The Millennial generation (those born between 1980 and 2000) is the largest generation yet, and perhaps also the most radically different than any before it. Born into a technologically transforming world, these 92 million people (in the US alone) seem to have challenged just about every social, religious, and professional norm. So what are their finances really like?
I read a post on LinkedIn.com recently that reported on millennials and their finances as, “a generation of rent, student debt, and no savings.”
They are characterized as having less money to spend due to the cost of goods and services. Australian millionaire and fellow-Millennial, Tim Gurner, has recently received criticism and backlash for suggesting that Millennials could afford homes if they would stop buying avocado toast and lattes. Essentially he was suggesting that his generation’s spending habits are prohibiting their investment capabilities.
Harsh, but not all wrong.
Statistics reveal that nearly 75% of millennials, between the ages of 18 and 24, have less than $1,000 in their savings account. Those between 25 and 34 aren’t doing much better. Collectively, they owe more than $1 trillion in debt and accept financial help from parents even after moving out on their own. Many are stressed.
Their three main spending categories include living expenses, credit card debt, and student loan payments. Many rent their living space and are leasing cars. In fact, the number of renters is expected to nearly double by 2025, while those in their 60s are paying off their mortgages.
When George Washington University conducted a study of their financial behavior, they found that, while millennials have high levels of financial responsibility, they demonstrate low levels of financial literacy.
But hope is not lost on this massive generation. They’re some of the best givers of our time, and have a more hopeful mindset than the majority of their older counterparts. And just like all other generations, these young adults need to be taught the biblical principle of stewardship. For many, it will need to start with getting out of debt. A reputable credit counselor is the best place to start if facing an accumulation of credit card debt. Crown recommends Christian Credit Counselors, a non–profit with a strong reputation. They have helped thousands of people get out of credit card debt.
Crown’s online MoneyLife Personal Finance Study is the next step to take. It’s a 7-week course that will help you really understand what the Bible says about money and what living as a steward really looks like. No matter how old you are, the study will be a blessing to you.
There have never been more stock and bond investment opportunities or information sources available than at the present, but deciding which stocks or bonds to buy has never been more difficult. Equity mutual funds are an alternative to individual stocks and bonds, and they are an easy way to participate in the stock market. They enable the investor to diversify risk and obtain professional management.
The advantage of investing in mutual funds is that they automatically provide diversification.
Even with a small amount of money, investors can own shares of hundreds of stocks or bonds because mutual funds pool money from lots of small investors and a group of professional advisers invests the money in large portfolios with many securities—usually in the stock or bond markets.
There are specialized mutual funds that invest in automobiles, precious metals, utility companies, government securities, and so on, or general funds that cover almost any area in which investors would want to invest.
Keep in mind, though, that like stocks, there are risky funds with high yields and safe funds with lower yields.
Although some investors invest short-term for specific reasons, such as accumulating funds for a downpayment on a home, to be really successful in mutual fund investing, investors must be patient and use the fund as a long-term investment vehicle.
Mutual funds are both attractive and valuable to small investors. Since many mutual funds require as little as $100 or less to invest, investors’ risks are relatively small and are spread over a large base in the economy.
The number of mutual funds available has multiplied considerably during the past 10 years. This is mainly due to the fact that mutual funds sell well when they perform well and performances on good mutual funds over the past 10 years have averaged more than twice the prevailing interest rates.
However, past history is not always a good indication of what funds will do in the future. Since mutual funds are securities, trained analysts—registered brokers—are best qualified to review funds performances and compare them with current management philosophy, cash position, and market position to come up with reasonable projections of what funds could do in the future.
To choose a fund, investors should take the following steps.
In order to attract investors in this very competitive field, mutual funds now offer a variety of options. The following are the options most often compared.
When investing in funds, investors generally have the option of shifting or allocating their money into one or more areas within the company’s “family” of investments once or twice a year without penalty. This is now a common option offered by most mutual fund companies.
With open-end funds, investors have guarantees that the fund company will buy back shares at whatever market value they are worth at the time of the sale. This gives both liquidity and security.
In a closed-end fund, there are a finite number of shares traded on the open market. They may sell for less than their underlying asset value if there is little demand. There is more risk with open-end funds when it comes time to take a profit, but the return could be more than the return closed-end funds provide.
Load funds charge sales commissions up to 8.5 percent at the time they are purchased. No-loads do not. Both charge management fees. The records show that there is no performance difference between the two.
Millions of investors today put their money in mutual funds. If Christians decide to take this approach and let experts manage their money, they need to make sure they select a good fund. Many mutual funds look good on paper, but loads and fees can erode gains.
In addition, as Christians, we need to understand that some mutual funds invest in areas that are questionable and in some that are blatantly anti-Christian, including pornography, liquor sales, and abortion clinics.
Christians should get prospectuses from mutual funds they’re considering and research the history of the funds to make sure the fund’s goals coincide with theirs.
If you’re looking for more biblically-based direction for your finances, download the Money Map. It’s a free step-by-step guide that will help you set and reach financial goals as you grow as a steward.
There are nine different payment instruments:
According to a recent study done by the Federal Reserve Bank of Boston, “Debit cards remained the most popular payment instrument among U.S. consumers in 2014, accounting for 30.8 percent of their monthly payments, followed by cash (25.6 percent) and credit cards (23.3 percent).”
In our household, we use six of the nine methods. I will provide some tips for how we manage each of those and how you can keep a grasp on your budget.
Stash Some Cash
Every month, my wife and I withdraw from our checking account enough cash to get us through the next 30 days. We both spend very little cash but we want to be sure we have plenty in our wallets should the need arise.
Beyond what we keep in our possession, we have one month’s living expenses in cash at home in a small fireproof safe. This allows us to access cash for trips or emergencies. We replenish the cash we keep at home so it is always available. This eliminates the need for a costly run to the nearest ATM machine.
Keep Good Records with Checks
Writing a check will likely become a thing of the past in the near future; but for now, it has advantages. Although we write a very limited number of checks, we tend to use them when a receipt of the transaction is helpful or the organization we are paying prefers a check.
A good example of this is for charitable giving. In addition to a receipt from the organization where we give, we also have a canceled check as a backup source for our IRS records. There are some cases when a small business prefers not to pay the cost of using a credit card and asks for payment in cash or check. If we need a record for this transaction in our records, we tend to write a check. This is especially important if you itemize your tax-deductible expenses.
Money Orders and Travelers Checks
It is very rare that I encounter a need for either one of these financial instruments. Both are essentially a check backed by a guarantee. Because these services cost money, only when it is required will I use this payment option.
One instance is when making a large ticket purchase such as buying a car or making a downpayment on a home. In those cases, the Seller may not accept a personal check, and require you to make payment with a money order. This allows the Seller to know that your payment is secured.
Travelers Checks have a few benefits over cash. First, they may be refunded if lost or stolen. Because they aren’t tied to your bank account or any personal information, it is a way to protect your identity and banking information plus you can cash in your checks for local currency in most countries.
Debit or Credit – You Decide
Because we have a checking account, we also have a debit card that gives us access to draw from our account without writing a check or use it at our bank’s ATM. Although we both carry our cards, we seldom use them. We look at them as a backup option. They do not offer the same identity theft protections as a credit card and make your entire account balance vulnerable if the card is lost or stolen. A debit card offers the convenience of plastic but is not debt; be careful because you can overdraw your account. If you struggle with overspending or are trying to stop creating debt, exclusively use your debit card and monitor your account closely.
In our home, we carry only one credit card. We have chosen a card that rewards us with airline bonus miles since we like to accrue those for family travel. By carrying only one card, we accumulate miles more quickly, easily track our balance to avoid overspending and we pay off the balance every month. For payment services, like PayPal, that are tied to our credit card, we consider them all a part of our credit card expenses.
Prepaid Cards
These cards offer the convenience of use for those without access to traditional credit or banking services.
Although fewer cards carry monthly service fees, the charges on those that do range between $1.00 and $9.95. Those cards that do have a fee often give customers an opportunity to avoid it, usually by having a paycheck direct-deposited onto the card.
Electronic Banking
Most major banks offer electronic banking services. This allows the account holder to have payroll directly deposited, money to be transferred between accounts and to establish online bill payments. More and more consumers are choosing this method for convenience’s sake.
Whatever method of payment you prefer to use, you need to have a budget to keep it in order. Crown offers free budgeting help online. I recommend that you budget according to your frequently used payment methods. You should know how much cash you are going to spend each month, the limits to what you can charge monthly on your credit cards and the money you will spend by writing a check. If you use prepaid cards, money orders or traveler’s checks, be sure and capture your total expense of all these payment methods. The goal is always to spend less than you earn and to know where the money is going so you don’t lose track of it.
Part of making a healthy budget is having a savings account and knowing what your financial goals are. The Money Map helps you do this by guiding you through the financial goals you need to reach and helping you achieve them. It’s simple, easy-to-follow, and you can download it for free!
Originally published in Lifeway Magazine, September 2016
Are Multi-level Marketing companies a good idea for Christians?
It’s an important question during a day and age where businesses like this are popping up everywhere you look. I’d venture to say that you’ve been approached on Facebook or in person by at least one friend recently to hear more about their new business venture or to ask you to buy a “starter” kit in whatever business they’ve joined.
So are these companies legitimate? Should you join one? What does God think about them? How do you know if one’s illegal or not? Is it an easy way to increase your income?
Well, the answer is complex. I’ll give you a few things to ask yourself next time you’re approached about an opportunity like this, but my honest answer runs the risk of offending some people. In my experience, not all Multi-level Marketing (MLM) opportunities are created equal, and that comes directly from the U.S. Government. In fact, I find many of the MLM opportunities very troubling.
Consider this: according to the Federal Trade Commission:
“In multilevel or network marketing, individuals sell products to the public — often by word of mouth and direct sales. Typically, distributors earn commissions, not only for their own sales, but also for sales made by the people they recruit. Not all multilevel marketing plans are legitimate. If the money you make is based on your sales to the public, it may be a legitimate multilevel marketing plan. If the money you make is based on the number of people you recruit and your sales to them, it’s probably not. It could be a pyramid scheme. Pyramid schemes are illegal, and the vast majority of participants lose money. If you’re considering buying into a multilevel marketing plan, get the details.”
Many people are engaged in MLM businesses these days, selling everything from cosmetics, health boosters, books, home décor, clothes, candles, handbags and almost every kind of product you can imagine. And I know that I am not the only one whose family has been invited to home parties of all kinds to look over the products or recruited to join a sales team network.
Trying to build a network of people under you, who pay to join the team and pay you a percentage of their sales is what can make such businesses a pyramid scheme, but not in all cases.
The warning sign is when the person at the top is primarily getting a percentage of the fees paid by new members who join, while the people at the bottom pay to play for the hope of future team members who will join. That is illegal and frankly immoral because eventually there are no new people who can enter, and so many receive no benefit. This is more of a recruiting model than a true sales model.
When the top earners make their money primarily by sponsoring new people who buy overpriced products, without any sort of requirement for retail sales, it can also lead to a high failure rate. High failure rates can lead to a lot of people losing a lot of money. When MLM’s operate with a bad mix of owners, product and reward systems, the financial impact can be tremendous. Bottom line: If you find a company with a product you love, it’s a good sign. Just be sure the sales culture is a healthy one.
Are the friends who are trying to recruit you being honest about what they sell and how they make money?
The Crown team and I discussed our various experiences and how we had each been approached to join MLM networks.
One of our staff and her husband had been invited to a party, only to find that it was a training session for the business and they were not allowed to leave until it was over – a virtual kidnapping, she joked. Everyone had at least one story to tell about being lied to about the nature of a business they had been asked to join, including one whose family member was ostracized and attacked viciously on social media when expressing doubt about the health benefits of a product, so much so that the post on social media had to be shut down.
Years ago, I was invited to a friend’s home for dinner. He said he wanted to “offer me a job, working for his company.” He was a successful home builder and lived in a beautiful neighborhood. Following our nice dinner, he and his wife aggressively recruited me to join his multi-level marketing network. I felt he deceived me to get me to come to his home. I lost trust in his sincerity and integrity.
If a person is lying in their sales pitch, it’s a problem. And one of my concerns with MLM business models is that too often, that seems to be integral in how new people are brought into a room.
There are subtle ways to lie as well, such as pretending to be interested in a friendship with someone and seeking them out only until they either join your team or have given a firm no.
Clearly, in sales, a pleasant demeanor is important, but some network marketing companies try to teach people how to draw others in by faking a desire for friendship. The Bible says they will know we are Christians by our love – and that love should be genuine and not ended if a sale is not in the works.
To me, you can tell something about the quality of the business and the character of a person when you say no. Every sales person knows the law of large numbers – the fact that to make a sale, you make a lot of calls, hearing many no’s before that important yes.
I don’t fault anyone for making the recruitment pitch. A person who invites you to consider their products or join their team may have the best of intentions and a great item for sale. But if you are not interested, hopefully they also have the grace and maturity to move on without anger, without ending the friendship.
Have you looked into what others report about a product or company?
There are good MLM companies and bad ones. Are they members of the DSA (Direct Selling Association)? Do your due diligence and look into what is said about any company you are thinking of joining, any products you are thinking of selling and any person you are thinking of working with or for, and be very skeptical about rosy projections of huge income potential. All companies are required to provide an income disclosure statement that shows the income earned by members of their organization at the various levels.
Those who enter an MLM business because they love the product and enjoy the association do fine. Those who enter to build a business with income potential need to realize that just like any business it is very difficult and can require years of hard work. If you enter thinking this is a “get rich quick” idea you will be disappointed. The Bible warns against being motivated by or eager to “get rich”. You should only consider joining if you like the people and can sincerely sell the product to the public.
It is easy to spend money and generally hard to make it, and frankly, the Bible makes that clear, noting in Proverbs 13:11, “Dishonest money dwindles away, but whoever gathers money little by little makes it grow.”
I would also encourage you to take a free MoneyLife Indicator assessment to better understand your attitudes toward money and how you use it, and to compare that with what God recommends in scripture. When our goals are to use resources as God commands and to give an honest day’s work, an MLM business could be a good thing. But take your time and do your homework before saying yes.
Originally published on the Christian Post July 29, 2016
Have you ever asked these questions?
“Is saving an indication of a lack of faith?” “Do saving and hoarding go hand-in-hand?” “If we save, do we rob God of blessing us with His provision?” “What does the Bible really say about saving?”
God wants us to be savers. He wants us to have the resources we need to take care of our families and others. He also wants us to be in a position to serve Him so that He will be made known and honored. Saving does not represent a lack of faith, but it does reflect the heart of a faithful steward.
But the Bible does warn that saving to become self-reliant and take life easy is wrong.
Balancing your savings is an opportunity to honor God and experience His blessings.
There are many examples of good and bad savers in the Bible, and several lessons we can learn from each.
In Exodus 16, the Israelites are wandering the desert – free from their slavery in Egypt but not yet to their final destination of the Promised Land. God, of course, provides for all their needs – He sends manna every morning for them to gather and feed their families. Exodus 16:17-18 illustrates the faithfulness of God and how he keeps His promises to us because every family had exactly what they needed.
But despite this miraculous provision, some still did not fully trust God. In Exodus 16:20, some of the people became greedy and let their fears take over – they gathered more manna than they needed for the day. It spoiled overnight and became infested with maggots – ruined, unable to be used. The same is true of our lives, and especially our money.
God will always provide for your needs. It may not appear in the way we expect, but He will always be faithful.
So when you try to hoard your savings and ignore the clear instruction of God, your money can infect you. God has a specific purpose for it and when we try to use it outside His will, we are faced with the consequences of our disobedience.
It’s hard in the moment, and you may feel like you are still wandering, not yet to the Promised Land. But remember that God will provide; remind yourself of all the times He has already proven His faithfulness in your life. Reject a spirit of greediness or fear that would tell you to hoard money or resources. Be diligent to save according to Scripture and trust that God sees your every need. And don’t sacrifice giving in order to save – you receive blessings and joy from giving!
In Genesis 41 we read the story of Joseph and Pharaoh’s dream. God gives Pharaoh two dreams that Joseph interprets with the same meaning – 7 years of plenty are coming to the land of Egypt, followed by 7 years of famine.
Because of Joseph’s credibility and reputation, Pharaoh puts him in charge of the entire country. Joseph sets immediately to work, storing grain and resources during the 7 years of plenty. He organizes an entire country and works diligently in the present to save for the future.
And just like God had told them, the 7 years of plenty came to an end and the entire world is struck by famine. But Joseph had been so diligent to save that he was able to provide food for the surrounding countries during the famine.
He heeded the instruction of the Lord and followed through to be prepared. Joseph sacrificed some of the short-term comfort for the long-term needs. They probably weren’t eating a lot of steak dinners during the 7 years of plenty, and they also weren’t incurring any debt. Imagine the countless lives he saved by his steady plodding.
What a wonderful example of faithful stewardship and preparedness. We may not know what’s coming in 7 years, or 7 days, but we can always be faithful to prepare for the unexpected. We also learn from Joseph that our savings don’t only serve us, but others. As you save, think through the lens of provision AND generosity.
Even in the times of famine, God still wants us to give generously and be used for His purposes. God may use your savings to help others who weren’t prepared – be thankful and ready to share!
See, when God asks us to save, or give, it’s not because He needs it or because He can’t provide for us. It’s because it’s good for us.
Deuteronomy 29:5 reminds us that God cares about the big and the little things – while the Israelites were wandering the wilderness for 40 years, neither their clothes nor their sandals ever wore out.
Proverbs 6:6-8 encourages us to learn our savings habits from the lowly ant: “Go to the ant, you sluggard; consider its ways and be wise! It has no commander, no overseer or ruler, yet it stores its provisions in summer and gathers its food at harvest.” This ant is one of the most famous stewards of all time!
When we understand stewardship, we understand our identity. It is more than something we do; we are stewards now and for eternity.
Establish a savings plan and work hard to sustain it. The Money Map is a helpful guide as you seek to understand what the Bible says about your life and finances. It will help you stay on the right track and keep your priorities straight.
Of the over 60% of Americans that have life insurance, almost half of them don’t have sufficient coverage. Where you would fall? Do you know?
Life insurance is sometimes a hard topic to discuss, and can come with many complicated options. It’s hard to choose what kind of policy is best for you, because there is only one way to make the perfect insurance choice – by knowing the day of your death (which of course is impossible)!
People buy insurance trying to make their best guess about what resources will be needed should a tragedy occur. Since we don’t know when or how this might happen, choices must be made based on resources, health, and family circumstances.
Looking at life insurance policies, there are two main types of insurance – Term Life or Whole Life/Permanent.
Term LifeA term policy is set for a certain time frame (a term) and then it ends. Term policies usually go for 1, 5, 10, 20 or 30 years, and make a larger coverage amount available at a lower cost than Whole Life/Permanent. These policies are usually better on your budget and can be designed to be in effect when your needs are greatest, such as to payout to your surviving spouse when your children are young.
But it’s widely known that about 95 to 99 percent of the time, people who buy Term insurance never see a payout because either they let the policy lapse or they live longer than the term set. One reason that people take a risk on term insurance is that they might assume that other income, like retirement, will be in place.
A Whole Life/Permanent policy will pay whenever you die. Whole Life costs more because you are purchasing a policy designed to provide a death benefit for your entire life. These insurance policies are more expensive because you are paying the average premium required to cover the cost of insurance over much longer periods of time. In short, a policy that covers you for up to 120 years will cost more than a policy designed to cover you for 10 years.
Things to keep in mind with Term versus Whole Life/Permanent insurance are cost and need.
You may not be able to afford higher premiums for Whole Life/Permanent life insurance so you choose a Term policy to provide resources when the need is greatest. But let’s say that your parents had a special circumstance like a handicapped child who would need lifelong care. In that case, something permanent might be required to provide resources for that child after their death. It is wise to get some advice from a financial expert when making such a purchase, and if you’re concerned you’re being pushed in any one direction, get a second opinion. This kind of purchase requires you to think through your family’s needs and your budget.
While all kinds of financial gurus and media commentators will take strong positions regarding certain financial products, remember that financial products are just tools, designed for specific purposes. Sometimes you need a hammer, sometimes a drill, sometimes a bulldozer. You should evaluate financial tools based on need, so start this process by having a serious look at your needs and keep an open mind about the tools available until you evaluate all the costs and benefits. Begin by having a strong budget in place, because to buy any kind of insurance is to take on a financial commitment.
An important question to ask is, “what will my family need if I die at 40 or 50 or 60 or beyond?” That answer probably changes as your children become self-supporting and your spouse perhaps has retirement income coming. (So don’t forget to save for retirement too!)
When calculating your life insurance needs, remember to include at least these 4 things:
The sum total of these 4 things will get you at least in a ballpark range of what you need to plan for. One BIG mistake people make when it comes to insurance is buying it too late: “…the average life-insurance customer is a 48-year-old man with teenaged children – and he’s about 15 years too late. As people get older, the more assets they typically have, which can offset the financial impact of death; a 30-year-old with a baby, on the other hand, has relatively little, and years of income ahead of him ”
And for those who love Term insurance, remember that it can become more expensive and harder to get as your health changes, so what was available when you bought a Term policy at age 30, young and healthy, may not be available at 60 if you’ve had any health challenges. Some Term policies can be converted to permanent if you act by a certain point, but that will increase your costs, so pay attention to the fine print.
A health screening is common for almost all life insurance, and things like smoking or pre-existing conditions will be considered. Today’s companies might look at your driving record, credit score and even online habits to decide if you are worth the risk. Remember, the insurance company’s goal is to bring in more premium dollars than the amount they ultimately pay in death benefit payments.
If you do buy insurance, it is VERY important that you keep that policy paid up and the contact for the policy with your other financial records so that your heirs know how to file a claim and receive the money. Consumer Reports found that about $1 billion in unclaimed life insurance benefits are waiting for the right people to claim them. You begin that process by getting a copy of your loved one’s death certificate, an arrangement you make with the funeral home.
I urge you to become informed on what can be a rather complicated process. The Bible gives us clear instruction to make a financial plan for our families. 1 Timothy 5:8 notes, “Anyone who does not provide for their relatives, and especially for their own household, has denied the faith and is worse than an unbeliever.”
But you don’t have to do it alone. Get some help. Proverbs 15:22 says, “Plans fail for lack of counsel, but with many advisers they succeed.” Start this process by completing your own Life Insurance Needs Worksheet, and then work through the Planning Your Legacy Guide.
Have you ever made a little decision that resulted in a BIG impact?
I know I have.
In 2015 I decided to drink water only for the entire year. Yes, that’s right…no coffee, tea, juice, soda, smoothies or lattes. Nothing but H2O! For full disclosure, I made it the entire 365 days, and felt so good, I’ve been doing it ever since! My only deviation from water is to occasionally enjoy water with carbonation.
What difference does it make?
For one, it helps my budget! I broke the habit of buying a $5 coffee at the airport and malls or buying an expensive soda drink just because I was thirsty. More importantly, it made me realize just how much sugar I was taking in without even noticing! It also caused me to enjoy water, sleep better, and improved my overall health.
Now let’s apply that same type of thinking to our finances.
What if we could make five little decisions that would make a walloping impact on your financial health? I have compiled a list of those decisions that I believe will help you the most. These are my personal favorites, the ones I would tell my children are essential for them, as well as for me!
Right now, you are honoring someone or something first with your finances. It might be the government, Walmart, your landlord, your utility company or your mortgage lender, but someone is getting the first portion of your income. Replace whoever or whatever is currently first with giving off the top of every source of your income to your church and other ministries that build His Kingdom.
If you cannot give a full 10%, which I think is the appropriate beginning standard, start with what you are able to do cheerfully and don’t turn back. Increase the amount as you are able.
“Trust me on this one!” …Those are not my words. Those are God’s words paraphrased from Malachi 3.
Pick a day and declare, “No more! I will not go another month without saving something from my next paycheck!” Make the decision and then start saving something…even if it is only $5 a month. Save something from every single paycheck or any other source of income.
Open a savings account, buy a small safe, or simply put it under the mattress for now but don’t spend everything you have! This habit will make you wise like the ant from Proverbs 6:6. Little by little you will have money saved for emergencies, stress will go down, and financial stability will one day become a reality. But not until you make that little decision to stop living on a financial cliff.
I have counseled people who did not have money to put gas in their car but had a smart phone, cable TV and a Netflix account they were paying for each month. You can find money to cut out of your budget if you look hard enough.
Lots of folks celebrate when they get a tax refund as if Uncle Sam decided to reward them for their good behavior! While I never like to discover that I owe the IRS money, I don’t like to get a tax refund either. The average person will get about $3,600 refunded this year. But you know what? That means you loaned the US government about $300 a month for a whole year, and then waited for them to send your money back to you and never collected any interest.
Simply adjust your withholding or your quarterly payments to be sure you are paying what you owe or expect to owe, but nothing more. This little decision could mean a lot better cash flow for you. It may also mean you just found the money to start giving and saving some money each month!
Study after study proves that we spend more using plastic.
It may sound like going back to the Depression era for some folks, but the good old fashioned way of cashing your payroll check, dividing the cash for your budget categories and putting the money in an envelope will never gone out of style because of its effectiveness! It works! If you struggle to stay on a budget, give the envelopes a try! You want to know what I have observed as the BIG impact of this little decision? Some of the folks that I know, who are really great with money, have never stopped using their envelope system, years after they no longer needed to. They say that it allows them to spend worry free!
This starts with a change in your beliefs about debt. Think to yourself, ”do I really have to be in debt?”
For far too many, it has become a game of jumping from one debt to another, from one card limit to another.
Make a decision to pay off your most expensive debt. Just get one paid off. Then do it again…and again…and again. You can do it. It is little decision with a major payoff…freedom. Freedom to stop worrying about the future, about your job, about the end of month. Using the snowball debt method will work wonders. Get started with the Debt Snowball Calculator to help you on your debt elimination journey.
These five are not crazy big mountains to climb, just smart steps that over time will change your relationship with God, your financial well being, your relationships and much more!
Taking control of your finances and living in freedom is a journey. Just like any journey, it’s easier with a guide. Crown’s Money Map is the guide to your journey of finding freedom – it’s a step-by-step plan that lays out financial goals and biblical principles for you to learn along the way. And it’s free! Download yours today.
Originally published in LifeWay Magazine, March 2016
It may sound crazy, but right now is the BEST time to plan and prepare for Christmas! Like it or not, the most expensive day of the year is only 23 weeks away, and if you want to start the New Year stress-free, you need to start saving now.
Americans will likely spend over $1 trillion collectively on Christmas this year. Individually, consumers plan to spend over $935 on gifts (and about $140 of that will be spent on themselves). Without an air-tight budget in place, it’s more than easy to fall prey to the snazzy advertising and overspending trends. Here’s how your financial Christmas in July will help you prepare and plan the best Christmas ever – stress-free, and on-budget!
Make a Budget
This step goes two ways – you first need a budget to see how much you can spend on gifts, and you need a budget in order to save to buy those gifts.
If you already have a budget, just add a Christmas spending category. Treat it like you would any other expense or savings category, and be disciplined to build it now.
If you don’t already have a budget, now is the perfect time to make one! Include Christmas gifts as a savings goal as you continue to save in general.
Christmas gifts should not, at any time, prevent you from saving, giving, or paying your other bills. If saving for gifts now is putting a strain on your budget, make some adjustments and decrease the amount you are going to spend on gifts.
Make a List
Physically write out a list of everyone you know you have to buy a gift for – aunts, uncles, nephew’s new fiancees, etc. – and decide how much you can spend on each person, based on your budget from Step 1.
It’s usually a good idea to budget for more people than you can think of, because there will inevitably be Christmas parties that come up or extra guests that you’ll need to purchase a gift for.
Add a note in your phone with a copy of the list so you have it wherever you go, or keep a copy in your car.
Make a Plan
You can start brainstorming gift ideas and asking family members for suggestions early. Try to decide when and where you can go shopping for all of your gifts in advance. This way, you can take advantage of sales as they come up and avoid the tempting ads and overwhelming crowds come Christmastime.
Maybe it works best for you to buy one gift each pay period from now until Christmas – it’s 5 months away, which, for a lot of people, equates to 10 pay periods. Depending on the length of your list, let your pay schedule drive your shopping schedule.
Planning in advance will also allow you to do some research to find the best deals. Many stores hike prices in order to have a “big sale” close to the holidays, but if you know the competitive prices, these tactics won’t work on you. You’ll have a better selection of gifts now since shelves won’t be picked over or specific to Christmas-themes, so shop sales as you see them.
Get Creative
Crown’s founder, Larry Burkett, would say that, “Creativity blossoms when economy demands.” If you have a tight budget for Christmas gifts this year, let your creativity take over! You can be creative both with the gifts you give and how you pay for them.
Give
One of the best parts of Christmastime is being able to give generously. Think through some generosity goals that you want to reach this winter – maybe it’s funding gifts for another family, buying Christmas dinner groceries for someone else, or volunteering your time.
Don’t let the Christmas season go by without experiencing the joy that comes with giving!
And starting even now in July, keep your eyes, your heart, and your finances focused on the one who gave it all. By preparing and planning now, you’ll avoid a lot of stress come November or December and will have more freedom to celebrate the birth of our Savior!
A great gift to give yourself or a loved one is the online MoneyLife Personal Finance Study. It’s a 7-week, self-paced course that will help you understand what God really says about your money. Use the last few weeks of summer to start the path to freedom!
Do you start to get a sense of dread on Sunday night about the impending work week? 
Does the alarm on Monday morning signal the start of a nightmarish existence over the next few days as you dream of the freedom Friday afternoon ushers in?
If so, you might be in a dead-end job.
Living in this situation is no fun, and the two most common mistakes are moving too quickly to escape or not taking any action and suffering through prolonged periods of stress because you are afraid of making a change. Both are wrong and can lead to big career mistakes.
Following these often overlooked steps will help you finish well and have a successful transition.
In our pleasure-seeking world that has fostered an insatiable desire for instant gratification, we can be led to believe that every moment of our life should be fun and exciting. Many people unfortunately see work as a necessary evil that funds the life they really live for.
The reality is that work was designed by God as part of our relationship with Him. God was the first worker, and He saw that His work was good. Before the fall of man, God gave Adam a job in the garden and their relationship was partly based on it.
Our work is part of our identity with our creator God. Therefore, we should never view work as a necessary evil, but rather as part of our worship. The truth is our work should be at least somewhat fulfilling and enjoyable, and if it is not, it is a sign that we are misaligned and in the wrong job.
2. Understand God Has a Plan
If God designed work for us, then He also designed each of us for specific purposes. Many people have followed career paths that parents wanted them to have, or they chose a career based on salary or prestige without asking themselves, “What does God want me to do?”
When you know how God made you and the unique design He gave you, it is easier to pick a career path that you will enjoy. When you are living in your passion and design, work becomes part of our worship and something we love to do (at least, most of the time).
3. Before You Escape, Improve Performance!
No doubt, many of us will find times in our lives where we are in a position we feel is a dead end. We know we need a change, but God may have us in a holding pattern as He develops us.
Think of the time David spent being hunted by King Saul or the time Joseph spent in Egypt. Both spent many years in undesirable spots as God developed them for the leadership roles He had for them in the future.
If you find yourself in a dead-end job and are looking for the next step, ask yourself what God may be trying to teach you in this current role. While you are being developed, the natural inclination may be to “check-out” and not give your best. But do the opposite! Improve your performance. Strive to be the best employee at your organization.
You always want to finish on a high note and have your co-workers wishing you success, not feeling glad you are departing. This is not only a great testimony, but it will also protect your reputation and help you later on in your career.
If you’re in this stage then request our free action guide “An Achiever’s Guide to Job Satisfaction” by clicking here.
4. Protect Your Relationships
In this economy, relationships are currency. All business is based on relationships, and your career will accelerate or sputter based on the relationships you have, your connections and the reputation you develop based on your work.
Many people leave a place of work thinking that job and relationships in that environment will only hold a place in their history. The reality is that it will hold a place in your future as well. Many employers will contact old bosses—or even old colleagues!—for recommendations. In many industries, reputations and rumors spread faster than a bad flu.
Accelerate your career by protecting your reputation, building strong relationships, doing great work, honoring your commitments and being a person people love, respect and want to work with.
5. Default to Taking Action
It has been said that God can’t steer a parked car. Far too often, I have heard people complain about miserable jobs, insufferable bosses and abusive environments—and then sit back and hope that God will open a door for them to leave.
Hope is not a strategy, and it is not a sign of great faith to do nothing. Sometimes, we can just be lazy. We need to be in prayer and seek wise counsel and know that God will open doors in His timing, but we are also expected to be a part of the equation.
Take the time to update your resumé. You should have a different resumé for every job you are applying for that highlights your key attributes for that job. Notify your network and connections in positions of influence that you are looking to make a transition. Seventy-five percent of jobs are not advertised and are filled by connections and word of mouth.
Reach out to placement agencies like Vaco, Korn Ferry and Grant Thornton to see what is available in your market and work with a professional team. Leverage free applications like Poacht, Switch, Jobr and JobBox to help you search and discreetly notify others that you are on the market and looking for a new opportunity.
When you do get an offer, be sure to take the time to negotiate your salary and perks. Those in dead-end jobs often neglect this because they have the mindset that “any opportunity is better than this one.”
Never lose hope!
So often, I have seen that when people are at their lowest, that is when they have their biggest breakthroughs. As opportunities come in, remember not to jump at the first one. Take your time to make sure it is the right fit for you and that it will enhance your career and unlock your full potential.
If you’re considering a career change then request our free checklist An Achiever’s Guide to Job Satisfaction, and take the Career Direct assessment. It has already transformed the lives of hundreds of thousands of people by helping them understand how their personality, interests, values, and skills line up to create a unique design. After taking the assessment, you’ll be able to confidently make a decision about your next steps in your career.
One of the earliest battles parents have with young children is the battle of ownership. The cries of “me, my, mine” may be carrying through your house on a daily basis now. If not, step into a room of multiple toddlers and it won’t take long before you hear the phrase, “No! That’s mine!” And while we may get a little more discreet or tactful in our outward expression of selfishness as we get older, much of the time, the heart attitude remains the same.
So how do we raise faithful stewards as we ourselves are trying to become one?
Well, it all comes down to ownership. God wants us to recognize that we are managers, not owners, of all we have. He has entrusted resources, relationships, time, and money to us, and He desires that we are faithful in the way we manage it.
The biggest lessons in life are generally caught, not taught. Resolve to live as a steward, and your children will inevitably learn how to do the same. It will take intentional conversations and lessons, but they’ll know what a steward looks like.
Work is good! It was always part of God’s plan for man to work – He gave Adam charge over the garden before the fall of man. Help your children understand that we were created to work and that it is a blessing. Help them discover the skills and talents God has given them. Excellence and diligence combined with humility will equip your child to become salt and light in the workplace.
Give them “jobs” now – chores around the house will teach them responsibility. Try having two categories of responsibilities – every day, unpaid expectations, and special paid job opportunities.
Come home thankful for your job every day. Talk to your kids about the blessing of earning an income and working to provide for them. Even on the frustrating days, be disciplined to thank God for your job and teach your children to do the same.
This is the best way to protect your child from becoming materialistic. Generosity will bring your child priceless joy and prepare them for supporting God’s work in their generation.
Help them set up a plan for giving their first 10% as part of their budget. They can also develop a generosity fund for giving above and beyond a regular tithe. Generosity may or may not come easily for your child – focus on the principles that will best teach your child God’s intent for generosity.
Remind your kids that generosity isn’t always about money. They can be generous with their time, their words, and their talents as well. Be sure to show your children that you don’t have to have a lot of money in order to be generous.
Delayed gratification is possibly the best lesson your children can learn when it comes to wise money management. Once they have given their first 10% of their chore earnings, teach them to save 50%. Talk to them about the difference between saving money and hoarding it. Read Matthew 6:19-21 with them and explain what treasures in heaven mean. Not only will this get them in a great habit, but it will build their savings from a young age. If they want a new game or app, make them wait to purchase it until they have enough money to pay cash for it. You’ll instill in them a great work ethic and discipline to avoid debt.
The remaining 40% of their chore earnings are for them to spend….wisely. Talk to your child about the importance of tracking their spending and following a budget. Warn them of the dangers and traps of using credit cards, and openly talk to them about the sacrifices you make to stay on track. Call out phony ads or manipulative sales to help them navigate scenarios in the real world.
Remind them to do everything with excellence, diligence, and humility.
Get the conversation about money started with Raising Money-Wise Kids. It’s full of practical ways for you to teach your kids biblical principles with stories and activities. They’ll love it and it takes pressure off of you!
