Dear Chuck,
We’re celebrating Thanksgiving at our house with friends and family this year. I want it to be extra special. However, the cost for groceries and things I need to host a fairly large group is more than I anticipated. How do I get around this crazy inflation?
Inflation Shock
Dear Inflation Shock,
I certainly understand your desire to make Thanksgiving special. When our family gathers this year, we will have a full house! Some will be sleeping on blow-up mattresses and couches. Hopefully, the weather will cooperate so we can hike and play outside; either way, we will stay up late playing board games, laughing, singing, and eating more than we need. I just hope the grandchildren don’t ask me to set up the tent and sleep outside!
Neither you nor I can change the fact that inflation is going to be a challenge this year; but I can offer my tips and ideas to help you with the shock of the expense of the holiday season.
Investing in Experiences Is Priceless
Gathering friends and family in today’s world is a challenge. We desire to express our love, give thanks, and encourage one another. Multiple research studies confirm that experiences have a more lasting impact on the receiver than tangible items, and remembering this helps me overcome the high cost of hosting. In other words, what you do together on a great holiday will be far more memorable and impactful than what you spend on things.
Avoid Comparison
Avoid letting the world tell you how the holiday celebration needs to be done. If you compare yourself to celebrity hosts and hostesses, you will respond emotionally—either with pride or discouragement. Both are hazardous to your spiritual, emotional, and financial health.
How to Avoid Overspending
Do not allow the expectations of others to motivate your financial decisions. The Apostle Paul said, “For am I now seeking the approval of man, or of God? Or am I trying to please man? If I were still trying to please man, I would not be a servant of Christ.” (Galatians 1:10 ESV)
Recognize that companies market to the emotions of shoppers. Social media affects us, too. Using money to impress others will not work long-term. It actually does the opposite. Overspending creates more stress than making sacrifices to stay within your budget. “Be not conformed to this world, but be transformed by the renewal of your mind.” (Romans 12:2a ESV)
Ask yourself these questions to stay on budget during the holidays:
Practice Gratefulness
The Apostle Paul instructed the Colossians to give thanks three times in just three verses! (emphasis mine)
“And let the peace of Christ rule in your hearts, to which indeed you were called in one body. And be thankful. Let the word of Christ dwell in you richly, teaching and admonishing one another in all wisdom, singing psalms and hymns and spiritual songs, with thankfulness in your hearts to God. And whatever you do, in word or deed, do everything in the name of the Lord Jesus, giving thanks to God the Father through him.” (Colossians 3:15-17 ESV)
Gratitude is vital to our health. Take time to read Ephesians 1. Make a list of all that God has given you in these verses, and review it daily with thanksgiving until your guests arrive. It will keep you eternally focused.
Prepare for More Inflation
A lifestyle of consistently spending less than you earn will accelerate financial wellbeing. It grants stability and allows you to focus on true priorities. Making short-term sacrifices now will enable you to achieve long-term goals. Your stress will lessen as you gain margin, and you will be more grateful for all that God provides.
Life is short, so enjoy the holiday season filled with the peace of God. “… 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 4:6-7 ESV)
Crown was awarded the Shining Light Award by Ministry Watch in 2020 for its global impact of multiplying faithful stewards. Crown.org has several courses that you may find of value in helping you prepare financially for our current economic challenges and for the future.
This article was originally published on The Christian Post on November 12, 2021
Dear Chuck,
If I do not get the Covid vaccine, I could lose my job with a federal contractor. If I get it, I go against my conscience and the liberty I have to protect my family’s health, a fundamental right of Americans. I am not anti-vax, but I hate coercion. My wife and I are bracing for the financial consequences, but we want your advice.
Standing Against the Mandatory Vax
Dear Standing Against the Mandatory Vax,
I am sorry that you and your family have been placed in such a hard position. This is not a spat with a strongly opinionated believer in the hallways of the church; unlike others with an opinion on the issue, you are faced with a possible job loss.
Evaluate Some of Your Options
Companies are required to make “reasonable accommodations” if an employee objects to receiving a vaccine for valid reasons. Such accommodations could include allowing the employee to work remotely or take a leave of absence. The employee could also show a negative COVID-19 test once a week, per the president’s mandate. Ask to work remotely, or agree to get tested weekly. It would appear to me that if you are denied those options, then the law would be in your favor should you get wrongfully terminated.
Religious Exemption?
Seek wise counsel before crafting this defense. My understanding is that this route is unlikely to be successful without a history of taking this position with other vaccines.
David Schrock argues this posture from a unique angle: “…we have seen an unending array of executive orders and economic decisions that have further tied the citizens to the state (think: government bailouts) and forced the state on the citizens (think: all the policies of the CDC). Topping the list of government intrusions is the vaccine mandate. And because this mandate has come with all the trappings of a religion, we now have a state that is forcing its religion on its citizens,” (emphasis mine). In other words, argue for separation of religion and state.
Appeal to Your Superiors
One of my friends used a very strong appeal to a high ranking superior in the company. While not claiming a religious exemption, he believes that Americans should not be coerced into making a choice about their own health. Quoting from the Nuremberg Trials of 1947, he noted:
“Coercion into medical treatment violates the direct purpose of the “Nuremberg Code”
which was developed after World War 2 in order to set a series of medical principles and regulations. It states (emphasis mine):
“The voluntary consent of the human subject is absolutely essential. This means that the person involved should have legal capacity to give consent; should be so situated as to be able to exercise free power of choice, without the intervention of any element of force, fraud, deceit, duress, overreaching, or other ulterior form of constraint or coercion; and should have sufficient knowledge and comprehension of the elements of the subject matter involved as to enable him to make an understanding and enlightened decision.”
He is yet to hear the outcome of this appeal.
Facing the Consequences
The financial implications for your choice are potentially numerous. My understanding is that termination would be based on failure to comply with company policy and would, therefore, cause ineligibility for unemployment benefits. You will also face the stress of finding another job, the cost of regular testing, the possibility of higher healthcare costs, the chance of having to relocate, and more.
It is admirable that you and your family are willing to face the loss of your job based upon your convictions. Millions of Americans in a wide diversity of sectors are doing the same thing. Some companies are backing off of stringent compliance expectations.
Be Proactive
Set aside your fear, and place your full confidence in God.
“…fear not, for I am with you; be not dismayed, for I am your God; I will strengthen you, I will help you, I will uphold you with my righteous right hand.” (Isaiah 41:10 ESV)
“God is our refuge and strength, a very present help in trouble….Be still, and know that I am God. I will be exalted among the nations, I will be exalted in the earth!” (Psalm 46:1,10 ESV)
Begin planning now for the possibility of a job change. Consider ways to supplement your income should the day come when you need to seek other employment. Possibly, your company or another can hire you on as an independent consultant. Use your network wisely by letting others know you are open to a job or career change. Networking for an inside connection is the best use of your time. Be specific on the type of opportunity you would consider. Activate your prayer partners.
God’s promises are most relevant in a time when we experience great need and come to fully and sincerely rely upon Him. Should you face termination, you will not be separated from God’s faithfulness. He will guide you through the storm and take care of you and your family. He also promises to work this all out for your good. The final outcome is yet to be determined. May God grant you peace as you trust Him with the consequences, whatever they may be.
Now is also a good time to address any problems you may have with personal debt. For more guidance, especially if your debt is related to credit cards, please consider contacting Christian Credit Counselors. They are a trusted source of help.
Dear Chuck,
I’ll soon be getting a raise in my social security benefits. Do you think it will really make any difference?
Worried Senior
Dear Worried Senior,
Although it may be new to you, getting an increase in retirement benefits is actually not new.
The Social Security Administration has been giving cost of living adjustments (COLA) since 1975. You are likely referring to the news that in 2022, recipients will receive a 5.9% COLA. It represents the largest increase in 40 years.
To properly answer your question as to whether this will really make any difference, I have to make a few assumptions: a) that you are asking about your personal financial benefits and b) that you are largely dependent upon this program for the majority of your retirement income. Social Security payments represent 90% of the income of one fourth of older Americans. I will also assume that you receive the maximum benefit available.
Experts believe that this increase is simply a means to attempt to keep up with inflation. This is government confirmation that inflation, though repeatedly called “transitory,” has indeed entered a new phase. My answer, therefore, is that this increase of approximately $197/month is not going to make any meaningful difference to your financial picture. However, if I assume you are asking about the difference it will make to our nation, that is a totally different answer. Let’s take a closer look.
Other Modifications to Expect
Be aware of other changes in 2022:
Taxable Income?
As the Motley Fool recently reported, taxes on SS income vary based on “provisional income,” which is the sum of non-SS income plus 50% of annual SS benefits.
Impact on singles with provisional income:
Impact on married couples with provisional income:
More Inflation?
Tyler Durden asks: “What will happen to prices of goods and services as a result of that government-funded increase in benefits?” What are all the statistics signaling? Janet Yellen does not see high inflation easing until mid-2022, but others predict hyperinflation. David Blanchflower, of Dartmouth, and Alex Bryson, of University College London, believe that America has already entered a recession that could equal the 2008 financial meltdown.
Social Security Is Not So Secure
Newsmax reported on the significant cost to taxpayers this increase will represent not only in 2022 but for years to come. SS is the largest item in the federal budget, amounting to $1.35 trillion this fiscal year.
Could the SS Trust Fund run out of money? In the same Newsmax article, Maya MacGuineas, president of the bipartisan Committee for a Responsible Federal Budget, says possibly—perhaps as soon as 2032. “The trajectory for Social Security was already an incredibly troubling one….Spending is going to be higher, not just this year, but all years going forward.” She notes that there are a lot of challenges and that Congress is doing nothing to reform or strengthen the program.
In some nations, retirement money is held in a private account as the taxpayer makes required contributions. Essentially in the United States, it is an obligation to pay (debt) based upon future contributions from other taxpayers. So, not only is keeping up with inflation a challenge, but funding the program could become a future challenge as well.
Trust and Obey
C.H. Spurgeon said, “The sovereignty of God is the pillow upon which the Christian rests his head.” God is worthy of our complete trust while we wisely manage what He provides.
“He who dwells in the shelter of the Most High will abide in the shadow of the Almighty.
I will say to the Lord, “My refuge and my fortress, my God, in whom I trust.” (Psalm 91:1-2 ESV)“God is our refuge and strength, a very present help in trouble…‘Be still, and know that I am God. I will be exalted among the nations, I will be exalted in the earth!’ The Lord of hosts is with us; the God of Jacob is our fortress.” (Psalm 46:1,10-11 ESV)
In these days of uncertainty, continue giving, saving, and investing, while limiting spending. You should have an account that you can easily access in the event of a true emergency. Set aside enough money to cover 3-6 months of overhead. A crisis budget can help you prepare for higher costs brought on by inflation and can protect what you have set aside for retirement. If you have yet to retire, it is wise to get out of debt now and create more sources of future income.
In my book, Seven Gray Swans, Trends that Threaten our Financial Future, I write about the challenges we are facing that are happening before our very eyes. I hope to help you prepare for and survive these events. You can order a printed copy of the book at Crown.org or an ebook at Amazon.com.
This article originally published on The Christian Post on October 29, 2021.
Dear Chuck,
I recently read that there is a growing number of Americans in favor of Universal Basic Income (UBI). What does the Bible say about that?
Not a Fan of UBI
Dear Not a Fan of UBI,
I saw a recent poll on this, too. It caused me to raise my eyebrows; so I did some homework.
Newsmax.com recently reported results from an online Skynova poll. Of the 1,023 responders, 485 were Democrat, 270 Republican, and 268 Other. In their survey, 67% of respondents support the idea of guaranteed monthly income, 20% oppose, and 12% are indifferent.
I do not believe everything I read. We must consider the source, consider the audience, and consider why it might have been written. In these times, godly wisdom and discernment are absolutely necessary.
In August 2020, Pew Research reported that a narrow majority of U.S. adults opposed UBI. Their online survey included 11,001 U.S. adults and found wide age, race, and income differences in views. Both of these studies reveal that younger adults and those with lower incomes support UBI.
UBI Pros and Cons
Universal Basic Income (UBI), as defined by its most ardent supporters, is “a regular income paid to everyone without any conditions. Everyone would automatically receive a regular income paid into their bank accounts.” Proponents of the plan believe it helps resolve inequalities; eliminates humiliating welfare programs, economic crises, and austerity; and aids people who prefer to use their creativity in other ways than traditional employment.
A Harvard Political Review notes that UBI experiments have been positive in India and Kenya by helping those suffering extreme poverty—providing food, water, and shelter. However, testing conducted in Canada and Finland was shut down because the cost was too great. So, the author suggests an alternative income or overhaul of the welfare system.
Money Crashers created a list of the pros and cons of UBI:
Pros
Cons
Jim Huntzinger, at the Affluent Christian Investor, writes that according to data, income inequality has not changed over the past 100 years. There are three key wealth indicators: productivity improvement, income mobility, and personal well-being. Productivity has improved dramatically. He quotes economist Tyler Cowen of George Mason University: “While income inequality is rising, inequality of personal well-being is dropping.” Huntzinger points to research showing that personal well-being in the lower level income brackets has improved, and he believes the situation is not as grim as we are led to believe. Studies show that productivity and economic growth are the keys to improved well-being.
UBI and the Bible
Much of the support for UBI is driven by a dystopian view coming from those who believe (or propose in order to create fear) that artificial intelligence, robotics, and other disruptive technologies will cause massive job loss and economic chaos if there isn’t a plan to keep unnecessary people happy when they don’t have a job. I disagree. For every technological advancement, there is an offsetting demand for new education, new job skills, and new problems to be solved by entrepreneurs. Man is not simply a consumer who needs to be appeased while out of work.
God made man to work—to be a creative, capable producer who can add value to any enterprise.
In exchange for that work, his needs will be supplied. This gives meaning to life and deep satisfaction for earned achievement. UBI removes both of those benefits.
“Those who work their land will have abundant food, but those who chase fantasies will have their fill of poverty.” (Proverbs 28:19 NIV)
“In the name of the Lord Jesus Christ, we command you, brothers and sisters, to keep away from every believer who is idle and disruptive and does not live according to the teaching you received from us…Such people we command and urge in the Lord Jesus Christ to settle down and earn the food they eat. And as for you, brothers and sisters, never tire of doing what is good.” (2 Thessalonians 3:6,12 NIV)
I have written more about UBI in my book, Seven Gray Swans, Trends that Threaten Our Financial Future. Sending people money empowers the government to have greater control over their lives and is fraught with the potential for corruption. Remember how we learned of fraud upon fraud related to the Payroll Protection Plan in 2020.
I prefer to derive my income from work and to give private charitable support to those who cannot. This is the way God designed us to flourish; otherwise, He would not have put man in a garden to work and manage it but simply to eat from it.
Thank you for your question. If you want to read more about UBI and other current financial trends, you can order an ebook version of Seven Gray Swans at Amazon.com or a print version at Crown.org.
This article originally published on The Christian Post on October 22, 2021.
Dear Chuck,
I’ve been hearing a lot about Evergrande and the Chinese economic woes for months. Should I pull out of my investments in Chinese companies?
Investor Worries
Dear Investor Worries,
Having traveled to China on a number of occasions, I have long been aware that there was a housing bubble, a debt bubble, and a culture plagued by corruption. Evergrande may be the first of many corporate failures to come. Let’s take a look at it first, and, then, I will give my answer to your investment question.
Problems in the 2nd Largest Economy in the World
Evergrande was founded in 1996 in Guangzhou, southern China. It is huge. It has been considered the most valuable real estate company in the world since 2018. The real estate division owns more than 1,300 projects in more than 280 cities across China. In addition, it has investments in electric cars, food and drink manufacturing, a soccer team, a theme park, an internet and media production company, and ironically, wealth management.
It is the most debt-saddled property developer in the world with more than $300 billion in liabilities and $90 billion in debt. The conglomerate is plagued by money problems evidenced by unfinished residential buildings and unpaid suppliers and creditors. Home buyers have sued because their prepaid apartments have not been completed.
Real estate accounts for as much as 30% of China’s GDP and 20% of the workforce. However, there are many empty buildings and ghost cities throughout the country. I have seen them. I also know that these speculative real estate projects were often pre-sold to eager Chinese investors.
Last year, the government implemented a “controlled demolition” of the real estate bubble with “three red lines” that aim to reduce real estate debt, eliminate reckless borrowing, and prevent a major market correction. The question is whether or not it is too little, too late.
Joseph C. Sternberg at the WSJ reports: “An aging and potentially shrinking population finds itself fantastically over reliant on property-linked borrowing to fuel current economic growth, and on the underlying property as a store of savings from which to finance the middle class’s needs in its impending retirement.” He explains that “redirection of the economy’s savings into property ‘investment’ saps productivity growth over time because real estate is a less productive asset than a factory or a research-and-development lab.” The government wants to “curb their property market as part of a program to break the feedback loop between rising property prices, falling productivity, lagging economic growth and social instability.” He continues to elaborate and wonders how many other nations could experience a similar crisis.
Evergrande, the First Domino to Fall?
Evergrande borrowed heavily to finance aggressive pursuits. Then, the demand for new apartments declined, and regulations were imposed. The handwriting was on the wall, and the company warned investors of cash flow issues and the possibility of default. Not surprisingly, the stock has plummeted.
The impact remains unclear, but there are varying predictions:
My Take on It
I don’t know what is going to happen to the company or how the Chinese economy will fare. I do know that we can learn some important lessons from it.
Evergrande reveals the danger of borrowing in a climate of unrestricted real-estate speculation. In Business by the Book, Larry Burkett wrote: “Borrowing is not prohibited scripturally, but neither is it encouraged. It is always present in a negative context and with many warnings about its misuse.”
He gave three scriptural principles Christian businesses should heed:
The debt lesson: Evergrande broke all three scriptural principles. It is doubtful that lenders or investors will be able to avoid great losses.
The integrity lesson: A number of Chinese companies have falsely stated their financial strength in recent reports to investors. We should never invest where the truth is not upheld by management or in nations where there is a long history of corruption.
The greed lesson: Many American investors have rushed to be a part of the massive growth potential of Chinese-based companies. Yes, their market potential dwarfs all others, but looking at higher returns often blinds us to the real risks related to the investment. Have we somehow overlooked the fact that these companies are based in a Communist nation? History demonstrates that companies have greater long-term success where capitalism, free markets, and a culture of transparency are the norm.
Obviously, I would not recommend investing in companies that are potentially controlled by the Communist Party, no matter how promising the returns may look.
I hope this is helpful. Thanks for your question. If you need guidance on addressing debt woes of your own, please consider contacting Christian Credit Counselors. They are a trusted source of help.
This article was originally published on The Christian Post on October 15, 2021.
Dear Chuck,
I have been a saver for years. I was recently accused of hoarding money. What constitutes hoarding?
Super Saver
Dear Super Saver,
I am so glad to know that you save because so many do not. A year ago, Fool.com surveyed 2,000 Americans and found the following:
God wants us to save so that we have the resources to care for our family and those He puts in our paths. He also wants us to be free to serve Him as needed. Saving does not represent a lack of faith but reflects the heart of a faithful steward. Joseph instructed Pharoah to save for the coming famine, and the Proverbs point us to the wisdom of the tiny ant.
Saving vs. Hoarding
To know if you are in fact hoarding involves three simple questions:
Are you saving more than you are giving?
Do you acknowledge God as your provider?
Would your peace and security be threatened if you were to lose all of your savings?
People hoard money because of insecurity or pride. They may suffer from:
Give First, Save Second
The Lord is a giver and wants us to be conformed into His image as givers. Giving is our first and highest priority with money.
When we save a higher percentage of the money He provides than we are willing to give, we are in danger of hoarding. If you give and save in equal proportion, that is acceptable, but it is even better to give more than you save to avoid the danger of becoming dependent on your savings account and not the Lord.
Saving turns into hoarding if you do not trust God to provide. If you are anxious about money, perhaps you are not remembering the words of Jesus: “Look at the birds of the air: they neither sow nor reap nor gather into barns, and yet your heavenly Father feeds them. Are you not of more value than they? And which of you by being anxious can add a single hour to his span of life?” (Matthew 6:26-27 ESV)
Hoarding is driven by insecurity that leads to idolatry—trusting a bank account more than God. Everything is then held tightly, and generous sharing with others does not occur. This is contrary to Biblical financial stewardship. We are to manage what He provides by preparing for the future while giving generously.
Save, But Trust Him
God wants us to depend on Him. He asks us to work, give, spend wisely, save, and invest because it is good for us. The key is doing so with the right motive. Pray, and ask the Lord to lead you in each of these areas so that hoarding is never an issue.
“… 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 4:6-7 ESV)
“Some trust in chariots and some in horses, but we trust in the name of the Lord our God.” (Psalm 20:7 ESV)
“God is our refuge and strength, a very present help in trouble… ‘Be still, and know that I am God. I will be exalted among the nations, I will be exalted in the earth!’” (Psalm 46:1, 10 ESV)
“Do not lay up for yourselves treasures on earth, where moth and rust destroy and where thieves break in and steal, but lay up for yourselves treasures in heaven, where neither moth nor rust destroys and where thieves do not break in and steal. For where your treasure is, there your heart will be also.” (Matt. 6:19-21 ESV)
“…for I have learned in whatever situation I am to be content. I know how to be brought low, and I know how to abound. In any and every circumstance, I have learned the secret of facing plenty and hunger, abundance and need. I can do all things through him who strengthens me.” (Philippians 4:11b-13 ESV)
I hope you will truly trust God and learn what the Bible says about money. You can miss opportunities to grow money by simply accumulating and stashing it away in a savings account. Interest rates are low right now, so consider ways to manage it wisely.
Crown.org has articles, radio spots, podcasts, and online courses to help you gain a proper perspective on finances. I recommend you set specific short-term and long-term financial goals with a defined purpose for giving and saving that brings glory to God, blesses your family, and helps others.
This article was originally published on The Christian Post on October 8, 2021.
Dear Chuck,
Since my money is obviously buying less and less, how do I wisely invest in an inflationary economy?
Fearful Senior
Dear Fearful Senior,
While I am not an economist, I am an investor. I believe you have expressed a very relevant concern for all of us, not just seniors.
We have experienced years of low inflation. The last time I remember a period like this was in the late 70’s to early 80’s. But inflation is definitely on the rise and is creating uncertainty in the minds of many consumers and investors. In fact, a recent article by my friend, Jerry Bowyer, describes 2021 as “the year of inflation.”
A Broad Concern
Although Federal Reserve Chairman Jerome Powell believes that inflation is only temporary and will be short lived, Forbes.com gives 3 reasons why they believe an inflation surge will continue:
Consumer sentiment fell a sharp 13.4% from July to August according to the University of Michigan, Surveys of Consumers. Losses were widespread across all demographic groups, regions, and economic outlooks. Consumers’ opinion of current economic conditions dropped 7.1%, and the index of expectations dropped 17.6%. Reactions were due to the Delta variant, slower wage growth, smaller declines in unemployment, and… higher inflation.
In August, MarketWatch’s Jeffrey Bartash reported: “The rate of inflation in the U.S. rose again in July and drove the increase over the past year to a 30-year high.” The website referenced the advice of several professionals.
Ramit Sethi: “Investing is the single most effective way to get rich. Inflation can be bad for individuals when you just keep your money sitting in a bank account and do nothing else with it.”
Tiffany Lam-Balfour: “If you’re invested for the longer-term in a well-diversified portfolio, you’ve likely already got inflation protection built in. Staying invested and not holding too much cash are two sound ways to fight against inflation.”
Follow God’s Advice
The key to investing in an inflationary economy is diversification. It is the means by which wins can cover losses. Mixing different assets and investments is a way to limit your exposure to risk and provide a hedge against volatility. Solomon wrote about it in Ecclesiastes:
With diversification, short-term gains may be limited, but long-term gains can be higher. Plan to invest some time to research and monitor your portfolio. Find ways to limit high fees and commissions by looking for value that you can buy and hold.
Stocks can be a good investment during inflation, but you must do your research. Look for well-managed companies with a healthy cash flow. Some people hedge inflation with investments in rental property. This requires knowledge and careful timing to lock in a low-rate mortgage where property values are expected to rise. Make sure you study the benefits and risks. Remember, investing is not gambling or guessing!
You can make money by wisely investing during an inflationary period. Sam Swenson at The Motley Fool sees it as an opportunity to reexamine your portfolio and make necessary adjustments. Bottom line: Prepare now so you can avoid the continual erosion of your purchasing power.
I have included below a few of the websites that can be helpful to you as you manage your investment decisions. Thank you for writing. I hope this will reduce your fears and help you be prepared for the days ahead.
Helpful Resources from a Christian perspective:
Others: Business Insider, Forbes, and The Motley Fool
My latest book, Seven Gray Swans: Trends that Threaten Our Financial Future, is an essential read for those wanting to keep an eye on the economic threats we face in our nation. Many of these trends seem to be accelerating now. The e-book is available at Amazon.com.
This article was originally published on The Christian Post on October 1, 2021.
Dear Chuck,
Should I buy a used car now? I’ve been told to just buy new, but I don’t want a car payment.
Needing Transportation
Dear Needing Transportation,
My perspective is that neither is a good option right now. I suggest you try to hold off until market conditions change. Some context will help.
A Unique Time for Vehicles
Prices in used-car listings are up significantly over the same time last year—some as high as 30%. Remember, most often used-car prices drop! I have never seen a time in my life that used-car prices went up!
It’s a great time to sell a used car, but the reality is that you will have to pay more to replace it. Dealers are buying used cars, but they will pressure you to finance a new one. That’s why I advise you to step back and wait.
In June, Bloomberg reported that higher prices for used cars contributed to the rise in U.S. inflation. Used cars and trucks were up 10% in April and 7.3% in May and were responsible for one third of the rise in consumer prices. The reason is due to a lack of supply.
Several factors are involved. When Covid-19 hit our nation, people fled cities to work remotely. Without the convenience of public transportation, they needed to buy vehicles. Also, rental companies sold their inventories when travel dropped. Once restrictions were lifted and travel resumed, they purchased used vehicles to meet the demand. But, the primary reason affecting the prices and limited supply is a semiconductor chip shortage.
We used to lead the world in making chips. Now? We produce zero. According to a Wall Street Journal report, 92% of the world’s most sophisticated chips are made in Taiwan. America has a serious chip problem that not only affects the used car market, but it is also a national and economic security risk.
According to Techxplore.com, the tension between the U.S. and China contributed to the shortage. Chinese tech giant, Huawei, began stockpiling semiconductors before sanctions due to espionage allegations prevented selling to them. Other companies followed their lead, further reducing supplies. This summer, the Senate voted through $52 billion in subsidies for chip plants. But, it typically takes two-and-a-half years to build one. MarketWatch predicts that vehicle inventory due to the chip shortage will not recover until 2023.
Tim Healy of TheTruthAboutCars.com said, “If someone came to me right now and said they wanted to buy a car, I’d advise them to wait…And if my hypothetical acquaintance insisted on buying used, I’d tell them they’re crazy (unless, of course, they couldn’t wait to get a car).”
How to Buy a Car
Hopefully, the market conditions are temporary. When it comes time to buy, consider my guidelines:
It is possible you can buy a good used car from an individual or family member who is not concerned about getting top dollar. Just remember to buy a car you can truly afford. Doing otherwise is one of the main mistakes that lead to debt.
While waiting, save your money, be grateful for what you have, and do your research. Ask the Lord for patience, wisdom, and discernment so that when the time comes, you can make the right purchase. Be smart so you can buy smart.
“An intelligent heart acquires knowledge, and the ear of the wise seeks knowledge.” (Proverbs 18:15 ESV)
Also while you wait, if you need help getting your credit in order, Christian Credit Counselors is a trusted resource that seeks to free individuals and families from credit card debt.
This article was originally published on The Christian Post on September 17, 2021.
Dear Chuck,
I don’t agree with the political views of my company. They voice their views; yet, I think I would be fired if I voiced mine. I want to keep my job, yet I want to distance myself from their positions. Any advice?
Silent Dissenter
Dear Silent Dissenter,
Many are wrestling with this same issue. I have friends working with iconic companies, such as Delta Airlines, Coca Cola, and large Silicon Valley firms, where they feel equally conflicted. The companies do not represent their values or their political views, but they feel powerless to speak out.
More and more, we are seeing examples of corporate activism and people losing their jobs if they step out of line with their company’s political leanings. For example, Saturday, September 4th, John Gibson, CEO of Tripwire Interactive, tweeted support for the strict Texas abortion law that passed last week. It resulted in his “stepping down from the company.”
A Corporate Shift Left
The Heritage Foundation hosted a conversation with Andy Olivastro, a leader with significant experience in very large corporations. He said, “I think there was an assumption for a long period of time that the boardrooms of corporate America were largely aligned with what might be traditionally conservative or Republican issues. And whether that was once true or not, it is no longer the case.”
A Time to Speak and a Time to Keep Silent
Solomon said in Ecclesiastes that there is a time and a season for everything, including when to say something and when not to say anything. It is good that you are wrestling with this to make certain you are following the Lord’s conviction and are not having an emotional reaction fraught with unintended consequences. Here are a few thoughts to help you shape your decision.
A Case for Remaining Silent
Often, we simply want to be heard and become anxious when we do not speak out against an issue. But remaining silent may be exactly what the Lord desires so that you are in a better position to make a difference long term with the company. For instance, Joseph had a tremendous influence on Pharaoh, by submitting to the Lord’s timing. Daniel had a tremendous influence on Nebuchadnezzar, by submitting to the Lord’s timing. As a result of waiting, their influence over evil rulers saved many lives. Additionally, Jesus waited for the Lord’s timing before making His deity fully known.
A Case for Speaking Out
Esther was urged by Mordecai to use her voice and influence to defend the Jews against a deadly decree. But she did not think the timing was right. This exchange, recorded in Esther 4, is a powerful reminder of our need to seek God’s will and not our own.
Esther 4:12-14 says, When Esther’s words were reported to Mordecai, he sent back this answer: “Do not think that because you are in the king’s house you alone of all the Jews will escape. For if you remain silent at this time, relief and deliverance for the Jews will arise from another place, but you and your father’s family will perish. And who knows but that you have come to your royal position for such a time as this?”
Convinced, Esther sought the Lord and made a plan.
Esther 4:15-16 says, Then Esther sent this reply to Mordecai: “Go, gather together all the Jews who are in Susa, and fast for me. Do not eat or drink for three days, night or day. I and my attendants will fast as you do. When this is done, I will go to the king, even though it is against the law. And if I perish, I perish.”
Esther’s decision to speak out put her life on the line. She accepted the consequences if her plan did not go as hoped.
Salt and Light
Christianity has always been at odds with culture—not just corporate culture but the entire unredeemed world. Yet, believers are called to serve as salt and light in the darkness that surrounds us. We must never compromise Truth or God’s call on our lives, but we must be wise and discerning. How can you have the greatest influence? Should you speak out, or should you guard your job and privately support causes that will impact the kingdom and the culture?
In his book Why You Think the Way You Do, author Glenn Sunshine says: “In political life, we must keep the importance of the image of God shared by people of all nationalities front and center in our thinking. But we must be careful. Christ’s kingdom is not of this world, and it will never be ushered in through political power. Instead, we must live lives consistent with our faith, and thus by our concern and our action on behalf of others we will earn the right to be heard.”
Pray for your co-workers and superiors, and ask God for favor, “…always being prepared to make a defense to anyone who asks you for a reason for the hope that is in you; yet do it with gentleness and respect, having a good conscience, so that, when you are slandered, those who revile your good behavior in Christ may be put to shame.” (1 Peter 3:15-16 ESV)
A final thought is to be sure your finances are ordered in such a way that you are not inhibited by fear or worry when it is time to be bold. We should never let financial needs cause us to shrink back from being fearless ambassadors for God’s kingdom.
In my recent book, Seven Gray Swans, I write about economic trends that are happening before our very eyes but that tend to be ignored. We need to be prepared for challenging days ahead by understanding what to expect and how to prepare.
This article was originally published on The Christian Post on September 10, 2021.
Dear Chuck,
I have been steadily paying down debt, and the end is within site. I’m due a sum of money for the sale of some real estate and wonder if I should pay off the remaining debt or save it. Seems like a good time to be debt free. What would you do?
Almost Debt Free
Dear Almost Debt Free,
I can think of only a few reasons why you would not go ahead and become debt free if you are able. Of course, I don’t have your full financial picture, so I will try to give you a few things to consider as you come to your own conclusion.
Shifting Sands
There is a lot of uncertainty in the world right now. Covid-19 has created stress in many areas of our lives. A Pew Research Center survey reports that half of non-retired adults say the economic impact of Covid-19 will make it harder to achieve their long-term goals. There are medical and financial pressures along with rising mental health issues. Add to that inflation, the instability in Afghanistan, forest fires, flooding, the possibility of a stock market and real estate bubble…. Need I go on?
A major benefit to being debt free is that you will be in a much stronger position to weather the economic storms we may face. If your overall picture is good, then pay off all the debt. But, there is more to consider first.
A Safety Net
It is great to be debt free, but uncertain times also require that you have savings available for emergencies. You want to avoid ending up in the same position six months from now. Therefore, I suggest you give a portion, fund an emergency account, and then apply the rest to debt.
Have you ever done the limbo? The object is to get under a bar without touching it. Budgeting is very similar. Your income represents the bar. Your spending must fall below the bar every month, or you lose.
In limbo, you must take carefully-measured steps to keep as far away from the bar as you can. The gap between your body and the bar is what I call “financial margin,” which we all need. This is the space that grants peace and financial protection in the unexpected storms of life.
It is possible to increase your monthly margin quickly by adjusting your lifestyle. Consider the benefits of choosing to live on far less than you make. Manage the common budget busters—food, entertainment, and transportation—to further reduce expenses.
Other Tips
Paying down the highest interest-bearing note first will save you money in the long run. Paying down multiple small notes can provide a psychological advantage. Repay any late mortgage or rent, utilities, HOA fees, taxes, and car payments so there is no threat to losing your home or car.
Do you owe family members any money? Do not ignore this responsibility. Be honest, and treat them as you would want to be treated so that relationships are not harmed.
Be Intentional
Even if you do pay off all your debt, it is important to manage your finances well as you go forward. Just because you become debt free does not guarantee that you will stay that way unless you manage what you have well. Here are my three tips:
Thank you for the question. I don’t think you can go wrong if you pay off the debt and commit to following the steps above.
For more guidance, especially if your debt is related to credit cards, please consider contacting Christian Credit Counselors. They are a trusted source of help.
This article was originally published on The Christian Post on September 3, 2021.
