By Chuck Bentley–ATLANTA, May 18, 2012 /PRNewswire-USNewswire/
Consider Groupon, Netflix, MySpace and Beware, says CEO.
Crown Financial Ministries CEO Chuck Bentley outlined reasons that should concern investors who plan on “liking” Facebook for their portfolios. He discussed his hesitance in a national e-blast to supporters of the 35-year non-profit that helps people and businesses who are struggling after making bad financial decisions and working to build a strong foundation to “do well.”
“The buzz on Wall Street this week surrounds the long-anticipated initial public offering (IPO) of the wildly popular social media giant, Facebook. It’s being hyped as one of the biggest initial public offerings in history for an Internet company, and investors are lining up to own a share. I’m not one of them,” Bentley told supporters.
“There are plenty of reasons not to ‘like’ Facebook’s initial public offering—despite the hype that it’s the hottest investment opportunity going. One is the past performance of two other technology darlings—Groupon and Netflix. When Groupon ‘went public’ last November, its stock opened at $28 a share. I just checked the ticker—it’s now trading at around $14 a share.
“Last summer, Netflix was trading at nearly $300 a share, but for a variety of reasons, including a substantial price hike for its service, revenues have dropped and so has the price of Netflix stock—now trading at around $78.50 a share … If Groupon and Netflix weren’t reason enough to avoid the Facebook IPO, don’t forget the epic fall of MySpace, once a contender as the leading social hub on the web. Rupert Murdoch’s News Corp. purchased it for a whopping $580 million in 2004 and was happy to find a buyer for it last year at $35 million.
“A closer look at the numbers reveals that Facebook will likely follow a similar pattern of over-subscription based upon opening day hype, only to be followed by a struggle to maintain original market valuation … Facebook intends to offer 337.4 million shares at a price of $28 to $35 on NASDAQ under the symbol, FB.”
Although advertising revenues are estimated to reach $6.1 billion in 2012, the valuation would price Facebook stock at 24 times revenue, compared to 5 times revenue for Google.
“Further, the company is still led by Mark Zuckerberg, who turned 28 this week. He’s the unquestioned genius who founded Facebook in 2004 from his Harvard dorm room and promptly dropped out of school to build the business. If the reports of Mr. Zuckerberg that I’ve read are at all accurate, I would be leery about placing confidence in his leadership,” wrote Bentley. “There are always more geeky college freshmen with highly marketable ideas. New and disruptive technology can surface overnight, and there is little to keep users loyal to one over the other.”
Although the authority and responsibilities of church boards are as diverse as the churches they serve, there are some responsibilities that should be consistent and typical for all church boards. These are establishing policy, financial reporting, compensation review, and budget approval.
One of the primary functions of the church board, regardless of the denomination or size of the church, is the approval, revision, and implementation of church administrative and legislative policies.
These policies should be recorded in the board minutes at the first board meeting of each fiscal year. Any policy revisions or new policy adoptions should be recorded in the minutes of the board meeting in which the revision or new policy was adopted. Then they should be added to the existing policy guide within one week of the revision and/or adoption.
The board of each church should authorize an independent annual audit, based on generally accepted auditing standards; and financial statements should be prepared, following generally accepted accounting principles.
The auditing firm should do the following.
* Have a thorough knowledge of current accounting standards and understand nonprofit organization and church finance.
* Routinely prepare value-added management letters for their audit clients.
* Help the church reduce its audit fee.
* Understand the individual church’s accounting system.
After the audit has been completed and a financial report has been submitted, the board should review the audit and either adopt it or reject it, with explanations for the rejection.
If accepted, the audit report can be presented to the congregation. If rejected, the board should resubmit the audit with its explanations to the same auditing firm.
The board also should receive staff/department head-prepared monthly or quarterly financial statements that reflect all financial transactions, including income, of the department or ministry.
In most churches in America, the church board generally establishes the compensation package for the senior pastor. The pastor in turn sets the salary of all staff members.
An annual review of the senior pastor’s compensation package is vital. The review should focus on all elements of compensation—taxable and nontaxable items, salary, benefits, expenses, allocations, housing and car allowances, retirement, bonuses, use of church property, and reimbursements.
In addition, the board should use this time to review the pastor’s performance, establish objectives, and set performance criteria. At the first board meeting of each fiscal year, the entire detailed compensation package offered and accepted by the senior pastor should be entered into the board minutes.
Each department or ministry head should submit to the board for their approval a departmental or ministry budget for the coming fiscal year. In larger churches these departmental budgets are submitted to a finance committee.
From these various department budgets, a general organizational budget is developed and submitted to the board for their approval. After approval, the budget is usually presented to the congregation for its approval. The board controller or church treasurer is usually responsible for enforcing the budget, reporting, and presenting budgetary revisions as needed.
In some churches, the board is little more than a representative of the people to the pastor. In others, the board is the governing body in all areas of church business. Whether the church board is passive or active, it has responsibilities that are consistent and should be constant and uncompromising.
Originally published 5/2/12.
In addition to travel and transportation expenses and housing allowance, there are other professional expenses that can be tax deductible for ministers if they are not paid for by the church or reimbursed by the church.
Ministers can deduct up to $25 per donee for business gifts to any number of individuals every year. The gifts must be ministry related. These usually include church staff gifts, gifts for graduating seniors in the church, and wedding gifts for attendees of the church.
Some denominations or churches impose a mandatory tithe requirement on their pastors. In such cases, reducing compensation by the amount of imposed tithes is rarely appropriate unless there is a strict contractual requirement in which noncompliance can be cause for dismissal.
If ministers can be dismissed for noncompliance of tithes imposed by a denomination or local church, they have the option to reduce their compensation by the imposed tithe. The IRS Form W-2 should reflect the compensation reduction.
If there is no threat of dismissal for noncompliance, tithes paid to the church or officiating body cannot be deducted from compensation. However, they can be listed as a charitable contribution on IRS Form 1040 Schedule A.
The cost of clothing for ministers is deductible or reimbursable if the church or officiating body requires the clothes and they are not suitable as normal wearing apparel. This means that the cost of a regular suit worn for Sunday morning services cannot be deducted or reimbursed. However, the costs of vestments are deductible and reimbursable.
The cost of education incurred by ministers can be deducted if the education was needed to meet the requirements of the church or officiating body in order to keep their positions or if it maintains or improves their present employment.
No education deductions can be taken if the education wasn’t required to meet the minimum educational standards of the church or officiating body or if the education was to qualify the minister for a new occupation.
Fifty percent of the cost of meals and entertainment are deductible if they are ordinary and necessary and are directly related to ministry or church business. Ministers must keep a log of all entertainment expenses, documenting the date, name(s) of guests, occasion, place of entertainment, ministry purpose, and costs. Non-logged expenses should not be deducted.
The cost of personal computers, cellular telephones, and the expense of using the cellular phone can be depreciated as five-year recovery property or deducted under Section 179 up to an annual limit (See IRS website for details.) on a joint return if they are used at least 50 percent for church and ministry.
To confirm that a certain amount can be deducted, it is wise for ministers to use a log to record the use of their computers and cellular telephones.
Subscriptions to ministry-related periodicals are generally deductible. Books related to ministry with a useful life of one year or less can be deducted.
The IRS allows numerous deductions for the clergy, many of which are overlooked and missed. For this reason, ministers need to consult with trusted tax consultants in order to be able to claim the maximum deductions allowed. This publication from the IRS might be helpful, as well.
Originally posted 5/2/2012.
It may seem strange, but many people don’t know if they have financial goals. Even stranger, some think they have financial goals when they really don’t. “Get rich” or “make as much as possible” don’t qualify as goals, because true goals have to be measurable at different points in time in order to be of any real use.
Financial goals need both a short- and long-term look. The key to successful goal-setting is to identify realistic goals and then keep your goals simple and measurable.
For example, instead of the “get rich” goal mentioned above, determine that you want to set aside a certain percentage of your income within six months as an emergency fund. Or, establish a longer-term emergency fund goal of three to six months’ income in an accessible savings account within a two-year period.
Determine how much you can set aside each month, then start paying yourself first.
Don’t set goals with complicated details to be achieved in the distant future. Plans like that could discourage you from continuing. Start with a simple plan, reachable goals, and then go for it. Most people have traveled from one place to another and used a road map at some time. Road maps are so useful because you can establish where you are, see where you want to go and then determine how you’re going to get there.
If the term “budget” doesn’t appeal to you, how about calling your plan a “financial road map”? You need to know where you are financially in order to set a realistic financial destination or goal; otherwise, you won’t know how to get there.
Imagine that you want to arrive at a financial destination of $25,000 in savings. You won’t know what route will take you there unless you know where you are financially. You can’t simply say, “All I have to do is save $1,000 a month for the next two years and one month and I’ll have $25,000.” Your math may be accurate, but you only make $3,000 monthly, and your mortgage and car loan payments total $1,200 monthly. Oops! You need a budget—OK, a financial road map.
Where does your money go? Use a financial road map to help you identify areas where adjustments need to be made to create extra cash to meet your goals. Keep track of spending for 30 days. Identify where all expenses are going, including the cash you give yourself every pay period. Where do you spend it? Does your income match your expenses?
Develop a plan that will be your road map for monthly spending.
Avoid paying the minimum amounts on your charge cards. Add $25 to $50 per month to each payment. You’ll get yourself out of debt quicker and save money on interest charges. One of the best investments for the average person is to pay off his or her credit card debt and then stay out of debt.
That “too much month at the end of the money” cliché is no fun. You may be among those who spend more than 40 percent of their annual food budget in restaurants. Brown-bag your lunches for a month to see how much you’ll save—then bank what you didn’t spend.
Money is a tool that you can use to reach short-term and long-term goals. “Do not weary yourself to gain wealth, cease from your consideration of it. When you set your eyes on it, it is gone. For wealth certainly makes itself wings like an eagle that flies toward the heavens” (Proverbs 23:4-5).
Short-term goals are current lifestyle goals such as debt reduction, savings, and giving. Long-term goals will be accomplished over a number of years such as funding education costs, saving for retirement, and giving an inheritance.
Learn to handle the smallest thing God has put under your authority—your money. Luke 16:11 says, “Therefore if you have not been faithful in the use of unrighteous wealth, who will entrust the true riches to you?”
Establish self-discipline and put all assets and all spending under God’s control. Then, once spending has been brought under control, determine how much you’ll need to spend each month in each category of the budget—road map—and stick to the budget.
Settle the question of how much is enough, or you’ll never be satisfied with your lifestyle.
The Bible doesn’t prohibit borrowing, but it establishes specific limits on borrowing. If we follow God’s biblical principles, we must not take on debt that we have no reasonable expectation of repaying.
Spouses need to talk with (to) one another and singles need to talk to a trusted adviser about their debt tolerance levels. Know what the Bible says about debt, and if your current debt load exceeds your comfort level, pray about finding ways to reduce it.
One important short-term goal is deciding how much to save—a dollar amount or an income percentage. The amount of money saved isn’t as important as your diligence in saving. Every dollar saved today is a dollar available for tomorrow’s needs.
Set specific saving guidelines for your family. With discipline, savings can give freedom and peace of mind when inevitable emergencies come up. And, savings allow you to purchase with cash and shop for best buys.
Try to maintain three to six months’ income in an emergency savings account. If you have seasonal or fluctuating incomes, the amount should be six months. Everyone living above the poverty level can save something, and even small amounts add up. Try to allocate 5 percent of your income—after paying taxes and tithes—to savings.
Perhaps the most important short-term goal for Christians is how much to give to God’s work. If giving habits aren’t established as a result of spiritual conviction, giving often declines when more money becomes available to the family.
Setting giving goals will help control impulsive or emotional overreaction. Unless giving to the Lord is planned, money may not be available once all other bills are paid.
Planning is necessary and scriptural. But don’t ever lose the spontaneity that comes with serving God. If God reveals a need, even though you may already have given your planned amount, give as the Lord has prompted. “Give, and it will be given to you. They will pour into your lap a good measure—pressed down, shaken together, and running over. For by your standard of measure it will be measured to you in return” (Luke 6:38).
Call it whatever you want, a financial plan, a budget, or a financial road map. Just be sure you know where you are, where God wants you to go, and then be willing to make your plans for getting there.
Originally posted 4/13/2012.
Investing isn’t simply multiplying and storing assets without purpose – that’s hoarding, which is condemned by Jesus in Luke 12:16-21. But, Solomon gives some excellent investment advice: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth” (Ecclesiastes 11:2).
Because you’re reading this, you’re probably a rookie investor, so here are some guidelines.
* An investment should be simple to understand and easy to track.
* Investments mustn’t change your lifestyle or cause stress or worry for you or your family.
* Investments must have liquidity so you can get your money back in case of an emergency.
* You should be able to handle the investment yourself, and develop it with little administrative time.
* Invest with purposeful goals, such as retirement, education, tax shelter, and so on.
* Don’t allocate money for investing if your family budget doesn’t allow for investing.
* Avoid personal liability and remember that surety is always an unwise investment strategy.
* Evaluate risk and return, and if you can’t afford to lose it, don’t invest it.
* Never encumber all of your assets; keep at least half of your investment debt free.
* Be patient and remember that most get-rich-quick schemes rely on greed and quick decisions.
* Follow Solomon’s counsel– diversify and don’t put all your eggs in one basket.
1. Multiply to give more. Jesus’ parable of the talents (see Luke 19:12-26) tells us that God entrusts wealth to some of His stewards so that it will be available to Him at a later date. Wealth management requires that it be invested or multiplied.
2. Meet future family needs. God’s Word indicates that the heads of families should provide for their own (see 1 Timothy 5:8). Good planning requires laying aside some surplus for future needs.
3. Further the Gospel and fund special needs. This giving is necessary to maintain and promote the Gospel. If the church is ever to break out of the borrowing habit, Christians who invest must maintain some surpluses and be willing to give to legitimate needs.
1. Greed. The desire to continually have more and demand only the best (see 1 Timothy 6:9).
2. Envy. The desire to achieve based on other people’s successes (see Psalm 73:3).
3. Pride. The desire to be elevated because of material achievements (see 1 Timothy 6:17).
4. Ignorance. Lack of discernment in following the counsel of other incorrect people (see Proverbs 14:7).
An investor must begin somewhere. But before you allocate money to any investment option, first pray, set goals, and understand basic investment wisdom. Realize that investing isn’t meant to be an overnight get-rich-quick success; it’s a long-term undertaking that shouldn’t adversely impact your daily life.
Originally posted 3/26/2012.
There are many reasons why people want to invest. Some want to invest for the sake of making money. This is the wrong motivation. Others want to secure their retirement. Then there are those who want to accumulate funds as quickly as possible for a specific purpose, such as buying a home, providing an inheritance for their families, or paying for a college education.
To allow material assets to erode because of bad management is not good stewardship. However, if you simply multiply and store assets without a purpose, you’ll be guilty of hoarding, which is condemned by Jesus in Luke 12:16-21. Investing itself is not unscriptural. Solomon, in all of his wisdom, gives an excellent investment plan to follow. “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth” (Ecclesiastes 11:2). Through Solomon’s searching he found the only way to have peace of mind in regard to investing for the future was to diversify and turn the worry over to God. However, few people are knowledgeable enough to invest wisely without some basic suggestions of what to do and how to do it.
No one should invest without having a purpose. So, formulate some investment goals—retirement, education, tax shelter, foreseeable relocation and moving expenses, and so on. Why are you investing? What will you do with the money? How much will you need to accomplish your goals? How long are you willing to wait in order to accomplish your goals? How much are you willing to risk to realize your goals? Can you invest without jeopardizing the family income? Is investing part of your family budget? (Do not allocate money for investing if your family budget does not allow for investing. Wait until the budget can sustain an investment allocation.) Can you afford to lose your initial investment if the market or your particular investment choice reverses itself and begins to drop in value? How long can you afford to wait if your investment begins to drop in value? All of these must be considered and evaluated before any money is allocated to investment.
Although there are thousands of opportunities for people to invest their money, there are a few basic investment rules that everyone should follow, whether they are seasoned investors or novices.
1. Avoid personal liability. Standing in surety is always an unwise investment strategy.
2. Evaluate risk and return. If you cannot afford to lose it, don’t invest it.
3. Never encumber all of your assets. Keep at least half of your investment debt free.
4. Be patient. Most get-rich-quick schemes rely on greed and quick decisions. Be patient, let your money work for you, and don’t expect overnight success.
5. Diversify. Follow Solomon’s words of wisdom and don’t put all your eggs in one basket.
If you are reading this article, chances are you are a beginning investor. If so, the following are suggestions that should help you make the right investment decisions.
1. The investment should be simple to understand and easy to follow.
2. It should take very little time to administrate.
3. It should not cause you stress, worry, or anxiety.
4. It must not change your lifestyle or cause family disharmony or stress.
5. You need to be able to handle the investment entirely on your own.
6. It must have liquidity (getting your money back in case of an emergency).
7. You should be able to increase your investment without administrative or managerial hardship.
8. Risk only what you can afford to lose.
The term risk refers to potential loss. Risks can be numerous or they can be negligible. When beginner investors are considering their investment options they need to understand the sources of risk so they can minimize the risk factors.
1. Interest rate risk. Changes in interest rates can affect bond prices and bond returns.
2. Purchasing power risk. Because inflation eats away at your purchasing power, the rate of inflation should be considered when investing.
3. Market risk. The rise and drop of the general stock market can affect your specific investment.
4. Marketability risk. The ease with which you can sell your investment.
5. Business risk. If issuers have large financial and overhead commitments, the risk of default is increased.
6. Reinvestment risk. The ability to reinvest your principal and dividend receipts at a desirable rate.
7. Price risk. This risk is based on current interest rates and the rate of inflation.
Beginning investors should first consider investing in conservative options and then expanding into more active or higher risk investments when they become more familiar with the investing process. There are four areas that beginning investors should consider.
1. Certificates of deposit (CDs). CDs guarantee a specific and stated rate of return at maturity. The longer the maturity time, the higher the rate of interest return.
2. Individual Retirement Accounts (IRAs). Contributing to an IRA as early in the year as possible can spell thousands of dollars of additional interest earned over the life of the account.
3. Low to medium risk growth mutual funds. Disciplined contributions to growth mutual funds over the years will reap huge dividends. Even if the contribution to a growth mutual fund is the minimum allowable, if it is consistently and regularly invested, it will accumulate.
4. U.S. Savings bonds. U.S. Savings bonds are safe investments with a guaranteed rate of return.
Every investor must begin somewhere. Before investors allocate money to any number of investment options, they first need to set goals, understand some basic investment rules, and realize that investing is not intended to be an overnight get-rich-quick success. Those who want to invest should know that investing is a long-term undertaking that should not affect the daily family routine and must not cause the family stress or discord.
Originally posted 3/25/2012
by Joseph Slife for Sound Mind Investing
For many of our forebears, home wasn’t just a place to live — it was a center of commerce. Whether by running a cottage industry or a family farm, our ancestors earned a living not far from where they ate and slept. Work began moving away from home during the industrial revolution. Now, in the information age, work-at-home jobs are gaining new ground. In this article, we examine several work-at-home options — and alert you to common work-at-home scams.
Every morning, I roll out of bed about 6:30, take a shower, eat breakfast, read from the Word, and head to work. In my case, work is about five steps from the kitchen. I am among the estimated 20-30 million of Americans who work from home.
Some of us work at home full-time. Others do it part time to supplement the family income. Some work for specific employers. Others work as freelancers. Still others operate their own home-based business.
Working from home isn’t new, of course. Family farms have been around as long as the human race has existed. More recently, European merchants of the Middle Ages often had their shops on the first floor of their houses, and their living quarters upstairs. In the 18th and 19th centuries, women often were engaged in cottage industries involving sewing and spinning.
But most of us grew up in situations in which “work” was some place other than at home. Work was at the office across town or at the factory several miles away.
Even so, work-at-home businesses have never gone away completely, and with the advent of inexpensive computers and high-speed Internet connections, many tasks that used to be done in “traditional office” space can now be done in “virtual” space. The Web also has simplified the product-ordering process for people involved in home-based direct sales, and has lowered the “cost of entry” for budding entrepreneurs who can now create businesses with a worldwide reach on a shoestring budget.
While working from home is enjoying a new heyday, don’t get the idea that home-based work is for everybody. Frankly, some people simply aren’t cut out for it. Working from home, especially on a full-time basis, demands that one be an organized, self-starting, goal-oriented perfectionist with limited need for social contact! Knowing your way around a computer helps too.
But the big catch is the job itself. What can you do from home and earn a living? “Aye, there’s the rub,” as writer Will Shakespeare once penned. In this article, we’ll offer an overview of some popular work-at-home opportunities, as well as a few you would be wise to stay away from.
A Google search on “work at home” yields about 1.8 million results, some touting intriguing pitch lines such as “Earn $500-$1000 per day” and “Mom Makes $5K/Month at Home.” Guess what? Most such ads are simply scams dressed up in work-at-home clothing. Christine Durst, cofounder of Staffcentrix, a virtual-careers training company, estimates that more than 98% of advertised work-at-home ideas are either “outright scams or downright suspicious.” (Durst’s company screens online job offers and rates them at RatRaceRebellion. Another site that investigates work-at-home ideas is IveTriedThat — their slogan: “We lose money so you don’t have to.”)
Durst recently told ABC News that the number of scam offers has spiked over the past year. “We’re definitely seeing an escalation, and the escalation, of course, is coming because there’s demand,” she said. “People are looking for extra income.” And scammers are looking for new victims.
As the old saying goes, “Forewarned is forearmed,” so here is a rundown of just a few of the work-at-home scams you’re likely to run across if you’re searching for a way to make money from home:
Rebate processing.
This one seems plausible (scams often do). After all, someone has to process all those UPC codes and other paperwork that people send in to get rebates.
But this is often a bait-and-switch scam. After you send in your $200 to get started in the rebate-processing business, you’ll probably find out that what you’ve actually done is sign up to be an “affiliate marketer” for whatever product the company wants you to sell. If you sell something, then you get to process the rebate forms that your buyers send back in.
So, yes, you will be processing rebates, but not quite in the way you envisioned. (By the way, the rebate money will come out of what you earned on your sales, so every time you process a rebate, you lose part of your earnings. Ouch.)
Mystery shopping.
Not all mystery shopping jobs are scams. There are companies (particularly those with franchise operations) that pay people to shop at specific stores or eat at particular restaurants and then report back about their experience. This gives the companies helpful feedback about quality control.
But the mystery-shopping scam is a bit different. In the scam version, the unsuspecting shopper is told to provide feedback on a Western Union or MoneyGram outlet. The scammer sends the newly hired mystery shopper a check, along with instructions to deposit it in the shopper’s personal bank account. Then the shopper is instructed to go to a Western Union or MoneyGram outlet and wire a portion of that money (drawn from the shopper’s bank account) to a particular location.
The scam: The initial check turns out to be fraudulent, so the shopper has just wired his or her own money to the scammer (who is never heard from again).
Google cash.
This one, promoted on hundreds of web sites, goes by many names: Google Money Tree, Google Profits, Google Money System, Fast Cash with Google, Google Home Business Kit — you get the idea.
The pitch varies from site to site, but is often something like this: “Hi! My name is Cindy Ward, and I’m a stay-at-home Christian mom in Greenville, South Carolina. I’ve discovered how to make a great part-time income using my computer from home! I work about 15 hours a week and bring in an extra $1,300/week on average. I can stay home with my three wonderful kids and still make money, and anybody can do it!” (One site with the “I’m-a-stay-at-home-Christian-mom” pitch advertises heavily on conservative blogs, targeting conservative Christians who are ripe for taking the bait.)
Other “Google cash”-type sites target workers who’ve been laid off: “A few months back, I lost my job as a boring account rep for a manufacturing company. But now I make $5,000+ a month on Google. You can do the same.”
Still others target people who’ve been burned by scams: “I got so frustrated with all the work-at-home scams that I was ready to throw in the towel. Then I discovered how to make money with my own Google business.” Scam sites routinely acknowledge that scams are rampant. It’s one way they try to gain your confidence (“I got scammed four times before I finally found a legitimate way to make money online.”) These “Google Cash” sites often seem disarming, with family photos and chatty copy.
Signs of a Rip-Off
Usually there are comments posted from folks (smiling photos attached) who signed-up and now have found out “just how easy it is to make money online.” One site notes that “BusinessWeek recently published a story about all the people making money with Google” (while failing to note it was about people earning big returns on Google stock).
Somehow it all seems too good to be true. And it is. Poke around a bit and you’re likely to find the fine print. This is from an actual site promoting a make-money-on-Google scam: “All persons mentioned on this blog are fictional examples…for demonstration purposes only.” What? Cindy, the stay-at-home Christian mom with three wonderful kids, isn’t real? “The statements contained herein come from many different people and are not necessarily being made about the specific products discussed.” All those endorsements from folks thanking Cindy aren’t really about Cindy and her money-making program?
Well, at least the fine print is honest. Unfortunately, many people don’t read the fine print. They take the bait and sign up. After all, Cindy seems so nice and the sign-up fee is cheap — only about $3 — so what do I have to lose?
The “honest” fine print addresses that, too. “After 14 days, you will be charged a monthly fee of $47.50 for…membership. After the 30-day trial [you] will be charged $99 for the program…. You may stop payment on any pre-authorized charge by notifying [us] at least three business days prior to the scheduled charge date.” Unfortunately, there is no clear contact information listed on the site, so finding a person to contact about stopping your monthly payment of $47.50 (and your $99 fee) may be a bit difficult.
By the way, a lack of contact information on a “make-money-from-home” site is a red flag. When there’s no clear way to contact whomever is running the site, that is usually a pretty good indicator you’re dealing with a scammer. Even if there is contact info, don’t assume everything is okay. Check it out. If an address is listed, look it up on Mapquest or Google Maps. See if it really exists. If there’s a phone number, call and find out who answers.
More scams.
According to the Federal Trade Commission, other common work-at-home scams are related to medical billing (“There’s a severe shortage of people processing medical claims!”), envelope stuffing (“For a small fee, we’ll tell you how you can earn money stuffing envelopes at home!”), and assembly and craft work (“You can assemble products at home in your spare time!”). In each case, the only one making any money on these deals is likely to be the scammer, who happily accepts your sign-up fee and the money you send in for a “start-up kit” — and then disappears.
So much for scams. Are there any legitimate home-based work opportunities out there? Yes.
Call centers
For example, home-based call-center agents now account for nearly one-fourth of all call center agents in the U.S. and Canada. According to the recently published book Undress for Success (playing off the idea that you can work from home in your PJs), “all of the more than 200 people who answer the phones for JetBlue Airlines work from home in locations all over the country…. [And] LiveOps’s 16,000 call center agents field everything from restaurant takeout orders to insurance questions, all from the comfort of their homes.”
Call-center jobs typically involve order taking, ticketing, general customer service for banks and insurance companies, and even tech support. Some companies also are using work-at-home agents to support customers via e-mail and live chat.
But getting a call-center job isn’t easy. “[T]he number of job applicants for home-based positions far exceeds the number of jobs available,” note authors Kate Lister and Tom Harnish in Undress for Success. LiveOps, for example, receives more than 150,000 job applications a year. From that number, only about 4,500 people are hired. To make the grade you must be computer savvy, demonstrate a professional-sounding telephone manner, and have a quiet workspace (no barking dogs or noisy children). And, of course, you need your own computer, a high-speed connection, and perhaps a dedicated phone line. (For call center job leads, check out RatRaceRebellion and Sykes.)
Virtual assistant
Another legitimate work-at-home job is the “virtual assistant” (VA) — the telecommuting version of a secretary or administrative assistant. The job of a virtual assistant, like that of the VA’s office-based counterpart, is “making the boss look good” by taking care of details. On any given day, a virtual assistant’s duties might include proofreading, data entry, building a PowerPoint presentation, scheduling appointments, and sending out thank-you notes.
According to Undress for Success, many VAs work for real estate agents, doing tasks such as preparing listings, arranging inspections, maintaining a web site, and even helping agents build a presence on social networks such as Twitter and Facebook. Some VAs work for multiple clients. As you might imagine, this can create quite a time-management issue, so VAs must be excellent organizers. (To learn about becoming a Virtual Assistant, visit TeamDoubleClick and VIPdesk.)
Personal concierge
Another home-based field that is growing is the “personal concierge” business. This type of enterprise focuses on taking care of tasks and errands people don’t want to do (or don’t have time to do) for themselves. These range from gift buying (either online or in person) to event planning. If you’re organized and resourceful — and can land some well-moneyed clients — this kind of work can be quite lucrative.
Virtual teacher
Are you academically inclined? You might consider becoming a virtual teacher or tutor. This is a rapidly expanding field, as schools (even at the elementary, middle, and high school level) increase the number of online classes being offered.
Of course, a big roadblock to getting a job as an online K-12 teacher is state certification. Almost all states require their virtual teachers to have the same teaching certifications as traditional in-class instructors. At the college level, online instructors typically are required to have a graduate degree and prior experience in teaching.
So if you think you’d make a good teacher but don’t have the prerequisites (or even if you do), you may want to look into online tutoring, providing one-on-one help to students struggling with specific subject areas. (For online tutoring jobs, check Smarthinking, TutorVista, Tutor, and Craigslist — under “education.”)
Even before the Web revolution expanded work-at-home opportunities, millions of people were earning money from home-based businesses affiliated with direct-sales giants such as Avon, Mary Kay, and Amway (the Amway brand returned to the scene in recent years after being rebranded as “Quixtar” for several years).
According to the Direct Selling Association (DSA), such businesses are as popular as ever. In 2007, the DSA estimated that about 15 million Americans were working in direct sales, almost 90 percent of them women. (Worldwide, the sales force tops 60 million people, working as representatives of more than 200 direct-sales companies.)
In addition to the companies mentioned above, other firms that partner with home-based entrepreneurs (this is only a small sampling) include The Pampered Chef (cookware/kitchenware), Usborne (books), Tupperware (food containers), The Longaberger Company (baskets/kitchenware), Melaleuca (nutritional products), and Shure Pets (pet care products).
Multi-level sales model
Many direct sales businesses are built on a model known as multi-level (sometimes called “network” or “matrix”) marketing. The business owner (i.e. the home-based businessperson) earns money from direct sales to customers, as well as claiming a percentage of the revenue earned by “downline” sellers that the owner has recruited to become part of the company’s sales force. While there is nothing inherently wrong with this model, there are a couple of common pitfalls with these types of businesses. Consider the following two examples.
Andy Willoughby’s 3-Step Plan recruits its sales force by advertising heavily on Christian and conservative-talk radio (Willoughby’s folksy ads always include the line, “How in the world are you anyway?”). Although the 3-Step Plan does market a product (Xango juice), the product is clearly secondary to the idea of “owning a business” and “earning additional income.” In fact, Willoughby’s radio ads don’t even mention the product.
The purpose of the radio ads is to generate a steady stream of “prospects” that can be turned over to existing distributors for telephone follow-up, thus helping distributors grow their “downline” organizations (“Hi, Fred! I’m calling because you responded to one of Andy Willoughby’s ads on the radio. That was you, right? Terrific! So you’re looking for a way to make money from home?”…).
The Reverse Funnel System
A second business opportunity advertised heavily on radio — this one by self-proclaimed “beach bum” Ty Coughlin — is something called The Inner Circle. There are variations operated by other people, but all are based on a marketing approach known as the Reverse Funnel System. The “system” requires potential recruits to pay $50 just to get information about what the business does, thereby winnowing out all but the most interested people right from the start. (A funnel turned upside down — with the small hole at the top—would limit what could pass through. That’s what Coughlin’s system does; thus the name, reverse funnel.)
Prospects willing to pay the $50 upfront free are then given a hard sell about how they can generate a $1,000 commission on each product sale, not only on sales made directly but also on sales made by each person in one’s “downline.” (In this case, the product being sold is a time-share-like resort-vacation package.) But, of course, you can’t start earning those $1,000 commissions unless you sign up — which costs about $3,000.
While you have to be careful when evaluating direct-selling business opportunities, that’s not to say there aren’t good ones out there. Just keep in mind that whether it’s cosmetics, containers, or some other product, the operative word in any direct sales business is “sales.” For such a business to be successful, products must be sold. (Indeed, according to the Federal Trade Commission, the sale of actual products is a key aspect that distinguishes multi-level marketing from illegal pyramid schemes.)
Success
Success in direct sales, therefore, requires sales talent, product-line knowledge, and the ability to keep track of the administrative side of the selling process. Those most apt to do well are detail-oriented people with outgoing personalities. Further, in a multi-level business, becoming highly successful requires knowing how to recruit, mentor, and motivate other salespeople.
Of course, many people who enter direct-sales businesses aren’t really looking to earn a full-time living. They simply want to generate a certain level of supplemental income. If that’s your goal, and you’re able to build up a small but loyal clientele, a direct-sales business could be just the thing to add several hundred dollars to your income every year (and allow you to get personal discounts on products to boot).
Keep in mind that there is a “cost of doing business.” In direct sales, that cost is likely to include the purchase of kits, catalogs, and product samples. You might even be required to maintain an inventory of products. So be sure you understand the cost commitment, not just the profit potential, before you sign on the dotted line. (Also realize that you assume some legal liability in becoming a product distributor, as explained at the Federal Trade Commission.)
“Few occupations are better suited to working anywhere than writing,” write the authors of Undress for Success (who, as you might guess, wrote their book from home). “Even before the advent of the Internet, a writer equipped with a typewriter and a mailbox or a courier service could click out a living from home.”
Perhaps the best arrangement for a work-at-home writer is to be employed full-time by a specific publication, such as a magazine, newsletter, or website. But that kind of arrangement is likely to come about only if you have a previous connection with the employer.
Freelance
Another option for a home-based writer is to work as a freelancer. “The problem with freelance writing for a living — and, for that matter, any freelance income — is that as soon as you finish a project, you’re unemployed again,” note Kate Lister and Tom Harnish in Undress for Success. “Good writers will spend at least as much time chasing work as they do words.” So if you’re going to be a freelancer, you’ll need to be a good self-promoter as well. (Sites that connect freelance writers with clients include Guru and Upwork.)
Blogging
Another niche for home-based writers is launching a blog (short for “weblog”). The best bloggers have a deep knowledge base about a niche topic and can develop an audience of readers who visit their blog regularly. While anyone can start a blog, only about 2 percent of bloggers actually earn a living by blogging.
It’s tough work
1. becoming an expert in an area that…
2. people want to read about regularly and…
3. writing about it well enough that they come back often, but it can be done.
In addition to checking the websites previously mentioned, here are a few more sites that may help as you search for a work-at-home job: Indeed aggregates job listings from newspaper classifieds and other sources; Craigslist features jobs posted directly by employers; CorpsTeam focuses on jobs that offer flexible working conditions; and TJobs lists telecommuting jobs (the site charges a one-time $15 to gain access to complete listings). Still more sites are listed at Undress4Success (click the “Find Work” tab).
Working from home has its share of rewards — many of them nonfinancial. For example, a five-second commute is great. But get rid of the mistaken idea that money will roll in while you’re relaxing in your easy chair, eating popcorn and watching reruns. A work-at-home job requires real…work! You’re simply not likely to earn $1,300 a week while working just 15 hours. And for most people, a work-at-home job is going to involve some type of selling. So if you decide to pursue a work-at-home job, be realistic about the effort required, as well as the costs that will be incurred and the potential profit that can be made.
The good news is that it is possible to make money from home if you have the right set of skills and are willing to make a genuine effort. You might not get rich, but you may be able to earn a decent living or supplement your other income.
And perhaps you will better be able to appreciate the lifestyle of those far-away forebears whose workplace and homeplace were the same place.
Published since 1990, Sound Mind Investing is America’s best-selling financial newsletter written from a biblical perspective.
Originally posted 3/22/2012.
In a recent survey of several seminary students, it was determined that 70 percent of those surveyed felt that borrowing was scripturally prohibited. However, of those who felt that borrowing was prohibited, 90 percent admitted that they had to borrow in order to attend seminary. Is this a double standard, or is it a discomfiting presumption on the part of the seminary students?
Perhaps it would be easier if God’s Word did prohibit Christians from borrowing, but it does not. There is not a single verse that directs God’s people not to borrow money. However, there is also no Scripture that encourages borrowing.
In order for ministers to teach the biblical financial principles concerning borrowing, they first must know what God’s Word says about borrowing.
Borrowing is always discussed in the Bible as a negative rather than a positive principle. In fact it seems to be a consequence of disobeying God’s statues of economics and principles of finance.
“He shall lend to you, but you will not lend to him; he shall be the head, and you will be the tail. So all these curses shall come on you and pursue you and overtake you until you are destroyed, because you would not obey the Lord your God by keeping His commandments and His statutes which He commanded you” (Deuteronomy 28:44-45).
The absolute minimum that God’s Word establishes for anyone who borrows is found in Psalm 37:21, “The wicked borrows and does not pay back, but the righteous is gracious and gives.” If we don’t want to be considered by God to be wicked, we must repay any money we have borrowed.
It makes no difference whatsoever if the circumstances that prevent us from repaying are beyond our control. If we owe a debt, we must find a way to repay (Matthew 5:23-24), even if that means making special repayment arrangements with the creditor.
Probably the most misunderstood financial principle in God’s Word is His prohibition against surety (Proverbs 22:26-27). Surety is assuming an obligation to pay indebtedness without a sure way to pay it. Non-collateralized loans and cosigning are examples of surety. Surety means that we presume on the future. If everything goes as expected, we should be able to pay the money back. But, if something goes wrong and we are not able to repay, then we are left with a debt.
It is only when collateral has been placed as security against the loan that is equal in value to the loan that we can avoid security. If we are unable to pay the loan back, the creditor can repossess and sell the collateral, which will satisfy the total amount of the loan. The Bible cautions against any type of loan that is not totally collateralized. If Christians would observe this one caution associated with borrowing, the most they could lose would be the security they had pledged against the loan.
Although borrowing is not directly prohibited in the Word of God, it is not encouraged either. If pastors will learn God’s principles for borrowing and teach God’s people those principles, much of the indebtedness within today’s Christian society in America could be avoided and/or eliminated.
Originally Posted March 6, 2012
What is a multilevel sales program? In reality, every product is sold via a multilevel system. The manufacturer marks it up and sells it to a retailer, who marks it up and sells it to a customer. This is a delivery system that has proved very effective over the centuries.
The multilevel plan we will discuss is different in two regards. First, the products are usually sold through part-time salespeople, who sell primarily to personal acquaintances and friends. Second, there are several levels of distributors, each making a percentage on the sales of those under his or her authority. In most programs, distributors are encouraged to recruit others to sell for them, thus expanding their sales volume and income.
Quite often, however, what started out to be a part-time job ends up as an all-consuming passion to sell more products or recruit more prospects. After a while, everybody is viewed as a prospect and every social activity as a sales platform. When a particular program is approaching its zenith in an area, Christians are stepping all over each other to recruit new salespeople and move to the next level in the company. A lot of otherwise well-meaning Christians have severely damaged their credibility and witness by becoming known as “Mr. and Mrs. Multilevel” in their community.
Anytime Christians look on others as a source of revenue rather than as an opportunity for service, they are caught in Satan’s most common trap: greed.
“Do nothing from selfishness or empty conceit, but with humility of mind let each of you regard one another as more important than himself” (Philippians 2:3). Many young Christians who were hungry for fellowship have been hurt immeasurably by other Christians who deceptively asked them over for an evening, only to attempt to recruit them to sell their product line. Even more devastating are those who use the church environment to prospect. “A brother offended is harder to be won than a strong city” (Proverbs 18:19).
If someone is into multilevel sales just for the money (ego, pride, greed), there will never be enough. “He who loves money will not be satisfied with money, nor he who loves abundance with its income. This too is vanity” (Ecclesiastes 5:10). A Christian must know God’s individual plan for his or her life. Most Christians don’t know what God’s plan for them is and, consequently, get led into many schemes that disrupt their lives.
If most Christians would approach evangelism with the same zeal with which they approach product sales, we would saturate our communities with God’s Word.
The concept of multilevel direct sales is not wrong, but quite often its practices are. Anytime a Christian must trick another person into listening to a sales pitch while promising fellowship, it is wrong! Anytime a Christian is more interested in selling a product than in ministering to someone else’s needs, that person is in service to money and not to God! Each believer must test his or her own attitudes before the Lord.
For information from the Federal Trade Commission on multilevel marketing practices, click here.
Originally posted 3/2/2012
Although it would not be a good example of Christ-like character for a Christian to sue another individual, is the same standard advised in dealing with a business, a corporation, or an insurance company? Many lawsuits are initiated because of personal loss suffered due to the negligence or deceit of a company or a business. Should Christians pursue such matters into the secular courts?
Larry Burkett wrote in his book, Business by the Book, “Since there were no corporations in existence when the Bible was written, the best we can do is relate the principle to the closest parallel of that time: a government agency.
“It seems clear from the book of Acts that Paul recognized both the authority and the responsibility of the government of Rome. Twice, when he was falsely arrested, he relied on application of Roman law to regain his freedom. He also clearly used the implied threat of that law to punish his antagonists (Acts 16:37). When he was falsely accused by the Jewish leaders in Jerusalem and jailed by the Roman authorities, he appealed to the law of Rome to defend himself. The Roman government was an entity, not a person, so Paul felt he was clearly within his rights to use Roman law against that entity.”
A corporation or a business is also an entity, not a person. Although the entity may be controlled and often is solely owned by a person, it appears that a corporation or a business has no rights under biblical guidelines, except the rights of prevailing law. Therefore, to sue a corporation in order to require that it meet its legal responsibilities is not unbiblical.
However, before Christians decide to sue a corporation or any entity, he or she needs to be certain of the grounds and the motives. He or she needs to be certain that the reasons for initiating any kind of lawsuit are legitimate, lawful, moral, and biblical. He or she also needs to be willing to abandon any action if God so directs.
We are told in Hebrews 13:5, “Make sure that your character is free from the love of money, being content with what you have.” It is easy to look at any corporation or business with an air of detachment when it comes to suing. God always judges our attitudes, and just because something is allowable does not mean that it is the right thing to do (1 Corinthians 6:12).
What about suing an insurance company? Philippians 2:3 says, “Do nothing from selfishness or empty conceit, but with humility of mind regard one another as more important than yourselves; do not merely look out for your own personal interests, but also for the interests of others” (Philippians 2:3-4).
The counsel that most Christians receive is to sue an insurance company for loss, as well as for punitive damages. However, God’s Word clearly states that we should not seek revenge for being wronged (see Leviticus 19:18, Deuteronomy 32:35). That would include suing for more than the amount of actual loss or suing just to make a point. Remember, God said through His servant Paul, in Colossians 3:13,“Bearing with one another, and forgiving each other, whoever has a complaint against anyone; just as the Lord forgave you, so also should you.”
An insurance company is much like a corporation; therefore, there are no biblical restrictions concerning suing an insurance company. However, if Christians choose to sue, they should sue for only the actual amount of their loss: medical expenses, repairs, loss of income, loss of transportation, loss of equipment, property loss or damage, cost of medical services, and travel time.
With regard to suing a hospital because of the hospital or doctor’s negligence, a hospital has liability insurance to cover incidents that result from the negligence of one of its employees. One reason medical insurance is so high is that so many people sue for things that were never under anyone’s control or were not caused by one person’s negligence. A hospital cannot contractually pay a settlement unless law demands them to pay (suit).
It is permissible to sue for hospital costs, rehabilitation, therapy, compensation for loss of wages while unable to work, or the costs of any surgery required to correct a condition caused by the negligence of the hospital or of a physician. However, suing for punitive damages or suing in order to punish the hospital or physician should not be pursued.
Is it biblically lawful for a Christian to sue a company for a debt that is owed him or her? Scripturally, a Christian would not be prohibited from suing a company for the collection of a lawful debt. That does not mean that a Christian should exercise that right.
The apostle Paul said in 1 Corinthians 10:23, “All things are lawful, but not all things are profitable. All things are lawful, but not all things edify.” All means, short of a lawsuit, should be pursued first. If the company still will not fulfill its legal commitments, one might consider legal action.
Although there do not appear to be any scriptural restrictions preventing Christians from suing a corporation, a business, or an insurance company, Christians need to pray for peace that they are not trying to be vindictive or trying to get excessive amounts. Negotiating an amount that covers losses, costs incurred as a result of negligence, or any future losses they may incur, is always advisable when considering legal action.
Realizing that God is the ultimate Provider, not the corporation or insurance company, is the balance that conforms to God’s Word. Although corporations and insurance companies do need to be held accountable for their negligence, a Christian’s attitude, and his or her submission to the will of God is what is most critical.
Originally posted 2/26/2012.
