Dear Chuck,
My husband started short-term disability in order to address addiction issues. He is the sole provider for our family. Recently, he moved $100,000 from his 401k to cover our debt and bills while he seeks to get well. Do you think paying off all debt is wise (except for our mortgage), or do you have a better suggestion?
Supporting My Addict
Dear Supporting My Addict,
I am so sorry for your difficult circumstances; yet, I am grateful you have some options to help you while your husband recovers. Lord willing, he will shake his addiction and begin to rebuild your financial reserves.
It would help to know your age and overall financial picture; regardless, I will provide some information and advice that I believe will help you navigate this.
Addiction in America
Unfortunately, your painful circumstances are not unique. The National Survey on Drug Use and Health (NSDUH) reported that 19.7 million American adults (ages 12 and up) battled a substance use disorder in 2017. The American Psychological Association reports a rise in abuse because of the stress Covid-19 has brought upon many. Statistics can be found here. The 2019 National Survey on Drug Use and Health reports findings here. Tobacco, alcohol, drug abuse, mental illness, and treatment statistics are presented within the PDF. These problems not only have the capacity to ruin lives, but they can also ruin entire families. There are a number of support groups for families going through this trial. Celebrate Recovery is one I have heard many good things about.
Managing Through It
Your husband obviously wants to make sure you are taken care of during this time. Thankfully, he had money set aside in a 401(k). It is generally advised to take out the bare minimum needed because of the penalty and taxes involved. If you are under 5912, you will have to pay a 10% penalty plus taxes on that income. If you were approved for a hardship withdrawal, you may still face taxes and penalties. Do your research so you will not be caught off guard. Keep records of all transactions. There are other options for withdrawing funds, and those can be found here.
Should you pay off all debt? It can reduce stress and improve your credit score. Make sure you can keep up with your mortgage and have the ability to cover repairs and maintenance. The same goes for a car. An emergency fund can prevent the need to borrow in the future. Pay off debt that has high interest and is costing you in penalties. Live frugally during this time so you can reinvest the money borrowed from the 401(k).
While encouraging your husband during this time, it is important to consider the following:
If you are overwhelmed with the burden of financial difficulties, check out our Budget Coaching program. It can match you with one of our certified coaches to analyze your situation and develop a personalized spending plan and debt-elimination strategy. If other families reading this do not have the financial cushion your husband and you have and are experiencing problems managing debt, check out Christian Credit Counselors.
Praying for your husband to recover and for you and the family as you manage your finances and circumstances well. Stay strong. May God sustain you in and through your pain.
This article was originally published on The Christian Post on August 27, 2021.
Dear Chuck,
Although I don’t really believe in it, I am thinking of adding Bitcoin to my retirement funds. What do you think about it?
To Buy Bitcoin or Not to Buy Bitcoin?
Dear To Buy Bitcoin or Not to Buy Bitcoin,
First, my disclaimer: I am not an investment adviser and can only give my opinion or counsel, as any friend might do, based upon the Biblical principles I try to follow.
We, as believers, have a responsibility to steward our surplus wisely. Investing is one way that we can give more to God’s work, supplement our income in retirement, and leave a legacy of provision for our family.
How Much Volatility Can You Tolerate?
At this point in time, the volatility of Bitcoin should rule out the faint of heart or the older, conservative investors near or in retirement.
Some Say Go For It
It can be purchased in a Bitcoin IRA, a self-directed investment account. Check the pros/cons of this approach. What percentage should be held in a portfolio? I tend to agree with this perspective: Below 1% is “too small to matter much,” and above 5% substantially increases risk, so “1 to 5% is a sweet spot,” says Matt Hougan, chief investment officer of Bitwise Asset Management. Two reasons some support investing in cryptocurrencies for retirement include their history of high returns and the potential tax advantages.
Others Say Avoid It
Tuesday, Neel Kashkari, Minneapolis Federal Reserve President, said, “Cryptocurrency is 95% fraud, hype, noise, and confusion.” Speaking at the Pacific Northwest Economic Regional Annual Summit, the central banker accused Bitcoin of futility and sees no case for it in terms of market capitalization. He says it largely feeds into fraud.
No investment is risk-free. The long-term value of digital currencies will depend on how widely accepted they become. Cryptocurrencies have demonstrated great volatility, and future government regulation is not yet known.
Biblical Guidelines for Any Investment Decision
Be informed of risk.
Do your research. Seek the advice of trustworthy, well-informed people.
Be sure to diversify.
Diversification provides protection.
Be very wise.
Investing is not guessing.
Avoid unbiblical reasons to invest.
“But those who desire to be rich fall into temptation, into a snare, into many senseless and harmful desires that plunge people into ruin and destruction.” (1 Timothy 6:9 ESV)
“For I was envious of the arrogant when I saw the prosperity of the wicked.” (Psalm 73:3 ESV)
“As for the rich in this present age, charge them not to be haughty, nor to set their hopes on the uncertainty of riches, but on God, who richly provides us with everything to enjoy.” (1 Timothy 6:17 ESV)
“Desire without knowledge is not good, and whoever makes haste with his feet misses his way.” (Proverbs 19:2 ESV)
“There is a grievous evil that I have seen under the sun: riches were kept by their owner to his hurt, and those riches were lost in a bad venture. And he is father of a son, but he has nothing in his hand.” (Ecclesiastes 5:13-14 ESV)
Put your faith in the Lord, not your retirement plan. Unless you guard your heart, money and investments can become idols.
(Proverbs 3:5-6 ESV)
I recently asked a very savvy investor if he thought he should invest in Bitcoin as a hedge against inflation. His reply surprised me. He said, “I can find no redemptive purpose for investing in Bitcoin other than wanting to get in on the wild speculation that is happening with it. I am more concerned about hedging against Judgement Day!”
Have a Plan
Heed Paul’s instructions to the rich: “They are to do good, to be rich in good works, to be generous and ready to share, thus storing up treasure for themselves as a good foundation for the future, so that they may take hold of that which is truly life.” (1 Timothy 6:17-19 ESV)
Have a plan for the potential use of your investment gains. Set written goals, revisit them regularly, and adjust them as needed. Write your plan into your will before the money becomes available. Develop, now, the habit of giving so you understand the eternal benefits that God promised. Then, invest wisely with the hopes that His provision will be stewarded to bless many, whether that includes Bitcoin or not.
In my recent book, Seven Gray Swans: Trends that Threaten Our Financial Future, I discuss digital currencies and other economic threats that we should keep in full view as we navigate a volatile economic environment. I think you will benefit from reading it.
This article was originally published on The Christian Post on August 20, 2021.
Dear Chuck,
I’ve recently wondered if it’s possible to be too generous. My wife thinks we need to be more generous with our own families as part of what we give to the church and parachurches.
Giving Too Much?
Dear Giving Too Much,
This is a delicate subject, and I commend you for reaching the point where the question needed to be asked. The vast majority of people need to be encouraged to be more generous and seldom reach the issue that you have raised.
Like many issues in Scripture, there is a balance. We are commanded to give generously but not at the expense of caring for our family’s needs.
Are We the Rich Young Ruler?
Jesus clearly commanded the rich young ruler to sell all of his possessions, give the money to the poor, and then come and follow Him. But, the Apostle Paul later wrote that the sincere follower of Christ should decide in his/her heart what to give and to do so cheerfully.
“Each one must give as he has decided in his heart, not reluctantly or under compulsion, for God loves a cheerful giver.” (2 Corinthians 9:7)
It is my position that unless you are similar to the rich young ruler whose identity and security was in his wealth, you should not sell all of your possessions and give them to the poor. Rather, you should follow Paul’s advice to give in proportion to what you have received and to do so liberally and cheerfully.
It is necessary for individuals to seek wisdom and for couples to act wisely and be united in their giving decisions.
Taking Care of Our Families
“But if anyone does not provide for his relatives, and especially for members of his household, he has denied the faith and is worse than an unbeliever.” (1 Timothy 5:8 ESV)
Our children observe and learn from our behavior. When we set the example for giving, we demonstrate the Lord’s generosity to us. Strive to consistently live to give. A friend told my wife years ago that it is always better to err on the end of generosity than to withhold good in all ways, even within our families.
We recently had a used van that reached 200,000 miles; yet, it still had a good market value since it was in top condition. We sold it to our son and his wife after their first child was born because they needed one. He actually preferred to buy it versus having it given to them without a price. So, the sales price was $500. We also signed an affidavit that this was a gift and therefore not subject to market value sales tax.
We should make no excuses for not helping family members unless they do not know how to handle money wisely or they abuse it on selfish whims, addictions, or sinful living. Jesus reprimanded the Pharisees who neglected their parents and wrongly justified it. “For God commanded, ‘Honor your father and your mother,’ and, ‘Whoever reviles father or mother must surely die.’ But you say, ‘If anyone tells his father or his mother, “What you would have gained from me is given to God,” he need not honor his father.’ So for the sake of your tradition you have made void the word of God.” (Matthew 15:4-6)
Giving to Family Members
While keeping basic guidelines in mind, look at the pros and cons.
Pros
Cons
Stewards are not necessarily overseers or deacons, but the Scriptural guidelines below are worthy of striving to attain. If giving interferes with the ability to manage your home and extend hospitality, you need to examine if you are giving too much.
See Paul’s list of qualifications for elders in Titus 1:5-9 and 1 Timothy 3:1-13. Note: both hospitality and managing your household well are commended. Are you able to extend hospitality and manage your home well? Can you generously provide for your family in time of need?
There are times when we have to adjust what we give. Changes in income, family needs, and crises impact the analysis of dollars we can cheerfully give. We have friends who are attending to their parents’ needs, who are now in assisted living. That was not on their horizon 10-20 years ago. We know others who face the cost, needs, and challenges of children with mental health issues, drug rehab, and physical disabilities.
Should the Lord tarry, we have grandchildren who may face unprecedented needs in the future. “A good man leaves an inheritance to his children’s children, but the sinner’s wealth is laid up for the righteous.” (Proverbs 13:22)
Pray, and study God’s Word. Get wise counsel. Crown has a number of courses, such as MoneyLife and Flourishing in Generosity, that guide families on how to steward carefully what God provides. He will grant you peace to give generously, motivated by love, and to find the amount that brings joy to your heart.
This article originally published on The Christian Post on August 13, 2021.
Dear Chuck,
Digital currency will be all the rage soon. Won’t it just make inflation worse?
Digital Doubter
Dear Digital Doubter,
There are a lot of new developments regarding digital currencies. It is inevitable that they will be introduced by Central Banks and become a normative part of our lives. It is also a development that has far more downsides than simply concerns over inflation.
Just to be clear, a digital currency is a form of currency that is available only in digital or electronic form and not in physical form. Some refer to it as digital money, electronic money, electronic currency, or cyber cash. Some consider cryptocurrency as a subset of digital currency. That is a debatable point—more about it below.
Big Picture of Digital Currencies
China seeks to be the first major economy to introduce a centralized digital currency. It is speeding up its central bank digital currency (CBDC) trials in a move to issue a digital renminbi (their main physical currency). The country currently accounts for 44% of global digital payments. Digital renminbi would broaden surveillance by allowing the government to monitor all transactions.
In April, the UK announced the creation of a taskforce to explore a CBDC. The Federal Reserve has also been researching central bank digital currencies for some time. The Federal Reserve Bank of Boston is working with MIT on a digital currency.
The U.S. wants to develop “rails” to move money faster for unemployment benefits and stimulus checks. Treasury Secretary Janet Yellen says new rails would be cheaper and safer. A CBDC would enable central banks to maintain competition and operate the innovations along with cash and other forms of payment, while monitoring every transaction. Beyond concerns for out-of-control inflation, this raises privacy concerns as well.
Categories of Digital Currencies:
* Many experts think of it as a digital asset more than a digital currency.
Mid July, Jerome Powell, chairman of the Federal Reserve, appeared before the House Committee on Financial Services noting that stablecoins pegged to a traditional currency, like the dollar, need regulation to protect users. He was, however, undecided as to whether the benefits would outweigh the costs. “These (stablecoins) are economic activities that are very similar to bank deposits and money market funds and they need to be regulated in comparable ways.”
Notably, a government-controlled digital currency would render many stablecoins and cryptocurrencies obsolete. The Fed plans to publish a report on a U.S. digital currency in September. My view is that governments will be forced to attempt to regulate all forms of digital currencies in the future to maintain their desire to exercise global monetary policy.
The Pros and Cons:
Justin Honse wrote an insightful article listing the reasons CBDCs will be viewed positively and reasons why you and I should be concerned. The lists below are directly from his article, The Ugly Side of CBDC.
Benefits
Potential Downsides
In my recent book, Seven Gray Swans: Trends that Threaten Our Financial Future, I wrote about the risks of a cashless society and the “useful conveniences” created by technology that are actually potential losses to our economic, religious, and social freedoms. In my opinion, the development and adoption of CBDCs must be carefully watched as a gray swan event—an obvious danger that we tend to ignore.
This article originally published on The Christian Post on August 6, 2021
Dear Chuck,
My husband and I have a lot in common, but we also have a WHOLE lot of differences. When it comes to money, we are complete opposites. Help!
Financial Opposites
Dear Financial Opposites,
You have asked the right person about this challenge! My wife and I are as different as a pit bull and a poodle. Yet, we have worked hard at turning this into an advantage!
Created 180° Opposite
I am an extrovert while Ann is an introvert. I like to talk. Ann likes to think. I tell her I can talk and think at the same time. That never goes over very well.
I am a big-picture person. Ann wants to know the details. If I tell her I want to do something big or spontaneous, she listens politely then drills me with questions. Do you have a plan? What is it? How much will it cost? This can get on my nerves.
I like to spend. Ann likes to save. Get the picture? Sound familiar?
Financial decisions were hard for us—almost impossible—for years. We were in constant conflict over whether or not to have a budget, much less how to abide by it! We went backward, not forward, whenever we tried to reach financial goals.
Though not unusual, differences can be discouraging and stressful in a marriage. Couples often don’t realize just how different they are until after they say “I do.” I realized that although opposites do in fact attract, they later attack!
Once daily financial decisions have to be made, small issues, like what brand of toothpaste to buy, can become divisive. Differences can cause misunderstandings, friction, and fatigue, which seem to magnify when children arrive.
Change Your Perspective
Decades into our marriage, it occurred to me that our stark differences were not a liability, problem, or mistake that needed to be fixed. Rather, it was God’s sovereign plan to bring together two very opposite people and make them one because we were incomplete without the other. He designed us to complement one another.
It was then that we began to see our differences as our strengths.
God knew I needed an introvert to place some boundaries around my extroversion; I needed a thinker to temper my desire to talk; and I needed a detailed person to bring reality to some of my hopes and dreams that would never be achieved without a plan. I needed help to perceive the risks and dangers ahead; I needed a compassionate, sensitive person to help me learn to filter my words and think about their impact; and I needed a mate who would balance my desire to give spontaneously without regard for the future, to help me save and make progress in providing for the needs of our family. I would be a mess without Ann!
God knew Ann needed a fearless extrovert to go out and make things happen, to meet new people, and to create new opportunities for our family. She needed a husband eager and willing to talk to resolve our differences instead of retreating into his thoughts. She needed a husband willing to share his dreams and ambitions that she could help shape and improve upon. She needed a husband who would lead, take risks, and dare to do what God called us to attempt together. She needed a man who would complement the areas where she was not gifted.
A 360° Marriage
Imagine standing back to back with your spouse. You don’t see the world the same way. Now imagine interlocking arms to become one. As you rotate, one of you looks to the east and the other to the west. You have a complete view of the world, becoming a 360-degree couple. You literally have each other’s backs and can protect and strengthen one another.
“You are each God’s workmanship created in Christ Jesus for good works.” (Ephesians 2:10 ESV) He knows your strengths and weaknesses. Submit to Him, and invite Him into your marriage. Assuming you are united in Christ, then you each bear fruit of the Spirit.
Together, you can become good stewards who depend on one another and God. Pray for character traits like flexibility, forgiveness, adaptability, compromise, kindness, and support to flow from each other.
Let go of the past, and move forward with great hope. “Let all bitterness and wrath and anger and clamor and slander be put away from you, along with all malice. Be kind to one another, tenderhearted, forgiving one another, as God in Christ forgave you.” (Ephesians 4:31-32 ESV)
Ann and I recently wrote a book, Money Problems, Marriage Solutions, that you may be interested in reading. Crown.org also has many more resources to help your marriage and family thrive financially.
This article was originally published on The Christian Post on July 30, 2021.
Dear Chuck,
Can you help me understand all the buzz about DeFi (decentralized finance)? I just don’t get it.
Traditional Boomer
Dear Traditional Boomer,
You and I are in the same boat, as traditional boomers! I know enough to be dangerous, so I asked my team to do some research to help us both understand the big picture. This is an important development that we should all be paying attention to.
What is DeFi?
Decentralized finance, or DeFi, as defined by Investopedia.com, “is a system by which financial products become available on a public decentralized blockchain network, making them open to anyone to use, rather than going through middlemen like banks or brokerages.”
Got it? Just joking. We need to dig deeper to understand both the challenges and opportunities.
Investopedia offers more detail that I will try to simplify.
“DeFi refers to a system by which software written on blockchains makes it possible for buyers, sellers, lenders, and borrowers to interact peer to peer or with a strictly software-based middleman rather than a company or institution facilitating a transaction. Thus a decentralized system can consist of a mix of open-source technologies, blockchain, and proprietary software.
Smart contracts that automate agreement terms between buyers and sellers or lenders and borrowers make these financial products possible. Government-issued ID, Social Security numbers, or proof of address are not necessary. Regardless of the technology or platform used, DeFi systems are designed to remove intermediaries between transacting parties.”
Opportunities and Challenges
DeFi offers better interest rates for borrowing and lending and low barriers to entry compared to traditional banks. Interestingly, DeFi loans are collateralized with other crypto assets. These financial products, mostly run on Ethereum, were worth around $1 billion a year ago but have surged since the pandemic. As a result, the World Economic Forum published a policymaker toolkit here.
SmartAsset.com reports that DeFi offers the advantage of cost, speed, and security. Some believe hacking would be reduced.
A major disadvantage is the inability to protect asset values due to market fluctuations. These can be frequent and extreme like Mark Cuban experienced. He was trading a DeFi token that crashed to zero on June 16th. Fraud was first suspected, but panic selling and the algorithmic code were blamed. The cost of trading could become expensive due to fluctuating ethereum transaction rates. Weaknesses in the recent technology of DeFi apps (dapps) along with future regulations and tax implications are additional concerns.
According to a Bank of Japan-issued review:
Potential benefits of DeFi:
Potential risks:
It was noted that “the tamper-proof nature of blockchain networks could work against DeFi in the world of finance—as in extreme cases, a smart contract could trigger a series of ‘meaningless’ automatic program executions that human users would be powerless to stop.”
Be Cautious
Technology that is dependent on coding, value fluctuation, and lack of regulation or insurance are risks for everyone considering this financial platform. Experts recommend thorough research with the reminder to only invest what you can afford to lose. $156 million were stolen in hacks between January and April—more than all of 2020. The Federal Trade Commission says consumers have reported losses of more than $80 million to crypto-investment scams since October.
Mark Cuban is calling for stablecoin regulation. So are others. Dan M. Berkovitz, one of five commissioners of the Commodity Futures Trading Commission, expressed his concerns in a meeting on June 8th. He stressed that the U.S. financial system is strong because of the legal protections investors enjoy when investing in our markets, primarily through intermediaries.
Summary
My long-term view is that DeFi will likely catch on and become a meaningful alternative to traditional banking systems. Anything that displaces intermediaries has the potential to save time and money. However, it will also move us a step closer toward a cashless society, which I believe is inevitable. Remain cautious, and before investing, remember to seek lots of advice.
“…in an abundance of counselors there is safety.” (Proverbs 11:14b ESV)
Before diving into the DeFi space, if you need help getting your traditional 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 July 23, 2021
Dear Chuck,
Housing prices are astronomical here but so is rent. It seems I am throwing money down the drain every month. Would it be a mistake to buy so I could at least build some equity?
Buy Now or Wait?
Dear Buy Now or Wait,
This year’s real estate market has been crazy! Housing shortages in parts of the country and lumber scarcity pushed prices beyond historic records. Bidding wars are common with all-cash bids and higher down payments, even for houses that have not been seen in person. My son sold his home in Nashville to someone who never stepped foot in the house—only to then receive a back up offer for 10% greater than he was in contract for!
Homebuyer Regrets
Bankrate surveyed 1,400 homeowners, revealing that 64% of millennials (ages 25-40) regretted buying their homes. The main reasons? Cost of maintenance and overpaying for the house. Many first-time home buyers joined the buying frenzy and paid beyond market value in an effort to avoid missing out. Those who lost several offers compromised their budgets in order to win, move, and get settled. Millennials were more likely to buy fixer-uppers than new homes and borrow to make improvements. Reality hit after closing and pricing out the renovations for their instagram worthy dream home.
The pandemic is partly to blame. Travel restrictions and social distancing guidelines made visiting houses prior to purchasing difficult. While more millennial homebuyers regretted their purchases, 33% of baby boomers (ages 57-75) did as well. Lack of experience and FOMO (fear of missing out) may have affected the younger buyers more than the older ones.
Key findings among surveyed buyers:
Advantages of Renting
A growing housing trend is “renting by choice.” This means that although a potential homebuyer is financially qualified to own a home, they choose rather to rent. They cite some advantages: the apartment is “maintenance free” if anything goes wrong, no real estate taxes, the ability to “lock and leave” if they want to do extensive travel, and a greater sense of freedom should they experience a job change or prefer to live in a different part of the country working remotely. Many developers are catering to this market by loading multi-family units with attractive amenities for the discerning tenant. All that to say, renting is not throwing money down the drain. You get a nice place to live and lots of flexibility and freedom for your costs.
If You Decide to Buy
Take time to see the home in person, or work with an experienced friend or agent to avoid the disappointment in location, layout, or size of a home. Study housing comps and research the schools, crime statistics, flight patterns, industry trends, traffic patterns, and homeowner association issues (HOA) to make an informed decision. The condition of a home, cost of utilities, property taxes, HOA fees, and other factors can prepare potential buyers for known costs. Home ownership comes with unforeseen repairs and maintenance, which is why an emergency fund is crucial. A budget is a useful tool to plan for a purchase and think beyond just the selling price of a home.
To know if you are financially prepared to buy a home, answer these questions:
Buyer Beware
Scammers are becoming more proficient in duping the innocent during this hot market. RealHomes.com and Bankrate.com list some of the common ripoffs in real estate transactions such as loan flipping, foreclosure relief, and moving scams.
Bottom Line
Without knowing how you respond to the questions I posed above, I cannot say whether you should continue renting or buy now. I hope I have given you enough information to make a good decision. Let us know how we can help. We have plenty of free resources and calculators at crown.org.
This article was originally published on The Christian Post on July 16, 2021.
Dear Chuck,
I’m considering dropping support of some of the organizations and institutions I’ve helped in the past and putting that money to better use. It’s been disheartening to see a drift in values. Do you have a guide for Christian givers?
Redirecting My Charitable Giving
Dear Redirecting My Charitable Giving,
We are experiencing a sea change in our nation. Epic shifts away from Judeo-Christian values and beliefs are underway at almost every level of society; schools, corporations, churches, ministries, and families are adapting to cultural philosophies and pressuring others to join them.
We should analyze not only where our giving is being directed but all of our spending, too. We can vote with our wallets, as the old saying goes.
Larry Burkett’s Advice
Years ago, long before the radical philosophies of our time were emerging, Larry Burkett, Crown’s late founder, addressed the question you posed, in his book, The Complete Guide to Managing Your Money. I have quoted him extensively below.
“Christians should be very sensitive, not only concerning whom they assist, but how the money is used. God has established the requirements for us. The standards are clear for individuals – assess whether they are willing and able to work. Also, are they asking for needs, or wants, or desires?”
“Get personally involved with the people you help if possible. Share God’s principles of finance with them. Help them establish a budget and live by it. Find out how they are living. Would they spend the money you might give them for alcohol? Are they wasting their present income in foolishness? If so, you have no requirement to support them. In fact, by doing so you may well be interfering in God’s plan for them.”
Christian organizations should be assessed likewise. Not only does God provide opportunities for giving to the needs of the saints but also to invest tithes, offerings, and sacrifices into His work. Unfortunately, today Christians are besieged by charitable requests from every side. Many are deserving, but some are poorly managed, unfruitful, and even dishonest. Seek God’s wisdom before giving. Get literature from them that thoroughly describes the organization and its doctrine. Talk to others who have invested. Require references if you have never heard of the group before. Let the organization know why you are questioning them. Be discerning; be a good steward of God’s resources.
A Minimum Checklist of Questions
“Share willingly according to God’s plan, but be discerning and cautious as a steward. Accept nothing less than excellence for the Lord’s money.”
Ministry Watch
A great resource is to check out Ministry Watch. They keep tabs on organizations that are to uphold the principles of God’s Word and report on both those that adhere to high standards of excellence and those that are missing the mark. You can learn about them here: MinistryWatch.org
Thank you for your desire to support organizations that honor the Lord Jesus Christ and His Word. Your action multiplied over millions of others will have a profound impact!
For more guidance on how to best steward the resources that God has entrusted to you, Crown.org has several courses to help, such as MoneyLife and Multiply: A Biblical Guide to Investing. These courses and others can be found here: https://crownonline.org/crownonline.
This article was originally published on The Christian Post on July 9, 2021.
Dear Chuck,
I’m an American who believes our religious and financial freedoms are being threatened. I want to discuss this with our family during our 4thof July gathering. I am grateful to be an American but feel the country I love is quickly disappearing. Any insights for me?
Troubled American
Dear Troubled American,
This is the month that we celebrate our nation’s independence from the British empire and the resulting freedoms we have historically enjoyed … many of which are in fact threatened today.
Hooray for the Red, White, and Blue!
I join you in gratitude to God for my American citizenship; we were wrong to ever take it for granted.
My memories of our Independence Day celebrations are some of the best of my life. Our family traditions included a weekend at the lake, grilled hot dogs and hamburgers, hand-churned peach or banana ice cream, watermelon, and endless fun and games culminating with a spectacular fireworks show. Seldom did anyone give a talk about our freedom; it was assumed that the price that had been paid for it would forever solidify its value in our hearts and minds.
Are We Really Losing Freedoms?
Economic freedom is frequently assumed to be a given right in the United States and most of the developed world. It is proven to be the most effective means for stimulating human flourishing. But what if economic freedom is impossible without religious freedom?
In a new working paper, and summarized in a recent op-ed, Christos A. Makridis shows that religious liberty is a prerequisite to economic freedom. Using a sample of over 140 countries between 1996 and 2018, he shows that improvements in religious liberty pre-date improvements in economic freedom, not the other way around. The article states, “Since religious freedom fundamentally involves granting individuals the autonomy to think and worship in whatever form they wish, it is arguably the most basic of all freedoms.”
The study reveals that this cornerstone of all our freedoms—the freedom to worship God as we choose—is declining in many developed nations. Between 2010 and 2020, it dropped 16.2% in the UK, 36.7% in France, and 29.6% in the United States. In general, the decline is occurring in developed nations where religious liberty has traditionally been strong.
This is the logical conclusion to the study: Should we lose religious freedom, economic freedom will soon follow.
Our Hope is Not in America
America has changed, but, thankfully, God has not. We face financial risks, evil, and threats to our freedom on all sides, but we can confront our problems with wisdom, courage, and faith. Like Joshua, we must “be strong and courageous” as we face the “giants” in this land. (Joshua 1)
Jeremiah grieved for his land, but he held fast to what he knew was true: “But this I call to mind, and therefore I have hope: The steadfast love of the Lord never ceases; his mercies never come to an end; they are new every morning; great is your faithfulness. ‘The Lord is my portion,’ says my soul, ‘therefore I will hope in him.’” (Lamentations 3:21-24 ESV)
Practical Advice for Your Family
The Bible advises that we should all operate with prudence. This is the wisdom to choose the right path to a worthy goal. I wrote about this in my recent book, Seven Gray Swans. A prudent person does not live at the mercy of their circumstances but takes action to be ready for the days ahead in a similar way that passengers buckle their seat belts if the pilot says, “Ladies and Gentlemen, we are expecting turbulence ahead.” Here are some of my general tips. Choose what you think will be helpful to your own family.
Increase Your Capacity to Weather Storms
Save, and keep 15 months of annual income/funds in an emergency account that is not at risk of loss and is easily accessible without a penalty. God advised Pharaoh, through Joseph, to save in preparation for the Great Famine. Keep one month of cash on hand. Store it in a waterproof and fireproof location in your home. These funds will carry you through a disruption in online banking or any emergency that requires that you flee. Keep a small amount of gold coins on hand as insurance against a currency collapse.
Get Free of Encumbrances
Eliminate debt in order to avoid entrapments or obstacles that limit your personal financial freedom, mobility, and choices. Be as liquid as possible in order to have access to resources if quickly needed. Liquidity means having sufficient cash on hand to meet financial responsibilities. Maintaining liquidity above the bare minimum is considered wise in order to guard against unexpected expenses.
Liquid assets may be cash or property that can readily be converted to cash without substantial loss in value. Illiquid or fixed assets are possessions of value that are held long-term, like real estate or equipment.
Reduce Vulnerability and Diversify
Diversify investments into different assets classes via publicly traded companies or funds that perform well in scenarios of deflation or inflation. Some experts recommend hard assets like precious metals, art, real estate, or oil and gas as a hedge against fiat currency devaluation. Another strategy is to hedge for downside risk by holding a small position in ETF funds that run contrary to market downturns.
Recognize What You Cannot Lose
Live in the moment. Shed the shame of the past and any fear of the future. Find good and godly purposes for any pain or suffering that you may experience. Nothing is wasted in God’s economy, especially loss. God turns it all to good when we love Him and are called to His purposes. Replace any fear of the future with confidence in God’s faithfulness. Hebrews 10:35 tells us: “So, do not throw away your confidence; it will be richly rewarded.” (NIV)
Faith is of greater value than gold, precious jewels, bitcoin, and financial security we could accumulate. Take life one day at a time, give thanks, and trust the Lord. Your true allegiance should be to a Kingdom not of this world.
I pray you will have a meaningful discussion with your family as you celebrate all the wonderful freedom we continue to enjoy today. If you’d like to read more practical advice for preparing for the future, check out my most recent book, Seven Gray Swans: Trends that Threaten Our Financial Future.
This article was originally published on The Christian Post on July 2, 2021
Dear Chuck,
I really hate my job. I want to quit, but I was taught that it is better to find a job before you quit what you have. Any tips for finding a job before bailing out of this miserable situation?
Stuck in a Bad Job
Dear Stuck in a Bad Job,
I have lots of advice that will be helpful for you.
Be Grateful
The first tip is to be grateful for what you have no matter how hard or difficult it is. Looking back on my own journey, I started working outside of our home at age 14. I have had plenty of bad bosses or just plain hard work. Yet, I always learned something that built my character, taught me a new skill, or benefited my life in some way.
Don’t Jump Ship Quickly
One of my sons was doing contract work for an organization that clearly treated him unfairly. There were lots of reasons to quit, walking out of the commitment he had made. When he asked for my advice, I encouraged him to complete the remaining 3 months of the contract even though he was not being paid what he was promised. He stuck it out. Looking back on it today, it was during those three painful months that the biggest breakthroughs in his career began to happen. Coincidence? I don’t believe in them. God used the character qualities of humility and perseverance on display in my son’s life to bless him.
Don’t Burn Bridges
You should avoid burning bridges unless absolutely necessary because it forever alters a relationship. There is no turning back to the way things used to be. Once something is said or done, the “burn” can permanently scar.
Life is built around relationships and connectivity. Good relationships build more relationships. They expand your business and influence. Referrals and references result from your connections with others. People are important. Fellowship and community are life-giving in business, church, neighborhood, family, and friendships. In fact, healthy relationships ultimately impact your emotional and physical wellbeing.
Some relationships are beneficial. Some are not. Discernment is key to determining when to move on from people who struggle with sin like self-control, anger, pride, misplaced dependency, etc.
There are times when distance is necessary. If something unethical is asked of you, or you discover it in your employer, do not compromise. If you are in any sort of danger, get help.
Seek wise counsel. And remember to hold your tongue to avoid false accusations, slander, or gossip.
“He who loves purity of heart, and whose speech is gracious, will have the king as his friend.” (Proverbs 22:11 ESV)
Transform Your Job, or Look for Another One
Oftentimes, people who hate their jobs have never analyzed the reason why. Have you? What is it that makes you miserable? Are you working outside of your gifts and talents? Check out Crown’s Career Direct assessment to learn of your unique design. Are you bored or frustrated with your responsibility? Ask for a new challenge, or a transfer to an area you enjoy more. Are you working with people that you do not get along with? Seek to be a peacemaker, and transform your work relationships and office environment. If this does not help, make a plan to find a new job.
I believe it is true that the best time to look for a job is when you are employed. Ask family, your friends, folks you know at church, or even a professional search firm to help you find what you are looking for. Most jobs today are found through personal referrals which is why it is important to remember the advice I started with above. Don’t forget to summarize your job search into two sentences or less so others can understand very specifically what you want. Here is an example: “ I am looking for a job in advertising sales with an online company, and I need a base salary plus commissions. I’m willing to relocate but prefer to work from home.” Share this as you seek help from others so they can do more than just wish you well.
In some rare cases, you may be able to discuss your desire to find a new job with your current boss or team. This often is a very helpful decision on many levels. Don’t do this if you are working in a hostile environment or in a company that is not built upon trust and mutual respect.
Pray
The Lord knows what you need. Invite Him into your current misery and your job search. He can open doors and move mountains to get you where He wants you to serve.
If you do find yourself in a situation where you are cash-strapped, Christian Credit Counselors may be able to provide some guidance. They are a trusted source of help, seeking to free individuals and families from the burden of credit card debt.
This article was originally published on The Christian Post on June 25, 2021.
