, consider contacting the lender of your original mortgage since they’ve got your record of payments. Compare rates, upfront and closing costs, and annual fees (for HELOCs) with other companies. Avoid prepayment penalties. If you’re offered a lower rate for a HELOC with higher borrowing limits, use constraint, or you’ll drain the equity.
You can also use your equity to purchase a 2nd home—details here. With a home equity loan, you can put the money toward the down payment and closing costs.
The interest paid may be tax deductible, depending on how the funds are used. “The IRS stipulates that for the interest to be deductible, the loan must be used to buy, build, or substantially improve the residence that secures the loan.” Dennis Shirshikov, head of growth at Awning.com, said, “If buying property adjacent to you that enhances the primary home, you may get a tax break.”
My Suggested Steps
Yellow Flags
The risks of a 2nd mortgage include added debt, the risk of foreclosure, and variable interest rates with HELOCs. Consider the following:
Consider the times, pray, and seek wise counsel. If you’re married, make sure you are united in the decision. Ask God for wisdom; He gives it generously without reproach.
“By wisdom a house is built, and by understanding it is established;
by knowledge the rooms are filled with all precious and pleasant riches.”
Proverbs 24:3–4 (ESV)
For extra guidance and support, Crown’s online Budget Coaching program matches you with a certified coach who will work with you to develop a customized plan.
This article was originally published on The Christian Post on June 28, 2024.
