By Chuck Bentley
A biblical understanding of God’s Word on finances indicate that stewardship is not a process to manage money; it is not a program to get out of debt or to raise money for the church building program. These are all taking the biblical message to a low level of understanding.
Stewardship is an understanding of our identity. We are stewards. When God put Adam in the Garden of Eden, his purpose was to work and manage the garden and to carry out this duty faithfully to the glory of God. This was before the fall. You see, Adam was the First steward. All believers are stewards. That is our name, rank, and serial number. We have only two options: to be a steward or to deny God’s Word and claim to be owners.
Here’s what is so exciting. When we understand our identity as stewards, everything we do is for the glory of God. Our work, our management of resources, and our very lives reflect our submission to His ways and His purposes.
Since we are all stewards, the Bible informs us how to be good at it and how to be faithful to God while we go about our lives. If we do those things with the investment of our time, talents, and resources, we are likely to hear, “Well done, good and faithful servant. Enter into the joy of your Master.”
But it doesn’t end there. In Matthew 25 where we find the Parable of the Talents, we learn that the good stewards receive an eternal reward, to be in charge of cities in the New Jerusalem.
You see, we are stewards now and will be forever. We can be nothing other. We will never be the owners.
Originally posted 3/9/2015.
By Chuck Bentley
Today, I have some helpful tips. The US News & World Report collected their best advice from experts who assist people who need to pay off more than $100,000 in consumer debt. Here are their tips:
Step 1: First, list all your creditors, including the minimum payments and interest rates. Plan to attack one debt at a time, making minimum payments on all the others. This is often called the “debt snowball” method.
Step 2: Cut expenses. Reduce your expenses, starting with the large ones and going all the way down to the little ones. Every penny you can save and apply toward the debt will help.
Step 3: Make a budget. You can create your budget on paper or use tools. Some people like the envelope system, where you use cash for everything, creating envelopes for each expense category plus savings. Start by writing down every cent you spend. We have forms at Crown.org to help you get started.
Step 4: Earn more money. That could mean getting a new job that pays better, taking a part-time job on the side, or freelancing. You may also be able to sell some of your possessions to generate more cash.
Step 5: Quit using credit cards. If you have a problem with self-control, you need to stop carrying credit cards and plan to pay cash for everything until you can get out of debt.
Step 6: Transfer balances to get a lower interest rate. This is a good option for people with solid credit, as long as you can pay off the balance during the introductory period. Take any balance transfer fees into account.
Step 7: Call your credit card company. If you’re current or not far behind on payments, you may be able to negotiate a lower interest rate or smaller minimum payment. Ask to speak to the hardship department or a supervisor, and be honest.
Step 8: Get counseling. If you decide you need a credit management plan, in which the agency negotiates with your credit card companies, takes one payment from you and then pays your creditors, Crown recommends Christian Credit Counselors.
Step 9: Consult an attorney. This is an especially viable option if you’re considering bankruptcy or have been sued. A credit counseling agency may help you find one.
Step 10: Scrutinize medical bills. Medical debt makes up 52 percent of the bills sent to collections, according to a study last year by the Consumer Financial Protection Bureau. Make sure your bills are accurate and that the insurance company has paid its share. If you need financial assistance, ask the hospital or provider.
Step 11: Beware of debt settlement companies. These for-profit companies usually collect money up front and tell you not to pay your bills but instead wait for the debt to become delinquent in hopes of negotiating a settlement. This is unlikely to help you get out of debt.
What was not on the list above is to pray and ask the Lord to give you the courage to start and the strength to persevere until you have become totally debt free. You can do it, if you will start and do not quit!
Originally posted 3/4/2015.
By Chuck Bentley
Your earnings in the first decade of your career established the probability of high or low lifetime earnings. This is fascinating…
Economists at the Federal Reserve Bank of New York said in a report published in February 2015 that your earnings the first decade of your career are the lead indicator for what you will earn for the rest of your life.
Let me say it this way. People who end up wealthy start out earning more when they are young. Here’s the data: People projected to earn the median lifetime amount will see their earnings grow 38 percent from the time they are 25 to when they turn 55. Those in the 95th percentile of lifetime earners will see their earnings grow 230 percent over the same period; and those in the 99th percentile of income earners will see their earnings grow 1,450 percent before they turn 55.
That may seem obvious—those at the top of the wealth differential were probably propelled there by astronomical earnings growth. But not so fast. The Fed report points out that the steepest pay increases happen early. Across the board, the bulk of earnings growth happens during the first decade of your career. Stay with me…
Workers whose lifetime earnings sit at the median can expect to see their earnings stagnate from ages 35 to 55. In fact, only the wealthiest 2 percent will see earnings grow after age 45. The projections suggest that the time to hustle is when you are young, because you’ll probably see your last big raise well before you celebrate your 40th birthday. They also suggest that if your goal is to have high lifetime earnings, you will need to consider starting your own business so that you control your wages, not someone else. But to the point of the Federal Reserve study, even then, it is better to start early.
Originally posted 3/2/2015.
By Chuck Bentley
Anthem, a major health insurance company, warned consumers recently to be aware of scam email campaigns targeting current and former customers of the company. The emails encourage recipients to click a link for credit monitoring services. “These emails are NOT from Anthem,” the insurance company said in the statement.
Here is why this scam is so dangerous. The insurance company announced that its database had been hacked, exposing personal data on as many as 80 million records for current and former customers and employees. The information accessed includes names, birthdays, Social Security numbers, street addresses, email addresses, and employment information, including income data, according to the company. The fraudsters can communicate with you as if they are legitimate.
Advice for recipients is simple: Don’t click on any links, open attachments, or respond to the email sender’s calls to action in any way. Anthem says it will be contacting affected individuals by regular mail delivered by the U.S. Postal Service with specific information regarding how to sign up for credit monitoring. The company has also set up AnthemFacts.com with details about the hack.
My advice is to be very skeptical about emails, phone calls, and even official looking letters no matter how valid or safe they may appear. Check and double check to verify the source before replying to any actions you are being requested to take. First, go the company website. Check the physical address. Go to the About Us section and find members of the staff that can be contacted. Or use the Contact Us section. Call or email the company and ask to speak to an employee or supervisor whose identity can be verified. Ask them about the communication before taking any action.
Originally posted 2/26/2015.
By Chuck Bentley
Martin Luther once said, “A true Christian lives and labors on earth not for himself but for his neighbor. Therefore the whole spirit of his life impels him to do even that which he needs not do, but which is profitable and necessary for his neighbor.”
As one who is interested in economic history, I find it interesting that the global economy remained relatively flat until the Protestant Reformation. Not only did the Bible begin to be distributed into the hands of regular people like you and me, it set in motion what became known as the protestant work ethic. At that time, economic growth began to explode. History shows that the economic growth of the West correlates with the spread and adoption of God’s Word.
Martin Luther believed in the dignity of work and taught wonderful biblical insights like these. You see, when we love our neighbors, we seek to serve them and find ways to enhance their lives. All good businesses provide products and services that help others in some dimension of their lives. A loving, caring person is much more likely to have the attitude and ideas which can sustain a company than one who is trying to gain only a personal advantage over others.
Proverbs 3:28 says, “Do not say to your neighbor, ‘Go, and come again, tomorrow I will give it’—when you have it with you.” As followers of Christ, we are to love our neighbors in words but also in deeds. We should look for ways to be helpful and attentive to those with whom we interact on a regular basis, not just someone we randomly encounter on the street. When we truly love our neighbors, it is good for us, good for them, and good for the entire economy.
Originally posted 2/24/2015.
By Chuck Bentley
Tim Challies, a Canadian Pastor, recently wrote an article sharing the areas where he personally found himself wasting his money. I think it’s a great list for all of us.
1. Buying Junk: Occasionally, it is better to spend a little more money on a quality product rather than buying something that will break almost immediately. In the long run, you will save more money by doing this.
2. The Daily Latte: Coffee adds up quickly in a year. Try brewing your own coffee at home.
3. Kindle Books You Won’t Read: Stay away from those Kindle deals if you know you’ll never read them or even REFER to them. $1.99 adds up.
4. Eating Out: Don’t get me wrong. Eating out once in a while is fun, but try to save it for special occasions. If you are going to eat out, plan where you eat wisely.
5. Extended Warranties: Don’t be fooled by this one. Extended warranties are almost never worth your money. A few months ago, the hard drive on my son’s laptop crashed. We took it in to get it checked out, and we found that it had crashed just days after the extended warranty would have expired. Thankfully, I hadn’t purchased it.
6. In-Game Purchases: There’s always the free app where you get to a point in the game and cannot advance unless you pay a little money. Don’t do it. It might not be much, but like I’ve said, a little adds up to a lot.
This one may surprise you…
7. Paying Cash: Occasionally, it is better for some to maintain a cash-only budget. However, for people with good financial habits, using a credit card can be a bonus. Credit cards offer points back or free cash all for just using them wisely.
Great list, Tim.
Originally posted 2/19/2015.
By Chuck Bentley
Below are some easy ways that my family saves money. I hope these tips will be helpful to you, too.
There is a reason that soft drinks like Coke and Pepsi are some of the most recognized brands in the world…they can afford to spend a massive amount on advertising because the product is simply a mixture of water, sugar, a little flavoring and carbonation.
Paying close to $2 for a soft drink at a restaurant never makes sense to me. When we eat out, we all order water. It is free and with a lemon or lime, it tastes great. For our family, that saves about $8 when we eat out and that adds up over time. We also don’t buy soft drinks to keep around the house. They are not only expensive; they are not good for our health.
As a general rule, I don’t buy extended warranties. Here’s why:
1. Most products have a warranty from the manufacturer.
2. The fine print on the warranty usually makes it very difficult to actually use the warranty insurance.
When I shop the big box retailers for an item, especially appliance and electronics, they make it a regular practice to offer me an extended warranty. For them, it is a highly profitable practice. The odds are greatly in their favor that you will never need it or go through the hassle of using it.
Some salesmen have pushed hard to sell the warranties to me. I always ask them to show me the data that proves I have a higher probability of needing it than they have of my never needing to use it. No one has been able to prove me wrong on that one.
I gave up drinking coffee a couple of years ago. I know…most of you coffee drinkers can’t imagine. I found I was adding more and more sugar, cream and flavors to it and tending to order expensive lattes when I was on the road. It has saved me lots of money, I sleep better at night, and my teeth are whiter. Not bad benefits for a little discipline to cut out a caffeine habit.
Originally posted 2/12/2015.
By Chuck Bentley
I like to save money and spend it wisely. Over the years, I have developed some habits that have become very helpful.
Years ago, I sold real estate for a custom home builder in Dallas, Texas. People pay a lot of money to have their homes built, and negotiations were common.
One question was consistently asked by the savvy buyers when it came to getting to the final price: “Is that the best you can do?” More often than not, we ended up reducing the price we had originally quoted. That question was worth thousands of dollars.
It is a common practice to ask for a better deal when it is appropriate. This simple question about price should become common practice for you whenever you are making a significant purchase. “Is that the best you can do?” Ask in a non-offensive or non-rude way just to be sure you are getting the best price. Often I have been surprised at how much that one question has saved me on a purchase.
Once when we were shopping for a tennis racket for my son, a retail store had the racket he wanted marked on sale. When he picked the one he liked, the store assistant was a nice elderly man who had been very helpful. My son, at my urging, politely explained that he was buying the tennis racket with his own money and asked, “is the price on the racket the best discount available?”
The nice gentlemen looked at him, smiled, and said. “It’s not often we get young folks paying for their own tennis racket. I can mark that down another 40% just for you.” The racket cost us 50% off the normal retail price and came in way under budget for my son who had worked hard to save for it.
Originally posted 2/11/2015.
By Chuck Bentley
You will need to report your healthcare arrangements to the IRS as one of the consequences of Obamacare, or else: Failure to comply can result in a reduced tax refund and penalties.
First, there’s the coverage issue. Under Obamacare’s individual shared responsibility provision, you must let the IRS know when you file that you had the required minimum essential health care coverage or were exempt. If you have qualified coverage through work, you’ll get a form from your employer or from your insurer.
The Affordable Care Act has a provision called the Premium Tax Credit. This is the government’s way of subsidizing what some folks pay to get their required insurance they obtained through a health care exchange. While some folks got advance payment of this credit when they got coverage, others will claim the tax break when they file their tax returns.
This credit is impacted by any life events and can go up or down: Among the things that could make a tax credit difference are a birth or adoption, marriage or divorce, moving, job change, and increase or decrease in your household income. Either way, you’ll have some calculations to complete on new Form 8962. That information will be reported on Form 1040 or 1040A. You can’t use the short Form 1040EZ if you get this credit.
You can’t bluff the IRS. If you claimed you needed a helping hand to pay for healthcare coverage, you better be right. Form 8962 will be important, because the IRS will look at it to determine if you really deserved to get healthcare at a reduced cost. If you (or anyone in your family) don’t have the required coverage and aren’t exempt, you’ll have to pay a penalty when you file your return. Both exemption claims and penalty calculations are made on new form 8965.
Originally posted 2/10/2015.
By Chuck Bentley
I hope you know that a key part of the Affordable Care Act (ACA) requires that taxpayers have qualifying health care coverage. Those without will need to qualify for an exemption or pay a penalty. This “Individual Shared Responsibility” provision applies to both individuals and families.
If you, your spouse, and everyone else on your tax return (dependents) had “minimum essential coverage,” which includes most employer-sponsored plans, as well as programs such as Medicare, Medicaid CHIP, and insurance purchased through the Health Insurance Marketplace, you’re in fine shape. Just check the appropriate box that says you were insured for the full year. If there were months that someone on your return had no coverage, that person needs to qualify for an exemption or pay a penalty.
To qualify for an exemption, one of the following situations must exist, says the National Association of Enrolled Agents, an organization for tax professionals:
1. The individual does not have access to affordable coverage because the minimum annual premium available is more than eight percent of the household income;
2. The gap in coverage existed for less than three months; or,
3. The individual qualifies for other exemptions that include a hardship or being a member of a group that is exempt from health coverage (for example, incarcerated inmates or members of a federally-recognized Indian tribe).
Without coverage or an exemption, you’ll have to pay a penalty for each month you were not insured. This penalty is calculated and reported on your tax return. In general, the payment amount is the greater of a percentage of your household income over the filing threshold for your filing status (the percentage increases each year), or a set amount per person (the amount increases each year; it is $695 for adults in 2016). This fee capped at a family maximum of $285 for 2014, $975 in 2015, and $2,085 for 2016.
Originally posted 2/9/2015.
