Dear Chuck,
My wife is miserable with her job, but unfortunately, her income is needed at this time to pay off a lot of debt. We need some guidance for a career transition, as her nerves are frayed every day.
Looking at Career Options
Dear Looking at Career Options,
It is very painful to be miserable at work—been there, done that. However, my first reaction was not about the job but the statement that you have a lot of debt. It is time to launch an aggressive effort to pay down your debt so that you eliminate the pressure you are under regarding her career and income. It sounds as if she is working just to keep the family finances afloat. Once that pressure is removed, career changes take on an entirely different perspective.
Don’t jump out of this job too soon. Be patient as you work together to put your plan in place.
“Do not be anxious about anything, but in everything by prayer and supplication with thanksgiving let your requests be made known to God. And the peace of God, which surpasses all understanding, will guard your hearts and your minds in Christ Jesus. (Philippians 4:6–7 ESV)
Here is some general advice for anyone making a career change.
Guidance for a Career Transition
Make a list of the things you like and dislike about your job. Perhaps you are working outside of your gifts and talents. Crown has a career assessment that helps people understand their unique design by analyzing personality, skills, interests, and values. It is an excellent tool for giving hope and direction to those who are bored, frustrated, or seeking the right field or career direction.
Develop a Resume
Do you have a current resume? If not, begin the process of developing one. It is generally the first impression someone hiring gets to see and is extremely important for any successful job search. For help writing one, check out these articles: “Writing a Resume” and “Creating a Resume That Best Reflects You.”
Tap into Your Relationships
The most effective method of finding a new job is through your contacts. These could include family members, friends, business relations, business contacts, and your church family. Summarize your job search in a few sentences so they can do more than just wish you well. For example: “I am looking for a job in advertising sales with an online company. I need a base salary plus commissions. I’m willing to relocate but prefer to work from home. See the Tap the Hidden Job Market Through Networking section of the linked article.
Compile a Reference Pool
This is a list of people who know your work ethic, habits, experience, performance, and history. Choose a variety of people—clients, competitors, managers, or high-level colleagues who will feel comfortable speaking positively about you.
Transform Your Job or Look Elsewhere
Seek the possibility of finding a more preferable position within the company. If you are bored, ask for a new challenge, or request a transfer to an area you desire. If additional skills or training are required, management may offer to pay for it. If the problem is working with difficult people, attempt to be a peacemaker to transform the work environment. If this does not help, make a plan to find a new job. If asked to compromise your integrity, find a new job.
Look While Employed
I believe that the best time to look for a job is when you are employed. Most jobs today are found through personal referrals which is why relationships are so valuable. Check out this website’s list of the “9 Best Job Search Websites.” Many recruiters actively work with Linkedin.com. You may find this Forbes article helpful.
In some rare cases, you may be able to discuss your desire to find a new job with your current boss or team. Avoid this, however, if you work in a hostile environment or in a company that is not built upon trust and mutual respect.
Pray
While waiting, pray with and for your wife. Encourage her to consider implementing the following:
If His will is not clear, a time of private prayer and fasting will be beneficial. He knows exactly what you need. Trust Him to open doors and move mountains to get you there.
If credit card debt is a source of frustration, a valuable and trusted resource is Christian Credit Counselors. They can help consolidate debt to get you on the road to financial freedom.
This article was originally published on The Christian Post on June 21, 2024.
Dear Chuck,
I have the opportunity to buy a home from an older couple who needs to move to a retirement/assisted living situation. It’s a great house—one we can easily afford. The problem is that our home was foreclosed on in 2008 due to the Great Financial Crisis. Although we have recovered financially, I am occasionally plagued with fears of making another mistake. It was a major strain on my marriage… Should I go ahead and buy it?
Plagued by Financial Fear
Dear Plagued by Financial Fear,
It may feel like you are the only one, but by some estimates, half of all Americans have experienced some sort of financial hardship or failure. I had both in my young adult years, related to mistakes with money. Before you and your spouse decide to buy this home, which, by the way, sounds like a great idea, let’s talk about your fears.
A Priceless Lesson Learned
You and I both know that we can learn from our mistakes. Pain is one of our very best teachers. Judging from your description of your “recovery,” it sounds like you don’t plan on repeating your past financial mistakes. Unfortunately, even though we can become wiser through our mistakes, we can also become paralyzed by the fear of failure. Not until you are able to put the fear behind you can you say that you have “fully recovered” in all aspects of what you went through in the foreclosure of your home.
Fear works against us. It prevents us from doing things that could bless our families and potentially have positive outcomes. Sometimes, we get so preoccupied with the past that we cannot see our own progress or present successes. We can even lose hope for the future. Fear keeps us in bondage. It is a stronghold that can stunt our spiritual maturity and keep us from experiencing an abundant life.
God is aware of our limitations and the mistakes we make. Thankfully, He is greater than our weaknesses and our mess-ups. Nothing takes Him by surprise, and nothing is too hard for Him to redeem.
Remember that the Apostle Paul was weak and tired of the thorn in his flesh. But he said it kept him from becoming conceited. Three times, he pleaded with the Lord to have it removed. But the Lord answered, “My grace is sufficient for you, for my power is made perfect in weakness.” Paul continued by saying, “Therefore I will boast all the more gladly of my weaknesses, so that the power of Christ may rest upon me. For the sake of Christ, then, I am content with weaknesses, insults, hardships, persecutions, and calamities. For when I am weak, then I am strong.” (2 Corinthians 12:9–10 ESV)
Overcoming Failure
To renew your mind, use the 3 R’s: Repent, Rest, and Rejoice.
No matter your failure, remember this: “And we know that for those who love God all things work together for good, for those who are called according to his purpose.” (Romans 8:28 ESV)
King David committed grievous sins, but the Psalms are filled with his praise of the Lord and heartfelt repentance.
Letting failure consume your thoughts can prevent you from moving on and making yourself available for what God has in store ahead. We are prone to protect our pride, so we must take on an attitude of humility and admit that we will never always be right. Life is always going to be filled with both successes and failures. Once we accept this fact, knowing that the Lord will never leave us or forsake us, it’s easier to move forward and continue on with life.
To Buy or Not to Buy?
Before making an offer, pray for unity with your spouse and guidance from God. Ask Him to bless the house for His purposes. Your mistake was more than 16 years ago; it is time to move ahead with faith in God and be wise stewards of what He has provided.
Resist the urge to compare yourself to others. Choose to abide in Him; unite your heart with His so your desires align with His. When you follow God’s plan, you live without fear of failure.
Crown’s Budget Coaching program can offer additional encouragement and support in analyzing your financial status. Your coach will work with you to develop a customized spending plan and debt elimination strategy to help overcome your fears and allow you to follow God’s plan.
This article was originally published on The Christian Post on June 14, 2024.
Dear Chuck,
I heard “buy now, pay later” data will soon be reported to credit bureaus. I hope this is true! My daughter got into financial trouble during her first year out of college by getting sucked into these easy payment plans. How do I help her and her friends open their eyes to the dangers of this type of debt?
Concerned Mom
Dear Concerned Mom,
Easy credit leading to financial challenges has been around for a long, long time. I grew up in the age of “layaway.” You could select what you wanted to purchase and make interest-free payments for a few weeks or months. However, the buyer was not allowed to take possession of their purchase until the final payment was made. Today, that plan has been modified to make it even more enticing and risky.
Buy Now, Pay Later
The use of buy now, pay later (BNPL) plans is growing fast. Sometimes, it is used to cover basic necessities. Total BNPL spending last year came to $75 billion, a 14% jump from the previous year. Experts expect usage to double or even triple over the next five years.
More than one-third of U.S. adults are estimated to have used a BNPL service, where purchases are divided into several interest-free installments. With only a few questions to answer and flexible requirements, buyers are given a plan to split their payments over several weeks.
Bankrate senior industry analyst Ted Rossman says, “BNPL terms vary widely. Sometimes it’s four interest-free payments over six weeks, other times the plan can stretch on for many months or even years. And while some of those longer plans charge a low interest rate — or no interest at all — other times there is an interest rate and it can be even higher than what a credit card would charge.”
Unfortunately, in a recent survey, 56% admit to overspending, missing payments, regretting purchases, or facing challenges getting a refund or returning items. The most common reasons people use BNPL services:
Pros/Cons of BNPL plans
Discernment and Self-Control
If used responsibly, BNPL can help in financing a large expense without interest charges. The key is discerning needs from wants and understanding the terms. Self-control is needed to avoid overspending and entrapment to debt. It goes without saying that couples must be transparent about their purchases so that they don’t get overwhelmed with multiple payments.
Phantom or Shadow Debt
BNPL has been described as phantom debt, a term some economists use to describe debt that is not centrally monitored.
A problem exists in regulating how data is given to the major credit bureaus: Equifax, Experian, and TransUnion. As a result, lenders may not know how many loans a consumer has outstanding. “It’s hard to know how much of this debt is out there,” says Ted Ross, senior industry analyst at Bankrate. “It’s this kind of shadow debt that’s hanging over people.” Tim Quinlan, senior economist at Wells Fargo, told CNBC, “Because no central repository exists for monitoring it, growth of this ‘phantom debt’ could imply total household debt levels are actually higher than traditional measures.”
To see how they are currently reported and how it may impact credit scores, see here.
A Problem of Fraud
BNPL can invite synthetic identity fraud. Cecilia Seiden, VP of market strategy at TransUnion says, “This is when fraudsters use a combination of legitimate but unconnected pieces of personally identifiable information (PII) to fabricate a person or entity and use it to apply for credit with a low bar to entry, like BNPL… Once a synthetic identity is established and begins to build credit, institutions often have no idea what their level of exposure is.”
“Buy now pay never” is how some have begun to refer to these programs as they look for ways to rip off the business that extended them the loan.
Protection for Customers and Businesses
On May 22nd, The Consumer Financial Protection Bureau (CFPB) ruled that BNPL lenders are credit card providers and must provide consumers some protections and rights given under conventional credit cards, such as the ability to investigate disputed charges and pause payments during that time, get a refund for returned products purchased with a BNPL loan, and receive bills that disclose fees. Many lenders already conduct business in this way.
Proper reporting would help reveal or thwart fraud in either direction. In addition, responsible BNPL consumers could improve their credit score which would enable them to gain access to other credit products, even securing a mortgage.
Biblical Perspective on Debt
“The rich rules over the poor, and the borrower is the slave of the lender.”
(Proverbs 22:7 ESV)
Many are in debt today because they have not managed funds appropriately. Applying Biblical financial principles to everyday life and teaching others likewise will bring much-needed attention to the growing problem of excessive debt in our nation. Training in responsible spending, contentment, and constraint is necessary for people everywhere. When we begin to acknowledge that everything belongs to God, we will gain a mindset of wise stewardship.
I hope this helps your daughter and you.
If credit card debt is holding your daughter, or anyone else 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 June 7, 2024.
Dear Chuck,
Our 11-year-old son was invited to try out for a competitive baseball travel team. We have three children, and I’m not convinced it’s the best use of our time and money. My husband and I are divided over the decision. Where do you fall on the issue?
Divided About Kids’ Sports
Dear Divided About Kids’ Sports,
This one hits close to home as I once coached one of our son’s competitive baseball travel teams. Before I share our experience, let’s look at the bigger picture of the growing trend of competitive sports programs for children as young as eight years old.
Get on the Same Team
I can offer some data and perspective to assist you in getting united. Foremost is motive. Be sure your child (not the parent) is the one most interested in the sport. Too often, I have seen a parent wanting the child to excel far more than the child desires. Both parents should be on the same team—that is the team of what is truly best for your child and family.
Financial and Emotional Pressure
I don’t know your financial situation, but a 2022 survey by Lending Tree revealed that 60% of families say youth sports are a financial drain. Parents can easily spend $10,000 a year for a child to play on a travel team. For those who don’t know what a travel team is, it is typically a group of select players with advanced ability who play in local, regional, state, or national tournaments against other select teams.
Some families feel the pressure to hire a private coach, which can be very expensive. Travis Dorsch, who played briefly in the NFL, found that kids in youth sports perceive more pressure when parents spend a greater percentage of the family income. The focus often shifts from fun, skill, and competency to winning.
Besides the cost, competitive youth sports are time-consuming. Children may suffer burnout and risk injury. Parents can be influenced by the delusion of college scholarships and the dream that their child may one day become a professional athlete. Unrealistic expectations to perform and continually improve can add to already prevalent stress and anxiety in youth today.
I suggest you read and use these helpful guidelines set by NATA (National Athletic Trainers’ Association). When children focus on one sport too early, they miss the experience of trying others that they actually may prefer. “Inside the High-Stakes, Zero-Sum Game of Youth Club Sports” is a revealing look into the life that some experience in club sports.
Pros of Select Sports Teams:
Cons
Too Much Too Soon?
Costs often exceed the expected, once uniforms, gear, private coaches, food, travel expenses, gifts, trophies, etc., are totaled. It is easy to get out of hand and lose all perspective.
Some people postpone saving for retirement and investing to afford a club sport. Others forego family vacations and cut back on entertainment. Some parents admit to spending more on team sports than they did for a college education. Elite team sports can rob children from exploring music, ballet, theater, art, agriculture, robotics, debate, speech, etc. It is important to keep a healthy perspective on raising children. The major consideration for people of faith should be how it conflicts with regular worship and church activities. See “Why We Pulled Our Kids From Club Sports” at the gospelcoalition.org.
Our Experience
One of our sons played select baseball from ages 9–12. His team only lost five games over those four seasons. He had some championship trophies that were tall and impressive. Four of the players in the league (one teammate) went on to be drafted by professional baseball teams, although none of them were able to make a lasting career out of it. One pitched in the College World Series finals. Our son has fond memories of it; however, he was burned out by age 13. He dropped out of baseball and took up tennis and other outdoor activities that he enjoyed. Some of the boys on our team said it was their greatest memory of their formative years. None of our other three sons wanted to be on a select sports team. Those big trophies were later discarded, and only memories remained.
What Are You Willing to Sacrifice?
Rather train yourself for godliness;
for while bodily training is of some value, godliness is of value in every way,
as it holds promise for the present life and also for the life to come.
1 Timothy 4:7b–8 ESV
Only you can decide what sacrifices you are willing to make for club sports. Take time to pray, study, and discuss the topic thoroughly. The invitation to try out is exciting, but do not compromise your family’s needs and beliefs. Prioritizing a relationship with Christ with regular corporate worship sets the course for life. It has eternal value. Be sure it is not lost in the midst of pursuing a sports dream.
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 May 31, 2024.
Dear Chuck,
My husband has Alzheimer’s. Should I use my retirement to fund his care? It will go quickly due to his medical bills, and I won’t be able to leave my daughters anything. An alternative is to have him go on Medicaid should I pass away first.
Struggling with Senior Care
Dear Struggling with Senior Care,
I am very sorry you are having this painful trial. It would be so helpful to have more information related to your ages, your daughters, and your comprehensive financial picture. Regardless, I will do my best to give you counsel and point you to some helpful resources. Please consider me just one source, and seek the counsel of more trusted advisors.
Financial Programs for Alzheimer’s Patients
Over 5.5 million Americans are affected by Alzheimer’s disease and dementia. Some require 24-hour supervision, which drains funds and caregivers. The cost, worldwide, of dementia care is nearly one trillion dollars. Supposedly, mid-to-late-stage Alzheimer’s patients commonly qualify for Medicaid benefits; but because the program is handled by each state separately, benefits vary by location. It pays only if income and assets are below certain levels. The following options are worth looking into and are explained more fully at the website: Paying For Senior Care.com:
If not yet 65, your husband may qualify for Social Security disability benefits.
I do not know your situation, but you may benefit emotionally and financially by continuing to work. Caring for yourself is vital to avoid becoming overwhelmed or discouraged. Join a support group, or start one in your church or community. Make a list of those you can call on when needed. Notify neighbors of your situation.
Next Steps
Learn how to protect your assets when your husband needs additional care. Here’s an article on protecting them for your spouse should you die first. Planning for the future and end-of-life care is important for all stewards to implement sooner rather than later.
According to alz.org, the health and long-term care costs for people living with Alzheimer’s and dementia are projected to reach $360 billion in 2024. This does not include the value of informal caregiving. Medicare and Medicaid are expected to cover 64% of the total cost. Out-of-pocket spending is an estimated 25%. For more detailed information see the link above.
Your Daughters’ Needs
Consider giving an early inheritance. You will experience the joy of blessing your girls and alleviate some of your concerns about the unknown future needs of your husband. Just make sure you have enough funds set aside for your future care so as not to be a burden for them. Some gifts impact Medicaid eligibility. The federal government has a five-year look-back period in which the transfer of assets is scrutinized. I cannot overemphasize the importance of knowing all the details before you take any steps. You might consider consulting with a professional Medicaid planner or talking with someone your church or a trusted individual recommends. At the very least, do some careful research.
Another option is to pay off your home mortgage, do repairs and maintenance, and eliminate outstanding debt. From what I have read, this does not violate the look-back period. The benefit is that it makes your home more comfortable and marketable when it comes time to sell or pass it on to your daughters. Again, study the look-back-period rules and loopholes well.
Remember to meditate on the promises of God. He knows your pain, and He is near to all who call upon Him.
“Listen to me, O house of Jacob, all the remnant of the house of Israel,
who have been borne by me from before your birth, carried from the womb;
even to your old age I am he, and to gray hairs I will carry you.
I have made, and I will bear; I will carry and will save.”
Isaiah 46:4 ESV
I’d like to invite you to join a free Crown Bible study on the YouVersion app. We have several devotionals regarding money and stewardship that will help bring God’s Word into your daily life and provide some much-needed encouragement during this difficult time.
This article was originally published on The Christian Post on May 24, 2024.
Dear Chuck,
We’re a large family who vacations ten nights per year over spring break and summer. In your opinion, is a vacation club (like Marriott) a good purchase, or should we look at purchasing a timeshare resale?
Looking for Vacation Savings
Dear Looking for Vacation Savings,
First, it is a joy to hear you are a large family that is intentional about spending time together on vacation. I can also appreciate your desire to find the best possible value for using the money that goes into your vacation budget.
I assume that you currently select a desired location where your family would like to spend their vacation. Then you do your research and select the best value option for a hotel, Airbnb, VRBO, or campsite. Let’s discuss your interest in joining a vacation club or timeshare to save money.
Know the Real Costs
There are several things to consider in your analysis. A good decision will be determined by your family’s needs. I’ve read that vacation clubs are a modern form of a timeshare. Typically points-based, members purchase points and then spend them at resorts within a company’s portfolio. Traditional timeshares are often a fixed week at the same resort. Then there are travel clubs, which offer a variety of services for free or paid memberships. This website offers a vast amount of information. We will look closely at each option.
The initial offers to join a club or timeshare always appear to be great bargains. The key is doing your research and understanding the long-term costs. It is difficult to recover the initial buy-in costs unless you happen to find an incredible resale deal. Just remember that timeshares rarely appreciate over time like a home. They are not considered an investment because they have limited potential to grow in value and come with high costs and fees. There is limited marketability, and they should not be purchased with the expectation of gaining income or capital appreciation. In addition, owners are at the mercy of property management.
Vacation Clubs
Vacation clubs grant members access to their properties and resorts for an upfront fee. Many work on a points-based system for location, dates, and accommodation at resorts, villas, condos, or hotels. Exclusive privileges may include discounts, priority booking, member-only events and amenities, concierge assistance, and vacation planning. Some exchange programs allow the trading of points for stays at affiliated properties. Annual dues or maintenance fees cover operating costs, property maintenance, and ongoing services. Here are some key points on vacation clubs:
Timeshare Resale
A timeshare resale can be purchased from an existing owner at a lower cost than purchasing from a resort or developer. It’s possible to find great deals, but you are limited to what is on the market. A property’s reputation, amenities, and quality are important.
Some resale companies offer exchange programs that allow you some flexibility. If the property has already been developed, you can begin using the timeshare immediately. However, the initial purchase price can be deceiving. You must factor in property taxes, maintenance fees, and exchange fees, which can all increase annually. Plus, if you decide to sell, restrictions and fees can be imposed, along with the risk of depreciation. Here are some key points on timeshare resales:
One drawback to purchasing a timeshare resale is the risk of dealing with fraudulent sellers. Deal only with a reputable broker or company before making any purchase. If the property sounds too good to be true, take special precautions! Here is an article on scams and how to avoid them.
CNBC reports that the timeshare industry is valued at more than $10 billion. One study found that 85% of buyers regret their purchase, and many go to the resale market to escape ownership. According to Brian Rogers, owner of Timeshare Users Group, a consumer advocacy and timeshare resale website, “Our general rule of thumb is most timeshares sell for between 0% and 10% of their original retail purchase price. And the majority of that focus is unfortunately on the 0%.” Watch this.
Three thousand complaints were filed with the Better Business Bureau on two of the largest timeshare companies under Wyndham Destinations: Travel + Leisure and Hilton Grand Vacations.
Marriott’s Vacation Club
NerdWallet.com reports that ownership in Marriott’s vacation club starts at around $25,000. Maintenance fees include anticipated operating expenses, like repairs, insurance premiums, and real estate taxes. Points not used one year can be rolled over to the next, and borrowing points from the next year is allowed. There are family-oriented experiences through the Sheraton Vacation Club, which is just one of several clubs offered through Marriott.
Ask yourself if this is the kind of vacation that will benefit the entire family in the long run. Can you afford the costs year after year? This website answers questions specifically about the Marriott Vacation Club.
None of the Above
I, too, like saving money on a vacation, but I also like having the flexibility to vacation where I want during a time that fits my schedule. For that reason, I have never been interested in these. Although clubs and timeshares work for some people, I cannot recommend them. Consider working a loyalty program with a VRBO or Airbnb owner with a property in your family’s favorite destination. Ask if they will offer you discounts for your loyalty to their specific location each spring and summer.
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.
The article was originally published on The Christian Post on May 17, 2024.
Dear Chuck,
Someone I care about routinely overspends with the justification it will help “grow his business.” The effort to give an impression of success is causing him significant financial stress: a new car, a Swiss watch, expensive clothes, etc. How would you address the situation?
Stressed for Success
Dear Stressed for Success,
I grew up hearing the term that some folks live “high on the hog.” It means a person is living in affluence and luxury or trying to convey an appearance of wealth when they don’t really have it.
The source of this phrase dates back centuries and is said to come from the fact that the best cuts of meat on a pig come from the back and upper leg. The wealthy ate cuts from “high on the hog,” while the paupers ate belly pork and feet.
I have a friend who refers to people trying to impress others by buying luxury brands they cannot really afford as “$1,000/Week Millionaires.” In other words, they make a middle-income wage but want others to think they are rich. The problem is the financial stress that accompanies that lifestyle. It reminds me of a saying I grew up with:
“If your OUTgo exceeds your INcome, your UPkeep will be your DOWNfall.”
Advice to Escape the “Fake It Till You Make It” Lifestyle
While dressing for success may actually help the business grow in some professions, it is a poor way to manage money. If you ever study the financial habits of wealthy people, you will find that they often live with low-consumption lifestyles—think Warren Buffet. He lives in the first house he ever purchased yet is consistently considered one of the richest men in the world.
Solomon addressed the issue of posturing in Proverbs 13:7: “One person pretends to be rich, yet has nothing; another pretends to be poor, yet has great wealth” (ESV). In other words, don’t live “high on the hog.” Resist the temptation to appear rich. Instead, place your identity in Christ and the peace that comes from resting in His everlasting love, not the world’s temporary appearances. Humbly work, give, spend, save, and invest money with a purpose far greater than self-indulgence.
The Bible repeatedly addresses pride and the importance of keeping an eternal perspective. It’s easy to be deceived by the riches of this world. Jesus knew we would be tempted and said,
“Do not store up for yourselves treasures on earth,
where moths and vermin destroy, and where thieves break in and steal.
But store up for yourselves treasures in heaven, where moths and vermin do not destroy,
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
Our identity in God’s Kingdom is not printed on a business card. It’s not related to our income, education, accomplishments, or failures. It’s not based on the color of our skin, the street where we live, the clothes we wear, or the cars we drive. Our true identity is given in John 1:12–13: “Yet to all who did receive him, to those who believed in his name, he gave the right to become children of God—children born not of natural descent, nor of human decision or a husband’s will, but born of God” (NIV).
The things of this world pale in comparison to who we are in Christ. When we truly understand this, we’ll make decisions based on that identity, not the temporary one the world gives us.
So, to be specific, money does not give us our true identity. It doesn’t make me a rich man, a poor man, a successful man, or a bankrupt man.
My hope is that your friend will come to understand who he is and why he is here. Then he can pursue God’s purpose for his life and flourish without the stress of trying to impress others. Rick Barnes, The University of Tennessee basketball coach, tells his team that we have an audience of One. That One did not send Jesus to die a humiliating, tortuous death on a cross for us to live temporary lives of luxury. He so loved the world that He gave His only Son so that by faith, we could have eternal life. The way we live here and now is in preparation for our future in Heaven.
May our lives be dedicated to living and glorifying Christ in all that we do. Stewarding our talents and treasures wisely not only grants meaning to our days here on Earth but also prepares us for Heaven.
If credit card debt is holding your friend, or anyone else you know, 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 May 10, 2024.
Dear Chuck,
We believe in helping the poor, and we actively support numerous organizations along with our church’s benevolence program. Help us know how to educate those who think guaranteed basic income is a compassionate way to help the hurting.
Distressed over Guaranteed Income Programs
Dear Distressed over Guaranteed Income Programs,
You are right in being concerned. Several cities across the United States give low-income families a guaranteed basic income. I wrote about this trend in my book Seven Gray Swans. It is my opinion these efforts will ultimately create more of the problem that they are intended to solve.
Guaranteed Income Programs
An article at msn.com, “One State’s Considering Giving People $9,000,” reports that Stanford University’s Basic Income Lab counted more than 150 guaranteed income programs in America’s history. Most took place in the past five years.
Pilot programs are funded by the federal government (taxpayers), foundations, and state and local taxpayers. For one to three years, recipients will receive income with no strings attached. This is not a loan or wages for labor. The recipients have zero accountability for the use of funds. It amounts to a charitable gift to private citizens, so it is mislabeled as “income,” which is normally associated with compensation for a job or task.
On April 9th, Business Insider reported several active and proposed plans:
Taxes upon Taxes
Bill SB3462 would require a guaranteed income of $1,000 to Illinois residents, regardless of immigration status, for those who provide care for a child or other specified dependent, for those who recently gave birth or adopted a child, or for anyone enrolled in an educational or vocational program. Certain eligibility determinants must be met, with implementation after the 2027 calendar year.
Fox2Now reports that opponents fear that “the program could come with unintended consequences, like reducing work productivity or not directly addressing poverty within the state.” Funding will come through taxpayers. I should mention, “Illinois already levies the highest state and local tax rates in the nation, making increasing the state’s tax burden an untenable solution, particularly as hundreds of thousands of residents and major corporations flee the state each year.”
A Long List of Possible Problems
The concept of GBI (Guaranteed Basic Income) has been discussed for decades, but the cost and effectiveness of the programs are questioned. It is assumed that individuals know how to best spend the money: paying rent, buying groceries, or paying off debt. Yet after the pandemic fund fiasco, it does not take a PhD in economics to question that logic.
Are these people not needed in the workforce? Would they rather be paid and make a contribution to society? What funds are being robbed to finance guaranteed income programs? How much will our taxes increase? What are the long-term consequences? Does the government simply print more money or go into debt to be able to afford this program? Will people move to another state just to receive these benefits? Who qualifies, and why do they need a guaranteed income? What if my city already offers programs for needy individuals? Who sets the amount that is distributed, and will it be capped? On and on…
While some cities are providing GBI programs and conducting research funded by government and/or private foundations, others have scrapped them.
The Foundation for Government Accountability, FGA, cites several reasons why guaranteed or universal basic income is “a bad idea”:
The Bible Offers a Better Way
God made man to work—to be a creative, capable producer who can add value to any enterprise. In exchange for that labor, the needs of the worker will be supplied. This gives meaning to life and deep satisfaction for earned achievement. Encouraging work over welfare will raise incomes, rescue families from dependency, and create less government dependency than we have now.
“Now we command you, brothers, in the name of our Lord Jesus Christ, that you keep away from any brother who is walking in idleness and not in accord with the tradition that you received from us. For you yourselves know how you ought to imitate us, because we were not idle when we were with you, nor did we eat anyone’s bread without paying for it, but with toil and labor we worked night and day, that we might not be a burden to any of you. It was not because we do not have that right, but to give you in ourselves an example to imitate. For even when we were with you, we would give you this command: If anyone is not willing to work, let him not eat. For we hear that some among you walk in idleness, not busy at work, but busybodies. Now such persons we command and encourage in the Lord Jesus Christ to do their work quietly and to earn their own living.” (2 Thessalonians 3:6–12 ESV)
GBI may lift or temporarily reduce poverty for some individuals. However, giving money with few constraints can result in fraud and fund negative habits, perpetuating the poverty cycle. I view this as a “Robin Hood Plan” to tax the rich and distribute to the poor. We should not forget that Robin Hood is a work of fiction.
For more information, read these articles.
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 May 3, 2024.
Dear Chuck,
Before my grandfather was put on hospice care, he shared his estate plan with our family. He was a generous man, but we had no idea he had accumulated SO many assets. As a result, my wife and I will be inheriting a lot of money. At age 30, we have no experience managing this kind of money. We need some guidelines.
Young Heirs
Dear Young Heirs,
A young widow once sought advice from our ministry shortly after her husband’s passing. She received a million dollars from a life insurance policy intended to provide for her and the three young children. He had instructed her to wait one year before making any major financial decisions and to follow the advice they learned from Crown. Her question, only 90 days after his funeral, was whether buying a high-end RV was a good idea. She thought she and the children could use it to “create new memories” and that “her husband would likely approve.” We said her husband had given her great advice and suggested that she wait the full year. More on this later.
Your financial future is about to be altered dramatically, but by abiding in Christ and following His financial principles, you will be prepared to handle it with humility and wisdom. I admire you for taking steps before the receipt of funds and seeking outside counsel.
Be Faithful Stewards
You have been entrusted with much, but never forget that God is the owner. (Psalm 24:1)
“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)
Find Trusted Advisors
Take the time to find a wise, godly mentor, one who has managed wealth wisely, one who can address your questions and concerns and direct you to those with the expertise needed for your situation. You may need to assemble a team of professional advisors, including a Certified Public Accountant, an attorney, and a financial adviser.
Avoid Hasty Decisions
Any dramatic change in lifestyle can be accompanied by unexpected problems and the appearance of new “friends.” Do not make major purchases until you understand the tax and legal repercussions of your inheritance. Before signing any documents, know exactly what you are signing. It is far better to go slow, seek counsel, and avoid the temptation to splurge than to make costly mistakes.
Create Short- and Long-Term Goals
Carefully think through needs and wants. Pray together about how much to give, what you need to live on, and where and how you want to invest for the future. Do you have children or plan to? If so, set aside funds for things like braces, education, and weddings. Consider your family’s goals and impact in your community or around the world.
Define “Enough”
Set a budget to guard against the accumulation of things. This will enable you to set a realistic spending plan and protect you from frivolous spending, waste, and greed. A team of advisors will give you great insight, but educate yourself by doing as much research as possible. You will need to cautiously guard your heart and mind against the schemes of the devil. Keep your eyes on eternity.
Define Your Purpose
Opportunists may appear with investment deals that seem credible. Always, always seek the wisdom of the Lord, your spouse, and wise counsel. Connect your resources to God’s purpose for your life so you can make the greatest impact over the limited time you have here on earth.
Be Aware of Sudden Wealth Syndrome
The newly rich often suffer from stress that manifests itself in discomfort around old friends, guilt, paralysis in decision-making, fear, distrust, and isolation. Placing your identity in Christ and being involved in a Bible-believing church with a community of believers will minimize the possibility of this added stress.
Walk Humbly with Gratitude
Micah 6:8 says, “He has told you, O man, what is good; and what does the Lord require of you but to do justice, and to love kindness, and to walk humbly with your God.” Your inheritance is between you, your family, and God. Avoid displaying your wealth in ways that attract unwanted attention or distract you from serving Him. Remembering the price Christ paid for you and the responsibility He has entrusted to you will help you keep things in perspective.
The Rest of the RV Story
So the young widow who came to us for counsel bought a brand new, very large, very fancy, expensive RV shortly after we advised her to wait. She and the children took a cross-country summer vacation in it. It was stressful and not much fun. She discovered that it was expensive to operate, she felt unsafe driving it, and she preferred staying in a hotel rather than being cramped in the RV with young children. She sold it at a 30% loss, all before the one-year anniversary of her husband’s passing. To our knowledge, most of the money was gone within five years of receiving the insurance money.
Many wealthy families have set great examples for us to learn from. Here are a few highlighted by the National Christian Foundation that will inspire you. Remember, money doesn’t love you, so never fall in love with it.
Here Are Some Other Helpful Resources:
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 April 26, 2024.
Dear Chuck,
My husband is convinced that we should convert our entire 401k into gold. He’s concerned about several things, including our nation’s debt, the potential of a stock market bust, and now World War III. I am opposed and told him I would ask you to offer us your opinion.
Divided Retirees
Dear Divided Retirees,
Your dilemma is not that uncommon. It is true that our emotions tend to drive our investment decisions, so many are struggling with what to do in the current environment of fear and uncertainty. Gold is currently on a nice run upward.
We often get questions asking about a similar strategy of going all in, but the investment choices can range from cryptocurrency, real estate, oil, gold, or technology stocks to a new get-rich-quick scheme. I hope I can help the two of you find unity around a balanced approach.
A Balanced Approach
On one hand, the Bible instructs us that no one knows the future; therefore, I do not give investment advice. Run from any advisor who is overly confident in predicting investment returns. On the other hand, the Bible also reminds us to be prudent.
“A prudent person foresees danger and takes precautions. The simpleton goes blindly on and suffers the consequences.”
(Proverbs 27:12 NLT)
Because we serve a sovereign, wise, and loving God who has given us financial principles for our good, we can avoid the arrogance of thinking we know the future but also the foolishness that comes from being impulsive or the paralysis of indecisiveness that leaves us at the mercy of our circumstances. My advice, taken from Solomon’s wisdom, is to practice diversification.
Diversification Explained
King Solomon, contemplating an unknown and potentially disastrous future, wrote:
“Invest in seven ventures, yes, in eight; you do not know what disaster may come upon the land.”
(Ecclesiastes 11:2 NIV)
An investment, unlike savings, is money put at risk in assets with the intention of multiplying or growing it. When we allocate those funds into different asset classes, this is known as diversification. The strategy of owning a variety of assets and investments is intended to reduce exposure, risk, and volatility while increasing potential returns. Some assets will do well one year, while others perform poorly, and vice versa. Diversification aims to produce steady returns overall. Portfolios will vary depending on investors’ age and risk tolerance.
Diversification Practiced
Years ago, Austin Pryor wrote “How to Make the Right Investing Decisions.” The wisdom is still applicable today:
“The right investing decision is one that is prudent under the circumstances. Does it pass the “common sense” test? How much of your investing capital can you afford to lose and still have a realistic chance of meeting your financial goals? The investments that offer higher potential returns also carry greater risks of loss. The right portfolio for you is not always the one with the most profit potential.
“For example, it’s usually best not to have a majority of your investments in a single asset or security. For that reason, people who have large holdings of stock in the company they work for often sell some of it in order to diversify. If the stock doubles after they sell it, does that mean they did the “wrong” thing? No, they did the right thing. After all, the stock could have fallen dramatically as well as risen (ask the former employees of Enron.)
“What would a large loss have done to their retirement planning? The right investment step is the one that protects you in the event of life’s occasional worst-case scenarios. Generally, this moves you in the direction of increased diversification.”
In an article at Fidelity.com, investing is described as an “ongoing process that requires regular attention and adjustment.” Three steps are suggested to keep one’s investments working well:
Diversification Pros and Cons
According to the Wall Street Journal, portfolio diversification is a simple, cheap investment strategy that can save you a lot of stress.
Pros
Cons
Better Returns than Silver or Gold
Warren Buffett famously said, “Buying gold is going long on fear.” I have written an entire article on the decision to invest or diversify into gold.
Read the article, and decide if the two of you can agree on a plan to diversify or remain diversified in your 401K. Should you determine to rebalance your investments, seek the advice of a professional advisor who shares your worldview.
God graciously gave us His Word, which is filled with His financial wisdom. He sent His Spirit to counsel us and His Son as our Good Shepherd to lead and guide us. He, alone, is greater than man’s wisdom or expertise. Pray, and ask the Lord to guide you with His wisdom, which is of greater value than silver or gold. Ultimately, we must put our faith in the triune God and abide by His commands for our good and His glory.
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 April 19, 2024
