Dear Chuck,
We’re a large family who vacations ten nights per year over spring break and summer. In your opinion, is a vacation club (like Marriott) a good purchase, or should we look at purchasing a timeshare resale?
Looking for Vacation Savings
Dear Looking for Vacation Savings,
First, it is a joy to hear you are a large family that is intentional about spending time together on vacation. I can also appreciate your desire to find the best possible value for using the money that goes into your vacation budget.
I assume that you currently select a desired location where your family would like to spend their vacation. Then you do your research and select the best value option for a hotel, Airbnb, VRBO, or campsite. Let’s discuss your interest in joining a vacation club or timeshare to save money.
Know the Real Costs
There are several things to consider in your analysis. A good decision will be determined by your family’s needs. I’ve read that vacation clubs are a modern form of a timeshare. Typically points-based, members purchase points and then spend them at resorts within a company’s portfolio. Traditional timeshares are often a fixed week at the same resort. Then there are travel clubs, which offer a variety of services for free or paid memberships. This website offers a vast amount of information. We will look closely at each option.
The initial offers to join a club or timeshare always appear to be great bargains. The key is doing your research and understanding the long-term costs. It is difficult to recover the initial buy-in costs unless you happen to find an incredible resale deal. Just remember that timeshares rarely appreciate over time like a home. They are not considered an investment because they have limited potential to grow in value and come with high costs and fees. There is limited marketability, and they should not be purchased with the expectation of gaining income or capital appreciation. In addition, owners are at the mercy of property management.
Vacation Clubs
Vacation clubs grant members access to their properties and resorts for an upfront fee. Many work on a points-based system for location, dates, and accommodation at resorts, villas, condos, or hotels. Exclusive privileges may include discounts, priority booking, member-only events and amenities, concierge assistance, and vacation planning. Some exchange programs allow the trading of points for stays at affiliated properties. Annual dues or maintenance fees cover operating costs, property maintenance, and ongoing services. Here are some key points on vacation clubs:
Timeshare Resale
A timeshare resale can be purchased from an existing owner at a lower cost than purchasing from a resort or developer. It’s possible to find great deals, but you are limited to what is on the market. A property’s reputation, amenities, and quality are important.
Some resale companies offer exchange programs that allow you some flexibility. If the property has already been developed, you can begin using the timeshare immediately. However, the initial purchase price can be deceiving. You must factor in property taxes, maintenance fees, and exchange fees, which can all increase annually. Plus, if you decide to sell, restrictions and fees can be imposed, along with the risk of depreciation. Here are some key points on timeshare resales:
One drawback to purchasing a timeshare resale is the risk of dealing with fraudulent sellers. Deal only with a reputable broker or company before making any purchase. If the property sounds too good to be true, take special precautions! Here is an article on scams and how to avoid them.
CNBC reports that the timeshare industry is valued at more than $10 billion. One study found that 85% of buyers regret their purchase, and many go to the resale market to escape ownership. According to Brian Rogers, owner of Timeshare Users Group, a consumer advocacy and timeshare resale website, “Our general rule of thumb is most timeshares sell for between 0% and 10% of their original retail purchase price. And the majority of that focus is unfortunately on the 0%.” Watch this.
Three thousand complaints were filed with the Better Business Bureau on two of the largest timeshare companies under Wyndham Destinations: Travel + Leisure and Hilton Grand Vacations.
Marriott’s Vacation Club
NerdWallet.com reports that ownership in Marriott’s vacation club starts at around $25,000. Maintenance fees include anticipated operating expenses, like repairs, insurance premiums, and real estate taxes. Points not used one year can be rolled over to the next, and borrowing points from the next year is allowed. There are family-oriented experiences through the Sheraton Vacation Club, which is just one of several clubs offered through Marriott.
Ask yourself if this is the kind of vacation that will benefit the entire family in the long run. Can you afford the costs year after year? This website answers questions specifically about the Marriott Vacation Club.
None of the Above
I, too, like saving money on a vacation, but I also like having the flexibility to vacation where I want during a time that fits my schedule. For that reason, I have never been interested in these. Although clubs and timeshares work for some people, I cannot recommend them. Consider working a loyalty program with a VRBO or Airbnb owner with a property in your family’s favorite destination. Ask if they will offer you discounts for your loyalty to their specific location each spring and summer.
I’d like to invite you to join a free Crown Bible study on the YouVersion app. We have several devotionals regarding money and stewardship that will help bring God’s Word into your daily life.
The article was originally published on The Christian Post on May 17, 2024.
Dear Chuck,
Someone I care about routinely overspends with the justification it will help “grow his business.” The effort to give an impression of success is causing him significant financial stress: a new car, a Swiss watch, expensive clothes, etc. How would you address the situation?
Stressed for Success
Dear Stressed for Success,
I grew up hearing the term that some folks live “high on the hog.” It means a person is living in affluence and luxury or trying to convey an appearance of wealth when they don’t really have it.
The source of this phrase dates back centuries and is said to come from the fact that the best cuts of meat on a pig come from the back and upper leg. The wealthy ate cuts from “high on the hog,” while the paupers ate belly pork and feet.
I have a friend who refers to people trying to impress others by buying luxury brands they cannot really afford as “$1,000/Week Millionaires.” In other words, they make a middle-income wage but want others to think they are rich. The problem is the financial stress that accompanies that lifestyle. It reminds me of a saying I grew up with:
“If your OUTgo exceeds your INcome, your UPkeep will be your DOWNfall.”
Advice to Escape the “Fake It Till You Make It” Lifestyle
While dressing for success may actually help the business grow in some professions, it is a poor way to manage money. If you ever study the financial habits of wealthy people, you will find that they often live with low-consumption lifestyles—think Warren Buffet. He lives in the first house he ever purchased yet is consistently considered one of the richest men in the world.
Solomon addressed the issue of posturing in Proverbs 13:7: “One person pretends to be rich, yet has nothing; another pretends to be poor, yet has great wealth” (ESV). In other words, don’t live “high on the hog.” Resist the temptation to appear rich. Instead, place your identity in Christ and the peace that comes from resting in His everlasting love, not the world’s temporary appearances. Humbly work, give, spend, save, and invest money with a purpose far greater than self-indulgence.
The Bible repeatedly addresses pride and the importance of keeping an eternal perspective. It’s easy to be deceived by the riches of this world. Jesus knew we would be tempted and said,
“Do not store up for yourselves treasures on earth,
where moths and vermin destroy, and where thieves break in and steal.
But store up for yourselves treasures in heaven, where moths and vermin do not destroy,
and where thieves do not break in and steal.
For where your treasure is, there your heart will be also.”
Matthew 6:19–21 ESV
Our identity in God’s Kingdom is not printed on a business card. It’s not related to our income, education, accomplishments, or failures. It’s not based on the color of our skin, the street where we live, the clothes we wear, or the cars we drive. Our true identity is given in John 1:12–13: “Yet to all who did receive him, to those who believed in his name, he gave the right to become children of God—children born not of natural descent, nor of human decision or a husband’s will, but born of God” (NIV).
The things of this world pale in comparison to who we are in Christ. When we truly understand this, we’ll make decisions based on that identity, not the temporary one the world gives us.
So, to be specific, money does not give us our true identity. It doesn’t make me a rich man, a poor man, a successful man, or a bankrupt man.
My hope is that your friend will come to understand who he is and why he is here. Then he can pursue God’s purpose for his life and flourish without the stress of trying to impress others. Rick Barnes, The University of Tennessee basketball coach, tells his team that we have an audience of One. That One did not send Jesus to die a humiliating, tortuous death on a cross for us to live temporary lives of luxury. He so loved the world that He gave His only Son so that by faith, we could have eternal life. The way we live here and now is in preparation for our future in Heaven.
May our lives be dedicated to living and glorifying Christ in all that we do. Stewarding our talents and treasures wisely not only grants meaning to our days here on Earth but also prepares us for Heaven.
If credit card debt is holding your friend, or anyone else you know, in bondage, a valuable and trusted resource is Christian Credit Counselors. They can help consolidate debt to get on the road to financial freedom.
This article was originally published on The Christian Post on May 10, 2024.
Dear Chuck,
We believe in helping the poor, and we actively support numerous organizations along with our church’s benevolence program. Help us know how to educate those who think guaranteed basic income is a compassionate way to help the hurting.
Distressed over Guaranteed Income Programs
Dear Distressed over Guaranteed Income Programs,
You are right in being concerned. Several cities across the United States give low-income families a guaranteed basic income. I wrote about this trend in my book Seven Gray Swans. It is my opinion these efforts will ultimately create more of the problem that they are intended to solve.
Guaranteed Income Programs
An article at msn.com, “One State’s Considering Giving People $9,000,” reports that Stanford University’s Basic Income Lab counted more than 150 guaranteed income programs in America’s history. Most took place in the past five years.
Pilot programs are funded by the federal government (taxpayers), foundations, and state and local taxpayers. For one to three years, recipients will receive income with no strings attached. This is not a loan or wages for labor. The recipients have zero accountability for the use of funds. It amounts to a charitable gift to private citizens, so it is mislabeled as “income,” which is normally associated with compensation for a job or task.
On April 9th, Business Insider reported several active and proposed plans:
Taxes upon Taxes
Bill SB3462 would require a guaranteed income of $1,000 to Illinois residents, regardless of immigration status, for those who provide care for a child or other specified dependent, for those who recently gave birth or adopted a child, or for anyone enrolled in an educational or vocational program. Certain eligibility determinants must be met, with implementation after the 2027 calendar year.
Fox2Now reports that opponents fear that “the program could come with unintended consequences, like reducing work productivity or not directly addressing poverty within the state.” Funding will come through taxpayers. I should mention, “Illinois already levies the highest state and local tax rates in the nation, making increasing the state’s tax burden an untenable solution, particularly as hundreds of thousands of residents and major corporations flee the state each year.”
A Long List of Possible Problems
The concept of GBI (Guaranteed Basic Income) has been discussed for decades, but the cost and effectiveness of the programs are questioned. It is assumed that individuals know how to best spend the money: paying rent, buying groceries, or paying off debt. Yet after the pandemic fund fiasco, it does not take a PhD in economics to question that logic.
Are these people not needed in the workforce? Would they rather be paid and make a contribution to society? What funds are being robbed to finance guaranteed income programs? How much will our taxes increase? What are the long-term consequences? Does the government simply print more money or go into debt to be able to afford this program? Will people move to another state just to receive these benefits? Who qualifies, and why do they need a guaranteed income? What if my city already offers programs for needy individuals? Who sets the amount that is distributed, and will it be capped? On and on…
While some cities are providing GBI programs and conducting research funded by government and/or private foundations, others have scrapped them.
The Foundation for Government Accountability, FGA, cites several reasons why guaranteed or universal basic income is “a bad idea”:
The Bible Offers a Better Way
God made man to work—to be a creative, capable producer who can add value to any enterprise. In exchange for that labor, the needs of the worker will be supplied. This gives meaning to life and deep satisfaction for earned achievement. Encouraging work over welfare will raise incomes, rescue families from dependency, and create less government dependency than we have now.
“Now we command you, brothers, in the name of our Lord Jesus Christ, that you keep away from any brother who is walking in idleness and not in accord with the tradition that you received from us. For you yourselves know how you ought to imitate us, because we were not idle when we were with you, nor did we eat anyone’s bread without paying for it, but with toil and labor we worked night and day, that we might not be a burden to any of you. It was not because we do not have that right, but to give you in ourselves an example to imitate. For even when we were with you, we would give you this command: If anyone is not willing to work, let him not eat. For we hear that some among you walk in idleness, not busy at work, but busybodies. Now such persons we command and encourage in the Lord Jesus Christ to do their work quietly and to earn their own living.” (2 Thessalonians 3:6–12 ESV)
GBI may lift or temporarily reduce poverty for some individuals. However, giving money with few constraints can result in fraud and fund negative habits, perpetuating the poverty cycle. I view this as a “Robin Hood Plan” to tax the rich and distribute to the poor. We should not forget that Robin Hood is a work of fiction.
For more information, read these articles.
I’d like to invite you to join a free Crown Bible study on the YouVersion app. We have several devotionals regarding money and stewardship that will help bring God’s Word into your daily life.
This article was originally published on The Christian Post on May 3, 2024.
Dear Chuck,
Before my grandfather was put on hospice care, he shared his estate plan with our family. He was a generous man, but we had no idea he had accumulated SO many assets. As a result, my wife and I will be inheriting a lot of money. At age 30, we have no experience managing this kind of money. We need some guidelines.
Young Heirs
Dear Young Heirs,
A young widow once sought advice from our ministry shortly after her husband’s passing. She received a million dollars from a life insurance policy intended to provide for her and the three young children. He had instructed her to wait one year before making any major financial decisions and to follow the advice they learned from Crown. Her question, only 90 days after his funeral, was whether buying a high-end RV was a good idea. She thought she and the children could use it to “create new memories” and that “her husband would likely approve.” We said her husband had given her great advice and suggested that she wait the full year. More on this later.
Your financial future is about to be altered dramatically, but by abiding in Christ and following His financial principles, you will be prepared to handle it with humility and wisdom. I admire you for taking steps before the receipt of funds and seeking outside counsel.
Be Faithful Stewards
You have been entrusted with much, but never forget that God is the owner. (Psalm 24:1)
“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. 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)
Find Trusted Advisors
Take the time to find a wise, godly mentor, one who has managed wealth wisely, one who can address your questions and concerns and direct you to those with the expertise needed for your situation. You may need to assemble a team of professional advisors, including a Certified Public Accountant, an attorney, and a financial adviser.
Avoid Hasty Decisions
Any dramatic change in lifestyle can be accompanied by unexpected problems and the appearance of new “friends.” Do not make major purchases until you understand the tax and legal repercussions of your inheritance. Before signing any documents, know exactly what you are signing. It is far better to go slow, seek counsel, and avoid the temptation to splurge than to make costly mistakes.
Create Short- and Long-Term Goals
Carefully think through needs and wants. Pray together about how much to give, what you need to live on, and where and how you want to invest for the future. Do you have children or plan to? If so, set aside funds for things like braces, education, and weddings. Consider your family’s goals and impact in your community or around the world.
Define “Enough”
Set a budget to guard against the accumulation of things. This will enable you to set a realistic spending plan and protect you from frivolous spending, waste, and greed. A team of advisors will give you great insight, but educate yourself by doing as much research as possible. You will need to cautiously guard your heart and mind against the schemes of the devil. Keep your eyes on eternity.
Define Your Purpose
Opportunists may appear with investment deals that seem credible. Always, always seek the wisdom of the Lord, your spouse, and wise counsel. Connect your resources to God’s purpose for your life so you can make the greatest impact over the limited time you have here on earth.
Be Aware of Sudden Wealth Syndrome
The newly rich often suffer from stress that manifests itself in discomfort around old friends, guilt, paralysis in decision-making, fear, distrust, and isolation. Placing your identity in Christ and being involved in a Bible-believing church with a community of believers will minimize the possibility of this added stress.
Walk Humbly with Gratitude
Micah 6:8 says, “He has told you, O man, what is good; and what does the Lord require of you but to do justice, and to love kindness, and to walk humbly with your God.” Your inheritance is between you, your family, and God. Avoid displaying your wealth in ways that attract unwanted attention or distract you from serving Him. Remembering the price Christ paid for you and the responsibility He has entrusted to you will help you keep things in perspective.
The Rest of the RV Story
So the young widow who came to us for counsel bought a brand new, very large, very fancy, expensive RV shortly after we advised her to wait. She and the children took a cross-country summer vacation in it. It was stressful and not much fun. She discovered that it was expensive to operate, she felt unsafe driving it, and she preferred staying in a hotel rather than being cramped in the RV with young children. She sold it at a 30% loss, all before the one-year anniversary of her husband’s passing. To our knowledge, most of the money was gone within five years of receiving the insurance money.
Many wealthy families have set great examples for us to learn from. Here are a few highlighted by the National Christian Foundation that will inspire you. Remember, money doesn’t love you, so never fall in love with it.
Here Are Some Other Helpful Resources:
Do you want more tools and tips on financial stewardship? Are you interested in receiving ministry updates from around the world? Sign up to receive the Crown Newsletter emails by using the form on the homepage at Crown.org.
This article was originally published on The Christian Post on April 26, 2024.
Dear Chuck,
My husband is convinced that we should convert our entire 401k into gold. He’s concerned about several things, including our nation’s debt, the potential of a stock market bust, and now World War III. I am opposed and told him I would ask you to offer us your opinion.
Divided Retirees
Dear Divided Retirees,
Your dilemma is not that uncommon. It is true that our emotions tend to drive our investment decisions, so many are struggling with what to do in the current environment of fear and uncertainty. Gold is currently on a nice run upward.
We often get questions asking about a similar strategy of going all in, but the investment choices can range from cryptocurrency, real estate, oil, gold, or technology stocks to a new get-rich-quick scheme. I hope I can help the two of you find unity around a balanced approach.
A Balanced Approach
On one hand, the Bible instructs us that no one knows the future; therefore, I do not give investment advice. Run from any advisor who is overly confident in predicting investment returns. On the other hand, the Bible also reminds us to be prudent.
“A prudent person foresees danger and takes precautions. The simpleton goes blindly on and suffers the consequences.”
(Proverbs 27:12 NLT)
Because we serve a sovereign, wise, and loving God who has given us financial principles for our good, we can avoid the arrogance of thinking we know the future but also the foolishness that comes from being impulsive or the paralysis of indecisiveness that leaves us at the mercy of our circumstances. My advice, taken from Solomon’s wisdom, is to practice diversification.
Diversification Explained
King Solomon, contemplating an unknown and potentially disastrous future, wrote:
“Invest in seven ventures, yes, in eight; you do not know what disaster may come upon the land.”
(Ecclesiastes 11:2 NIV)
An investment, unlike savings, is money put at risk in assets with the intention of multiplying or growing it. When we allocate those funds into different asset classes, this is known as diversification. The strategy of owning a variety of assets and investments is intended to reduce exposure, risk, and volatility while increasing potential returns. Some assets will do well one year, while others perform poorly, and vice versa. Diversification aims to produce steady returns overall. Portfolios will vary depending on investors’ age and risk tolerance.
Diversification Practiced
Years ago, Austin Pryor wrote “How to Make the Right Investing Decisions.” The wisdom is still applicable today:
“The right investing decision is one that is prudent under the circumstances. Does it pass the “common sense” test? How much of your investing capital can you afford to lose and still have a realistic chance of meeting your financial goals? The investments that offer higher potential returns also carry greater risks of loss. The right portfolio for you is not always the one with the most profit potential.
“For example, it’s usually best not to have a majority of your investments in a single asset or security. For that reason, people who have large holdings of stock in the company they work for often sell some of it in order to diversify. If the stock doubles after they sell it, does that mean they did the “wrong” thing? No, they did the right thing. After all, the stock could have fallen dramatically as well as risen (ask the former employees of Enron.)
“What would a large loss have done to their retirement planning? The right investment step is the one that protects you in the event of life’s occasional worst-case scenarios. Generally, this moves you in the direction of increased diversification.”
In an article at Fidelity.com, investing is described as an “ongoing process that requires regular attention and adjustment.” Three steps are suggested to keep one’s investments working well:
Diversification Pros and Cons
According to the Wall Street Journal, portfolio diversification is a simple, cheap investment strategy that can save you a lot of stress.
Pros
Cons
Better Returns than Silver or Gold
Warren Buffett famously said, “Buying gold is going long on fear.” I have written an entire article on the decision to invest or diversify into gold.
Read the article, and decide if the two of you can agree on a plan to diversify or remain diversified in your 401K. Should you determine to rebalance your investments, seek the advice of a professional advisor who shares your worldview.
God graciously gave us His Word, which is filled with His financial wisdom. He sent His Spirit to counsel us and His Son as our Good Shepherd to lead and guide us. He, alone, is greater than man’s wisdom or expertise. Pray, and ask the Lord to guide you with His wisdom, which is of greater value than silver or gold. Ultimately, we must put our faith in the triune God and abide by His commands for our good and His glory.
I’d like to invite you to join a free Crown Bible study on the YouVersion app. We have several devotionals regarding money and stewardship that will help bring God’s Word into your daily life.
This article was originally published on The Christian Post on April 19, 2024
Dear Chuck,
I just started my career. Can you give me some simple tips that could help me improve my finances? I really struggle with procrastination. How do I set and meet financial goals?
Financial Procrastinator
Dear Financial Procrastinator,
Congratulations on starting your career and the desire to change the way you manage your finances! Procrastination seems harmless, but it actually leaves you vulnerable to financial pain in the future. I hope I can motivate you to take action.
Have you ever made a little decision that resulted in a BIG impact? I know I have. In 2015, I decided to drink only water for the entire year—no coffee, tea, juice, soda, smoothies, or lattes; nothing but H2O! For full disclosure, I made it the entire 365 days and felt so good.
What difference did it make?
For one, it helped my budget! I broke the habit of buying $5 coffee at the airport or buying a soda just because I was thirsty. More importantly, it made me realize just how much sugar I was consuming! It caused me to enjoy water and sleep better, and it improved my overall health.
We can apply that same type of thinking to our finances.
Five little decisions can make a walloping impact on your finances. I have compiled a list of those that I believe will help the most. They are my personal favorites, things I would tell my own children are essential for them, as well as for me!
Right now, you are honoring someone or something first with your finances. It might be the government, your landlord, your mortgage lender, your utility company, or your favorite shopping destination. Someone is getting the first portion of your income. Replace whoever or whatever is currently first by giving off the top of every source of your income to your church and other ministries that build God’s Kingdom.
If you cannot give a full 10%, which I think is the appropriate beginning standard, start with what you can cheerfully do, and don’t turn back. Increase the amount as you are able.
“Trust me on this one!” Those are not my words; they are God’s words, paraphrased from Malachi 3.
Pick a day and declare, “No more! I will not go another month without saving something from my next paycheck!” Make the decision, and then start saving something—even if it is only $5 a month. Save something from every source of income. You need a minimum of $1,000 in an emergency savings account at all times.
Open a savings account, buy a small safe, or simply put money under the mattress for now, but don’t spend everything you have! This habit will make you wise like the ant in Proverbs 6:6–8. Little by little, you will have money saved for emergencies, your stress will go down, and financial stability will one day become a reality.
Many people celebrate a tax refund as if Uncle Sam decided to reward them for their good behavior! While I never like to discover that I owe the IRS money, I do not like to get a tax refund either.
Rather than loan the government money this year, adjust your withholding or quarterly payments. Pay what you owe or expect to owe—but nothing more. This small act could impact your cash flow and allow you to begin giving and saving some money each month.
This is the key to reaching any financial goal. It requires the discipline of a budget. Rather than being intimidated by budgeting, recognize that it will keep you on track, help you reach goals, and allow you to experience rewards. It’s a tool that you can adjust as needed. Record your spending, and note where your money goes. Recognize any and all bad spending habits, confess them, and repent. Resolve to change your behavior by believing that you “can do all things through Him who strengthens” you (Philippians 4:13). Ask God to give you self-control, then listen to the prompting of the Holy Spirit.
The envelope system, or “cash stuffing,” has value in that it is harder to take cash out of an envelope than to hand over a credit card. Each month, you divide cash into envelopes that represent different spending categories. Record every purchase, and you will discover that you spend less because your envelopes hold you accountable.
Hopefully, you have not gone into consumer debt. Avoid expensive debt, like credit cards, store accounts, or car loans. If you are in debt, decide to pay off your most expensive debt. Then do it again… and again… and again. It is a little decision with a major payoff—freedom from worrying about the future, about your job, about making it to the end of the month. Check out these debt reduction methods.
In 1 Corinthians 9:24–26, the Apostle Paul said, “Do you not know that in a race all the runners run, but only one receives the prize? So run that you may obtain it. Every athlete exercises self-control in all things. They do it to receive a perishable wreath, but we an imperishable. So I do not run aimlessly; I do not box as one beating the air. But I discipline my body and keep it under control, lest after preaching to others I myself should be disqualified.”
Take action today with a disciplined approach to achieve your goals and please God with the way you manage money. These tips are not big mountains to climb, just smart steps that over time will change your relationship with God, your finances, your relationship with others, and much more! Set attainable goals, and proceed with hope, discipline, and joy.
If credit card debt is holding you in bondage, a valuable and trusted source is Christian Credit Counselors. They can help consolidate debt and get you on the road to financial freedom.
This article was originally published on The Christian Post on April 12, 2024.
Dear Chuck,
I am 32 years old and a fairly new believer. I am depressed by my poor handling of money. Can you give me advice to do better with money from a Christian perspective?
Struggling with Money
Dear Struggling with Money,
It is a joy to welcome you to the family of God! Your decision to follow Christ will change everything, including how you handle money. You have an exciting journey ahead.
Most financial teaching deals with the external mechanics of good financial management: get on a budget, spend less than you earn, get out of debt, have an emergency savings fund, etc. You can and should learn those practices. I have written a lot about this in my prior columns. But the Bible has far more to say about our beliefs regarding money than the nuts and bolts of handling it. This is where Christian financial practices vastly differ from the world’s.
Breaking Financial Strongholds
Many people who struggle with money are held captive by financial strongholds and may not be aware of it. Major money problems result when we adopt philosophies, theories, and schemes of the world that take priority over God’s Word through ignorance, neglect, or disobedience. We are trapped by our very own thinking and need a transformation of our minds.
What Exactly Is a Stronghold?
When we run for safety into the fortress of human reasoning and the pretense of wisdom that is completely man-centered, we enter Satan’s trap. There, the pinnacle of pride sits enthroned on the human heart. It revels in thoughts of its own excellence and self-sufficiency. We are fueled by the desire to “do it my way” or solve the problem without anyone’s help, especially God’s.
In 2 Corinthians 10:3–5, the Apostle Paul declared:
“For though we walk in the flesh, we are not waging war according to the flesh. For the weapons of our warfare are not of the flesh but have divine power to destroy strongholds. We destroy arguments and every lofty opinion raised against the knowledge of God, and take every thought captive to obey Christ. . .” (ESV, emphasis mine).
According to this passage, Kenneth Berding, a professor of New Testament at Talbot School of Theology, defines strongholds as:
He continues: “Strongholds relate to our thoughts, opinions and allegiances. Such strongholds can and should be addressed by meditating upon the truth (as revealed by God in Scripture), declaring such truth, and tearing down the faulty arguments raised against the truth that hinder people from believing the truth.”
This is the process of renewing our minds on God’s truth. Let’s begin with some areas where you may struggle regarding your finances.
Worry
Worry is a financial stronghold that affects every single one of us—some more than others.
It is a feeling of anxiety or unease about the future caused by fear and doubt within the mind. It is rooted in a lack of confidence in God, usually combined with a lack of self-control over our finances. When taken captive by worry, we cannot fully trust God.
Satan wants to keep us bound up by worry, especially about money. In Matthew 6, Jesus says that the “pagans” are the ones we most resemble when we worry. He promises to provide for our daily needs. He does not say we should not work but clearly that we should not worry.
Let’s get practical. When you worry, learn to immediately cast your fears and doubts upon Jesus. He knows your future—trust Him. Be set free by abiding in Him, taking one day at a time. You can also take action to get your finances under control by learning and applying Biblical financial principles.
Selfishness
This financial stronghold is hard to identify in ourselves. Selfishness is the preoccupation with self and a dangerous stronghold. It is the state of being unwilling to give money, time, or love. We see it in others but are blind to our own captivity. That’s why we stay locked in it for years.
Let’s get practical. Selfishness can be overcome by obeying God. Recognize that He is your provider, and give without expectation of receiving. Give generously of your time, your money, and your influence. You will be surprised at the freedom and joy you will experience when you learn to make giving your top financial priority.
Envy
Envy is a financial stronghold tucked deep within the heart. It is a feeling of discontentment or a resentful longing triggered by someone else’s possessions. Social media fuels it. Dante defined it as “a desire to deprive other men of theirs.” Aquinas described it as “sorrow for another’s good.” Traditionally considered one of the seven deadly sins, envy is a form of self-idolatry. We have envy when we can’t be happy for what others have.
Let’s get practical. Freedom from this stronghold occurs when we thank God for all He’s provided for us and others. Repent of envy when others prosper, and learn to be content with what God’s entrusted to you.
Change Your Mind, Change Your Actions
Don’t lose hope! The victorious Christian escapes financial strongholds by identifying every false theory, every human philosophy, and every prideful thought that controls us. Then we replace it with Truth. Only by the power of God’s Spirit and Word can we escape faulty thinking that holds us back. Read the Bible; study and meditate on the living Word. Immerse yourself in learning God’s ways. It is never too late to begin.
Invite God to reveal erroneous beliefs and transform your life from the inside out. Determine to break free from Satan’s grip on your life and finances. Put on the armor of God, take up the sword of His Spirit, and fight for your freedom! Crown has budget coaches, courses, and lots of materials that can help.
Another valuable and trusted source is Christian Credit Counselors. They can help consolidate debt and get you on the road to financial freedom.
Dear Chuck,
My husband is seeking a divorce. I am in shock and not sure how I will survive this financially with two young children. I have not worked since we got married. Do you have a guide or advice to help me?
Unwanted Divorce
Dear Unwanted Divorce,
I am so very sorry, and I’m grateful for the opportunity to be of some help. We do not have a financial guide for your situation, but there certainly are Biblical and financial principles that will help.
Foremost, I do hope and pray for reconciliation. I have seen God restore marriages that have been through devastating betrayal and painful loss of love and trust, as well as those that die from financial stress or lack of spiritual unity. God can do anything, so don’t give up hope. Remind your children that you will be there for them. They will be suffering as well.
Financial Guidance
Working through the financial challenges of a divorce requires careful planning, faithfulness, and self-discipline. Emotions can run high, and your strength may waver. Here are some guiding principles to avoid a financial disaster:
Professional Advice
Earning spouses may find their income impacted greatly if alimony is awarded in the settlement. Non-earning spouses face a future of needing to earn enough money to cover bills. The ability to save can be very difficult. I recommend seeking help from a professional financial advisor if you are able. They are often experts in navigating the new financial situation and implications, such as asset valuations or accessing restricted accounts.
Are Restricted Savings Accounts Involved?
There is a one-time opportunity to dip into a 401(k) account without a tax penalty for those under 59½. The qualified domestic relations order (QDRO) allows money to be distributed to the account holder’s spouse or dependent without penalty. Unless necessary, avoid dipping into retirement savings for divorce expenses. Social Security spousal benefits can be claimed in certain cases.
Some Sources of Help and Encouragement
Going Forward
Do you need some education, skills training, or certifications? Crown has an assessment that will enable you to cut through job confusion and help you chart your course. Our Career Direct will encourage you and help you see the way God uniquely wired you so you can find a job you love.
Cast Your Cares on the Lord
Don’t lose hope. Trade your shame for God’s love, and choose to walk in the light. Even in your darkest hours, renew your mind on the attributes of God. Praise Him, and look at the many things for which you can give thanks. Take care of your physical, mental, and emotional health as well. When overwhelmed, seek God’s peace.
You keep him in perfect peace
whose mind is stayed on you,
because he trusts in you.
Trust in the Lord forever,
for the Lord God is an everlasting rock.
Isaiah 26:3–4 ESV
If credit card debt is a source of financial pain, Christian Credit Counselors is a trusted resource. They can help consolidate debt and get you on the road to financial freedom.
This article was originally posted on the Christian Post on March 29, 2024.
Dear Chuck,
I’ve never had an emergency fund. My parents always helped when I got in a bind. Recently, they told me that since I’m 30 and have an established career, it’s time I handle my own financial affairs. So how does an emergency fund work?
Seeking Financial Independence
Dear Seeking Financial Independence,
It sounds like your parents have been incredibly supportive, so be sure to thank them for their care and financial help through the years; but yes, it is time to wean yourself from this arrangement.
You do need an emergency fund. It is a primary element of a basic financial plan. Having funds set aside and always available for the unexpected expenses that will surely come eliminates a lot of financial stress and the need to rely on credit cards.
Survey Says…
Wallet Hub conducted a nationally representative survey. Here are the results:
How Much Do You Need?
An emergency fund is a source of money to draw on during unexpected circumstances. It is basically an insurance fund for sudden setbacks: a layoff, the loss of income, medical bills, car or home repairs, a natural disaster, an unforeseen tax bill, a death in the family, or emergency travel expenses. Giving gifts, non-urgent medical costs, or predictable expenses are not emergencies.
Most experts recommend saving three to six months of your current living expenses, but here are some other scenarios:
A portion of the emergency savings should be “liquid,” or easily accessible, in accounts that won’t be penalized for withdrawal. Basically, don’t confuse your long-term retirement savings plan with an emergency fund.
You need to be able to cover rent, mortgage, utilities, insurance (car, home, health, life), gas, routine maintenance (car and home), HOA fees, health care, groceries, child care, and debt payments. Find the total monthly cost of these items and multiply that by three to calculate a three-month saving goal; multiply by six to determine what is needed to cover six months. This total is for basic survival—luxury items are not included. This is money needed to survive if the unexpected hits.
How to Start
Open an account that you absolutely will not touch unless a true emergency arises. Save $1,000 as quickly as possible into an FDIC-insured account with some liquidity, like a money market or high-yield savings account. Set up automatic deposits so you will not spend the money. Deposit financial gifts, credit card rewards, raises, bonuses, or tax refunds when possible. Go through your bank and credit card statements to see where you can cut expenses, and divert that money toward an emergency fund until you establish a three-to-six-month cushion. If you must withdraw money, aim to replenish it ASAP.
Set a goal; then challenge yourself with spending fasts, like a no-eating-out month, a no-entertainment-expense month, etc. Find friends to do this with you; some competition may help you build it faster!
If you have high-interest credit card debt, consider working with Christian Credit Counselors while saving something every month. The problem with using credit cards in emergencies is that unless the balance is paid in full, the total bill will cost more due to additional interest that compounds monthly.
Once you hit your goal, consider another account or laddered CDs for future needs, like replacing a vehicle, necessary maintenance, vacations, and more.
Lessons from Ants
Go to the ant, O sluggard; consider her ways, and be wise. Without having any chief, officer, or ruler, she prepares her bread in summer and gathers her food in harvest.
Proverbs 6:6–8
Not only are ants extremely busy creatures, but they are also known for their ability to store food that is ultimately shared with others in their colony. Most of us have seen an ant carrying off a large breadcrumb under the picnic table. They are not feasting on the bread; they are harvesting it for use in the future. This is the wisdom that God wants us to learn from.
I know your parents will be so proud of you for this step toward financial independence. While you will no longer rely upon your parents for their financial help, be sure to remain totally dependent upon the Lord, regardless of how much or how little you have in savings.
Set and achieve your goals with the help of a personal business coach. Crown’s online Budget Coaching program matches you with a certified coach who will work with you to develop a customized plan to put you on the road to financial freedom.
This article was originally published on The Christian Post on March 22, 2024
Dear Chuck,
I am so excited because we’re getting a significant tax refund this year! What are the best uses of these unexpected funds?
Rejoicing over Our Refund
Dear Rejoicing over Our Refund,
It is always exciting to receive unexpected funds! Like you, millions of Americans receive refunds every year. According to IRS data, the average direct deposit refund amount has decreased year over year. The weeks ending February 3, 2023, and February 2, 2024, were $2,056 and $1,543 respectively which is a 25% decrease. I think that is good news.
A tax refund is essentially an interest-free loan that you make to Uncle Sam. In simple terms, you have overpaid your taxes and have filed a request for them to send it back to you. Now, to be fair, it is far better for most than owing more taxes and finding yourself unprepared to pay. But do consider adjusting your withholding or quarterly payments to reduce the amount you are refunded in the future by adjusting W-4s. Check out the IRS tax withholding estimator, and revisit your W-4 form at least once annually. Major life changes like marriage and babies or changes in tax laws are reasons to take an extra look and make adjustments. 1040.com explains how to do it. Divide your refund by 12 to calculate the monthly increase you would receive in lieu of future refunds. Figure out how you can best use this money in a dedicated manner throughout the year. Now to your question…
Don’t Blow It
Having had a similar experience with a tax refund, I know it can feel like “free money.” Often people look at a big inflow and have serious temptation to use it frivolously. Here is an article about just that: Outrageous Ways Real People Spent Their Tax Refund.
Good Uses of Your Tax Refund
Larry Burkett said, “How we use our money is the clearest outside indicator of what we really believe. . . . If someone is a true disciple of Jesus Christ, the evidence will be found in that person’s everyday life—including his or her use of money.” I would add “and the use of his or her tax refund.” Without knowing your specific financial situation, here would be my list of priorities:
If you’ve covered all the above, then plan a vacation or celebration, and enjoy the benefits of stewarding wisely!
Set and achieve your goals with the help of a personal business coach. Crown’s online Budget Coaching program matches you with a certified coach who will work with you to develop a customized plan to put you on the road to financial freedom.
This article was originally published on The Christian Post on March 8, 2024.
