Dear Chuck,
I thought Bitcoin was a joke until now. My wife and I are thinking of putting some of our retirement funds into it but wonder if we are too late? Maybe gold is better?
Bitcoin or Gold
Dear Bitcoin or Gold,
Gold Fever was the term for the mass migration of fortune seekers to California from 1848 to 1853. As we know from history, more money was made by the vendors serving the gold miners than the vast majority of those doing the hard work. The question on millions of investors’ minds right now is similar to yours: Is it too late, or could it be a great time to jump in and buy Bitcoin or a related investment at this historic price level? In some ways, we are witnessing what we could call Bitcoin Fever. Let’s see what Michael Finke, the Frank M. Engle Distinguished Chair in Economic Security at The American College of Financial Services, said in a recent Yahoo Finance article:
“People tend to get attracted to things that have gone up recently,” Finke said. “And that’s attractive to anybody who’s investing, but particularly those who tend to be more sentiment-driven investors. They see the price go up and they think they want to be part of it. There’s always that fear of missing out.”
I am not against gold or Bitcoin; I have written numerous times about both in the past. You can read the articles here and here. However, I am against making speculative, reactionary decisions instead of measured investments. FOMO, or “fear of missing out,” is a very real fear that prompts people to follow the crowd. I think you are wise to be asking questions. Let’s get some context, and then I will offer my advice.
Bitcoin and Gold Soar
Bitcoin (BTC-USD) continues to shatter records in 2024 after a brutal crypto winter that began two years ago. The world’s largest cryptocurrency reached beyond $107,000 for the very first time early in the morning on December 16. Bitcoin’s record price puts it up about 53% since the presidential election in November! Gold has also had impressive growth in 2024. On January 1, gold was trading at $2,063.73 per ounce. Fast forward to December 16th, and the price soared to $2,670 per ounce. This represents a remarkable growth of 31% this year. So both gold and Bitcoin have had spectacular returns this year.
Bitcoin is far more volatile than the overall stock market. That can be exciting when the price is on a tear, like the one we’ve seen in recent months. But when times are bad, Bitcoin’s price often takes a much harder fall compared to stocks. Take 2022, which was, in general, an awful year for stocks, with the S&P 500 plunging around 19%. In the same year, Bitcoin lost over 60% of its value. Gold tends to move at a slow and steady pace. While not driven by manufacturing demands, it has historically been viewed as a safe store of value.
But what is driving the current growth of both, and will it continue?
What Is Causing Bitcoin and Gold to Increase So Rapidly?
Does the Bible Address the Issue?
The Bible gives us numerous principles to follow in answer to your question:
My Advice
Bitcoin and other cryptocurrencies are speculative investments (like gambling), which are assets that people put money into hoping the price will rise rapidly. Gold investments tend to experience slower but steady growth through the years. If you and your spouse are in agreement, move a small percentage of your retirement funds into a gold and Bitcoin ETF, but don’t plan on striking it rich; it could turn into fool’s gold overnight.
I’d like to invite you to join a free Crown Bible study on the YouVersion app. We have several devotionals regarding money and stewardship that will provide encouragement by bringing God’s Word into your daily life.
This article was originally published on The Christian Post on December 20, 2024.
Dear Chuck,
I received a Christmas bonus from my company and feel led to give to the Lord first. With so many places to give and so many requests this time of year, I’m having a hard time knowing which are reputable, trustworthy, and safe. I want to give before year-end for tax purposes.
Does Crown have any guidelines?
Cautious Giver
Dear Cautious Giver,
Praise the Lord for your bonus and desire to be generous. First, my disclaimer: I work for the best not-for-profit ministry in the world and think everyone should support Crown’s ministry! Okay… now for an unbiased answer to your great question!
Giving Brings Life
Charitable giving reached a high of $557.16 billion in 2023. A generous life requires the discipline to cap one’s lifestyle in order to tithe and give joyfully. Winston Churchill said, “We make a living by what we get, but we make a life by what we give.”
“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)
Numerous studies prove the physical, psychological, and professional benefits of a life of giving.
During the holidays, people are happy helping others, feel good making a difference, enjoy being connected to something positive, and want to take advantage of tax deductions.
Years ago, I met a man who lived in the poor part of town in his very poor country. To look at his home, you would declare him to be poor. To look at his face, you would declare him to be rich. What immediately struck me was not his lack of material possessions, but his abundant joy. His beaming smile reflected a genuinely joyful heart. As I got to know him, I learned that he was a generous giver. In spite of what some would consider miserable poverty, he was free from the distractions of the world and focused on serving and giving to others.
How to Know Where to Give
Pray about giving, and make sure your motives are pure. In other words, don’t give hoping for something in return, even recognition. Determine what you genuinely care about, where you have received benefit, or what problems you hope to see solved in the world. This will help narrow your options to the organizations that you should research.
To ascertain the effectiveness of organizations, determine if they’re credible, legitimate, and really making a difference. Choose only those that are open and transparent, operate with integrity, and represent Biblical values. Support only those that adhere to best practices in governance and accountability, are wise with their funds, and measure/report their results.
Ministry Watch and Guidestar are helpful websites where you can check a ministry’s reputation. For more information, contact the organization to ask questions about their needs and where/how funds will be used. Although the above resources do not always recognize the full impact of an organization, they are a good place to start. For example, Crown receives millions of dollars of donated radio air time and impact via a network of global partners. Those elements of our model are not recognized by these charity services, so always dig deeper.
Giving Methods
Legitimate organizations have options for donating securely. Do not give over the phone. You can make a pledge, but never give your credit card number or personal information. Be careful giving via text.
Do not ignore red flags! Scammers commonly choose names that sound like well-known organizations. They cannot provide proof that it is a tax-deductible group. They may thank you for a pledge you did not make while making you think you forgot then pressuring you to donate. They may ask for cash or for you to wire money; they may even offer to send someone to collect! Never give personal information to someone calling, emailing, or texting to solicit a donation.
Technology has simplified the giving process with secure online options. Donations made by December 31st are tax deductible (for those who itemize their charitable giving). Gifts made by credit card are deductible this year, even if not paid until next. Those made by check must be postmarked by the 31st even if not cashed until 2025. Allow extra time to process gifts of stock, real estate, or other assets. And keep records to verify your giving.
Check with your employer to see if they match employee contributions. I encourage business owners to consider matching gifts to inspire staff generosity that reflects company values.
Establish a will or living trust naming your favorite organization as the beneficiary of some of your assets. A trust can pay out over a period of years instead of one lump sum. Consider a giving strategy by working with our friends at NCF (National Christian Foundation) or Trust Bridge Global.
Giving Cheerfully
Giving is a tangible way to show God’s love to the world. So make a list of where your heart is leading you to give. Check it twice, and do your research. Then give—generously and cheerfully. And remember Jesus in all your celebrations this season. He said, “It is more blessed to give than to receive.” (Acts 20:35 NIV)
Updated December 15, 2017 article
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 at The Christian Post on December 13, 2024.
Dear Chuck,
I am really stressed about Christmas expenses this year due to a layoff a few months ago. My new job starts in January, and I want to be generous and yet frugal. I have heard you talk about this on the radio and would like to get your list of tips.
Stressed Santa
Dear Stressed Santa,
I am sorry you are entering the Christmas season under financial stress, but rejoice that your new job starts soon. You are correct; I have been talking about reducing holiday-related financial stress during my radio broadcasts and am happy to share my perspective and tips.
Christmas Spending Is Up
An October Gallup poll found that consumers planned to spend an average of $1000 this holiday. The National Retail Federation expects spending to set a record. This includes food, decorations, and other seasonal items, but the majority will be spent on gifts for family members. They anticipate that 62% will finish their shopping in December.
The key to celebrating well is to plan early and ignore the world’s take on Christmas. The example we, as parents, set for our children is enormous. Many of my sweetest memories cost nothing.
Gift Giving from What You Have
Giving should not create financial stress if you follow a realistic budget and determine not to spend more than you can afford. This way you won’t be burdened with excess debt in 2025. Besides, you’ll enjoy the holidays more and set an example for others.
The perfect gifts may be things that you own. If they’re still meaningful to you, they’ll be especially meaningful to those to whom you pass them down.
One year, my dad’s boss gave me his own wristwatch—a very nice one. He had it engraved for me. Recently, I passed it down to my eldest son who shares my name. He appreciated it and the story behind how it was originally given to me.
Ask God to show you what would demonstrate your love for someone special. Then go through your home, your jewelry box, or even old scrapbooks. Are there books, paintings, or family heirlooms you could give? How about special pictures you could have framed?
Budget-Friendly Christmas Tips
Love, affirmation, joy, and hope can be given without going into debt. So gather the family and discuss everyone’s favorite traditions, record them for reference, and get to work. Be sure to shop without your credit card if you fear you will not be able to pay the balance in full when you get the statement in January!
Some years ago, I asked my wife, Ann, to help me with some of her best ideas for any family as she is the pro in our home at making Christmas meaningful without overspending. This is probably the list you are asking for. Here you go!
If you decorate, allow each generation to express themselves. Life is short—enjoy one another. Make this memorable with special food and music. Share the history of special ornaments and decorations. Your parents may have stories that are new to you!
Collect your recipes, make your menus, and plan your grocery shopping list. Shop sales, and freeze ahead when possible. Bake cookies together. And try mocha punch. It’s an unhealthy favorite at our house!
December can be a flurry of activity with recitals, concerts, and parties. That’s why it’s important to plan family times. Include the lonely, sick, or grieving in your planning to build compassion in the hearts of your young people.
Start a Christmas memory journal, and encourage all to write or draw their contributions. Bring out photo albums and family movies of Christmases past.
Make an advent wreath or a paper chain to count down the days. Share Jesse Tree or Advent readings each evening. Sing Christmas carols—the words are beautiful and timeless.
Host a Carol Sing or potluck Open House. A White Elephant Gift Exchange can be hilarious or deeply meaningful, depending on your intent. Enjoy acting out the 12 days of Christmas. Attend community Christmas concerts, plays, and programs. Many are free!
Hold an affirmation night where you express words of appreciation for each family member. Allow time to prepare thoughtfully. Memorize Luke 2 together, and recite it by candlelight on Christmas Eve.
Have Monopoly marathons, or play other board games. Read good books aloud. Teach the younger generation a skill or craft over the holidays.
Give adults personal time to exchange gifts or spend together. Remember family members who can’t be with you.
Plan a New Year’s Day walk, ending with a special brunch or breakfast. Bless the new babies and marriages. Pray for families who send you Christmas cards, focusing on one each day.
Pray blessings aloud over each person on Christmas Eve. Write a keepsake letter to each family member to give on Christmas morning. If you choose to exchange gifts, draw names to keep the costs down. Or make gift cards like lessons in a skill you can teach, a special outing, housework, yard work, or painting a room.
Pick a needy family or individual to bless anonymously. Pass down decorations, and have your family collect money during the month to contribute to their financial needs.
Our Priceless Treasure
This Christmas, I pray that everyone in your home celebrates the birth of our Lord. It’s an opportunity to live and share your faith, the most priceless gift. Guard the good deposit entrusted to you (2 Timothy 1:14 ESV), and celebrate Christ’s birth, the one …who is and who was and who is to come, the Almighty (Revelation 1:8 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 provide encouragement by bringing God’s Word into your daily life.
This article was originally published on The Christian Post on December 6, 2024.
Dear Chuck,
My fiancé and I are making slow progress in saving for the down payment of a home. Can you help us with a better plan?
Saving for a First Home
Dear Saving for a First Home,
I applaud you for setting a goal to own a home, saving money for the down payment, and making plans before you are married to pursue your goals together—well done! I do have some advice and information that will be helpful to achieve your goals.
Buying a house can be a great decision early in life—if purchased right. It is not a decision to be rushed. Homeownership remains one of the largest and most important assets for the majority of Americans. Be patient and content as you make steady progress.
“For I have learned in whatever situation I am to be content.
I can do all things through him who strengthens me.”
– Philippians 4:11b,13 ESV
Location will have a major impact on the needed down payment. Realtor.com reports that the median down payment for homes purchased from July to September averaged 14.5%, or $30,300, down from last quarter’s historic peak of 14.9%, or $32,700. The drop can be attributed to the fact that fewer homebuyers have more leverage. The smallest down payments occurred in affordable areas with plenty of inventory. San Antonio, TX, and Virginia Beach, VA, topped the country with the lowest money down. They are military markets where buyers can use a VA loan, which requires as little as a $0 down payment.
California, on the other hand, is home to four out of five cities with the highest down payments. It is one of the most expensive housing markets in the country. Boston, MA, #4, joins cities that tend to have wealthier, higher-earning residents capable of putting more money down on a home.
More buyers depend on inheritance. A survey by the National Association of Realtors found that Americans who bought homes between June 2023 and June 2024 were older and wealthier than in previous years. A record number used an inheritance to help with the down payment on their first home purchase in 2024. Repeat buyers are older and have greater down payments than first-time consumers.
Tips to Accelerate Your Goal for a Down Payment
Expenses other than down payment:
How to get the best mortgage rates:
Big homebuilders offer buydowns (lower mortgage rates) to attract buyers. It’s a way to move inventory without having to drop prices. Buyers can benefit from lower interest rates for the first few years while preparing for the permanent rate to lock in. This explains how it works.
Before You Buy Your Home
I recommend you have 20% or more for a down payment before buying a home. Devote no more than 28% of your gross monthly income to a mortgage or 36% to overall debt. Less debt is always best. 15-year mortgages will save you lots of money. Being ready to buy your first home may take much longer than you expect. Be very patient as mortgage rates and real estate values change dynamically. Being careful is far better than becoming house poor.
Some couples strategically use only one spouse’s income for mortgage qualification purposes so they can save and invest with the other. This provides margin during childbearing years and any income interruptions.
Adopt conservative spending and saving habits now. Do not abandon these when it comes time to buy. You will start your marriage off with less stress and enjoy your life more even if you are never able to buy a home.
If credit card debt is a financial strain for you or your fiancé, consider addressing that together now by reaching out to Christian Credit Counselors, a trusted partner of Crown. They are a valuable resource to help consolidate debt and get on the road to financial freedom.
This article was originally published on The Christian Post on November 29, 2024.
Dear Chuck,
I grew up going to Black Friday sales and always looked forward to the day. I want to save money while my husband wants to ignore it to focus on “quality” time with our children and extended family. What would you do?
Family Time or Black Friday Shopping
Dear Family Time or Black Friday Shopping,
Certainly, I am for the two of you agreeing and enjoying your Thanksgiving together. Let’s look at the big picture before I give my advice.
Extended Sales Season
Bain and Company is forecasting U.S. retail sales to hit $75 billion between Black Friday and Cyber Monday. A poll conducted by Croud on LinkedIn found that limited-time offers are the most compelling to Black Friday shoppers. Flexible payment options follow at a distant second.
Black Friday falls on November 29th, which is later than usual this year. Consumers will still have plenty of time for deals because sales are beginning early and lasting beyond Cyber Monday. In fact, sales are forecasted to extend through the entire first week of December. You no longer have to anticipate just two days of major sales. Some deals are only minutes long, while others may last until the inventory is gone.
Inflation Pain Lingers
With lingering inflation, many Americans are also struggling to make ends meet. If your budget is tight, perhaps your husband is trying to protect you and the entire family. Aim to discuss the topic at a deeper level when the children are not present. Pray together, and prioritize your unity as you discuss the pros and cons. From my perspective, you have plenty of days to shop before Christmas. I propose exchanging the time you would invest to find a good deal for time that cannot be replaced. I would skip Black Friday shopping and joyfully be with your family. What did you enjoy about Black Friday shopping in the past? Was it the companionship of friends or family or the deals themselves? Share your heart. It may be that a compromise with your husband would enable you to do both.
Shopping Alternatives
Rest is a tradition many should consider! A Gallup poll reports that stress is rising for Americans and that a majority do not get enough sleep. You may be so conditioned to work, work, work that resting is easier said than done. Let me suggest some alternatives to shopping that your family might enjoy together.
REI is closing its stores on Thursday and Friday and paying 15,000 employees to Opt Outside. They encourage customers to choose nature therapy as opposed to retail therapy. Patagonia’s website states, “Black Friday doesn’t sit well with us. Let’s slow our roll and consider our impact.” Here are a few alternatives we should all consider:
A Few Shopping Tips
Couples should honor one another when deciding how to spend their holidays. Establishing new traditions can breathe fresh air into the relationship. Keep those that strengthen your family as a whole, and eliminate those that create stress. Adopt new ones that reflect your priorities.
Holidays are a gift that should be used to deepen your walk with Christ, one another, and those around you. Spending time together and being thankful will be a priceless gift.
“Rejoice always, pray without ceasing, give thanks in all circumstances; for this is the will of God in Christ Jesus for you.” (1 Thessalonians 5:16–18 ESV)
“In ordinary life, we hardly realize that we receive a great deal more than we give and that it is only with gratitude that life becomes rich.” – Dietrich Bonhoeffer
“When it comes to life the critical thing is whether you take things for granted or take them with gratitude.” – G.K. Chesterton
“The soul that gives thanks can find comfort in everything; the soul that complains can find comfort in nothing.” – Hannah Whitall Smith
“Thanksgiving creates abundance.” – Ann Voskamp
“Every time we decide to be grateful it will be easier to see new things to be grateful for. Gratitude begets gratitude, just as love begets love.” – Henri J.M. Nouwen
I’d like to invite you to join a free Crown Bible study on the YouVersion app. We have several devotionals regarding money and stewardship that will provide encouragement by bringing God’s Word into your daily life.
This article was originally published at The Christian Post on November 22, 2024.
Dear Chuck,
We refinanced our house a few years ago and just learned that people refinance cars too! How should we go about that?
Lowering Car Loan Rate
Dear Lowering Car Loan Rate,
My quick response is that you need to be very careful about refinancing a car loan! This is not something I have ever done, so the Crown team did some research to provide us with a look at the pros, cons, and alternatives.
Auto Loan Refinancing
If you have a bad auto loan or payments that are too high, you may be able to reduce your monthly payment by refinancing. This involves replacing your current loan with one that has a lower rate and a different length. You may be paying a high rate if you financed a vehicle through a dealer. Your credit score will have a significant impact on the rate that you qualify for. See this chart for the possible rates available by credit score. Refinance only if lower interest rates are available or if your credit score has improved, which may qualify you for a better rate.
Be careful. Extending the life of the loan may increase the overall interest you will pay. Shortening the loan’s length reduces the amount of total interest paid, but you must count any added fees. An auto refinance calculator can help you with the decision.
“For which of you, desiring to build a tower, does not first sit down and count the cost, whether he has enough to complete it?”
(Luke 14:28 ESV)
Get educated. Check with different banks, credit unions, and online lenders. Those that offer pre-qualification with a soft credit check will not affect your credit score until making your final decision. The score may drop temporarily, but a history of timely payments will correct it. Compare all terms, rates, and fees.
If you currently have a prepayment penalty, it could reduce or cancel any possible savings.
If a new lender pays off the old loan, follow up to verify. Some lenders provide funds for you to pay off the debt. Also, some will transfer the title, but you may need to re-register the vehicle.
You may not qualify if:
You need the following:
Try checking auto refinancing rates here:
The Better Option
The best alternative is to sell the car and buy one you can afford—with cash. If you can’t make that happen, continue to make payments on time, and get prepared to avoid borrowing for a car in the future.
Once the current vehicle is paid for, continue making payments into a savings account designated for future car replacement, as if the loan had not been paid. Drive your paid-off car as long as you safely can or until you can sell it for a decent price; then aim to pay cash for the next one. Buying one that’s a couple of years old means that someone else pays for the depreciation.
If You Are in Dire Straights
When there’s an emergency need for cash, a cash-out auto refinance loan or cash-back refinancing is available. You tap into the equity (the difference between value and amount owed) for cash. I recommend this for emergencies only. The risk is high of getting upside down on payments or having an accident and insurance only covering the current value of the car. You are at the mercy of the insurance company, and you have to pay the remainder of the loan. The interest rates can be extremely high. Let me emphasize that this would be the worst-case scenario and option of last choice.
Be Patient
We are in a rising interest rate environment right now. Many are forecasting much lower lending rates over the next twelve to eighteen months. I hope you will take the opportunity to not only avoid refinancing but also to avoid financing a vehicle in the future. My wife and I have not paid interest on a car loan for almost 25 years by paying cash for used cars. It has been a blessing for us and will be for you as well.
Do you want more tools and tips on financial stewardship? Are you interested in receiving ministry updates from around the world? Sign up to receive the Crown Newsletter emails by using the form on the homepage at Crown.org.
Dear Chuck,
With the reelection of Donald Trump, what economic changes do you think we should expect now?
Opportunistic Investor
Dear Opportunistic Investor,
In what has been described as “the greatest comeback in American political history” by VP elect J.D. Vance and a host of others, the election results on November 5th will go down in history. Americans and the world at large watched in shock as President Trump overcame the improbable odds of his re-election. He won not only the Electoral College but also the popular vote. Plus, both the House and Senate will have a Republican majority. A clear pathway has been established for the sweeping changes that are likely ahead.
Personally, I was praying that we would avoid a contested election leading to political instability. I thank God for answering my prayer. Many economic changes are ahead. Some will work; some will not. Some will benefit; others will be displaced. If you think of economics as a “study in human behavior,” as I often call it, you will be able to anticipate the opportunities ahead.
Three Potential Economic Shifts
During the course of President Trump’s many campaign rallies, I noted three potential policy shifts that sound almost too good to be true. Keep in mind, many things are said during a campaign that may or may not be implemented.
Tariffs vs. Income Taxes
In a recent interview, President Trump said that he thought the word tariff was “the most beautiful word in the dictionary.” In other words, he is very excited about using tariffs. He believes that enforcing tariffs on foreign goods will bring more jobs to the United States, will fund a portion or potentially all of the federal budget, and could lower or even eliminate personal federal income taxes. He certainly had my attention because this would have an impact on all of our lives, both directly and indirectly.
I had to learn more about what tariffs are intended to accomplish. In a summary by Dartmouth economist Douglas Irwin, tariffs have served three primary purposes: “to raise revenue for the government, to restrict imports and protect domestic producers from foreign competition, and to reach reciprocity agreements that reduce trade barriers.”
The direct benefit of low or no personal income taxes would lead to an economic boom for American small businesses, particularly the housing sector, as disposable income would skyrocket. Obviously, it would create pain for some industries that are service providers for adherence to tax laws.
I suspect this policy will meet strong resistance from those who stand to be injured. It will require careful analysis and measured implementation. My guess is that it will be an uphill battle. However, the indirect benefit could provide far greater leverage over foreign nations that presently produce our goods, like China and India. It will likely demand their cooperation, or they will lose access to the strongest market in the world.
Other Tax Policies
President Trump spoke about eliminating taxes on tips and income earned from overtime pay and allowing a tax deduction for interest paid on a car loan if the car was/is manufactured in the United States. These changes will be music to the ears of our hard-working contract laborers who will have increased disposable income. While the idea of a tax benefit for interest paid on a car loan sounds reasonable, it is likely to drive up the cost of automobiles as borrowers shift their interest saved into higher loan amounts.
These policy promises may be addressed early after the inauguration. However, they will become null and void if the federal income tax system is dismantled through the tariffs mentioned above.
Reduce One-Third of the Federal Spending
Uncle Sam has been overspending by 1/3rd of its income for more than 25 years. This is economic suicide and must be changed. See last week’s column. Elon Musk will likely be named the Government Efficiency Czar, as promoted on occasion by President Trump. This will be an unofficial, volunteer position to look to stop government waste and inefficiency. Elon Musk has recruited Ron Paul to help with the task. Former Congressman Ron Paul has been a lone voice in the wilderness for his entire career sounding this alarm. The two will make quick work of finding money that can be permanently eliminated from the budget.
My outlook is that this will cause shock among government agency leaders, lifelong bureaucrats, and staff alike, as many will fight to justify their survival. I expect public revolts as job security is threatened. However, the long-term benefits of a fiscally sound government will far outweigh the short-term adjustments. We can only imagine the growth that could result when the good faith and credit of the United States government is fully restored.
A Golden Age of Prosperity?
Some of the economic experts that I read, like Adam Kobeissi and John Mauldin, who are both capable sources for market trends, sense we could be heading toward the golden age of American prosperity. Of course, we live in a fallen world, so the road will be paved with enormous challenges politically, socially, and spiritually.
We must keep our eyes on Christ, not the government, to provide our peace, security, and purpose in life. This is not our home. Regardless of what lies ahead, let us continue to lay up treasures in Heaven, where the streets will be paved with gold—tax-free.
Similar to Uncle Sam, if over-spending and debt have you or someone you know in a financial bind, a trusted partner of Crown is Christian Credit Counselors. They are a valuable resource to help consolidate debt and get on the road to financial freedom.
This article was originally published on November 8, 2024.
Dear Chuck,
I am really concerned with what Elon Musk said about America heading toward bankruptcy. Do you think there is anything we need to do if he turns out to be correct?
Concerned American
Dear Concerned American,
Elon Musk has repeatedly said that the ever-expanding Federal debt is leading America toward bankruptcy. I have linked here and here to some of the publications where he has been quoted about this concern. Here is an excerpt from his actual comments during a recent All-In Summit hosted by the All-In Podcast:
“America is going bankrupt extremely quickly, and everyone seems to be sort of whistling past the graveyard on this one.”
My concern is not that Elon Musk said this or believes this. My concern and the concern for all Americans—and the rest of the world for that matter—should be that our elected officials are not making this their top priority to address and resolve. The vast majority of their time, attention, and energy is consumed by matters that will pale in comparison to the devastation to the global economy and world order should America indeed find itself unable to pay its debts.
The price of gold has risen dramatically in the past 12 months. I view this as an indication of the fear and uncertainty around our political and economic challenges. No doubt, we need the Lord’s wisdom to turn our fiscal ship in the right direction.
Modern Monetary Theory
I wrote in my book Seven Gray Swans that without ever taking a vote, our political leaders on both sides of the aisle, liberal and conservative alike, are practicing the nonsensical economic theory some call MMT or Modern Monetary Theory. Others have taken to calling it Magic Money Theory or even Monopoly Money Theory to criticize the premise that debt does not matter to a nation that prints its own currency because it can always print more money to pay its debts. Proponents cite the insulated and unlimited power of the “banker” in the game of Monopoly to support the concept. They also espouse that if an oversupply of money becomes inflationary, they can pull money out of the economy with higher taxes.
Well, we are not playing a game of Monopoly. In the real world, people expect to be paid back with sound money when they buy the debt (treasury bonds) issued by our government. If our government does not pay its debts (with sound money), then the good faith and credit of Uncle Sam will be destroyed. Also remember that the government, both federal and state combined, accounts for roughly 1/3rd of the economic activity of our nation.
This Danger Is Not New
President Lincoln warned, “You cannot keep out of trouble by spending more than you earn.” He also said you cannot:
Before him, Thomas Jefferson also warned, “I place economy among the first and most important of Republican virtues, and public debt as the greatest of the dangers to be feared. To preserve our independence, we must not let our rulers load us with perpetual debt.” Yet, today, government largesse and rampant overspending has ballooned to numbers once reserved for astronomy courses.
We are playing with fire, and we need our leaders to wake up. This June 9th article at GoBankingRates.com states:
“The government CAN pay their loans due to their unlimited ability to borrow—for now—or print more money, as long as other countries and investors will continue to buy our bonds,” says Les Rubin. “However, if someday the country cannot borrow money, we will have to default, leading to severe consequences. I think of the U.S. debt as a Ponzi scheme since there is no source to pay the principal on the debt and interest except to borrow more money. The Ponzi scheme will collapse when people won’t buy our debt. When this happens, we will face economic catastrophe.”
What Can You and I Do?
The government needs a massive reduction in spending, we need to live on a budget, and we need to concentrate on reducing our debts to reestablish confidence in our fiscal management of this nation’s vast wealth. Essentially, we need our political leaders to become good stewards of our national resources. In my view, this is the foremost skill needed by a local, state, or national elected office holder.
Elon Musk has also said he is willing to volunteer his help in reducing the bloated federal budget by as much as 1/3rd. While this may strike fear in some hearts, the alternative of doing nothing should be far more worrisome.
In my opinion, America will find a way to turn back from the current path of economic destruction that we are on, but it will not be without pain. Let’s pray for our nation to come to its senses, restore principles of sound money, and regain the trust of the world in the good faith and credit of Uncle Sam.
Next week, I will share what some experts are advising for personal preparation as we navigate the persistent pain of inflation.
I’d like to invite you to join a free Crown Bible study on the YouVersion app. We have several devotionals regarding money and stewardship that will provide encouragement by bringing God’s Word into your daily life.
This article was originally published on The Christian Post on November 1, 2024.
Dear Chuck,
What advice would you give for using money to impact our children and build a strong family? We have limited funds and want to be wise as well as strategic.
Investing in Our Children
Dear Investing in Our Children,
I love the heart behind this question! Although you may have limited funds, you are not limited in the fun approaches you can take to impact your children and build a strong family. I see it all as a form of investment for future returns. Let’s look at investing in a budget, activities, work experiences, skills, generosity, and their financial future.
Invest in a Budget
The easiest way to maximize limited funds is to invest a few hours into setting goals and establishing a budget. Spending less than you earn will provide stability and margin. If budgeting is new to you, consider investing in a series of weekly Money Dates. This will enable you to enjoy the process of getting unified and building your plan. Crown’s step-by-step program lays out what to cover on each date.
Invest in Activities
Activities will vary from one family to another, but prioritize your time together. Add to your budget the money needed for what you want to emphasize.
A wise friend of mine once told me that buying a boat when his children were young was “the best money he ever wasted.” He explained that the boat created a place for lifelong memories that his family cherishes.
Another friend purchased fixer-upper old cars that he and his boys would work to restore on the weekends. The cars were the basis for lessons in stewardship and were given to the boys when they reached driving age. He told me, “This investment in old cars kept my boys off the streets, off of drugs, and close to our family. It was worth every penny I ever spent on one, even if we lost money on the car.”
Enjoying activities together will positively influence your children.
Here are a few examples that will not hurt your budget: hiking, biking, gardening, running, cooking, playing board games, enjoying academic competitions, working out, reading aloud, listening to audiobooks, working puzzles, drawing, painting, building, camping, learning foreign languages, going on mission trips, visiting zoos and museums, and serving neighbors, older family members, and the church.
You don’t have to buy all the equipment to enjoy more elaborate experiences. Many times, it is best to rent the equipment if these activities will not occur on an ongoing basis.
Investing in Their Work Experiences
Besides having fun, teach them the value of work. They can learn to earn more and contribute to their own financial needs early in life. Larry Burkett wrote a great devotional on this topic.
Have them talk to older couples and families you admire so that they can learn from their experiences and land an internship or a future job.
Invest in Their Skills
What skills can you pass on to your children? What are their interests? What skills do they need to develop? Can you involve extended family?
My second son was an Eagle Scout who went on to serve in the military as a Ranger Medic. We spent many nights sleeping in tents! One day, he called and jokingly complained that I had not taught him the “3 Essential Man Skills” before he got to the military: how to drive a stick shift, how to back a trailer, and how to ride a motorcycle. We got a laugh out of it; but the truth is, I knew how to do all of those things. I had just failed to teach them to him before he left home!
Invest in Generously Serving Others
Today’s giving in church is usually done online. Unfortunately, children do not experience putting the giving envelope in the plate each week. Supporting the church needs to be talked about and emphasized. Encourage them to give off the top of their income.
Serving in the church, your neighborhood, and beyond can involve the entire family. Make it fun! Ask them to help you participate in secretly leaving gifts for the needy or helping widows or elderly neighbors with projects. Allowing them to join in discussions on your family’s decisions about the generosity of time and money will leave a lasting impression.
Invest in the Financial Future of Your Children
Enjoy your children as you help them develop self-confidence and a healthy identity in an environment of love and acceptance. Investing early in their lives will create loyalty and strength. It will also model for them the financial management that you want them to be able to carry into their lives and families as adults. The money you invest today will pay dividends for generations to come.
No Guarantees, but Nothing Is Wasted
Raising children involves the wise stewardship of money, time, and talent. God gives us children to steward as well! Invest time in praying for the wisdom, love, and strength to raise them for His glory. While there are no guarantees, being intentional will likely help you build a stronger family than simply hoping for the best. I like to remind my wife that Adam and Eve had the best Father, but they still decided to disobey. Don’t beat yourself up if things are not going well right now. Trust the Lord, and see each day as a new opportunity to build stronger unity in your family.
“Behold, children are a heritage from the Lord, the fruit of the womb a reward. Like arrows in the hand of a warrior are the children of one’s youth.”
Psalm 127:3–4 ESV
Do you want more tools and tips on financial stewardship? Are you interested in receiving ministry updates from around the world that you can share with your children? Sign up to receive the Crown Newsletter emails by using the form on the homepage at Crown.org.
This article was originally published on The Christian Post on October 25, 2024.
Dear Chuck,
The company I work for was destroyed as a result of Hurricane Helene. We are surviving, but things are very tight financially, and we are emotionally overloaded. What should we do to work our way out of this crisis?
Surviving, Not Thriving
Dear Surviving, Not Thriving,
Many people are trying to navigate the trauma of Hurricane Helene and now Milton. I am so very sorry for your loss but grateful that you have survived and can begin to rebuild your lives.
The destruction we have witnessed reminds us that everything man has or can build is very, very temporal. It reminds us to do what God said:
“Set your minds on things that are above, not on things that are on earth.”
– Colossians 3:2 ESV
Overwhelming Needs
The horrific destruction so many have experienced in the past 30 days has created many levels of need, so for this article, I will focus only on five steps for starting a crisis budget.
Before you begin, ask God to help you steward the limited resources you have right now. Do not worry about the future. Instead, live one day at a time. Help guard your emotions by focusing on the present. The future is in God’s hands. Cling to Him. See Matthew 6:25–34.
Resolve not to dwell on your loss but to be grateful for what you have. Turn each temptation to grumble into praise. It helps to begin and end each day with thanksgiving.
Ask God for wisdom to stretch every dollar and for ways to increase your income and decrease your expenses. Read the Bible, and ask Him to impress upon your heart His financial principles.
How to Implement a Crisis Budget
Step 1
Determine your current monthly income:
Step 2
Make two written commitments:
Step 3
Prioritize essential needs:
Step 4
Delay all non-essential expenses:
Step 5
Analyze monthly subscriptions:
Step 6
Ask others to join you:
How to Live Post-Crisis
I pray that your company will be able to reopen for business soon and can help you with supplemental income needs. Consider asking for help from your church or family as you seek reemployment and wait on the Lord to provide.
Take the lessons you learn and the habits you establish to steward wisely from here on. Allow God to use you to minister in the lives of those He puts in your path. And remember to give God the glory for every victory—no matter how small it seems.
Here are some helpful resources at Crown:
https://www.crown.org/all-resources/7-steps-to-recover-from-a-crisis-2/
https://www.crown.org/get-help-now/?section=with-your-money-and-finances#section-one
If you need outside support to implement your new budget, Crown’s online Budget Coaching program matches you with a certified coach who will work with you to develop a customized plan and provide much-needed encouragement while you rebuild your lives.
This article was originally published on The Christian Post on October 18, 2024.
