Dear Chuck,

Our income has fallen dramatically since sheltering at home. We need help to work our way through the next few months. Can you help?

Can’t Work from Home

Dear Can’t Work from Home, 

I am very sorry that you can’t do your job from home and are under financial pressure. Don’t forget that if you were furloughed or laid off, you probably qualify for unemployment benefits (federal and state) to get you through this. If you are a small business owner, benefits are likely available to you as well. 

While you are waiting on your job or company to restart or for stop-gap assistance to arrive, now is the time to implement a crisis budget. To make it easier for you we have two different forms available: Printable form and online fillable form.  

There are 5 basic steps to the process:

1. Determine your current monthly income: Total your income before the crisis (include Social Security, alimony, disability, child support, etc.), subtract the monthly lost income, and add new income (severance, unemployment, savings, etc).
2. Make two written commitments: 1) To live on your adjusted monthly income, and 2) to incur no new debt. Pray, date, and sign your name
3. Prioritize essential expenses such as housing, food, transportation, medical expenses, giving to the Lord. Stop discretionary spending (entertainment, manicures, etc).
4. Delay non-essential expenses. Put off home improvements, buying clothes and gifts until things stabilize. The key word is “buying”. Try bartering or making do with what you have. Get creative.
5. Analyze and adjust monthly subscriptions or recurring expenses. Many times it is the little things that add up that we overlook. Use this crisis to stop any unnecessary spending. See some tips below.

The Crown staff made a list of ways they are saving for the next 90 days. These include:

• Negotiating cable, internet, phone, insurance rates
• Cutting back on subscriptions and memberships
• Reducing utility usage
• Communicating with providers to defer bills
• Temporarily cease paying ahead on mortgage
• Cutting food costs – going meatless certain days, eating from the pantry

Find Temporary Work

While many industries are hard hit, a number are also booming. It may be good for you to find any kind of part time or temporary work to help you through the crisis. We have a list of potential industries that are hiring right now at Crown.org/coronavirus. Consider starting a small business based on some gift or talent that was once a hobby but can now become a job. For instance, millions of people do not know how to use Zoom, Skype or Facetime. Maybe you could teach them over the phone for a small fee. 

Fight Off the Fear 

On a family vacation years ago, we decided to go rafting. We hit major rapids that scared my wife, Ann, so badly she ditched the raft in favor of hanging tree branches. She lost all perspective and grabbed onto the first thing that gave her hope. In her fear, she failed to determine what she would do from there. She was stuck. Somehow, she hung on for help as we managed to circle back to rescue her. 

Just because you are stuck, don’t believe that you are alone and nobody cares. Cling to hope, replace fear with faith, and do your part to live one day at a time. This is a time to truly trust God…fully.  

Webster defines fear as an unpleasant often strong emotion caused by anticipation or awareness of danger. It is an anxious concern with reason for alarm.

Your mind will come up with all kinds of things to worry about. Fears have a tendency to grow. Often times we are flooded with “what if” scenarios around things like: 

• Loss of retirement income
• Stock market loss
• Delayed retirement
• Medical catastrophe
• Maxing out credit cards
• Deteriorating credit score
• Supporting adult children
• Paying mortgage or rent

Avoid the trap of worrying about what has not happened and focus on what you can do today to get unstuck. Taking action helps to eliminate the waste of time and energy worrying. Fear is an emotion. Praying, working, planning, budgeting are all actions! 

Unite and Work Together 

This is a perfect time to work together as a couple or family. We have a dedicated page of resources for this time including practical how-to’s, helpful links, and activities. 

Here a link to a new devotion I did to address the temptation to get trapped in fear. I hope it is helpful to you. 

You can contact us for prayer, counsel or just to get some encouragement. God knows your needs and He is faithful to provide. 

Originally published by the Christian Post, April 10, 2020.

Dear Chuck,

Help me understand the principle of liquidity. What do I need to do to be more “liquid” right now?

Preparing for the Worst

Dear Preparing for the Worst, 

Liquidity is the measure of your ability to exchange an asset for cash. It is a tool that gives the ability to stay afloat in a crisis situation, provides margin and protection for individuals, families, churches, not-for-profits, and businesses. 

Liquid assets include things like certificates of deposit, public stocks and funds in your bank account. Non-liquid assets include real estate, jewelry, collectibles and retirement accounts (if they have not matured beyond the early withdrawal penalty phase). For a small business this may mean equipment, receivables, or accounts. 

How Much Liquidity Do I Need?
It varies. A good rule of thumb for individuals is to have one month of income in actual cash that you keep in a safe place at home, and 3-6 months in an emergency account. Of course, this is under normal economic circumstances. 

Since you are preparing for a worst case, I would increase my total figure based on Joseph’s saving plan for Pharaoh in Genesis in which he set aside 20% of the grain for 7 years. That means we should have the ability to access 140% of our income in a worst case economic crisis (20% x 7 = 140%). So to revise my numbers above, have one month of cash needs on hand at home, and 15-16 months of your normal income or enough to cover necessary expenses in cash accounts.

I believe this scenario is a safe level of liquidity. Of course, you can always be 100% liquid if you choose or need to. That would mean selling all non-liquid assets and converting everything to cash. Doing so during a crisis is normally a bad idea unless you are in distress. 

Some Factors For Each Situation
Estimated monthly expenses and personal situations will help determine your liquidity needs.

• Do you have secure income? If not, increase liquidity. 
• Do you have multiple sources of income? If so, high liquidity is not necessary. 
• Can you claim unemployment benefits? If so, this is a form of liquidity. 
• Do you rent or own your home? Liquidity needs can vary depending on your flexibility to downsize this expense.
• Are you in good health? If not, liquidity may need to be increased. 
• Are you retired? If you are using investments to fund your retirement, your liquidity needs to increase if possible during a crisis.
• Do you have debt? What kind? Try to eliminate debt to reduce your overall liquidity needs. 

 What Qualifies as Cash?

1. Actual cash – bills/coins
2. Checking accounts
3. Savings Accounts
4. Short term CDs

I do not consider bitcoin, cryptocurrency, gold, silver or precious metals as liquid assets since there may or may not be a market for these at the time of your need. 

Why is it Important?

• Unexpected expenses are part of life: medical bills, car and home repairs, burial costs, loss of income to name a few.
• No need to carry credit card debt or other forms of expensive debt.
• Grants negotiating advantage for better prices or cash discounts.
• Gives the ability to invest quickly or move into favorable CD rates.
• Provides stability in a storm. 
• Frees you from fear of being generous in a crisis. 

How to Improve Your Liquidity

• Sell non-liquid assets and put more cash in the bank.
• Reduce spending so you can increase monthly savings.
• If you receive a stimulus check from the government, save it. 
• Pay off debt to reduce threats to your cash flow. 

Getting Through This Pandemic

“For God alone, O my soul, wait in silence, for my hope is from him. He only is my rock and my salvation, my fortress; I shall not be shaken. On God rests my salvation and my glory; my mighty rock, my refuge is God. Trust in him at all times, O people; pour out your heart before him; God is a refuge for us.” (Psalm 62:5-8 ESV)

For those facing liquidity challenges, turn to God for help. Invest your time learning Biblical financial principles now. Avoid binge watching Netflix, playing video games, or putting your head in the sand. What you sow today will impact what you reap in the future. Trade your stress and fear for hope and peace. He knows more about money and the future than me or any of us. He will help you through it. If you are worried and stressed, please call our Crown Helpline to speak to one of our staff. We are here to help you. Call 800-722-1976 or visit Crown.org/coronavirus. 

This article was originally published by the Christian Post, April 3, 2020.

Dear Chuck,

Is the sky falling? I have never seen so much panic around a virus in my life! It seems the economic damage being done is worse than the flu? When will this nightmare end? 

Holding Out Hope 

Dear Holding Out Hope, 

Bear with me; a lot is going on. 

The events we have witnessed in March, 2020 have been unprecedented in my lifetime, and probably yours too. We are living through a period of history we will long remember. Let me recap what we are all experiencing: 

• Panic as a result of the COVID-19 virus spread rapidly across the world causing the closure of schools, churches, sporting events and major conferences. 
• Millions of workers were told to work from home, and “social distancing” has become the new normal. 
• The stock market is once again very volatile with concerns of a prolonged recession. March 16, 2020 saw the largest single day drop since 1987. 
• The Federal Reserve Bank dropped interest rates to zero…yes, ZERO. Negative rates may be next. 
• President Trump declared a national emergency to launch coordinated efforts with the public and private sectors to control the spread of the virus. He also announced a National Day of Prayer for March 15th. 
• Basic necessities like toilet paper, hand sanitizer, bread and water disappeared from retail shelves as people began to hoard. This happened in many nations around the globe. 
• Delta, one of the world’s largest airlines, announced that demand for tickets dropped by 40%. A drop greater than during the 9/11 crisis. 
• Israel announced all incoming arrivals to the country would be required to be quarantined for 14 days causing many to cancel their tours and visits to the Holy Land in celebration of Easter.

Three Economic Scenarios 

We have all experienced some loss in the past 30 days, whether it has been a direct loss of business, a loss of value in our retirement funds, or possibly even a loss of your job. Because of this, I want to comment on some likely scenarios for an economic recovery. I hope this will give you perspective and restore hope. 

 I have the opportunity to receive input from some very capable business leaders from around the world regarding the economy. I will summarize for you what I have learned over the past few days from interacting with the people I trust. It boils down to three scenarios. 

A. Best Case: Within 45 days, good news regarding the containment of the virus (which could come in a variety of ways – Covid 19 vaccine trials are already underway) will lead to a swift but volatile recovery. Some call this a V shaped recovery. Down fast but back up in a similar manner. 

B. Middle View: 6-9 months before the good news comes – sharp economic declines but robust recovery underway by the fall. China will lose factories and thus more jobs will come to the US. Strong economic growth due to liquidity from Quantitative Easing, low interest rates, etc. 

C. Worst Case: 12 months of recession with a potential for a prolonged economic crisis.

Very few of my friends think we are headed towards Scenario C. Probably 25% believe A and 75% think B. None of them think this is the “end times”. 

I personally see this as a wake-up call to better manage our finances, our health, and our relationships. I see it as an early warning to become better stewards, faithful to God and His ways, no matter what the future holds. 

Expect many measures to provide relief/aid to American small business owners in hard-hit sectors and likely even for the general population. For instance, I read today that if you have an income tax bill due April 15th, although you still need to file your return on time, you have a 90-day extension to make your payments.

Perilous Times When Fear Controls the Day 

Satan will attempt to seize control of the world through fear. The most dangerous aspect of what we are witnessing now is not the virus or the economic downturn; what concerns me most is how fear is gripping the entire world. 

The fear of death and the fear of financial loss are two of the Enemy’s most powerful attacks. 

Of course, nobody wants to catch this virus or lose their 401K or retirement account or their comfortable lifestyle, but we can’t forget to surrender all that we have to God and be willing to lose everything for His sake. 

We must be vigilant to watch for our response to fear as well as the rise of deceivers and those that would control the masses through lies and false promises. Remember, “God gave us a spirit not of fear but of power and love and self-control.” (II Timothy 1:7 ESV)

A Crisis is Our Opportunity

The list above is only a partial list of our new normal as of the time of writing this article, which I am doing from home as our staff are all working remotely for the next few weeks! But instead of lamenting our challenges or following the practices of culture, as fellow believers, this is our opportunity to make a profound difference by going against the tide of fear, greed, deception and selfishness. 

One of my friends said it this way:

“This travesty is an awesome opportunity for Christ followers to step up, invest and give more, and show why we aren’t as freaked out as people without the eternal hope we have.” 

 Important Practices in a Crisis

• Double Down on Generosity. Many family, friends and organizations are being impacted. We need to have an unprecedented outpouring of generosity. In Acts 11, Agabus announced that a great famine would spread across the world, as the Apostles gathered in Antioch, they determined to give, not hoard. This set the Church apart for the rest of human history. By avoiding the selfish tendency to protect themselves, they set the standard for how people of faith put others first in a crisis. 
• Help Our Local Churches. Many churches do not have streaming services or online giving capabilities. When services are shut down, giving is severely impacted. Be sure your church is financially whole and able to serve others who are coming to them for help. 
• Support Local Businesses. One church is helping local restaurants by nominating one each day for the congregation to patronize. The congregants order some take out meals from that restaurant and the church orders meal packs for those that are shut-ins or in dire straits. This is a bright light to the local business owners. 
• Watch for Government Assistance. It is likely businesses and individuals will receive some sort of government assistance package. If you need to increase your savings due to the impact on your income or family, do so. If you do not, determine who needs the money more than you and pass it along. For the professional, they will be buying up stocks that Wall Street has put on sale. Maybe you should start an investment fund with the money you may receive.  

The Lord instructed Joshua to be strong and courageous as he led others into the Promised Land. (Joshua 1:9) Courage does not make the fearful circumstances change. It changes your heart and mind towards those circumstances to enable you to remain emotionally calm, level-headed and action-oriented. Fear paralyzes and robs us of the confidence that faith gives us. Remember, faith, hope and love will remain… Let’s be active spreading those. 

Originally published on the Christian Post, March 20, 2020.

Dear Chuck,

With the coronavirus panic everyone seems to be focused on stocking up on face masks,  hand sanitizer and toilet paper. For me, I’m not sure I have enough life insurance. How much do you recommend that I buy and when should I purchase some?  

Preparing for the Worst 

Dear Preparing for the Worst, 

I heard on the radio today that fear is far more contagious than the coronavirus. Fear certainly seems to have infected millions of people across the world evidenced by some of the behaviors you listed in your question. While your concern is very legitimate, there are many other reasons and motivations to be sure you have adequate life insurance; so I don’t want you to make a rash decision driven by fear to buy a policy based upon the highly unlikely event that you will contact the virus and die. 

By the way, I don’t think having insurance is a nullification of faith in God. It is wise to be properly insured; therefore, even apart from this virus threat you probably should get proper insurance as soon as possible. 

Good Reasons to Have Life Insurance 

The average man leaves far less than minimum assets necessary to provide for his family upon his death. That includes total life insurance. Some reasons include ignorance, slothfulness and debt. Most Americans have not been taught good stewardship (which includes preparing to leave an inheritance) and many know what to do but procrastinate until it’s too late. Debt, often a priority problem, keeps many from finding affordable life insurance.

Unless the Lord returns first, we will all die. Talking about death neither hastens nor delays it; it only makes it easier for those left behind if you rationally prepare for the inevitable. 

“The simple believes anything, but the prudent gives thought to his steps.” (Proverbs 14:15 ESV) A great reason to have adequate life insurance is to be prudent and take care of your family’s needs. 

Another reason is to ensure your heirs have an inheritance in the event of your untimely death. God leaves no subject untouched in His Word, including inheritance. In biblical times, the sons inherited their father’s properties and provided for the rest of their family. What’s not so obvious is that in most instances, the sons received their inheritance while their fathers were still living. This enabled a father to oversee their stewardship while they were learning. 

• “A good man leaves an inheritance to his children’s children…” (Proverbs 13:22a ESV)
• “House and wealth are inherited from fathers…” (Proverbs 19:14a ESV)   

I’ve carried term life insurance since our first child was born and carried some (but a lesser amount) on my wife. This policy allows for a tax-free sum of money paid to a dependent after one’s death, providing financial security for a spouse or dependents faced with numerous decisions and possible lifestyle changes when death occurs. It is a means to pay bills and provide for future expenses depending on the dollar amount and management of the dependent. 

If you have a mortgage, debt, minimal savings and dependents, you should have life insurance. Honestly answer this question: “Will my death impact anyone else’s finances?” If so, get more specific to determine how best to be prepared. 

Define your Scenario

• Married? Childless? Do you depend on both salaries to pay the bills?
• Is there a stay-at-home parent involved? She/he may need coverage because death would make child care necessary.
• Average life expectancy of past family members. 

How Much to Buy

• Enough to cover your debt: mortgage plus all outstanding debt
• Future provision for children: college, wedding, down payment on a home
• Final expenses: average funeral expense of $7,000 up
• Extra provision: vacation, emergency fund, savings
• You can buy more later if your health remains good
• Don’t buy more than you can afford. The company can cancel your policy and leave you stranded without coverage.

 A basic calculation is as follows. Total your assets and then subtract the total of your current and future financial obligations. Include all debt: mortgage, student loans, credit cards, etc. Add in estimated funeral and burial costs. To cover future needs, add in the cost of cars, education, weddings, etc. This will give you a rough estimate. This calculator may help, along with this sample worksheet.

 Several websites show the average cost of rates by age, term and policy size. You can get a general idea of what a policy would cost based on your specific needs.

 The younger and healthier you are the lower your premiums will be. Smokers pay a significantly higher price — one of the many reasons not to smoke. Certain health issues may make you a greater risk and result in higher premiums. Just know there are options available. Simply educate yourself prior to pursuing and do not procrastinate.

Not everyone needs insurance. This includes some singles, the financially independent, those without large debt, or those who own property or a business that can be liquidated upon death. 

Term or Whole Life

Term insurance is fairly inexpensive and provides coverage for specific time frames of 10 to 30 years. In essence, this is like renting a policy in that you are not building any equity with your payments.  

Whole life or permanent insurance can be costly and complicated. It’s designed to provide protection no matter how long you live which has significant benefits. And, this policy is capable of building equity. 

Sometimes employers provide coverage. But, you can buy it yourself through insurance brokers and agents. Seek the advice of friends so you work with a reputable person and company. 

Costco and AAA offer term life for members as well as thousands of independent, reputable firms who have excellent reputations for caring for their clients. Consider travel insurance in the event of death while traveling or living abroad.

After You Become Insured 

If you do buy insurance, it is important that you keep the policy paid up and the contact for the policy is stored with your other financial records so that your heirs know how to file a claim and receive the money. Every year, millions of dollars of benefits are left unclaimed.

We have a friend who became ill, was hospitalized several weeks, and died. During the weeks of his illness, his policy expired but it was not discovered until after he died. It had devastating ramifications for his wife and college aged children.  Keep your premiums paid and up-to-date. 

Make sure you have a legal will in place. Then have your spouse and dependents get training in Biblical stewardship. This will prepare them to be wise with money regardless of whether or not they have to deal with your premature death

Paul told Timothy: “Anyone who does not provide for their relatives, and especially for their own household, has denied the faith and is worse than an unbeliever.” (1 Timothy 5:8)

It sounds harsh, but God wants us to steward wisely, not simply for our own benefit but for our loved ones as well. Thankfully, you don’t have to do it alone. Talk with some wise people, fill out this free worksheet, then work through our Planning Your Legacy Guide. The sooner you start the better. 

Finally, join me and all of us at Crown in praying for those who are being impacted by this deadly virus and for containment to occur very soon. Thank you for contacting us. 

Originally published on the Christian Post, March 13, 2020. 

Dear Chuck, 

We’re going through basic procedures at work in the event of a coronavirus pandemic. I’m afraid of losing pay if I get sick. I have a small savings account, but not enough to cover a prolonged period of time. I’ve been advised to stock some necessities at home which costs money I wasn’t prepared to spend right now.

Panicked about a Pandemic

Dear Panicked, 

I have seen the widespread global fear we are witnessing now during both the panic surrounding the famed “Y2K” (Year 2000) concern that mission critical computer systems around the world would fail at midnight on 12/31/1999 due to a programming flaw, and the global financial meltdown of 2008. Obviously, many people are frightened by the news about this virus due to its higher than normal mortality rate and the impact it may have on the global economy. 

What is important to note is that much of the panic is not about the personal health risk of the virus itself but the way the virus may have secondary effects upon our lives. As I look at your comments and question closely, you too are not asking about how to protect yourself from the virus, but from the secondary effects of the virus: specifically those effects around your financial well-being. 

How Not to Panic

Fear is never a proper basis on which to make decisions. The Bible instructs us to live our lives by faith and demonstrate hope and optimism in the midst of a disruptive or ominous event. Renew your mind by meditating on verses like these: 

• “Therefore do not be anxious about tomorrow, for tomorrow will be anxious for itself. Sufficient for the day is its own trouble.” (Matthew 6:34 ESV)
• “When I am afraid, I put my trust in you In God, whose word I praise, in God I trust: I shall not be afraid. What can flesh do to me?” (Psalm 56:3-4 ESV)
• “…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 41:10-13 ESV)

Prepare To Demonstrate Wisdom

Because fear is contagious and so many will likely panic if the virus continues to spread, we may witness very significant economic challenges as governments seek to contain it through drastic measures like quarantines on travelers, school closures and cancellation of large public events. The private sector will likely follow with similar curtailments of conferences, employee travel and even mandatory work-from-home policies. 

Here is a list of some practical tips to get prepared in the event of a worst case scenario.

Postpone unnecessary purchases to build up a cash margin and make any preparations. You likely do not need to spend a lot of money to adequately prepare. I recommend you have one month of your expenses in cash stored at home in a safe or a fireproof box. 

Boost your immune system with adequate sleep, exercise, healthy foods, and water. This is one of your best defenses against the virus itself. Here are a few extra tips for your health.

It’s a good time to start cooking your own meals and eating at home more often to protect yourself from food handlers who may be sick. This will reduce your food costs and help cover the expense of stocking up. If you double your recipes and freeze the extra, you will have prepared meals in the event you get sick or want to share with others who may be suffering.

Have a sufficient supply of non-perishables on hand that you would eat after this fear passes. Some suggestions include canned vegetables, soups, rice, and pastas. In addition, consider some frozen foods, fresh fruit and vegetables, and boxed milk and juice. Only buy what you will eventually eat.

Think about everything you use throughout the day. This includes batteries, toiletries, diapers, food and formula, pet food, vitamins, and prescription meds (may want to request an extra supply), water, liquids, digital thermometer, and any over the counter meds you would use if you get the flu.

Post emergency numbers and work contacts in a convenient location.

Be prepared to work from home if necessary. If schools are cancelled, have a schedule to help the children with homework. Some good books and games will be helpful. To limit stress or fear, try listening to the Bible, podcasts, or audiobooks while working puzzles, drawing, or coloring with little ones. Hymns and praise music can help calm anxious hearts. Watch what you say around or share with your young children. 

Just to be totally transparent, I still have a portable gas stove that I purchased for Y2K. It has never been used since the US power grid never crashed. Remember, don’t let fear drive you to foolish overspending. FYI, I am not planning to stock up on face masks but it may not be a bad item to have on hand to share with your friends or family if they become hard to find. 

It’s better to prepare early. Don’t procrastinate and expect others to help you. 

Opportunity to Serve 

When fear is rampant, opportunities to share the love of Christ increase. There is no reason to fear since He is in control; think about serving instead of worrying. Connect with your church, small group, family, friends and neighbors. Have a system in place to check on each other. There will be many ways to serve. It may simply be phoning an elderly neighbor, running an errand, or cooking and leaving a meal on someone’s porch.

In an article for World Magazine, June Cheng wrote:

“…With the local government completely overwhelmed by the coronavirus, Wuhan churches have stepped up to provide aid to the desperate. To neighbors and medical professionals, they pass out face masks other churches around the country have donated. They find hospitals with beds available for those infected with the virus. Using the internet, they connect people in need with whatever resources they can find.

“…As citizens of Wuhan increasingly lose faith in the government, Christians have gained a positive reputation. Those whom Christians have helped are grateful, and some want to learn more about the faith.”

Live One Day at A Time 

Fear should be replaced with thankfulness. Dwell on the good and give thanks! Praise Him and do not let fear rule your heart. 

For those of us who have been born again, to live is Christ; to die is gain. Rather than get caught up in the spread of fear, trust in the Lord who is bigger than any virus. Ask Him to grant you courage and the ability to see this as a time to encourage others.

Originally published on the Christian Post, March 6, 2020.

Dear Chuck,

I have been in a serious relationship for two years. Recently I’ve been made aware of my boyfriend’s bad credit. He assures me it can easily be fixed. Should I be concerned?

Concerned about Credit Score

Dear Concerned, 

A number of years ago, I was asked to counsel with newlyweds who were having serious financial problems. Although the husband dressed well, drove a nice car, graduated from a great college and had a good job, he was financing everything to give an appearance that he was very successful. As we drilled deeper into the reality of their financial condition, the wife was horrified to learn that besides student loans, car loans, store account balances that were past due, her wedding ring and their honeymoon had been paid for with credit cards that were maxed out. This was all new information just a few months into their marriage. Despite a financial plan that could have helped them manage their way out of the deep hole they were in, trust had been broken and the marriage did not survive. 

This is a long way around to answer your question. Yes, you should be concerned. 

Debt and bad credit affect relationships. Discovering each other’s financial philosophy, history, and goals pre-engagement is vital. A solid marriage is built on trust and transparency. Couples must be willing to reveal their debt and credit scores. This removes any surprises and exposes any stress that accompanies the reality of each other’s financial condition. In some cases, couples realize that financial issues are so concerning that a future is not foreseeable.

 A WalletHub survey revealed that 46% of people said they would leave a relationship if the other spent money foolishly. Half would not marry someone with bad credit. A majority said financial infidelity might be worse than actual cheating. People prefer relationships and marriage with those who offer financial stability. 

1. Financial issues can signal deeper emotional issues like lack of self-discipline, addictions, or serious needs that money can’t buy.
2. They can reveal financial philosophies that may be irreconcilable.
3. They delay or prevent future plans and dreams like buying a home, having children, starting a business, or going on the mission field.
4. Financial infidelity, hiding or lying about your financial activity, is a red flag, whether current or in the past. If discovered, extreme caution and counseling is warranted.
5. If a marriage fails, a spouse could be held responsible for the debt of the other depending on the laws of the state.
6. If children from a previous marriage are involved, failure to pay child support could mean there’s a legal judgement that has serious consequences. Know whether this has occurred before entering a marriage. A court could come after you later, demanding payment upon seeing joint bank account statements and joint tax returns.

Financial stress is serious before and certainly after marriage. Many recognize too late that foolish spending, bad credit, and debt are relationship busters. Hopefully, it’s a wake-up call to our society when we witness money mistakes destroying people’s lives. 

Take Action Now

Ask God for wisdom in your relationship. It may be necessary to back away and give time to your boyfriend to fix his financial issues and live as a responsible steward. Love is patient and forgiving but I don’t advise you to assume that this problem will simply go away or resolve itself once you are married. 

“Wisdom is good with an inheritance, an advantage to those who see the sun. For the protection of wisdom is like the protection of money, and the advantage of knowledge is that wisdom preserves the life of him who has it.” (Ecclesiastes 7:12 ESV)

Tools to Assist You

Crown has a wonderful new resource called Money Dates. It is designed for couples before or after they are married to structure discussions around the key financial issues to bring them together into unity. Before you marry, consider going through this entire program of 10 dates to ensure there are not more issues to be resolved. 

I would recommend to your boyfriend that he begins to demonstrate financial wisdom to regain your confidence in him. This would mean paying off debt, living on a budget, saving and giving consistently and showing timeliness in paying all bills. If you are able to step in and help through encouragement or practical coaching in any of these areas, by all means, jump in. His willingness to receive your help will establish a good foundation for learning to work together going forward. Crown has free resources, budgeting tools and a debt snowball calculator at Crown.org. 

Originally published on the Christian Post, February 28, 2020.

Dear Chuck, 

I’m trying to save an emergency fund of $1000, but I’m making very little progress. I get so discouraged when I mess up. Can you offer any encouragement and saving tips for someone with limited income and too many bills to pay?

No Safety Net

Dear No Safety Net,

Well, I am glad you asked. The lack of savings in America today is at crisis level. Almost 1 in 5 of us say we are not saving a dime. Look at the data from Bankrate.com.  

Saving excuses and challenges abound. We live in a culture that has normalized debt and consumption. Interest rates, lower than the Great Depressions, encourage consumption and discourage saving. Stock and housing bubbles encourage purchases using equity, stock portfolio or retirement accounts. Some advisors even go so far as to recommend eliminating “cash drag” by being 100% invested.

The Pew Research Center reported in December that the U.S. has the world’s highest rate of children living in single-parent households among 130 countries and territories. Many of these households are struggling to make ends meet.

A Better Way – God’s Way

God tells us to become savers. This is not contrary to faith! He tells us two times in Proverbs to go to the ant in order to become wise. That tiny little creature with a tiny little brain sets the standard for saving. They don’t show up at your picnic to eat a meal. They dutifully haul away crumbs to save for the future. 

Although we understand this, we often struggle when setbacks and problems occur. Instead of giving up, we need to see those challenges as opportunities to depend on God and rely on His strength. Surrendering our will to His enables us to live contrary to the world.

Sound financial decisions depend on adequate knowledge and the wisdom to apply it. “The fear of the Lord is the beginning of knowledge; fools despise wisdom and instruction.” (Proverbs 1:7 ESV) What God says must be our plumb line. Living by His financial principles requires a faithful heart and disciplined hands.

Become a Saver

First acknowledge that God is the Provider and surrender ownership of everything to Him. Then, pray over decisions and seek Godly counsel from those who are living out sound principles. The sooner you start the faster you will progress.

Savers are Motivated

• To avoid debt and experience peace when emergencies arise
• To give regularly and when led to help others
• For funds to make better spending choices
• To survive a job loss or injury
• To avoid burdening others
• For freedom and flexibility
• To put money to work

Next, always, always…(did you hear me say, ALWAYS?) live on less than you earn; regardless of your income. Living beneath your means is foundational to saving. It must become a habit, and then a lifestyle, so you naturally delay gratification and resist temptations to spend. Humility, self-control, personal sacrifice and time are required. These are things that are not lauded in our culture today; but the culture is not who we are trying to imitate, right? 

Next, build your emergency fund first, then your retirement and long-term accounts. Set a goal to save $50. Don’t spend it. Then another $50 and another $50. Be disciplined by saying no to what you want to find the little opportunities to get up to $1,000 in your emergency fund. When true emergencies arise, you will not have to depend on credit cards or withdraw (with penalties) from retirement accounts. Remember, a market correction can reduce retirement savings in minutes. So, a secure emergency fund is key to financial health.

If you have debt, develop the habit of saving something while making payments. Aim to pay off your loans, then apply that monthly repayment amount to your savings account. Resolve to pay any future credit card balance in full each month. 

Lessons from Super Savers According to The Motley Fool

Super savers:

• Are lifetime learners
• Are masters of “forced scarcity”
• Minimize debt
• Set goals
• Find ways to make saving easier

“Super savers are making smart financial choices, but they aren’t sacrificing their quality of life,” says Jerry Patterson of Principal. “We make time for the things we find most important, and this group has prioritized savings and financial independence in a big way.” 

You can cut a lot of small expenses or attack the biggies. Although both will make a difference, the big cuts will grant you margin fast. Housing, food, and cars are the categories that hinder savings for many.

Start with a spending plan or budget so you know where your money goes. Analyze your priorities and determine to always spend less than you earn. Did you hear me say, ALWAYS? Pray for self-control, a fruit of the Spirit, and exercise it!

 A Few Tips to Remember

• Automate savings – treat as if not available unless real emergency
• Use extra income to save while paying down debt
• Break costly habits and addictions
• Collect and deposit loose change
• Plan menu and shop with a list to avoid eating out
• Use cash and coupons, find free entertainment
• Implement buy nothing weeks
• Want something? Wait 24 hours, pray, shop around
• Limit social media
• Drive older cars and live in a modest home
• Learn to make repairs and do things yourself
• Shop used, accept hand-me-downs
• Volunteer, help others, get eyes off self
• Develop an eternal perspective, focus on God

Regardless of your income, this will get you a safety net and allow you the financial margin to begin paying off your bills and experiencing financial freedom. A great way to get started is by using tools to help you learn great saving habits. The Eli app is a tool that helps automate your savings for you. Check out the new Eli app to develop the habit of saving as you work toward your goal. Thank you for writing. 

Originally published on the Christian Post, February 21, 2020. 

Dear Chuck, 

I’m growing weary of our society’s overuse (and misuse) of the word love. I hear and see it in advertising, on social media and in conversations. If the first and greatest commandment is to love the Lord our God, it appears we’ve confused our priorities. It appears we love money more than Him or His word.  

Love is in the Air 

Dear Love is in the Air, 

Thank you for a great question. I chose to answer your question so I could talk about love and money on Valentines Day. 

By the way, Americans will spend an estimated $50 billion dollars today on gifts and activities to show their love to a special loved one. My wife prefers that I save the money on chocolate or flowers on this day and show love throughout the year. 

Love and Money

You have identified a significant problem. When love becomes misunderstood or misdirected, we all suffer. 

Staggering debt levels, lack of savings, and rising stress suggest we have a spending problem and a heart problem. Even recently, experts have declared that when consumption turns into consumerism, it becomes a social disease. 

The enemy has convinced people that things will bring happiness. Yet, throughout Scripture, God warns us not to be led astray. He tells us:

• Love God and others
• Pursue love
• Guard ourselves
• Don’t love the world
• Don’t love money
• Life does not consist in the abundance of possessions

Just this week, the Wall Street Journal released information that hints at American’s disobedience and confused priorities. Credit card debt rose to record highs during the last quarter of 2019. Spurred by a seemingly strong economy and job market, spending increased dramatically. Unfortunately, the number of delinquent payments rose too. Consider this statistic sited in the article:

“Total credit card balances increased by $46 billion to $930 billion, well above the previous peak seen before the 2008 financial crisis, according to data released by the Federal Reserve Bank of New York on Tuesday.”

Debt brings stress and bondage. People are unable to live as God designed when they are strapped with debt. In today’s world that includes credit card debt, student loan debt, car loans, mortgages, personal and payday loans. It prevents many from saving money to be used as God directs. Bankrate’s recent poll shows only 41% of Americans could cover a $1,000 emergency with savings. 

The Apostle Paul wrote: “You will be enriched in every way to be generous in every way, which through us will produce thanksgiving to God.” (2 Corinthians 9:11 ESV)

There’s only one reason God supplies a surplus of wealth to a Christian: so that he or she will have enough to provide for the needs of others. True wealth comes with the responsibility of giving. God promises blessings to all who freely give and His curse on those who hoard, steal, covet, or idolize. 

Giving is the foundation of a life lived in selfless devotion to others. It fulfills the second greatest commandment, to love our neighbor as ourselves. 

Preoccupation with things of this world gets us side-tracked. We lose sight of our final destination and the purpose for which God has us here. 

Billions of dollars dedicated to credit card spending confirms that we have confused our wants and needs. We have forgotten our neighbor and the Lord’s statement: “It is more blessed to give than to receive” (Acts 20:35 ESV)

When asked about the greatest commandment, Jesus answered: “..you shall love the Lord your God with all your heart and with all your soul and with all your mind and with all your strength.” (Mark 12: 30 ESV)

Divided hearts have divided priorities and those are evident in the way we handle money. That is why He teaches us in Hebrews 13:5 “Keep your lives free from the love of money and be content with what you have because God has said, ‘Never will I leave you; never will I forsake you.’” (NIV) Here is a simple test to know if you love God or money. How do you react when you lose money? Are you in a panic, upset or even angry? Remember, our hope is in God, not the money that he provides. Money will leave us; He will not.

Save Your Way Out of Debt

One way to reduce stress is through automatic saving. The Eli app is a tool that can improve your financial health so you can experience greater levels of freedom in your life. Check out the new Eli app to begin an automatic savings program to reduce your stress and increase your freedom to love God and others as you faithfully pay off your debt. 

Originally published on the Christian Post, February 14, 2020.

Dear Chuck,

I have a jaundiced eye about the World Economic Forum’s view of the world. What are the economic issues that concern you?

Not impressed with Davos 

Dear Not Impressed, 

While the World Economic Forum has its shortcomings, it may surprise you that I think there is some good that comes out of Davos each year that is helpful to Christians. 

What I find helpful to learn from Davos is what the world’s elite are concerned about. While I may or may not agree with their solutions, they often surface issues that merit our attention. Here are two of the many issues they are concerned about that caught my attention. Following these, I give a list of my economic concerns. 

Disruptive Technology – Heaven or Hell 

History expert, Yuval Harari, issued a stern warning about three global risks ending with his perspective of the ever growing and expanding invasion of technology:

“In Davos we hear so much about the enormous promises of technology – and these promises are certainly real. But technology might also disrupt human society and the very meaning of human life in numerous ways, ranging from the creation of a global useless class to the rise of data colonialism and of digital dictatorships.

“The twin revolutions of infotech and biotech are now giving politicians the means to create heaven or hell, but the philosophers are having trouble conceptualizing what the new heaven and the new hell will look like. And that’s a very dangerous situation. 

“If we fail to conceptualize the new heaven quickly enough, we might be easily misled by naïve utopias. And if we fail to conceptualize the new hell quickly enough, we might find ourselves entrapped there with no way out.” 

There is certainly an ominous concern and interesting choice of metaphors in Dr. Harari’s perspective. Fortunately, we are not looking to technology as our Savior. 

Environment/Climate Change 

Greta Thunberg, a high-school-age climate activist, named Time Magazine’s person of the Year, was a featured speaker on the issue of climate change at Davos. She took the opportunity to make specific demands to save the climate from the dangers of fossil fuels:

“We demand that at this year’s World Economic Forum participants from all companies, banks, institutions and governments: Immediately halt all investments in fossil fuel exploration and extraction. Immediately end all fossil fuel subsidies. And immediately and completely divest from fossil fuels.

“We don’t want these things done by 2050, 2030 or even 2021, we want this done now.”

She is not known for being subtle or carefully measuring her words. I don’t think anyone expects we will stop using gasoline or jet fuel in 2020 or 2021 or in the near term until God reveals a better, more efficient, cleaner alternative. 

Rejecting Prophets of Doom

US President, Donald Trump, made his second appearance at Davos in his Presidency. He strongly pushed back against those who preach doom and gloom. He emphasized optimism and freedom as key ingredients to successful economic growth:

“To embrace the promise of tomorrow, we must reject the perennial prophets of doom and their predictions of apocalypse.” 

I give a wholehearted “Amen!” to that perspective. Doomsayers do not know the future and certainly Christians are not to be controlled by fear. 

Economic Red Flags to Watch – My List 

Failing IPO’s 

Portfolio manager Brad Lamensdorf says investors should be aware and concerned about the proportion of IPOs (Initial Public Offering) that are loss making. Investment bankers stuff the stock market with overpriced companies while the public is willing to take risks. We saw this happen right before the dot-com implosion in 1999. 

Non-Performing Mortgages 

The jumbo-mortgage market may be in trouble. Servicers do not like to foreclose on them, so many delinquent borrowers have not paid for years and many mortgages are still outstanding. 

Unregulated or Shadow Banking 

Global shadow banks have assets above $52 trillion but there is a growing concern for lack of data.

Global Debt 

Worldwide debt broke the record of debt-to-GDP ratio in the first nine months of last year. “Global debt, which comprises borrowings from households, governments and companies, grew by $9 trillion to nearly $253 trillion during that period, according to the Institute of International Finance.” 

Though I am no economist, I see this specific trend as a clear warning to get your personal financial house in order. Now. 

Be Grateful 

While we can learn what the global elite are concerned about in Davos, as Christians we can have a different response to the problems and challenges we face. My friend, Jerry Bowyer, believes that businesses suffer when a spirit of ingratitude exists among owners and chief decision makers. He says that the act of gratitude can change everything. 

“The foundation of asset management is gratitude. If you’re grateful for something then

you’ll appreciate it; if you appreciate something then you’ll care for it; if you care for 

something then you will (more than likely) get more of it. In other words, if you show 

appreciation for the assets under your care, they’ll probably return the favor and show 

appreciation for you.” 

Gratitude, according to Bowyer, is a nation’s most necessary virtue and protects it from exchanging hard-won liberty for racial glory (the Nazis) or economic security (the Communists). 

Proper Perspective 

The stock market will fluctuate, technology will expand, and climate will change, but God ultimately is in control. If “the government is on His shoulders” (Isaiah 9:6) we can trust His good and perfect will. Called to be wise stewards in a world of constant change, we can rely on the Lord who never changes. “Jesus Christ is the same yesterday and today and forever.” (Hebrews 13:8 ESV) He is worthy of our trust and gratitude. We can be grateful and confidently apply Biblical financial principles and not fear the future regardless of what the future may ultimately hold. 

I hope this gives you a better idea of what happens in Davos and how we can remain confident of the future because we know the One who has determined the beginning and the end.

Originally published by the Christian Post, February 7, 2020.