Finance, Goals, Money Management, Saving

Rebuilding toward a Brighter Future with Emergency Savings

By: Consumer Financial Protection Bureau (CFPB)

This year, for many Americans who experienced financial challenges as a result of the coronavirus pandemic, preparedness means taking small steps toward rebuilding and resilience.

If you are ready to think about your bigger financial picture for the first time in months, what’s the first step?

Consider – or start – your emergency saving fund. As you build it over time, it will help cover unexpected expenses that may come, whether that be a natural disaster, unexpected illness, car trouble, or other financial downfalls. It can become an important means for avoiding unwanted debt and help you more quickly realize your dreams. In short, it can become a strong foundation for your financial future.

There are different strategies to get your savings started. These strategies cover a range of situations, including if you have a limited ability to save or if your pay tends to fluctuate. It may be that you could use all of these strategies, but if you have a limited ability to save, managing your cash flow or putting away a portion of your tax refund are the easiest ways to get started.

Strategy #1: Create a savings habit

Building savings of any size is easier when you’re able to consistently put money away. It’s one of the fastest ways to see it grow. If you’re not in a regular practice of saving, there are a few key principles to creating and sticking to a savings habit:

  • Set a goal. Having a specific goal for your savings can help you stay motivated. Establishing your emergency fund may be that achievable goal that helps you stay on track, especially when you’re initially getting started. Use our savings planning tool to calculate how long it’ll take you to reach your goal, based on how much and how often you’re able to put money away.
  • Create a system for making consistent contributions. There are a number of different ways to save, and as you’ll read below, setting up automatic recurring transfers is often one of the easiest. It may also be that you put a specific amount of cash aside each day, week, or payday period. Aim to make it a specific amount, and if you can occasionally afford to do more, you’ll watch your savings grow even faster.
  • Regularly monitor your progress. Find a way to regularly check your savings. Whether it’s an automatic notification of your account balance or writing down a running total of your contributions, finding a way to watch your progress can offer gratification and encouragement to keep going.
  • Celebrate your successes. If you’re sticking with your savings habit, don’t miss the opportunity to recognize what you’ve accomplished. Find a few ways that you can treat yourself, and if you’ve reached your goal, set your next one.

Who is this helpful for: Anyone, but particularly those with consistent income. If you know you have a regular paycheck or money consistently coming in, you can create a habit to put some of that money towards an emergency savings fund.

Strategy #2: Manage your cash flow

Your cash flow is essentially the timing of when your money is coming in (your income) and going out (your expenses and spending). If the timing is off, you can find yourself running short at the end of the week or month, but if you’re actively tracking it, you’ll start to see opportunities to adjust your spending and savings.

For example, you may be able to work with your creditors (like your landlord, utility companies, or credit card companies) to adjust the due dates for your bills, or you can use the weeks when you have more money available to move a little extra into savings.

Who is this helpful for: Anyone. This is one important first step in managing your money, regardless of whether you’re living paycheck to paycheck or have a tendency to spend more than your budget allows.

Strategy #3: Take advantage of one-time opportunities to save

There may also be certain times during the year when you get an influx of money. For many Americans, a tax refund can be one of the largest checks they receive all year. There may be other times of the year, like a holiday or birthday, that you receive a cash gift.

While it’s tempting to spend it, saving all or a portion of that money could help you quickly set up your emergency fund.

Who is this helpful for: Anyone but particularly those with irregular income. If you receive a large check from a tax refund or for some other reason, it’s always good to consider putting all or a portion of it away into savings.

Strategy #4: Make your saving automatic

Saving automatically is one of the easiest ways to make your savings consistent so you start to see it build over time. One common way to do this is to set up recurring transfers through your bank or credit union so money is moved automatically from your checking account to your savings account. You get to decide how much and how often, but once you have it set up, you’ll be making consistent contributions to your savings.

It’s a good idea to be mindful of your balances, however, so you don’t incur overdraft fees if there’s not enough money in your checking account at the time of the automatic transaction. To help you stay mindful, consider setting up automatic notifications or calendar reminders to check your balance.

Who is this helpful for: Anyone, but particularly those with consistent income. Again, you can determine how much and how often to have money transferred between accounts, but you want to make sure you have money coming in. If your situation changes or your income changes, you can always adjust it.

Strategy #5: Save through work

Another way to save automatically is through your employer. In addition to employer-based contributions for retirement, you may have an option to split your paycheck between your checking and savings accounts. If you receive your paycheck through direct deposit, check with your employer to see if it’s possible to divide it between two accounts. If you’re tempted to spend your paycheck when you get it, this is an easy way to put money aside without having to think twice.

Who is this helpful for: Those with consistent income. Again, if you’re getting a check from your employer on a regular basis, pay yourself first by putting a portion of it automatically into savings.

It might seem impossible to save enough to get you and your family through something like a furlough, job loss, or reduced hours. But any amount can make a difference and it’s never too late to start. The more you can save, the better you can weather the worst, and the faster you can recover when it is over.

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Budgeting, Finance, Goals, Money Management, Personal Goals

Ask Chuck: 5 Steps to Improve Your Finances This New Year

By: Crown Financial Ministries

Dear Chuck,

Covid set me back financially this year. As a result, we’re having a very frugal Christmas. Can you offer any tips on setting financial goals for next year? I want to be better prepared for what may lie ahead!

Getting Ready for 2021

Dear Getting Ready, 

I am so sorry for the setbacks you have suffered during this pandemic. Millions of people just like you are looking forward to the new year with great anticipation and are hoping to make improvements in our finances. 

New Year, New You

January is typically a time of renewal. For many of us, that includes diets, health and fitness goals, relationships, or financial plans. However, after what we have experienced in 2020, our highest need will be for renewed hope. Watching the news, scrolling through social media, and listening to certain friends or family members will not fulfill that need. Hope gets us through the tough seasons and gives us direction in times of uncertainty. Thankfully, we have the ultimate source of hope: Jesus. We need to learn to rely on Him in order to cultivate that hope. Here is a quick outline of the steps for 2021.

Step One: Make a Vow. Dedicate this year to the Lord and seek his guidance in all decision-making.  

“Commit your work to the Lord, and your plans will be established.” (Proverbs 16:3 ESV)

Step Two: Make a Plan. Plan and encourage one another daily. 

Two are better than one because they have a good reward for their toil.” (Ecclesiastes 4:9 ESV)

Pray for self-control and the willingness to stay focused throughout the coming year. 

But the fruit of the Spirit is love, joy, peace, patience, kindness, goodness, faithfulness, gentleness, self-control; against such things, there is no law.” (Galatians 5:22-23 ESV)

Step Three: Make a Target. Defining your financial goals gives you something to aim for. 

  • Write them out and place them where you are reminded daily. 
  • Determine to spend less than you earn. 
  • Have monthly money dates to analyze your progress. 
  • Assign roles to each other for defense and offense. Be “guard dogs” to protect your earnings so that you can steward wisely. I guarantee you that the “thief” is on the prowl. He comes ONLY to steal, kill, and destroy (John 10:10a ESV). He will rob you of progress unless you are very intentional in implementing your plan.

Step Four: Make a Budget. Gather your financial records, track your expenses, and create a budget. Make giving your first priority. Establish an emergency account. This will enable you to cover unexpected expenses so that you can avoid debt. Start with $1,000 and then aim for an amount that covers 3-6 months of your overhead expenses. Analyze lifestyle decisions. Some short-term ones to consider include replacing a vehicle, repairs, maintenance, vacation, gifts, etc. Long-term decisions may include a downpayment for a home, education, retirement, etc. Keep your tax liability in mind and plan accordingly.

Step Five: Review Your Insurance. This is a good time to review your insurance coverage: Homeowners or Renters/Auto/Liability, Disability, Life, and Long-Term Care. Not only should you determine if you have coverage but also if you are getting the right price for what you have in place.

Don’t Overlook These 

Update your will. Today this includes creating a Living Will or Trust, Health Declarations, Power of Attorney documents, and password files. 

Pick a debt management plan and pay off all credit cards! Christian Credit Counselors are trusted partners of Crown and have helped hundreds of thousands of families eliminate their credit card debt. Once free of consumer debt, you can begin investing

Depending on your age, put a reminder on your calendar to enroll in Medicare before your 65th birthday. Determine when you should begin to draw social security. 

Check your credit reports from Equifax, TransUnion, and Experian. This is important with the number of security breaches. Check to make sure information is correct and report any inaccuracies. Contact them to freeze your credit if necessary. This will prevent thieves from applying and obtaining credit in your name. You can unfreeze as needed. 

Know your credit score. A free report is available at www.annualcreditreport.com. Some credit cards update your FICO score for free each month. 

Calculate your net worth (assets minus liabilities). Aim for a positive number! 

Get Wisdom! 

There has never been an easier time to attain a Biblical financial education. Books, online studies, and insights from places like Sound Mind Investing, Generous Giving, and Crown’s online library of courses make it convenient and practical to learn year-round.

Most importantly, read the Word of God. You will gain wisdom, discernment, and hope that is more advantageous than anything the world offers. 

God has called us to himself that we might shine light into the darkness and bring Him glory. At Crown, we provide resources that will renew your hope through Biblical truths about the Father and the gifts He has entrusted to you.  

Merry Frugal Christmas 

It has been our experience that a frugal Christmas is often the best Christmas. The focus shifts away from the number of boxes under the tree or the expense of the season to the awe and wonder of celebrating the incarnation of Christ; Emmanuel, God with us. 

I wish you and yours a very Merry Christmas and a blessed New Year. We are here to help you on your journey in 2021.

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Budgeting, Economy, Finance, Money Management, National Debt, Saving

Ask Chuck: Practical Advice During the COVID-19 Crisis

By: Crown Financial Ministries

Dear Chuck,

Many of the young people in my Bible Study are frightened of the Coronavirus and the threat to their families. I understand their fear. But, as an older American, I’m also concerned about their economic well-being in the aftermath of this crisis. What kind of financial advice can I offer them?

Sheltered in The Storm

Dear Sheltered in the Storm, 

We have two crises happening now and you have properly identified the third one. First, the virus has created a very real health crisis. Second, the shutdown of the economy has created a very present economic crisis and third, the government bailout will put us at risk of a future debt crisis and threat to the global economy. 

As Thomas Sowell said about our current challenges, “We do not have good choices, we simply have trade-offs.” 

Living on the Edge

The Coronavirus has revealed the financial unpreparedness of millions of citizens. Aaron Zitner, at the Wall Street Journal, reports: “Some 15% of Americans have used, or plan to use, either short-term loans or credit cards that they don’t know they can repay in order to buy emergency goods to deal with the outbreak, a survey by NORC at the University of Chicago found.” He says others rely on savings or plan to divert money set aside for other things.

It is my hope that many Americans have been better prepared for this event after making financial adjustments following the Great Recession, which started in 2008, by paying off debt, increasing savings, and living within their means. Either way, here are some practical and spiritual insights for the young people in your Bible study. 

Establish Essentials as Priority

Everyone’s situation is different. Let’s help the young people understand how to deal with the current economic crisis, and we will deal with the long-term consequences of the bailout later. Here’s how I would attempt to help those in your Bible study when meeting one-on-one. 

Regardless of what’s happening in the world, everyone needs food and shelter. Pay the bills that provide food, home, and necessary utilities. This is a time to sacrifice wants to provide for needs.

Most middle-income families will receive some sort of government assistance money. Establish or grow your emergency savings account. Always keep it resupplied as you are able. 

With job cuts right now, childcare and transportation costs may drop significantly. If possible, save that money in an emergency fund for future needs. Even a small amount in a savings account will reduce financial stress and grant margin in your life. Exercising self-control (a fruit of the Spirit) will boost your confidence and grant hope.

Face your bills with courage and hope. Pray over them and ask God to work in miraculous ways knowing He is able to do far more than you can imagine. Avoid fear and anxiety with this verse:

“Rejoice in hope, be patient in tribulation, be constant in prayer.” (Romans 12:12 ESV)

Practical Steps 

  • Limit social media to avoid online shopping. Don’t give in to your (or your children’s) wants right now. Lead by example in love.
  • Student loans: this may be the time to refinance.
  • Debt: negotiate with lenders to reduce your interest rate or balance. Seek to eliminate penalties. Demonstrate your intent to pay. Avoid maxing out credit cards. Consider balance transfers but read all the fine print. Set a goal to eliminate the debt and the method to get there (I recommend the snowball or avalanche methods). Contact Christian Credit Counselors if you are falling behind. 
  • Insurance: assess coverage and negotiate the cost. Some coverages may not be a necessity or deductibles may need to be raised to lower premium costs. 
  • Make a will. Don’t procrastinate.
  • Save: deposit something weekly, or every other week, to develop the habit. Get a fireproof, waterproof safe to keep some cash at home at all times. I recommend one month of living expenses. 
  • Wisely use your government check if you have an emergency savings account: give a portion, pay current bills, and pay down debt.
  • Income tax filing has been postponed until July 15th. If you owe money, set that money aside in a separate account.
  • Ask for help. Trade skills: haircuts for food, tutoring for computer help, etc.
  • Sell what you don’t need. Facebook Marketplace and Craigslist make it easy. Do it safely by meeting buyers in a grocery or government parking lot during daylight hours.
  • Look for opportunities. This may be the best time to start a business or take on greater responsibility at your current place of employment. Learn new skills. Take advantage of online classes. Educate yourself by reading, listening to books, watching Ted Talks, and documentaries.
  • Be generous. There are many suffering at this time. Be exceptionally generous while also being wise and discerning.

Hope for Troubling Times 

Those who are frightened, worried, angry, or frustrated must remember they are not alone. God has not left us on our own. In fact, idols are being revealed and priorities analyzed. It’s time to reorient our lives.

We all know we should live one day at a time. That requires taking one step at a time. But, what if fear overwhelms you and you don’t know what steps to take?

Imagine a sailboat drifting in the center of a large lake with no apparent destination in sight. It rocks back and forth, back and forth, unable to move forward. Suddenly, the wind begins to blow. The sails of the boat filled with air. The sailor takes action and strategically directs the boat to the desired destination. The boat glides effortlessly while the sailor works with the wind to safely arrive to shore.

The Holy Spirit is the wind. He fills our sails enabling us to know when and how to move forward. Filled with hope, we develop perspective and work toward our destination.

“May the God of hope fill you with all joy and peace in believing, so that by the power of the Holy Spirit you may abound in hope.” (Romans 15:13 ESV) 

Not Our First Rodeo

Like you, I have lived long enough to have experienced a number of crises in my life. As my friend said, “this is not my first rodeo, but this is the first time I have ever ridden this horse!” We are living through something the world has never experienced. It’s an opportunity to trust God with all our heart. May He fill you and me with all hope so we can proclaim His goodness. 

 “…we rejoice in our sufferings, knowing that suffering produces endurance, and endurance produces character, and character produces hope, and hope does not put us to shame, because God’s love has been poured into our hearts through the Holy Spirit who has been given to us.” (Romans 5:3-5 ESV)

For anyone struggling with credit card debt, get in touch with our partners at Christian Credit Counselors. They can advocate for you, helping lower payments, and organize your debt. Start your free debt analysis today.

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Credit Cards, Credit Counseling, Debt, Debt Consolidation, Debt Settlement, Finance, Loans, Money Management, Mortgage, Student Loans

Protect Yourself Financially from the Impact of COVID-19

By: Consumer Financial Protection Bureau (CFPB)

Steps to take if you have trouble paying your bills or meeting other financial obligations

If you have trouble paying your bills/loans or paying on time, there may be a number of options to help, especially if you reach out early to your lenders or creditors.

Contact your lenders, loan servicers, and other creditors

If you’re not able to pay your bills on time check their websites, to see if they have information that can help you.

The CFPB and other financial regulators have encouraged financial institutions to work with their customers to meet their community needs.

If you can’t make a payment now, need more time, or want to discuss payment options, contact your lenders and servicers to let them know about your situation. Being behind on your payments can have a lasting impact on your credit.

Credit card companies and lenders may be able to offer you a number of options to help you. This could include waiving certain fees like ATM, overdrafts, and late fees, as well as allowing you to delay, adjust, or skip some payments.

When contacting your lenders, be prepared to explain:

  • Your financial and employment situation
  • How much you can afford to pay
  • When you’re likely to be able to restart regular payments
  • Be prepared to discuss your income, expenses, and assets

Work with housing and credit counselors to understand your options

These trained professionals provide advice for little or no cost, and they will work with you to discuss your situation, evaluate options, and even help you negotiate with your lenders and servicers.

Warning: If you’re considering working with a debt settlement company to address your debts, be skeptical of any company that promises to do it for an upfront fee.

Trouble paying your mortgage?

If you can’t pay your mortgage, or can only pay a portion, contact your mortgage servicer.

It may take a while to get a loan servicer on the phone. Loan servicers are experiencing a high call volume and may also be impacted by the pandemic.

Visit our blog on mortgage relief options for in-depth content to help you understand your forbearance options and avoid foreclosure in light of the coronavirus and the recently passed Coronavirus Aid, Relief, and Economic Security (CARES) Act.

If you are renting from an owner who has a federally backed mortgage, the CARES Act provides for a suspension or moratorium on evictions. Read more in our renter section of the mortgage relief blog.

Trouble paying your student loans?

If you have student loans, you have options.

If your loan is held by the federal government, your loan payments are postponed with no interest until September 30, 2020.

For other kinds of student loans (such as a federal student loan held by a commercial lender or the institution you attend, or a private student loan held by a bank, credit union, school, or other private entity) contact your student loan servicer to find out more about your options.

Read our FAQs to learn more about what you can do.

Trouble paying your credit cards?

If you’re unable to pay your credit cards, talk with your credit card company and let them know that you cannot make a payment. You may get relief.

You may also want to work with a credit counselor. Reputable credit counseling organizations are generally non-profit organizations that can advise you on your money and debts, and help you with a budget. Some may also help you negotiate with creditors. There are specific questions to ask to help you find a credit counseling organization to work with.

Trouble paying your auto loan?

Your lender may have options that will help. Our tips include changing the date of your payment, requesting a payment plan, and asking for a payment extension

How to work with your bank or credit union

With many of us staying home to help flatten the coronavirus curve, online banking allows you to handle your finances from the comfort of home. Here are some tips for people who are new to online or mobile banking.

Generally, all bank deposits up to $250,000 are insured by the Federal Deposit Insurance Corporation. Deposits at all federal credit unions, and the vast majority of state-chartered credit unions, are also insured up to $250,000 by the National Credit Union Share Insurance Fund (NCUSIF).

How to work with debt collectors

If you currently have a debt in collections, you can work with collectors to identify a realistic repayment plan.

The Bureau offers a number of resources for contacting and negotiating with debt collection companies, especially as we deal with the impact of the coronavirus.

What to do if you lose your income

State and local governments vary in the programs and offerings to help those financially impacted by the coronavirus.

You can look to your state’s unemployment policies to identify current options for benefits. The recently passed CARES Act allows states to extend benefits to self-employed and gig workers, and to provide an extra $600 per week as well as an additional 13 weeks of benefits. Your state’s public health office may also have information.

Older adults may be impacted by the coronavirus and quarantine procedures in different ways than the general public. There may be government benefits available to older adults who need financial help. Visit benefitscheckup.org for more information and to see if you qualify for any state or local assistance.

Be aware of potential scam attempts

Scammers look for opportunities to take advantage of the vulnerable, especially during times of emergencies or natural disasters. Be cautious of emails, texts, or social media posts that may be selling fake products or information about emerging coronavirus cases.

Click here for more information on scams specific to the coronavirus.

The Federal Trade Commission has tips to protect yourself from possible coronavirus-related scams. The FTC and the Food and Drug Administration have also cautioned consumers to be on the look-out for sellers of unapproved and misbranded products, claiming they can treat or prevent coronavirus.

Learn more about how to prevent, recognize, and report fraud and scams.

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Credit Score, Debt, Finance, Money Management

How Credit Score Can Affect Relationships

By NACCC

Personal finances are rarely discussed but often the biggest strain on a couple. Even in early courtships, a newly dating couple may fret over who will pay for dinner, or have different tastes in entertainment based on affordability. Topics such as careers, hobbies, and interests can easily spill into money talk. Money is just as important as other relationship issues such as family and personal interests.

Whether you’re spending your Valentine’s Day with a long-term partner or having a first date, a conversation about credit scores can provide valuable insight to be considered for relationship planning. Credit scores are always assigned to an individual, never a couple. But joint accounts can have an effect on those individual credit scores.

Credit Score Disparities Can Predict Future Relationship Problems

According to a report by the Federal Reserve, couples with similar credit scores are more likely to stay together, while those with a larger disparity are more likely to separate. Differing spending habits, opposing views on debt and other financial problems can cause stress on the relationship that those with similar credit scores are less likely to experience.

Examples of difficulties these couples may face could include:

  • Lingering debt from the past
  • Poor spending habits
  • Disparities in household financial contributions
  • Difficulty obtaining a mortgage or other important loan together
  • Hiding or avoiding spending, debt or other financial issues
  • Bills and expenses
  • General financial stress

Of course, we aren’t suggesting to dump your partner at the slightest score difference. But it’s important to communicate with each other about personal finance and plan appropriately. If a partner has a low credit score (or no credit), what steps can be taken to improve the score for the long-term? Relationships are about working together, and a partner with a higher score may be able to provide advice and suggestions to a partner with a lower score.

It Takes Trust, but a Low Score isn’t the End

If there is a large disparity in credit scores, both partners should evaluate whether they are prepared and willing to provide the support, communication, and shared responsibility required to fix the credit problem.

Committed couples can move forward with confidence by working together to build both of their credit scores. Two quick strategies for building credit include:

  • Having the partner with the higher credit score add the partner with the lower credit score as an authorized user on a credit card (this method requires a lot of trust!)
    • Remember, married couples do not share a credit score, but behavior in joint accounts can affect both partners’ scores.
  • Using a secured credit card to build credit

If one or both partners have debt, they should work together to develop a spending plan that leaves additional income to pay off the debt. For those in debt, paying off the debt is the best way to improve a credit score.

If one or both partners are struggling in their career, they can come up with a plan to support each other while working towards more prosperous career goals. Couples can turn a weak credit score into a strength by using it to incorporate accountability, good habits, and stronger trust in their relationship.

Conversation is Key

Overall, couples need to communicate about money to maintain a successful relationship. Just like with personal finance issues, avoiding the matter doesn’t solve problems or build wealth. Couples should discuss:

  • Existing debt
  • Joint accounts
  • Credit accounts
  • Spending habits (both good and bad)
  • Major purchases
  • Bills and household expenses

This leads couples towards better financial planning and spending habits as they move forward.

Couples can start with small discussions in the early stages, and then move on to larger discussions later. For example, a couple in the beginning stages of a relationship could discuss the cost of dinner, or compare the costs of phone, cable or utility bills. They may talk about debt or salary, but not go into the specifics or the numbers. Couples in more committed stages can begin more difficult conversations about existing debt, bank accounts, and long-term planning.

If a partner is unwilling to discuss finances or is quiet on the subject, the other partner can start small by mentioning their own personal finances and ask for thoughts and opinions.

At times, there will be misunderstandings and frustrations. Remember that no two people share the same financial education. Financial knowledge that may seem simple and obvious to one partner may be an entirely new concept to the other. Use money talk as a learning opportunity and a habit to build on stronger communication skills.

Everyone has different financial paths. When two paths join, they decide where to go next, together.

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Budgeting, Credit Cards, Finance, Money Management

Ask Chuck: Breaking the Cycle of Overspending

By: Chuck Bentley, Crown Financial Ministries

Dear Chuck,

My husband is tired of my overspending. I struggle living on the budget he’s made because I make quick purchases rather than planning ahead. Then I feel guilty defending my decisions when the bills arrive. How can I get out of this cycle?

Spontaneous Spender

Dear Spontaneous, 

First, be thankful you have a husband who cares enough to make a budget. If only more people would do so! Next, let’s deal with the cause for the spontaneous spending so you can escape the cycle you are in.

Money and Emotions 

Money affects our emotions and our emotions affect our use of money. Experts understand this and market to your emotions – merchants from grocery stores, furniture marts, car dealerships, and online advertisers. They all target your feelings toward shopping. Learning to separate your identity from the things you buy will keep you from spending money to feel good. The term “retail therapy” implies that some people spend money to bolster their mood. It is a very real urge. I have experienced it myself and watched others do it as well. 

I had a friend who was competing for a big promotion in his company. Over multiple interviews and several months of consideration of all candidates, management selected someone else over my friend. The very day that he learned he was not selected, he went out and purchased a brand new, expensive car. The problem was he could not afford the car without the promotion but he had been dreaming of it for so long that he bought it anyway. In his own words, he told me that it was “retail therapy”.  

God’s Word makes it clear that we enter the world naked and we leave naked…and naked has no pockets. Since we can’t take any purchases with us when we die, we should become emotionally neutral towards our spending choices.

Avoid Spending Triggers

Certain emotional triggers can cause people to spend money. A few of the most common include:

  • Alcohol or hunger: lower inhibitions cause people to buy and regret later.
  • Anger or sorrow: spend to gain control, feel happy, find short-term gratification.
  • Loneliness: spending medicates briefly. But, materialism and loneliness are a self-reinforcing cycle.
  • Insecurity: try to keep up with the Joneses.
  • Self-focused: raises or tax refunds justify splurges or rewards.
  • Overwhelmed: spend on fast food, maid services, laundry, yard work.
  • Fear: causes hoarding or poor investments.
  • Guilt: spending to alleviate the pain inflicted on others.

Can you relate to any of these?

People justify spending when they are emotional because spending momentarily feels good. But, decisions based on feelings often create financial problems that further complicate life.

We cannot buy happiness. Spending and accumulating more money may not increase our well-being and can actually have a negative effect. But, wisely managing money, as a steward of God, is fulfilling.

Solutions to Your Urges and Splurges 

  • Create a budget and set goals.
  • Don’t go where you know you might spend money.
  • Resolve to make no impulsive purchases. Wait 24 hours if tempted.
  • Limit exposure to advertising and social media.
  • Delete or unsubscribe from sites where you waste time and face temptation.
  • Replace unnecessary time on the computer or cell phone with productive use of time.
  • Exercise or spend time with friends for lasting comfort.
  • Be accountable to your spouse or mentor.
  • Learn basic financial principles.
  • Avoid making big decisions when extremely emotional.

If you have true needs, take them before the Lord. The Apostle Paul teaches:

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)

Check Your Emotions

When did you last thank God for who He is and what He has done for you? Are you seeking satisfaction from people or things rather than the only One who can truly satisfy?

Thankfulness delays our need for instant gratification. Meditating on what God has provided can calm our emotions and prevent budget-wrecking purchases. Couple that with generosity and a heart of compassion, and our contentment can soar, bringing positive thoughts to light. 

Set your mind on things above, not on things that are on the earth. (Colossians 3:2 ESV)

In so doing, you will find that your heart becomes satisfied with the riches of Christ that is of much greater value than the things of this world.

A Final Tip

Consider some of Crown’s resources to help you and your husband get on the same page. My wife and I wrote a book together on this very topic. You can find it here and access numerous free resources on the Crown website. Thanks again for writing.

​Read More
Economy, Finance, Money Management, Personal Goals

Ask Chuck: The Secret to a Secure Future

By: Chuck Bentley, Crown Financial Ministries

Dear Chuck, 

I am burdened with the terrible things I hear in the news. I’ve become anxious and wake up worried in the middle of the night. I’m especially struggling with the fear of not having enough money in the future. I grew up in poverty and have worked hard to avoid that for my family. How can I feel more secure about the future in times like these? 

Fearful

Dear Fearful,

Thank you for your honest confession. Many live in fear of their financial future but deny it and continue to silently struggle. My father grew up in poverty as well. Like you, he worked hard to provide for his family. We lived in a government housing project early in my life. But Dad worked long hours, went to college in the evenings, became a CPA, and made many sacrifices in an attempt to give us a secure future.

Statistics are grim and that breeds fear. Since nearly 40 million households have no retirement savings, The Employee Benefit Research Institute estimates a nationwide retirement savings deficit of $4.3 trillion. Society has instilled in us the idea that we need to make a financial plan before it’s “too late.”

People worry about job security and whether they can pay the bills. As Larry Burkett used to say, “the ‘what if’s’ will rob us of all joy.” What if I can’t afford the cost of medical services, assisted living, or help my children with a college education? What if negative interest rates happen and hurt my portfolios? What if the stock market crashes? These types of negative scenarios are endless.

Refocus your Security

Many Christians literally rob God and sometimes their families as they live in the cycle of fear and worry. The growing mania for buffering ourselves against any possible future event is straight from the deceiver. Jesus told us to build our house on rock (Himself) and not sand (the world).  

Everyone then who hears these words of mine and does them will be like a wise man who built his house on the rock.  And the rain fell, and the floods came, and the winds blew and beat on that house, but it did not fall, because it had been founded on the rock.  And everyone who hears these words of mine and does not do them will be like a foolish man who built his house on the sand. And the rain fell, and the floods came, and the winds blew and beat against that house, and it fell, and great was the fall of it. (Matthew 7:24-27 ESV)

This parable points out the futility of placing our confidence in money. When our sandcastle of affluence comes tumbling down – and it will – our faith had better be founded in the person of Jesus Christ – not in material security. 

Symptoms of Fear of the Future

  • Self-preoccupation
  • Anxiety and sleep issues
  • Unhealthy frugality
  • Financial infidelity
  • Hoarding
  • Marital stress
  • Bitterness
  • Separation from God
  • Lack of Contentment 

 If you suffer any of these symptoms, I must ask a simple question: Do you really trust God? Circumstances are uncertain for all of us. God designed it this way so we would learn to become dependent upon Him. 

Breaking the Fear and Worry Cycle

Our thoughts impact emotions. We must choose to surrender our fear of the future each day. Otherwise, unrealistic expectations or “what-if” scenarios will cause you (or me) chronic anxiety. God is trustworthy and loves us beyond comprehension. He promises to work all things together for good for those who love Him and are called according to His purposes. (Romans 8:28)

  • List every resource you have and transfer ownership to God, recognizing you are simply a steward.
  • Align your mind and heart with God, the owner of everything.
  • Embrace God’s counsel from His Word for each decision.
  • Use His instead of my to bring Christ’s Lordship into the details of your life.

In Hebrews, we read of those who surrendered their will and acted on faith in God. They were rewarded by Him – but not the world. 

  • Now faith is the assurance of things hoped for, the conviction of things not seen. For by it the people of old received their commendation.  (Hebrews 11:1-2 ESV)
  • And without faith it is impossible to please him, for whoever would draw near to God must believe that he exists and that he rewards those who seek him.  (Hebrews 11:6 ESV)
  •  And all these, though commended through their faith, did not receive what was promised, since God had provided something better for us, that apart from us they should not be made perfect. (Hebrews 11:39-40 ESV)

So, regardless of how well you’ve planned for the future, you must trust God with it all one day at a time.  

How to Trust God

  • Seek God’s direction for your life – not someone else’s.
  • Make a conscious act of trusting God. Make a material commitment to express your faith by becoming more generous.
  • Be patient and develop an eternal perspective.
  • Pray diligently for faith to trust Him more.

Practical Steps

  • Set realistic goals
  • Release the past
  • Give to God first and increase your generosity
  • Save more, spend less
  • Establish an emergency fund – but cap it to avoid hoarding
  • Pay off debt
  • Write a will
  • Plug into a church
  • Seek Godly mentors

I pray that these simple steps are helpful to you and that they help to put your worries at ease. But most of all, I pray that as you grow to trust God more and more every day, you become deeply assured of the security that you have in Him. Trust Him to be your provider and protector through life’s uncertainties.  God is faithful even if all the money is lost. Ultimately, your faith (confident trust in Him) will prove of greater worth than silver or gold.

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Consumer, Finance, Home, House

Ask Chuck: Is Low Price Better Than High Quality?

By: Chuck Bentley, Crown Financial Ministries

Dear Chuck,

I like nice, quality things. My husband prefers lower prices. My perspective is that buying quality is better in the long run. Is there a right or wrong way to look at it? We are stuck on which refrigerator to buy to replace the old one we have now.

Needing A Compromise

Dear Compromise,

Let’s reframe the choices you have from just two to three. You could get a quality refrigerator, you could get a low priced refrigerator, or you could get the best value refrigerator. The final choice is the best one but getting to the compromise will be the challenge.

My wife and I both like nice things…at a good price. But it can take months to find a deal! My wife, Ann, will research an item to death, whereas I’m ready to buy when I know an item is right for us. The key is learning to work together by honoring each other’s personality and opinions. Both of you can be equally right, and wise decisions can be made through prayer and honest, respectful communication.

There is a time to spend more for quality and longevity. There’s also a time where the extra expense doesn’t matter. However, some people do not understand the difference. Rather than using common sense and trusting the Lord, some people are caught up in the need for luxury.

In The Psychology Behind Why People Buy Luxury Goods, Vanessa Page writes:

People buy luxury goods for a variety of reasons, all of which are related to the strong emotions that we attach to expensive material goods. Whether we are financially comfortable or not, we will often purchase luxury items to show off to or gain acceptance from others and to reward ourselves for an accomplishment.

A good steward has his/her identity in Christ and does not ‘need’ luxury. Quality is different. Here are a few basic things to remember when shopping for the best value: a quality product at a great price. 

Consider the length of ownership to determine what should be quality and what is non-essential. A refrigerator lasts a long time so quality is important. You need to know for certain that it will protect the food you buy for your family. A cat bed, however, is disposable and does not need to be the best on the market.

When to Spend More for Quality

  • Energy efficiency
  • Longer life of the product
  • Dependability
  • Maintenance free

When to Be Frugal

  • Disposable items
  • No difference in quality
  • Functionality is equal
  • Less expensive won’t affect safety or health

Tips on Getting the Best Value

Know what you need to best serve your family. It’s easy to get overwhelmed and talked into spending more money than is necessary because there are so many bells and whistles on appliances today that have little meaningful purpose.

If you shop Craigslist and Facebook Marketplace, remember, not all sellers can be trusted. In addition to having no warranty or guarantee that the product will work, you may have to move it yourself. And, when replacing appliances, that means moving out the old ones as well.

Check out sales over holiday weekends and check for online sales. Avoid new models and take advantage of the old stock that retailers want to clear out. The end of the month is a great time to negotiate a purchase because employees working on commission are eager to make more sales. Always ask to see any ‘scratch and dent’ items. They are often significantly discounted for appearances only. 

Ask if there are delivery and installation charges and any fees with hauling away the old appliance. I ignore extended warranties and always research reviews and consumer reports.

Steward Time, Money, and Relationships

The time you put into researching the purchase of a higher costing item can be saved over the life of a product. Do your work upfront. Time is money. Read reviews. Talk to salesmen, people you know, anyone willing and trustworthy to educate you on the purchase.

Pray for discernment and for leading to the right item. Needs and wants should be vetted. God often grants us the desires of our heart when he knows our desire is to use His money wisely. Let your husband know that you are willing to work to find the best value refrigerator and ask for his support.

Seek harmony and peace in your marriage. Respect your spouse’s opinion. Be quick to listen and slow to speak. In humility, present your case with proven research while honoring your husband. If he believes his way is best, then submit in love. Sometimes we have to sacrifice our desires for the good of the marriage. Your relationship is more important than an appliance.

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 3:14-15 ESV)

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Budgeting, Christian Credit Counselors, College Debt, Consumer, Coupons, Credit Cards, Credit Counseling, Credit Score, Debit & Your Credit Score, Debt, Debt Consolidation, Finance, Freebie, Holiday Tips, Kids & Money, Money Management

10 Back-To-School Shopping Tips that Save Money

To your kids, shopping for new clothes, gear, and school supplies may be the only good thing about going back to school, but that doesn’t mean you have to spend a fortune every year. Here are 10 great ideas for how to get everything they need and save a few bucks doing it.

Hold off buying trendier gear

Kids may love a certain lunch box or pencil case they find in July, but once they start school and see that their friends are all using another kind, they’ll beg you to upgrade them, and that only results in wasted cash.

Shop end-of-summer sales

You know as well as we do that kids wear short sleeve polo shirts all year long, so hit the big summer sales and snap up discounted duds that can be worn well into fall.

Stick to the list

The teacher’s supply list at the start of a new school year is daunting enough so don’t waste time and money on unlisted items. Extra supplies, while they may be cute, will probably never get used and just leave your pockets empty.

Head to the supermarket for basic supplies

Check weekly circulars for great deals on pens and loose-leaf paper, and get your weekly grocery shopping done at the same time. Bonus: buying everything in one place will save time and gas money!

Let the kids raid your cabinets

The kids can select home-office supplies and then personalize them in unique ways. For example, decorate inexpensive plain, white binders with digital photos by creating a collage and inserting the page into the plastic outer cover.

Host a back-to-school swap

Round up a couple of other moms with kids the same gender as yours but different ages, and host an annual clothes swap. Trade toys and books, too! You’ll save a bundle.

Plan lunch

When you’re in charge of what your child eats, you’ll save yourself money. Check the weekly circulars at your local supermarkets for sales. If turkey isn’t on sale one week and ham is, go for the ham!

Buy bright

Lost school supplies may be a given, but gear that’s hard to miss can stave off the inevitable. Pack all their pencils, erasers, and other goodies into a bright backpack or pencil pouch to keep them from disappearing.

Shop the big three

Old Navy, Gap Kids, and The Children’s Place rotate merchandise often. Ask when they do their markdowns so you can grab the deals. Also, if you see an item you bought in the past 14 days on sale later, you can get the difference refunded, you don’t need the clothing, just the receipt.

Browse craigslist.org

Yes, you can find top-quality stuff on the cheap, but you can be a seller, too. Why not get some cash for that barely worn, now outgrown brand-name outfit? Just enter your location and click on “Baby and Kids.”

By: Parenting.com

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Activities, Budgeting, Consumer, Coupons, Finance, Freebie, Goals, Holiday Tips, Personal Goals, Saving

Thoughtful Money-Saving Ways to Celebrate Dad

Showing Dad you love him doesn’t have to mean sending him on an expensive golf vacation or buying him a new camera. The special day should be all about connecting with him, and there’s no better way to do so than by spending some quality time together. Here, we’ve rounded up meaningful activities you can do no matter where you live or what budget you have — all the activities are free or cost very little. Cheers to being fun and frugal with Dad!

Pack a Picnic
Picnics are for spending quality time with loved ones, and that certainly includes Dad. Take time to pack snacks you know he’ll like, and head to the park for a day of sun and making memories.
 
Play Tourist
Make like a tourist and see sights in your own city that you often overlook. If Dad grew up there, he might even share some stories of his younger days around the block.
 
Browse Books
Whether it’s at a local bookstore or public library, you two can get lost for hours surrounded by books. Discuss which genres are your favorites and why, buy one another a favorite book, or take home the same book so you can start your own book club for two.
 
Take a Cooking Class
Get ready to roll up your sleeves for some quality cooking time with Dad. Many culinary schools and even locals will open up their doors and homes to teach you how to make a delicious meal at a fair cost.
 
Play Mini Golf
He doesn’t have to be a big golfer (or a middle schooler) to appreciate the fun that comes with a good game of mini golf. Other similar and budget-friendly ideas include bowling or hitting the batting cages.
 
Watch Home Movies
Break out those VHS tapes collecting dust in your drawers and take a trip down memory lane by watching homemade movies with Dad. You’ll not only get to see how much you’ve changed, but you can also poke fun at Dad’s camera skills.
 
Tour an Art Gallery
You’d be surprised at how many art galleries — and even big museums — open their doors for free or offer discounts. Bond with Dad while strolling past beautiful paintings and sculptures.
 
Go For a Hike
There’s nothing like some fresh air and scenic views to enjoy the day. If Dad is someone who likes to hike a lot, ask him to take you on his favorite trail.
 
Go Wine Tasting
You don’t have to travel to the vineyards of Napa to enjoy some wine tasting with Dad. Do so right at home by looking up wine bars and clubs that typically offer samplings at an affordable cost.
 
Learn Your Family History
It’s not very often that we sit down with our parents to learn about their upbringings. Take this time to go through old family photos or mementos with Dad; ask him about his grandparents and to tell you all that he knows about your family’s genealogy.

By: http://www.popsugar.com/smart-living/Cheap-Father-Day-Ideas-30636652

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