Hi Chuck,
When do you think used-car prices will drop? My car is racking up a lot of miles, and I am trying to hold off on buying a replacement.
Waiting on Prices to Drop
Dear Waiting on Prices to Drop,
Several years ago, a neighbor told my wife they needed to buy a new car because theirs had nearly 100,000 miles on it. Ann chuckled, thinking, “That’s the kind we try to buy.” Many, like you, are “racking up a lot of miles” waiting for used-car prices to drop! It is hard to know when the prices will come down, but let’s look at what some experts say.
Watch New-Car Production
J.P. Morgan expects demand for used cars to moderate as new-car production ramps up.
New-car prices are up due to global supply chain issues, the ongoing chip shortage, and rising raw materials costs exacerbated by the Russia/Ukraine war. Dealer Trak estimates that sales in the used-car market fell 13% year-over-year in June 2022. “This is driven by the high prices and historically poor selection that has been plaguing the industry, but is likely now joined also by declining demand given waning consumer confidence, asset price deflation, rising interest rates and slowing economic activity. A deteriorating macro (economic) outlook is weighing on consumer sentiment and keeping potential buyers out of the market,” says Ryan Brinkman, lead automotive equity research analyst for J.P. Morgan.
Used-Car Prices Softening
Used-car and truck prices are falling slightly. Prices are still up over 7% from last year, but experts believe that may be coming to an end. Charlie Chesbrough, Cox Automotive’s senior economist, says, “We are starting to see prices come down. But it’s very hard to see vehicle prices collapsing in this market, because there’s still just a whole bunch of need out there for transportation.” He believes prices will stay elevated due to the limited number of cars available for consumers over the coming years. Why?
Ivan Drury at Edmunds says, “Typically about 20% of consumers would buy their lease instead of turning it in. Now we’ve heard some reports that 90% of consumers are buying. Ford put out that number, and it blew my mind.” This could impact the number of used vehicles coming to market in the coming years.
Slumping new car sales means fewer trade-ins, which will impact the supply of used vehicles.
J.D. Power’s David Paris notes that over the past decade, there has been an increased demand for used vehicles. In the past, buying a used vehicle was “frowned upon.” That changed over the past decade, causing a demand for used cars. “So we don’t think this is going to be a bubble bursting, with prices falling extremely rapidly,” he said.
Nine Months to 2 Years?
Ivan Drury at Edmunds.com believes that if consumers can wait nine months or a year, the market may bottom out. According to J.D Power’s Paris, “Over the course of the next two years, we’re going to see used car prices retreat back to more normal levels. So by the time we get to 2025, that’s really when used prices will bottom.” Paris and Drury both see used-car prices bottoming (at around $25,000 ) in two years, $5,000 above average prices in 2019. Because so many consumers are waiting to buy, values will stay up until supply increases significantly.
The Big Picture
New-car sales are impacted by the following:
This is driving new-car consumers to the used-car market.
Used-car prices are impacted by the following:
Hurricane Ian flooded thousands of cars. Cox analysts report that 80% of replacements may come from the used-car market, further complicating availability. In addition, unscrupulous sellers will buy damaged vehicles at auction, move to a different state with different title requirements, and retitle them to hide the trail of flood damage. Know how to recognize a flood-damaged car.
Consider Your Options
If you are driving an older car, consider making repairs in order to drive it longer. Fixing a dependable vehicle will save you time and money in the long run. Consumer Reports suggests conducting a cost/benefit analysis. Simply divide the estimated cost of repairs by the number of months you think you can get out of the car. If that number is less than a new monthly payment, it will be worth it. If not, you may need to find a more reliable vehicle.
Demand for car repairs has increased now that consumers are holding on to their cars. Shop around because the demand and supply-chain issues have caused higher prices and longer waiting times for parts. “A $3,000 repair bill is probably a better financial move than committing to a monthly $500 car payment over the next several years, to say nothing of sales tax, registration fees, and the likelihood of higher insurance premiums on a newer car,” Consumer Reports states.
Our late founder, Larry Burkett, used to say, “I drive a car till it turns to dust, then I sweep up the dust and ride on the dust.” To maximize the life of the car you drive:
Don’t rush. Seek the wisdom and counsel of those you trust, and pray as you wait. The Lord is “wonderful in counsel and excellent in wisdom.” (Isaiah 28:29 ESV)
To gain more wisdom and insight into how you can effectively steward God’s resources—both time and money—the Crown Stewardship Podcast can be valuable. You can subscribe for alerts of new episodes. I hope you find it beneficial.
This article was originally published on The Christian Post on October 21, 2022.
Dear Chuck,
When students were paying 10% on student loans, we couldn’t get 1% interest on the money we put in savings. It seems like students and families who continue to take these loans are getting ripped off. Would you please address usury?
Looks Like Usury to Me
Dear Looks Like Usury to Me,
This question has many aspects to it that I will attempt to address: first, the problems of usury and rip-offs and, then, some possible solutions to student loan debt.
Usury
Usury, as defined by Merriam-Webster, is “the lending of money with an interest charge for its use, especially the lending of money at exorbitant interest rates.” Usury laws are an attempt to protect people from predatory lenders who tend to take advantage of people in desperate circumstances.
Typical federal student-loan rates for people with good credit today range from 4.99% to 7%. In the case that you cited, a 10% interest rate for student loans is above the market rate but does not fall into the definition of usury. It appears that way when compared to the market rate for passive savings, but you have to compare it to the available market for student loans.
Student loans are legal and optional, and most do not borrow the money under desperate circumstances but rather to pursue a desired goal. However, many students and families who take on these loans are unaware of the long-term consequences.
Rip-Offs
Student loan debt is second only to mortgage debt in America, as millions borrow to attend school in hopes of a brighter future and an increase in lifetime earning power. But the “borrow your way to a diploma” method continues to get more expensive and is unlikely to change soon.
“How Government-Guaranteed Student Loans Killed the American Dream for Millions” by Daniel Kowalski reveals that there is absolutely no incentive for colleges and universities to lower their prices. He reports that in 1980, there were 3,231 higher-education institutions in the U.S., but by 2016, there were 4,360. In reference to a Forbes article, he says that the average price of tuition has increased eight times faster than wages since the 1980s.
Another Forbes article states that the tuition at Harvard in 1840 was $75 a year. If that price had risen at the same rate as prices (or the inflation rate), the cost in 2015 would have been $1,703, not $45,278. (2022-23 tuition is $52,659.) “But it is arguable whether today’s college graduate is in a real sense more educated than ones in 1840, when individuals like Samuel F.B. Morse and John Deer were revolutionizing communications and agriculture, and some with far lesser education (think Abraham Lincoln) were making big contributions in law and politics,” the article states.
Today, many college graduates are underemployed, but there is no evidence this was a problem among 19th-century graduates. As federal aid has increased, so have tuition fees. The proportion of recent college graduates (the article is dated 2015) from the bottom quartile of the income distribution is lower today than in 1970—before Pell Grants or massive federal loan programs. In addition, administrators now outnumber faculty.
Student loans have benefitted colleges and universities, with the burden falling on students, taxpayers, and those hoping to get a degree in the future.
Many people are discovering that their assumption that a university education was necessary for financial security was false. The opposite has happened. Students often graduate with diplomas and debt, sometimes in the hundreds of thousands of dollars—but without job security.
Merrill Matthews wrote a compelling article titled “University Endowments Should be the Primary Source of Student Loans.” “At the end of fiscal year 2020, the market value of the endowment funds of colleges and universities was $691 billion . . . If colleges and universities had to turn to their endowments as the first line of student loans, they might decide to get their costs under control,” the article states.
How to Avoid Student Loans
Parents should not borrow money for their children’s higher education. If you want to help cover a university education, start saving early. Demand academic excellence from your schools to prepare your children to qualify for scholarships. I used to tell my boys that getting good grades would be the highest-paying job they could have in high school. Our rule was that nobody would borrow to attend college. Either we would find a way to pay for it via savings and scholarships and jobs while in school, or they would not attend.
Here are some tips for students who want to get an education without borrowing money:
Dealing with Student Loan Debt
If you have a student loan now, look at refinancing options to reduce your interest rate. Make a plan to apply all extra income toward the reduction of the debt. Attempt to pay it off as soon as possible. Ask the Lord to give you help in accomplishing this goal.
In addition to student loan debt, if credit card debt is a source of financial pain for you or someone you know, Christian Credit Counselors is a trusted source of help toward financial freedom.
This article was originally published on The Christian Post on October 14, 2022.
Dear Chuck,
Should I buy a car listed on Facebook Marketplace or Craigslist? There seems to be a lot of great deals from private sellers. And I would love to pay cash rather than have a car payment. But the process seems so daunting. Many of the posts look like scams, and most sellers say “cash only,” but I don’t want to carry that much cash. Is it worth the trouble?
Sincerely,
Looking for a Good Deal
Dear Looking for a Good Deal,
Thanks for the great question. A few years back, we used Craigslist to buy my son a used car, and we paid cash to do it. While it’s important to take safety precautions when making a purchase through this kind of network, I have found it a useful tool for fast-turnaround, cash deals, which I recommend when it comes to a used car. Especially as you are getting started, keep personal information to a minimum and communicate using email or text. You may even want to set up a separate email for conversations like this. When I am considering a used-car purchase, I always arrange a meeting in the parking lot of a local fast food chain in the middle of the day, rather than at someone’s house, for example. With your security in place, one person’s trash can be another’s treasure.
As with all sales experiences, it matters who you are dealing with, and I have found it best to buy from an individual or reputable dealer. Be on the lookout for less-than-honest dealers pretending to be an “owner,” when they are actually just getting rid of a lemon on their lot.
First, look for sale-by-owner (rather than a dealer) with a clean Carfax report. Several people we talked with were trying to rip us off, and it can take time to get to the facts about a car. The preference is to buy a used car that has not been through a major incident and is from the first or second owner. A clean Carfax report means:
Second, ask the owner for maintenance records. This includes history of use (how often the owner drove it and how far), where the car was serviced, when the tires were last replaced, etc. Save yourself some time by asking for this information through e-mail.
Third, do your homework on the car you are considering. Before we went to test drive and inspect the car, we did our research on the value using Kelley Blue Book, which is nationally known for information on the value of cars, and the National Auto Dealers Association, where we received on-line, free services that helped us evaluate if the price the owner was asking was fair.
For me, I was able to use this experience as a teaching opportunity for my sons as I took them through this process with me. When we finally had narrowed our search and were ready to see some cars in person, I took both of my teenage sons, asking them to evaluate the condition of the car on a scale of 1 to 10, looking at tires, engine, interior, rust, windows, seats, power systems, spare tire, paint, etc., and I asked for their evaluation of the value of the car versus the price being asked.
Eventually, we found a car that the three of us rated an 8 out of 10 for quality of condition, but the owner wanted a 10-out-of-10 in price—top dollar, $7500 at the time. It was worth considering, so we asked to have the car inspected by a mechanic (which cost us $100); we found that the car needed $2,500 in engine work. That would mean the price had to come down 30 percent for us to be interested.
We made an offer by text, which the sellers initially refused, but three days later, they contacted us again and took our reduced price. The repairs were made after the sale, and my sons couldn’t have been happier. We paid cash for the car and repairs and walked away with a bill of sale, a title transfer, and a mileage affidavit.
To be frank, this was a process that took some time, and not everyone may want to work this hard for a used car. An alternative is to buy “Certified Used” from a reputable car dealer. You will pay a premium, but the car will come with some guarantees, and you won’t have to worry about finding out later that the transmission is ready to fall through the floor of the car. However, I’ve found that it is difficult to find anything under $15,000 from a dealer.
Hopefully, you will enjoy the process. People have been enjoying the art of buying and selling since the beginning of time. Proverbs 20:14 observes, “‘It’s no good, it’s no good!’ says the buyer—then goes off and boasts about the purchase.”
While seeking the Lord’s guidance and patiently waiting on a good deal for a used car, one way to improve your finances is to reduce or eliminate credit card debt. Christian Credit Counselors is a trusted source of help toward financial freedom.
This article was originally published on The Christian Post on October 7, 2022.
Dear Chuck,
I work very long days and provide nice things for my wife and children. However, I’ve grown increasingly aware that I am missing out on valuable time with them. Can you help me find balance?
Torn Between Work and Home
Dear Torn Between Work and Home,
Having struggled with this early in our marriage, I can certainly relate to your struggle. The tension between providing materially and relationally can easily get out of balance. For most, money tends to be the top priority because it seems inflexible in order to meet monthly payments and flexible because one can make up for lost time with family later. So your question of balance is a very good one.
Don’t Let Money Master You
If you prioritize money over time, you may be undermining your happiness. An article by Elizabeth Dunn and Chris Courtney at the Harvard Business Review tells why. They reference several studies supporting this theory. Researchers found that students who prioritized money were less happy a year after college graduation than those who prioritized time, even after controlling for happiness beforehand and accounting for various socioeconomic backgrounds.
Evidence shows that wealthier people are happier than the poor, but excessive amounts of money do not inevitably make one happier. On the other hand, low deposits in bank accounts impact people negatively. Those who can build a cash reserve, even while eliminating debt, relieve stress. Those who can access $500 of cash show a 15% higher life satisfaction. So these authors propose two questions to consider prior to spending:
Ultimate happiness is found not in spending money on things but in experience, time, and investing in others. In addition, research proves that giving can boost your mood. Jesus warned us that we cannot serve both God and money. When we serve Him as our top priority, He will lead us to care for our families while also providing for our needs to do so.
All the Time in the World
I’ve traveled the world and been invited into many different cultures. One thing I’ve witnessed is that people in other cultures tend to do a better job spending unscheduled or unhurried time with one another. Africans have a saying that “they may not own a watch, but they have all the time in the world.” They are not driven by clocks or schedules or impacted by things that people emphasize in our culture.
Perhaps you know the lyrics to Cats in the Cradle by Harry Chapin.
Busyness does not mean effectiveness. Movement does not mean eternal impact. Unless we control the minutes in our days, they will control us. External pressures will drive us; escapism will lure us. Proverbs 90:12 is appropriate for combatting warfare over the minutes of our days: “So teach us to number our days that we may get a heart of wisdom.”
Time Impacts Finances
Employees who use their time wisely, on and off the job, are more productive and better employees. They are the ones who often receive raises, promotions, or new opportunities. This translates into more money.
If you grew up in a home where hard work was modeled for you or if you are passionate about your job, it is even more challenging to learn to relax. Balance is important so that time with family, church, neighbors, and community is not neglected. Learn to detach from work (as much as possible) when you are home. Develop healthy habits. Laugh and play with your children; invest your time into their lives. Ask your wife to hold you accountable. Is there an older man (father, uncle, pastor, mentor) who will honestly speak wisdom into your life?
Practical Help
The fact that you recognize the need for balance makes me confident that you will find it. When scheduling your day, include time with the Lord. Read His Word, and truly listen to Him. When you are driving alone, pray for your family, and listen to the Bible or things that will deepen your walk. Memorize Scripture; this is a good practice to do with your wife and children.
Seize the opportunity to run your day rather than letting it run you. Here are a few things to consider:
Answer these questions:
God has given each of us a limited number of days. Remember to number them and use them in a way that you will have no regrets when this life is completed. Thanks for writing.
If you want to consider more ways in which you can effectively steward God’s resources—both time and money—the Crown Stewardship Podcast can be a valuable resource. You can subscribe for alerts of new episodes. I hope you find it beneficial.
This article was originally published on The Christian Post on September 30, 2022.
Dear Chuck,
My wife and I are reaching out for some financial advice. After I lost some of my leg (due to diabetes), I have struggled with depression and holding down a job. What does Crown offer someone like me?
Depressed and Near Bankruptcy
Dear Depressed and Near Bankruptcy,
Thank you for the opportunity to speak into your life. I know that the Lord (through Crown) can help you overcome this hard time in your life. I want to start with reframing your perspective on the loss of your limb.
Focus on What You Can Do
I love to watch the Little League World Series. I grew up playing baseball and coached my boys when they were young. This year, 12-year-old Josiah Porter played for Nolensville, Tennessee. He played both outfield and pitcher and hit .300 through four Southeast Region Tournament games. Things got serious when he hit a grand slam that advanced the team to Williamsport to play against Hawaii.
You know what’s really incredible about this? He’s legally blind in one eye. When he was six, he walked into a sharp object that cut his eyeball. He had stitches and numerous surgeries but refused to let it hold him back.
Josiah’s dad, Brandon, said, “God had a big thing to do with all of this – keeping our focus on Jesus walking on the water, like Peter walking on the water in the Bible, and being positive. . . Instead of focusing on the storm, the bad things, what he can’t do, he focuses on what he can do.”
“Josiah doesn’t let this thing define him. He doesn’t like to talk about it because that’s not how he looks at life. It has been amazing. He’s a great young man. He loves God, and he’s sensitive to the problems of other people. He’s in tune when he sees people are hurting or sad. He’s that kind of kid.”
Trust God With Our Limitations
We all have some form of limitations; we simply must not allow them to define us. Nick Vujicic is a world-renowned speaker, New York Times best-selling author, coach, and entrepreneur. He was born in Australia without arms or legs. For years, he struggled trying to understand why he was born that way. Then this passage spoke to him:
“As he passed by, he saw a man blind from birth. And his disciples asked him, ‘Rabbi, who sinned, this man or his parents, that he was born blind?’ Jesus answered, ‘It was not that this man sinned, or his parents, but that the works of God might be displayed in him.’” (John 9:1–3 ESV)
Today, he relies on this truth:
“And I am sure of this, that he who began a good work in you will bring it to completion at the day of Jesus Christ.” (Philippians 1:6 ESV)
Stewards of Our Suffering
Adversity and affliction are God’s ways of shaping us, building our character, and drawing us into full reliance on Him. Our pain should make us more aware of God’s omnipresence and our helpless dependence on the Lord.
What the world calls “adversity” can be your opportunity. Trust Him, rely on Him, and renew your mind on His Word:
“The Lord is a stronghold for the oppressed, a stronghold in times of trouble.And those who know your name put their trust in you, for you, O Lord, have not forsaken those who seek you.” (Psalm 9:9–10 ESV)
Make a Plan
When the fog of depression grips us, we often feel unmotivated, paralyzed, and unable to deal with the challenges before us. As you begin to rethink how God can use the adversity that you have faced, you and your wife must also take action.
I want you both to sit down in a quiet, peaceful place together and determine to work this out. The best way to do that is to make a plan to avoid bankruptcy and to stabilize your finances. Taking action will help you overcome your depression and strengthen your finances for the future.
Here are the steps you need to take and ways that Crown can assist you:
As you follow these steps, keep trusting the Lord and persevering through any setbacks. We are pleased to be here and help as you begin the exciting process of stewarding not only your suffering but also the path out of financial pain.
This article was originally published on The Christian Post on September 23, 2022.
Dear Chuck,
We’re trying to decide if now’s the time to buy a house. We’ve been outbid numerous times, and our landlord wants to raise our rent. Should we wait or keep trying?
Squeezed by Rising Rent
Dear Squeezed by Rising Rent,
My answer is yes—to both. Exactly if or when to stop renting is not a decision I can make for you, but I can offer some advice.
The value of real estate continues to be determined by the age-old maxim: “location, location, location.” Since I have no knowledge of the market that you are in, I will respond with some market insights and a few tips from my own experiences. You and your spouse can decide the answer to your question, but it is good to be patient (wait) and keep trying.
The Market Is Cooling
Numerous professionals say the housing market is cooling. High home prices (driven by Covid, remote work, and a supply/demand imbalance), a doubling in mortgage rates, inflation/recession, and a shaky stock market are contributing to slower sales. There is a slowing of appreciation as well: homes in areas that appreciated 10% or more may only rise 5% in the year to come, or even 0%. CoreLogic expects home prices to rise 4.3% from June 2022 to July 2023 on a year-over-year basis. This should be helpful in determining the likely costs of waiting.
Characteristics of a Cooling Market
Depending on your city or region, you may begin to see the effects of a cooling market, which are listed below. These should work to your advantage:
Are We in a Housing Bubble?
What we see today is different from what we experienced back in 2007–2008. That was a housing bubble defined by rampant speculation, a huge run-up in prices, and too many homes for sale without significant demand. Another factor was the number of homes sold with questionable loan financing to subprime borrowers. Many borrowers had no equity, used an option ARM, or were not qualified buyers. The only factor we have in common in today’s market is high prices.
A Housing Recession?
An article here states that The National Association of Realtors reports that housing affordability has plunged to the lowest level since 1989. According to Redfin, the median sale price was $371,125 in the August timeframe, up 6% from the previous year. However, sale prices dropped 6% after peaking in June when the median price was $394,775. Industry experts are calling this a housing recession, which does not mean the market is crashing.
Realtor.com reports that homes may remain on the market longer, but they still spent 26 fewer days on the market this July than in 2017 and 2019.
Natalie Pace reports that home builder D.R. Horton had cancellation rates of 24% in 2nd Q 2022, up from 17% a year ago. Redfin warned that 60,000 home-purchase agreements were canceled in June—the highest percentage of buyers backing out of deals since 2017. Inspections and appraisal contingencies allowed buyers to exit. Others walked away when they no longer qualified for a loan or could not come up with a down payment. A third of June sales were first-time buyers while 16% were from investors and 2nd home purchasers. Since families prefer to move during the summer months, more price corrections may be noticed during the upcoming seasons.
These 10 cities had the highest number of price drops in July, per Redfin: Boise, Denver, Salt Lake City, Tacoma, Tampa, Sacramento, Indianapolis, Phoenix, San Diego, and Portland.
These are the cities where actual home prices are falling the most, per realtor.com: Toledo, OH; Rochester, NY; Detroit, MI; Pittsburgh, PA; Springfield, MA; Tulsa, OK; L.A., CA; Memphis, TN; Chicago, IL; and Richmond, VA.
Realtor.com says a house may be overpriced if:
The cooling housing market impacts sellers, carpenters, landscapers, and other businesses in building and renovation. Declining sales, inflation/recession, and the higher cost of consumer goods will reduce many homeowners’ desire (and ability) to remodel, update, or make important repairs.
Buyers
Buyers are beginning to experience FUD (fear, uncertainty, doubt). Coupled with low cash reserves, some are choosing to stay put in their current housing situation. This will work to your disadvantage as many will choose to continue renting, thus giving landlords the leverage to increase rents.
Don’t Overpay
Buying too big of a house or overpaying for one can negatively affect your finances for years. Many people are experiencing buyer’s remorse because they got caught up in the real estate frenzy and are now underwater or unable to keep up with the expenses of home ownership. Pandemic checks have been spent, and consumer debt is up. Combine that with maintenance, repairs, higher utilities, groceries, etc., and it is easy to understand the discouragement.
Patience Is Good
The good news is that qualified buyers who have waited patiently may soon be able to find what they can afford. Whether hoping to sell or desiring to buy, trust the Lord, and seek wise counsel.
“Rejoice in the Lord always; again I will say, rejoice. Let your reasonableness be known to everyone. The Lord is at hand; do not be anxious about anything, but in everything by prayer and supplication with thanksgiving let your requests be made known to God. And the peace of God, which surpasses all understanding, will guard your hearts and your minds in Christ Jesus.” (Philippians 4:4–7 ESV)
While seeking the Lord’s guidance and patiently waiting, one way to improve your finances is to reduce or eliminate credit card debt. Christian Credit Counselors is a trusted source of help toward financial freedom.
This article was originally published on The Christian Post on September 16, 2022.
Dear Chuck,
I am now a remote worker (since COVID), and I find myself “always on.” It was easier when I could leave the office, go home, and get away from the stress of my job. Now home is my office so the stress seems 24/7. I am considering trying the “Quiet Quitting” method but want your input first.
Quietly Quitting
Dear Quietly Quitting,
This is a big topic right now and likely more complex than you may realize. To explain, I will discuss Quiet Quitting, Quiet Firing, and Quiet Returning.
Quiet Quitting
For those who may not know the term, quiet quitting is a trending phrase to describe the practice of setting boundaries at work and not doing any more unless compensated fairly. It is not about quitting your job, slacking off, or cheating your company while working from home—all common misconceptions. However, as I understand it, some view it as a call to do the bare minimum for what they are paid to do in order to get their lives back.
For some employees, the concept deeply resonates. They are tired of “hustle culture” or the nonstop demands of modern work life controlled by invasive technology. Some employers strongly disagree, believing that giving more—not less—is what propels people in their careers. Kevin O’Leary of “Shark Tank” calls quiet quitting “a really bad idea” and “the dumbest idea I’ve ever heard.” Employees say that clear boundaries allow them to work smarter and be more productive during their business hours. Others contend that quiet quitting is a boost to one’s mental health which helps in all areas of personal and professional performance. See Healthline’s list of pros and cons.
Quiet Firing
Quiet Quitting may be trending, but Quiet Firing has been going on for some time. It is a passive-aggressive way to get unwanted employees to quit by giving poor performance reviews, assigning menial tasks, overloading with unimportant projects, avoiding one-on-one meetings, changing roles, and not giving raises. It saves time and money for the company: no severance and no 90-day trial/improvement process. It is dishonoring, negatively impacting others.
Cause and Effect?
I have to wonder if, in the bigger context, some of these cultural shifts in the workplace are due to giant misunderstandings brought on by poor communication during the dramatic change to working remotely. Is this why some people are quietly quitting, or is this why some employers are quietly firing? Is there a chicken vs. egg question to ponder?
On the Other Hand, “Quiet Returning”
Before one assumes that the labor shortage will continue, thus providing hired workers more leverage to craft their own job descriptions, another trend is at play that could change that. Joseph Coughlin at Forbes reports that retirees are returning to work—but on their terms. Approximately 2.4 million people retired during the first year and a half of Covid and are now in a stage of quietly returning. Many discovered that they missed the community, structure, purpose, and income. A survey of 500 retired job seekers by Joblist revealed that a majority of retirees are happily going back to work for a variety of reasons:
Coughlin writes, “They are not simply unretired, they are pioneers. These older adults are inventing something that is neither our current idea of retirement or of work. They are quietly creating something else—a new life stage altogether that sees the retirement age of today as a mile marker, not an exit.”
Retirees offer decades of experience and talent that will impact younger workers and help cover labor shortages. Some were laid off and look forward to working again. Others want to delay social security in order to draw a higher check later. Some desire health care coverage. Others are starting their own business or coming alongside someone else. Regardless, retirees are a wealth of information and inspiration. However, the return for many creates the fear of whether they will be accepted by younger coworkers. Others know they need to update skills.
Quiet Questioning First
Work As Unto the Lord
While I sympathize with your desire to “get your life back,” be sure you maintain a Christian attitude towards your employer and a grateful heart for the work you have. Larry Burkett, the late founder of Crown, said:
“Work plays a very important role in our lives as believers. It provides the opportunity to put into practice spiritual principles that otherwise would be mere academics.
The way we do our work day by day provides the best exterior reflection of our commitment to serve the Lord in a real, physical way.
It doesn’t matter whether that work is in the home, on an assembly line, or in a corporate office. Our true Christian beliefs will be reflected more clearly there than in any other environment outside of the immediate family relationships.”
Expect Fair Compensation
Employees deserve to be paid fairly for their work. If you believe that you are unfairly compensated, try explaining to your superior all the work that you are doing. Ask for help and understanding so that you can live within boundaries.
The Bible advises employers to be careful in their treatment of those they employ. Romans 13:7–8 is applicable to employers today, since many employees are underpaid and unable to keep up with rising costs: “Pay to all what is owed to them: taxes to whom taxes are owed, revenue to whom revenue is owed, respect to whom respect is owed, honor to whom honor is owed.”
Quietly Pray
Pray for a godly attitude and for your employer, your colleagues, and your customers. God will help you with healthy boundaries and with accomplishing your daily tasks. Remember to
work as unto the Lord, bringing Him glory and honor while shining light into the workplace.
I want to thank my wife, Ann, for researching this topic and crafting my reply. She helps me every week, so I don’t want her to quietly quit!
If you are unsatisfied at work, take a Career Direct Assessment. It is a practical tool to discover the way you are wired and find a career that will fit your unique design.
This article was originally published on The Christian Post on September 9, 2022.
Dear Chuck,
I am bitter that I just paid off my federal student loan last year, after ten years of working a side job to do it! Seems grossly unfair that, all of a sudden, some people are getting a free ride. Shouldn’t Christians refuse this free money?
Bitter About Free Money
Dear Bitter About Free Money,
Congratulations on paying off your student loan in full! The student loan forgiveness program announced by President Biden is a hot and very divisive topic right now! I had several radio interviews about it last week, and many feel the same way as you. Below, I have summarized some of my responses to the questions during those interviews.
Real Problem, Wrong Solution
Student loan debt in the United States is 2nd only to mortgage debt. Millions of people bet on their future income and continue to drag around heavy loads of debt after graduation with a degree that did not lead to the kind of compensation that would justify what it cost for their degree. We need to have empathy for those who are in pain while factually, without bitterness or drama, acknowledging that the proposed solution is not fair or very helpful.
Real Costs: I originally read that the estimated cost would run $500 billion a year if 75% of eligible people accept the offer. Wharton thinks the move will come closer to $1 trillion when loan forbearance, the income-driven repayment (IDR) program, and behavioral changes are taken into account. This exceeds the government’s entire military and defense budget for 2021, which was $800 billion.
Inflationary: Harvard’s Jason Furman, former chair of former President Barack Obama’s Council of Economic Advisers, says he believes this will put more reliance on debt. “Pouring roughly half trillion dollars of gasoline on the inflationary fire that is already burning is reckless.”
Larry Summers, former director of former President Barak Obama’s National Economic Council, said, “Student loan debt relief is spending that raises demand and increases inflation. It consumes resources that could be better used helping those who did not, for whatever reason, have the chance to attend college. It will tend to be inflationary by raising tuitions.”
Is It Legal or Biblical?
Some argue that since Jesus canceled our debts, we should rejoice that the government is canceling our debts in a similar way. That is not a logical analogy. Jesus was the One who had the power to forgive the debt, and He shed His blood to show us unmerited mercy and grace. The US taxpayer should be the one to determine if the debts should be forgiven, not a person or entity that is not responsible for the original loan.
When we examine Scripture in Luke 16, Jesus declared the unrighteous servant to be shrewd, but dishonest, for forgiving debts that were owed to another. Further, when the widow in 2 Kings 4:1–7 had overwhelming debt to pay, the prophet Elisha told her exactly what to do; she had to work. God didn’t just give her the money or erase her debt. She had to believe and act on what the prophet told her: “Go, sell the oil and pay your debts and you and your sons can live on the rest.”
Student loan debt is based on the premise that work, resulting from education, will be the avenue to pay back borrowed funds. Expecting someone else to pay the loan is wrong.
Psalm 37:21 addresses the issue clearly: “The wicked borrows but does not pay back, but the righteous is generous and gives…” (ESV)
Charlie Cooke at the National Review believes it is likely not legal. He wrote it transgresses: “the Constitution, which vests legislative power in Congress, not the president…to Congress, which has not given the executive branch the authority to give $10,000 each to millions of college students…to the Department of Education, which found last year that it ‘does not have statutory authority to provide blanket or mass cancellation, compromise, discharge, or forgiveness of student loan principal balances…’”
Should Christians Accept Free Money?
It is wrong to be bitter about anything. Jesus taught us to forgive those who owe us and those who mistreat us, even our arch enemies. Most Americans received unsolicited money from the government during Covid and made decisions how best to steward it. Many donated it to others in greater need. I see this in a similar way. Why not receive the funds and be a good steward of the loan forgiveness? Do not judge or condemn those who may see it as a blessing; they have to make their own decision.
For those who may receive it, there are some caveats: a) Some states may treat it as income and therefore taxable, b) If the Justice Department declares it unconstitutional and Congress does not approve it, the funds may have to be returned, and c) It may bother your personal conscience to know others are treated unjustly.
My Recommendations
Early reactions to the proposal seem to agree on three things: 1)This is an inflationary move, 2) It is clearly unfair, and 3) It does not solve the problem of out-of-control tuition costs that are harming the risk/reward value proposition of higher education in America.
My recommendations:
Thanks for writing. I hope you can see this issue in a new light.
If you want to consider more ways in which you can effectively steward God’s resources, the Crown Stewardship Podcast may be a valuable resource for you. You can subscribe for alerts of new episodes. I hope you find it beneficial.
This article was originally published on The Christian Post on September 2, 2022.
Dear Chuck,
I grew up in a dysfunctional home. I have friends with fathers, uncles, or brothers who regularly give them wise financial counsel. I desperately want that but don’t have those kinds of relationships in my life. What can I do?
Looking for Wise Counselors
Dear Looking for Wise Counselors,
While I am sorry for the pain you are experiencing, I am also super encouraged that you have identified your need for counsel and are willing to listen! I spent too many years thinking I did not need counsel, even when it was available!
Proverbs 12:15 says, “The way of a fool is right in his own eyes, but a wise man listens to advice.” (ESV)
Like you, so many young people who want or need wise advisors feel they don’t have anywhere to turn. A 2019 Pew Research study reveals that 23% of American children under age 18 live in single-parent homes—three times the world’s average. We’re seeing the damage of loneliness and the lack of trusted adult figures in Gen Z young adults. According to Springtide Research Institute, 27% of young people have only one, if that, adult they can turn to in times of need. More than a fourth of Gen Z feel they have few, if any, wise leaders to turn to. Read more here.
Look for a Capable Mentor
While wise counselors can help you with an occasional question or insight, I suggest you look for a true mentor. In the Bible, we see that Jethro mentored Moses, and then Moses mentored Joshua. Elijah mentored Elisha. Jesus mentored the disciples; Paul mentored Timothy, Titus, and others; and Priscilla and Aquila mentored Apollos. Besides spiritual mentoring, there are times in life when we need financial, business, parenting, and marriage mentors. But what exactly is a mentor?
An article titled The Power of Mentorship at Forbes explains, “A mentor is simply someone who helps us get unstuck, a non-judgmental person who listens with an open mind to help us steer clear of the mistakes they themselves made (and wish they’d had a mentor to help avoid.) A mentor helps us accelerate our growth by showing us a clearer path with fewer distractions and obstacles.”
According to Henry Cloud, “A mentor is somebody who is where I want to be, or has been where I want to go, has done what I want to do, or in some other way is able to be my guide to get there.” His video series on successful mentoring relationships at RightNowMedia.org can be very helpful.
Where Can You Find Them?
We are all designed to experience life in community with others. We need the Body of Christ to function well in this broken world. To begin your search for a mentor, do a quick inventory by answering a few questions: Who do you know who could offer you godly advice? Do they have a solid reputation? Do they come recommended to you? Start with a short list of prospects.
Next, go to people you trust and admire. Don’t rule out mothers, aunts, or sisters. Ask if they would be willing to meet and share their wisdom with you on a regular basis. Let them know of your motives and expectations.
If you can’t come up with any prospects for a mentor, ask trusted friends for recommendations. Would your pastor or people in your Sunday School class or small group know people willing to come alongside you? Anyone in your line of work who might be willing to share? How about a coach or co-worker?
Pray, and ask the Lord to bring the right person into your life. Until you have a true mentor in place, I suggest that you read … a lot! Make the Bible not only your textbook but also a letter of inheritance from your loving Savior. Treasure it. Read it, listen to it, and memorize portions of it. Allow it to transform you from the inside out. Seek to read great biographies and Christian material on personal finances and spiritual growth. Spend extra time in the Proverbs. Subscribe to podcasts, blogs, and newsletters that will give you a biblical perspective on finances.
Verses That Recommend Seeking Counsel
“Without counsel plans fail, but with many advisers they succeed.” (Proverbs 15:22 ESV)
“The purpose in a man’s heart is like deep water, but a man of understanding will draw it out.” (Proverbs 20:5 ESV)
“Iron sharpens iron, and one man sharpens another.” (Proverbs 27:17 ESV)
“Give instruction to a wise man, and he will be still wiser; teach a righteous man, and he will increase in learning.” (Proverbs 9:9 ESV)
“Whoever walks with the wise becomes wise, but the companion of fools will suffer harm.” (Proverbs 13:20 ESV)
Want a Financial Mentor?
Crown’s online Budget Coaching program matches you with one of our certified coaches to thoroughly analyze your financial situation. Your coach will work with you from the convenience of your home to help you with your specific challenges. He or she can serve as a beginning point for advice until the Lord helps you find a mentor.
The Crown Stewardship Podcast may be a valuable resource for you. It is a wonderful tool to help guide you in the many facets of God’s financial principles. You can subscribe for alerts of new episodes. I hope you find it beneficial.
This article was originally published on The Christian Post on August 26, 2022.
Dear Chuck,
If we’re headed towards an economic downturn, how can I recession proof our finances?
Recession Proofing
Dear Recession Proofing,
Many economists believe we are headed toward major economic challenges. Consider just three reasons:
78% of Americans are worried about losing their job if we are indeed entering a recession, says Insight Global’s recent survey. 56% of American workers say they are not financially prepared or “don’t know how to prepare” for a recession.
The reality is that recessions are a normal part of economic cycles, and we should always be prepared for them. For basic information, see Investopedia’s Guide to Economic Recession. There is a big difference in recession proofing your finances and your career; however, since they are interrelated, let’s talk about both.
Recognize Any “Signs of Trouble” with Your Employer
Even if you see yellow or red flags, don’t leave a job until you have another in place, unless you are aware of illegal activity.
Consider Recession-Proof Industries
Laurence Ball, economics professor at Johns Hopkins University, and Karen Dynan, economics professor at Harvard and former chief economist at the U.S. Treasury, say the following four industries offer strong job security during economic downturns:
Julie Pollak, chief economist at ZipRecruiter, says the following jobs are recession proof:
Each of these occupations added tens of thousands of jobs during the 2009 and 2001 recessions, according to data from Zip Recruiter and the U.S. Bureau of Labor Statistics. Jobs that depend on consumer spending will be most threatened because people cut back on services not necessary to maintain a basic standard of living. Think retail, restaurants, hotels, and even real estate.
Upgrade Your Career Options
Now is a great time to update and learn new skills. Upon certification or completing any courses, update your resume. Consider how these skills can help you in your present career or future job search:
If your company is doing well during a recession, approach your boss about internal training opportunities to improve your job skills or job security. Ask what training would further your career. The company may be willing to sponsor you. Check out free options on YouTube, TED Talks, and virtual lectures or workshops, or source ideas through LinkedIn profiles of successful people in your industry. Coursera is popular for many busy people because lectures are 10 minutes or less and can be done on a mobile device.
Recession Proof Your Finances
Having a job or business that is not disrupted by a recession is a great blessing; however, there is more to “recession proofing” that needs to happen with your finances. Consider some of the following:
Do Not Fear the Future
We all have a natural tendency to fear the future since we cannot know what tomorrow holds. Our mind creates many scenarios that will likely never happen. God’s Word reminds us to avoid this trap, which is akin to expending energy in a rocking chair but making no forward progress. Instead, trust the Lord, make a plan, take action, and be grateful for what He provides regardless!
“Better a little with the fear of the Lord than great wealth with turmoil.” –Proverbs 15:1 NIV
While seeking the Lord’s guidance, another way to prepare for a recession is to reduce or eliminate credit card debt. Christian Credit Counselors is a trusted source of help toward financial freedom.
This article was originally published on The Christian Post on August 19, 2022.
