Dear Chuck,

My wife and I want to sell our home (no debt or mortgage) and buy a piece of land where we can build a larger home. Our end goal is to come out mortgage free or with very minimal debt. We have 3 options: 1) Sell our home now, rent while we use cash to buy land and build. 2) Buy land now, then pay off land, sell the home later and build with cash. 3) Buy land now, get a construction loan, build, then sell the house and pay off the loan. Option 3 does not involve a double move. I should probably mention that we have 6 children.

Growing Family 

Dear Growing Family, 

I like knowing that you are thinking through your options. Many people do not consider how a move involves stress, and how that affects the entire family. Due to your family’s size, you have a little more pressure to make the right decision.

There are a few questions that I would like to see answered.

• How marketable is your current home at the price you need?
• How many months could you carry the notes to buy the land or buy the land and build the larger home without selling your house and not be under financial stress?
• Do you have a good option for an interim place to live? Moving a large family can be challenging. Are there friends or family members who might host you in exchange for some kind of labor?
• Have you calculated the cost of a rental and the expense of a double move?

Since I don’t know the answers to some key factors in your decision, let me summarize my advice by pointing out that all of the options involve stress and each one has different levels of risk. Let’s look at these factors to help you make a decision.

• Option 1: Sell now, buy land and build with cash. This stress involves the logistics of renting a place for a family of 8 and the cost of a double move. Your financial risk is the lowest with this option. 
• Option 2: Buy land now, sell home later, and build with cash after the land is paid for. This involves financial risk of the loan to buy the land now and double move stress
• Option 3: Buy land and build using a loan then sell existing house and pay off loans. This is greater financial risk but lowers your stress by eliminating the double move.

Conservatively, Option 1 is the least risky financial choice. You would have to determine if it is the most stressful to you and your family. Option 2 is a hybrid which might minimize some of the time and stress of Option 1, but you have to borrow money. Option 3 seems to put all the stress on you and your finances, while eliminating family stress. 

I prefer Option 1, depending on the dynamics of your family and everyone’s ability to live in a basement or rental for a period of time. Lean heavily on your wife’s counsel and be willing to do Options 2 or 3 if she feels best about those. Loans can be helpful as long as you manage them very carefully.

If you go with Option 3 and cannot sell, perhaps you could find a renter for the house for a period of time. That’s probably a worst-case scenario.

I recommend you get advice from several realtors regarding the value and marketability of your present home and advice on where to buy land. Build in an area where your home will appreciate and bring joy to your family.

Get More Counsel 

While I am grateful that you asked for my advice, this is no small decision for you and your family. It is likely one of the biggest decisions you will make for many years. You need more counsel. Here are the sources to go to before you make your final decision. 

 Seek Counsel from God

“If any of you lacks wisdom, let him ask God, who gives generously to all without reproach, and it will be given him.” (James 1:5 ESV)

“For the Lord gives wisdom; from his mouth come knowledge and understanding; he stores up sound wisdom for the upright; he is a shield to those who walk in integrity, guarding the paths of justice and watching over the way of his saints.” (Proverbs 2:6-8 ESV)

Seek Counsel from Man

Seek the counsel of Christians you trust, parents, and siblings. I still take big financial decisions to my Dad and get advice from my brother before I take action. Fast and pray with your wife. Don’t move forward until you have peace and unity with her.

“Where there is no guidance, a people falls, but in an abundance of counselors there is safety.” (Proverbs 11:14 ESV)

“A wise man is full of strength, and a man of knowledge enhances his might, for by wise guidance you can wage your war, and in an abundance of counselors there is victory.” (Proverbs 24:5-6 ESV)

Pray and Trust God

 “Trust in the Lord with all your heart, and do not lean on your own understanding. In all your ways acknowledge him,and he will make straight your paths.” (Proverbs 3:5-6 ESV)

My hope is that you and your family will be able to make the move to the larger home, avoid any debt and enjoy the entire process! Let me know what you decide and send pictures of your big family to us at Crown! 

Originally published by the Christian Post, January 31, 2020.

Dear Chuck,

I am not married but would like to be one day, but who knows? Should I plan to live as a lifetime single in my financial planning? 

Single but Hopeful 

Dear Single but Hopeful, 

First, I am glad you are interested in marriage! While there is nothing inferior with being single, whether by choice or otherwise, marriage is a means which God designed for us to experience the priceless riches of a family. The world needs more strong, Godly families.  I also applaud your wisdom evidenced by the forward-looking question you have asked. Here’s my simple, direct answer: You need to manage your money for an unknown future. This is actually what all faithful stewards do, married or not. 

Preparing for an Unknown Future 

Solomon tells us in Ecclesiastes 8:7, “Since no one knows the future, who can tell someone else what is to come?” You and I and everyone else in the world do not know what tomorrow will bring–whether we will be married or single, whether the economy will go up or crash, whether we will be healthy or weak or even whether we will live or die. The wise acknowledge the uncertainty of tomorrow and prepare spiritually and financially. So here is my basic advice to help you be ready for tomorrow. 

Spend Less Than You Earn

This is the key to good stewardship. It is essential as a single or as a married person. 

Frugal spending now will strongly impact your lifestyle decisions. The freedom you have as a single person provides flexibility to plan ahead while still enjoying the fruit of your labor. Keep a budget. Now is the time to stop overspending. Avoid impulsive and extravagant purchases. Learn to wait at least 24 hours before making a buying decision. Or, like my wife, put things in your online shopping cart but don’t buy them immediately. Analyze the pros and cons of the item, compare prices, check your motivation for buying and pray for discernment as to whether it’s a necessary purchase. 

Maximize Income

Use your free time to increase your skill sets in a radically changing work environment.  This can be done through extra education or via a mentor. Ask for a raise or start a side job. Enroll in our online classes to expand your financial knowledge. You don’t need to set a goal to get rich; just be faithful and excellent at what you do, God will honor that with better compensation in the long term. 

Give

Establish this habit now to experience a lifetime of joyful giving. If 10% is daunting, start with 1%, then increase it every month until arriving at 10%. You may desire to exceed that, but 10% should be a minimum you strive for. It will be an opportunity for you to trust God with the remaining 90%. In fact, you may find yourself sacrificing in other areas so you can give as the Lord leads. For us, it means driving older cars, cooking meals at home, shopping sales for clothes, etc. so we can give to others.  

Establish an Emergency Fund

Emergencies happen, and usually when they are least expected. That is why it is critical to always be prepared. Job loss, illness, accidents, extended family situations all contribute to emergency needs. Replacing tires or appliances are not emergencies because they are inevitable maintenance costs. The absolute minimum should be $1,000. Most experts recommend enough funds to cover at least three to six-month’s worth of living expenses. 40% of Americans can’t cover a $1,000 emergency expense. Don’t be in that 40%! 

Eliminate Debt

Pay off student debt, car loans, credit card debt and any personal loans. A clean slate communicates self-control and financial wholeness to a person you may want to marry in the future. The two most popular methods for debt repayment are the debt snowball and debt avalanche. Avoid consumer debt in the future. When using credit cards, always pay them off, in full, at the end of each month. Educate yourself on the truth about debt. Use Christian Credit Counselors if you have a problem with carrying credit card balances. 

Housing

This is typically the biggest expense in budgets, but it need not be. Especially while you are single. Roommates can cut rental costs and help pay down a mortgage when buying a home. Proper maintenance will prevent penalties and costly expenses. Always avoid too much house and analyze if renting or buying is best for you at this stage of life. 

Stay Healthy and Have Savings

Take care of yourself through healthy eating, consistent exercise, and adequate sleep. Discipline yourself to stop any vices. These steps will strengthen the possibility of living a productive life. Max out 401k contributions and HSA plans, if available.

Seek Accountability

Learn from those who practice sound financial principles. Read biographies. Meet with like-minded Christians and find a mentor who will guide you on your financial journey. Analyze your friendships. Do they propel you to live in obedience to Christ? Are they impacting you positively? Or, are they a negative influence? Choose to spend time with those that propel you to be better in all areas of your life. 

Enjoy Life

Whether single or married, live in gratitude for all God’s given you. Don’t neglect to take vacations. Serve on mission trips. Read to broaden your knowledge and volunteer in your community.

Live One Day at a Time 

Develop your spiritual life and Christian community. Attend church regularly and get involved serving where your gifts and skills can bless others. Read through the Bible on a regular basis and participate in a Bible study. A Christian worldview is necessary in making wise financial decisions. “Do not be conformed to this world, but be transformed by the renewal of your mind, that by testing you may discern what is the will of God, what is good and acceptable and perfect” (Romans 12:2 ESV). Renewing your mind daily will guard your heart and keep you on the right path. We only have today, so live at peace where you are right now; trust God for your tomorrow. 

Originally published on the Christian Post, January 24, 2020.

Dear Chuck,

My pastor talked about sin in a recent message at church.  I am curious to know what the Bible says about financial sins.  Do you have a list? 

Needing Insight 

Dear Needing Insight, 

Last week I shared that of the more than 2,350 verses in the Bible dealing with money and possessions, the majority of the principles deal with our heart and mind. Within those verses, we are told how to handle material goods and wealth. Although I cannot give an exhaustive list of financial sins, I covered six:

•     Dissatisfaction
•     Coveting
•     Greed
•     Love of Money
•     Selfishness
•     Arrogance

Here are four more, for a total of ten for you to contemplate.

A Short List – Part II

Putting Money Before God

Prosperity is dangerous and can become a false god. 

See, I set before you today life and prosperity, death and destruction. For I command you today to love the Lord your God, to walk in obedience to him, and to keep his commands, decrees and laws; then you will live and increase, and the Lord your God will bless you in the land you are entering to possess.

But if your heart turns away and you are not obedient, and if you are drawn away to bow down to other gods and worship them, I declare to you this day that you will certainly be destroyed. You will not live long in the land you are crossing the Jordan to enter and possess. (Deuteronomy 30:15-18) 

Unfaithfulness

God wants us to be loyal to Him whether we have a lot or a little. We are stewards, not owners of all that we have. 

One who is faithful in a very little is also faithful in much, and one who is dishonest in a very little is also dishonest in much. If then you have not been faithful in the unrighteous wealth, who will entrust to you the true riches? And if you have not been faithful in that which is another’s, who will give you that which is your own? No servant can serve two masters, for either he will hate the one and love the other, or he will be devoted to the one and despise the other. You cannot serve God and money. (Luke 16:10-13 ESV)

Desire to be Rich

Our desires reveal our true priorities. 

But those who desire to be rich fall into temptation, into a snare, into many senseless and harmful desires that plunge people into ruin and destruction. For the love of money is a root of all kinds of evils. It is through this craving that some have wandered away from the faith and pierced themselves with many pangs. (1 Timothy 6:9-10 ESV)

Controlled by Debt 

When we borrow in excess, we become a slave to the lender.  

Just as the rich rule the poor, so the borrower is servant to the lender. (Proverbs 22:7 NLT)

Owe no one anything, except to love each other, for the one who loves another has fulfilled the law. (Romans 13:8 ESV)

Dealing with Financial Sin 

I have been guilty of most of the financial sins I have mentioned in these two articles at one time or another! I learned the hard way that God’s principles are given for our own good. When we follow them we experience peace and the true riches promised to the faithful. In fact, I have learned that the true riches of Christ are greatly to be desired above the temporal riches of money and possessions. 

If you know that you too have sinned – intentionally or unintentionally, confess your sins to the Lord.

He does not deal with us according to our sins, nor repay us according to our iniquities. For as high as the heavens are above the earth, so great is his steadfast love toward those who fear him; as far as the east is from the west, so far does he remove our transgressions from us. (Psalm 103:10-12 ESV)

Then, ask Him to restore the years the locusts have eaten. (Joel 2:25 ESV) 

He is omniscient, omnipresent and omnipotent, capable of doing far more than we can even hope or imagine!

No mistake is beyond God’s ability to redeem it for our good and turn it around. Don’t be discouraged or give up the fight; learn and apply God’s principles to your financial circumstances and trust Him to restore your relationship and your financial health. 

You and your church should become aware of the courses available to you on Crown Online. These courses offer spiritual guidance as well as practical tools in your journey to become a faithful steward. This is a journey that has set millions free of financial sin and delivered them into financial freedom. 

Originally published on the Christian Post, January 17, 2020.

Dear Chuck,

My pastor talked about sin in a recent message at church.  I am curious to know what the Bible says about financial sins.  Do you have a list? 

Needing Insight 

Dear Needing Insight, 

Thank you for your question.

Like you, there are many in America and around the world who have lived in financial sin, some intentionally and others completely unaware. We live in a time where many people, even those who claim Christ as Lord and Savior, are Biblically ignorant. I certainly was ignorant in spite of having broad access to Bibles and training. Often, these warnings are ignored due to apathy or tyranny of the urgent. The world seduces believers who fail to consult God before making financial decisions. They follow the crowd or heed worldly advice. I know. I did.

My Quick Story 

I will tread carefully on this topic to avoid being a Pharisee, since I not only have a list of some of the major financial sins referenced in the Bible but have committed them as well! I graduated from college with a desire to get rich and fast. My goal was to make millions of dollars, and by the way, I was millions of dollars away from that goal!  My worldview was something like this: Make as much money as fast as you can, to retire as early as you can, to entertain yourself as long as you can. Even though I had grown up attending church, it was not until my early 40’s that God got a hold of my heart while participating in a Crown Bible Study. The impact of that course was so profound that since that time, now twenty years ago, I have been committed to teaching others what the Bible says about money and stewardship. 

A Short List – Part I 

There are more than 2,350 verses in the Bible dealing with money and possessions. The vast majority of the principles that God gave us deal with our heart and mind. God is careful to tell us exactly what to believe and not to believe when it comes to material goods and wealth. This is in no way an exhaustive list of financial sins, but it will get you started on the right track. 

Dissatisfaction

A clear indication of a misplaced dependency is complaining about our financial status in comparison to others. 

He who loves money will not be satisfied with money, nor he who loves wealth with his income; this also is vanity. (Ecclesiastes 5:10 ESV)

Coveting

When we desire what others have, we fall into the trap of coveting. 

And he said to them, “Take care, and be on your guard against all covetousness, for one’s life does not consist in the abundance of his possessions.” (Luke 12:15 ESV)

Greed 

The drive to have more, more, more leads us into conflict and turmoil. 

A greedy man stirs up strife, but the one who trusts in the Lord will be enriched.
Whoever trusts in his own mind is a fool, but he who walks in wisdom will be delivered. (Proverbs 28:25-26 ESV)

Love of Money  

Most people do not recognize their love of money until they lose it. It becomes their  security in the place of God. 

Keep your life free from love of money, and be content with what you have, for he has said, “I will never leave you nor forsake you.” (Hebrews 13:5 ESV)

Selfishness

Spending everything on ourselves is a common sin we often overlook. 

There is a grievous evil that I have seen under the sun: riches were kept by their owner to his hurt, and those riches were lost in a bad venture. And he is father of a son, but he has nothing in his hand. (Ecclesiastes 5:13-14 ESV)

Arrogance

Accumulating money can often lead us to think more highly of ourselves. 

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. (I Timothy 6:17 ESV)

I suggest that you and your church become aware of the courses available to you with Crown Online. These courses offer spiritual guidance as well as practical tools in your journey to become a faithful steward. Your question is so important that I have divided my response into two parts. More next week!

Originally published on the Christian Post, January 10th 2020.

Dear Chuck,

We fight about money every time we get near the end of the month and feel like our bills are mounting. How do we stop this cycle? 

Stuck in Fight Mode 

Dear Stuck in Fight Mode, 

Your opening statement contains both the problem and hidden solution to your question! You and your spouse need to stop fighting each other and unite to fight your money problems together; otherwise, the cycle will likely never end.  So to your real question as to “how to stop the cycle,” I have lots of personal experience and advice! 

Money Fights

“Arguments about money is by far the top predictor of divorce,” says Sonya Britt, a researcher at the University of Kansas. She states, “It’s not children, sex, in-laws, or anything else. It’s money – for both men and women.”

I once asked a wise senior business leader for advice with a problem I faced in a company. He said, “It is impossible to prosper when there is war. You must seek peace first; then you will prosper.” His insight immediately opened my eyes to the solution. I went and made peace with my adversary. Once that was accomplished, our energies were refocused on growing the company. The advice worked.

It also works in marriage. Oftentimes, we are passively–or aggressively–in conflict with our spouse. Without peace, a marriage cannot reach its full potential. A lack of unity directly relates to financial struggles and impacts decision-making. 

Step One

Seek to become peacemakers in your home. It requires listening to, honoring and learning from each other. It aids in resolving arguments, division, and discord. Aim to make three tips your habits:

1. Be the first to apologize. “The first to apologize is the bravest. The first to forgive is the strongest. The first to forget is the happiest.” –Author unknown.
2. Speak with gentle, healing words. “A soft answer turns away wrath, but a harsh word stirs up anger. The tongue of the wise commends knowledge, but the mouths of fools pour out folly.” (Proverbs 15:1-2 ESV)
3. Cultivate your friendship. It’s a key to a fulfilling marriage.

C.S. Lewis said, “Love in this second sense–love as distinct from ‘being in love’–is not merely a feeling. It is a deep unity, maintained by the will and deliberately strengthened by habit.” He understood that, just as choosing to react negatively can become a habit, we can choose to love and make it a habit.

Practical Tips

• Be honest. Do not keep any financial secrets. 
• Learn and respect each other’s financial personality. Givers and Savers are both needed. 
• Exercise self-discipline. Stop overspending. 
• Work together setting realistic goals then make a plan to achieve them.
• Track your spending to build a budget.
• Go to a needs-based budget for a time to create some margin.
• Build an emergency fund. 
• Pray together before making any large purchases. Wait until you agree and have peace.
• Pray for delivery of any addictions. They’re costly. 
• Acknowledge mistakes. Confess and seek forgiveness, and then learn from them. 
• Acknowledge your spouse’s wisdom. Verbally encourage progress!
• Negotiate, reduce and stagger your bills.
• Plan something fun each week. 
• Find a wise couple to mentor you.
• Enroll in Crown’s Online Money Dates Course.

Commit, as a couple, to learn what God says about money. If you align your values with His, you can agree with your spouse about money. Many people simply don’t realize that their spending habits conflict with Biblical values. 

Peace is the oil that makes the engine of your marriage run smoothly in spite of your differences. Peacemaking is the foundation for unity, which in my view is the key to lasting satisfaction, joy, and intimacy in marriage.

Recognize that if you are not actively moving toward Jesus, a subtle but powerful riptide is pulling you away. An enemy seeks to diminish and destroy faith and marriage. It is vital that you and your spouse develop a Biblical worldview about money. Everything you have is God’s.  Together, you and your wife can bring Him glory by stewarding well what He provides. 

Do not be conformed to this world, but be transformed by the renewal of your mind, that by testing you may discern what is the will of God, what is good and acceptable and perfect. (Romans 12:2 ESV)

Starting the New Year Right

For twenty-one years, my wife Ann and I had struggles agreeing about money decisions. We were constantly in the cycle that you described. We never made great progress towards our financial goals because our enemy kept us in conflict with each other. When we realized that we were trapped in a self-defeating loop of fighting each other and not our financial challenges, we were able to rise above it. It was such a significant change in our lives that we wrote an entire book about it called, Money Problems, Marriage Solutions.  You see, marriage is actually an advantage when it comes to your finances. It is not a disadvantage at any level. I really want you to get a copy of the book and read it, apply it and make the changes we recommend.  We also want you to use the Money Dates program; this method as well as our book can be ordered online at crown.org. 

This is a new year; it is time to break this cycle once and for all. Invest in your marriage and your financial problems will consistently diminish as you work together.  Stay in touch. I am excited for you and your family! Happy New Year! 

Originally posted on the Christian Post, January 3, 2020.

Dear Chuck, 

I’m worried about a layoff next year. If we have a recession, I am likely to be the first one out the door. What can I do to be prepared? 

Preparing for a Layoff

Dear Preparing for a Layoff, 

There is a great deal in your question that I can relate to. Having been through a corporate layoff in my prior career in the oil and gas industry, I am aware of the fear and stress that go along with facing an unknown future. However, contrary to you, I was not prepared. 

Downsizing, reorganizations, and mergers are part of life. The Bureau of Labor Statistics for August, 2019 indicates that the average length of unemployment is 22.1 weeks  ( just under 6 months) and 20.6% of the unemployed were out of work for 27 weeks or more.  This fact alone should give you a strong indication of how to get prepared if a layoff and/or recession does occur in 2020.

God can be fully trusted, despite a possible layoff. He will be there for you even if things seem out of control. Keep an eternal perspective, prepare and walk in faith.

Just in Case

Prepare now to minimize stress.

• Do what you can to prove your value to your manager. Document contributions. 
• Don’t participate in office gossip or rumors. 
• Keep a positive attitude. Work hard and serve others.
• Update your resume.
• Make sure recruiters have your correct contact information.
• Begin a passive job search. 
• Do not use company computers, phones, networks, or search Google in seeking a job. Never search from your current place of employment.
• Expand your network. 
• Improve yourself.
• Build your interview skills.
• Postpone large purchases, vacations, and anything that is not necessary
• Go to a “needs” based budget – food, shelter, transportation, utilities, creditors, childcare.
• Get covered medical needs taken care of now: check-ups, glasses, contacts etc.
• Understand HSA and FSAs.
• Build your emergency fund.
• Prepare to pack important possessions. Copy work samples, performance reviews, and key documents. Transfer your contacts to a personal computer. 
• If needed, refinance loans while employed because banks will hesitate if you are unemployed.
• Negotiate your bills and expenses. Example: bundle or find discounts for insurance. Consider temporarily dropping unnecessary expenses — things like cable. 

If a Layoff Occurs

Don’t take it personally, unless you brought it upon yourself. If you did, learn from your mistakes! Romans 8:28 says, “And we know that for those who love God all things work together for good, for those who are called according to his purpose.” He may be moving you into something far better than you ever imagined. 

• Request and read all contracts and documents you signed when you were hired. 
• Make sure you get paid for any accrued benefits, unused vacation days, or money owed.
• Know your unemployment benefits. Will healthcare be subsidized? How long? COBRA? HSA while claiming unemployment? 
• Verify what happens to other benefits like life or long-term care insurance and 401 (k).
• Get copies of key documents, performance records, and work samples.
• Get contact information: payroll, HR, benefits contacts, and potential references.
• Negotiate a severance package.
• Don’t burn bridges. Aim to maintain your work relationships. 
• Reach out to contacts.
• Contact creditors. Ask the hardship department for a reduced interest rate.
• Temporarily stop contributing to retirement and savings and build your emergency fund.
• Make and live on a “needs only” budget.
• Don’t panic, be humble, stay involved in your church body.
• Pray, look for God’s provision, be patient and give thanks.

Temporarily, most people can reduce their expenditures substantially without a major reduction in lifestyle. It just requires some planning: being patient, avoiding quick financial decisions, and never spending money you don’t have even when you have available credit. It means tithing faithfully, avoiding get-rich schemes, and sticking to a budget. Those who have surrendered their finances to God also experience His faithfulness. 

Pray for peace and contentment during this time. Go on a spending fast and cut all unnecessary expenses. Sell what you don’t need. Ignore the media and renew your mind with Biblical truth. Enjoy creation, spend time with friends & family. Seek simplicity and be thankful. 

Count it all joy, my brothers, when you meet trials of various kinds, for you know that the testing of your faith produces steadfastness. And let steadfastness have its full effect, that you may be perfect and complete, lacking in nothing. (James 1: 2-4 ESV) 

Don’t Worry

Solomon reminds us in Ecclesiastes 8:7 that no man knows the future.  As much as we may think we know what will happen next year, we truly do not know will happen in the next moment.  Worry involves looking to the future and projecting unpleasant events that may or may not occur. The truth is, you and I do not know if there will be a recession next year or if you will be laid off.  We do know that we are to live prepared for the future but keep our thoughts on today because this is all we have. 

As I look back on the layoff that I experienced, God used it for my good, especially the lessons I learned from the pain of being unprepared. You are wise to be looking ahead and ready should it happen, now you can rest and enjoy each day that you have regardless of what tomorrow will bring. 

Read more about preparing for economic hardship in The S.A.L.T. Plan, a practical guide I wrote about carefully planning for hard times, and how to increase your faithfulness with your God-given resources.

Originally posted on the Christian Post, December 27, 2019.

Dear Chuck,

I expect a decent year-end bonus and am trying to decide how best to use it. I want to grow our investment portfolio while my wife thinks we should pay off all debt. What would you recommend? 

Blessed with a Bonus 

Dear Blessed with a Bonus, 

Congratulations! This is a nice problem to have around Christmastime!

I’m glad to hear you don’t want to spend it on yourselves or blow it all on one “big” Christmas! Or splurge on the latest iPhone or luxury vacation as a reward for all the hard work. That’s what many do. Wise action will provide far greater rewards!

I don’t know your financial situation, the amount of total debt you carry, or the size of your bonus. All that and more personal details would be helpful; but regardless, I think you and your wife should compromise and find unity in the use of your bonus. If you do that, my advice is likely not necessary. 

My wife, like yours, hates debt and finds security in owing no money to anyone. Like you, I enjoy investing and watching funds grow. The key to financial harmony in marriage is to listen and make plans together. So, pray together and separately ask God for wisdom in this decision as you apply these Proverbs: 

Commit your work to the Lord and your plans will be established. (Proverbs 16:3 ESV)

The heart of man plans his way, but the Lord establishes his steps. (Proverbs 16:9 ESV)

A Suggested Plan for Your Bonus

1. Don’t spend it until it’s in the bank! Or as my wife would say, “Don’t bank on presumption!”
2. Give cheerfully first as led by Christ and in unity with your wife.
3. Pay down personal loans and credit card debt with high interest rates. Do you have any auto loans, student debt or mortgage? I agree with the advice of Stephen Williams, of BMO Private Bank. He says it is best to attack credit card debt. “Pay that down or pay it off completely with the bonus, because if you’re paying credit card interest of 15 percent, it doesn’t really make any sense to invest money in the stock market and hope you outpace the 15 percent. That’s a tough ask.”
4. Fund an Emergency Account. Since you already invest, I assume you have at least $1000 set aside. You should aim to have 3-6 months expenses in a secure account. This will give you peace of mind in the event of an unexpected job loss, illness, or catastrophic event. 
5. Invest: Max out a 401(k) and take advantage of your company’s match program. If that’s not an option max out an IRA. The Roth doesn’t have any upfront benefit, but contributions and earnings are withdrawn tax-free when you reach a certain age. Mind the income cap. With a traditional IRA you’re taxed on contributions and earnings. Max out your HSA – health savings account. You can keep it for as long as you want, even if you change jobs. While available for qualifying medical care, you can also use it in retirement planning. Consider investing in low-cost index funds like Warren Buffett recommends. Or consider investing in yourself by enrolling in a course to increase your skills, a conference to build your network, or a good pair of tennis shoes for your health.
6. Plan for large expenses in the future – home, car, vacation, or starting a business. 
7. Will you owe taxes? Consider setting a sum aside to cover that.

If you want a tangible reminder of your hard work this year, discuss with your wife how that might look. It could be a special dinner together, a day devoted to something you both enjoy, or an overnight getaway. Just remember that your marriage deserves more attention than your career and money. In fact, a good marriage is associated with greater levels of upward economic mobility.  My wife and I wrote a book called, Money Problems, Marriage Solutions; it would make a great Christmas present! 

Remember to thank God for His generous provision. Merry Christmas to you and yours.

Originally posted on the Christian Post, December 20, 2019.

Dear Chuck,

I’m a recent college graduate with my first “real” job. With that comes paying into the Social Security System. My concern is whether or not there will be funds for me someday, especially in light of the recent deficit report.  

Worried Millennial

Dear Worried Millennial, 

First, I am impressed with a number of things about your question: first, that you are curious about the Social Security System and second, that you are aware of the out-of-control federal deficits. For far too many people, young and old alike, their contributions to social security are out of sight and out of mind. 

Will Social Security Go Broke? 

You’re hitting on a hot topic. Many fear that the money to fund America’s Social Security program will run out and a large portion of our population will be negatively affected. The money for this benefit comes from three sources:

• 88% from the Social Security tax
• 4% from income taxes recipients pay on their benefits
• 8% from interest on money in the trust funds

Some of the concerns voiced by people like you include:

The Funding Issue

Money raised by Social Security taxes is invested in non-marketable securities. These trust funds are projected to run out by around 2034. But, with the tax continuing to raise money, the program is projected to cover nearly 80% of its obligations through 2090. Despite the fact that the fund could be depleted by 2034-35, the program could still pay out what it takes in from Social Security taxes. This would pay an approximate 80% of the benefits for retired and disabled workers.

The Changing Population

Families are continuing to get smaller. Lower birth rates mean fewer people will be paying into the system. People are living longer than when the program was first started so they are collecting more money. This means more money will be needed for the program but fewer and fewer workers will be paying into the fund. 

 The American Association of Retired People (AARP), has addressed these concerns with a list of recommended solutions:  

 Some Proposed Solutions

• Raise the retirement age for people to begin receiving payments
• Increase or eliminate the payroll tax cap
• Increase the payroll tax rate
• Reduce benefits for higher earners
• Tax salary reduction plans like 401(k) plans and Flexible Spending Accounts
• Cover all newly hired government employees
• Increase the number of years to calculate initial benefits

Some of the AARP solutions would be helpful while I don’t agree with others. I don’t like trying to solve problems by increasing taxes. The private sector has proven to be far more efficient managing funds than the public sector. 

Many professionals do not consider the Social Security program to be in danger. It is deficit funded, surpassing the one trillion dollar mark in fiscal year 2019. And, those deficits are here to stay due to the government’s entitlement programs. Changes will certainly have to occur, but you should not worry that it won’t be there in the future when you reach retirement age. Here’s my take and advice.  

I believe you’ll get Social Security benefits. 

The government has a moral and legal obligation to pay out the benefits that have been paid in. It is highly unlikely that they would ever fail to make payments to those who have paid into the system. However, the value of what is paid out may be devalued and be far less helpful than it has been to past generations. 

Don’t rely on it.

Assume the responsibility for saving and investing yourself by living and planning as if Social Security will not be there. Prior to 1940, Americans did not receive Social Security benefits. President Roosevelt (FDR) signed the Social Security Act in 1935. The collection of taxes began in January, 1937, and monthly payments started three years later.

It is better to rely on the Lord and follow His precepts.  

“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 7:11-12 ESV)

Live contrary to the way the government does.

Our government has low or no savings and excessive debts, but so do many Americans. This should be increased motivation for us to do the opposite. Do not run up unnecessary debt. This requires sacrifice and self-control.  

“Owe no one anything, except to love each other, for the one who loves another has fulfilled the law.” (Romans 13:8 ESV)

“The rich rules over the poor, and the borrower is the slave of the lender.” (Proverbs 22:7 ESV)

 Many people carry excessive credit card debt and find themselves trapped in a cycle of borrowing. If you are experiencing this burden, get in touch with our friends at Christian Credit Counselors. They have helped over 300,000 families experience freedom from their debts and can help you, too.

Do Not Fear.

We do not know what tomorrow holds. Therefore, don’t waste your time or emotions concerned about Social Security. Instead, live frugally, give generously, save regularly, and invest wisely. And, put your hope in the Lord, not man or government programs.

“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)

 “Trust in the Lord with all your heart, and do not lean on your own understanding. In all your ways acknowledge him, and he will make straight your paths.” (Proverbs 3:5-6 ESV)

Congratulations!

It is exciting to be on your first real job. I hope it goes well for you. Live in such a way that whether social security is here for you or not, that you will be at peace. The Lord will be there to provide your needs in all circumstances.

Originally posted on the Christian Post, December 6th, 2019

Dear Chuck,

I inherited a significant amount of money this year. Although I am very grateful, I’m feeling the weight of responsibility to steward this well. I look forward to giving more to the Kingdom and want advice on how to please God with all my decisions. 

Burdened by this Wealth

Dear Burdened, 

First, I am so pleased to know that you are feeling the weight of this responsibility. The Bible does say that “to whom much was given, of him much will be required” ( Luke 12:48 ESV). Too often, when we receive a great blessing, we forget that it comes with great responsibility as well. 

Second, I hope you have been regularly and cheerfully giving to God’s work before this inheritance and plan to continue this practice, and even begin giving more and more as you have expressed.

There are a number of Biblical principles and personal tips I will share with you to give you some guidelines for pleasing God. 

An Eternal Perspective 

God wants to spare us the sorrow that can accompany worldly wealth. “The blessing of the Lord makes rich, and he adds no sorrow with it.” (Proverbs 10:22 ESV) He does that by asking us to trust Him enough to give part of it away. He wants us to let go of it. It sounds as if you understand that, but you must continually guard your heart. 

God took a risk to bless us so richly. The risk is that we might fall in love with the blessings and forget the One who blessed. To minimize that risk, God designed an economy quite different from the world. It’s based on sharing, not hoarding or squandering. It is vital that we learn to be generous with others to avoid the dangers of trusting in our possessions. As we advance God’s kingdom by practical means, we experience true riches through giving.

We must avoid putting our security in the abundance that God has given us, and live with open hands to bless others and bring Him glory.

“Honor the Lord with your wealth and with the firstfruits of all your produce…” (Proverbs 3:9a ESV)

“It is more blessed to give than to receive.” (Acts 20:35 ESV)

Pass the Money Test

I believe God gives each one of us a “Money Test.” He gives resources to us and will demand an accounting of how we use what He gives. He is interested in one thing: Did you use money for your own interests or His?

“So if you have not been trustworthy in handling worldly wealth, who will trust you with true riches?” (Luke 16:11 NIV) 

To those who pass the “Money Test” by remaining faithful to love and serve God and His purposes, the long-term rewards are defined as the true riches. These are the blessings of living according to God’s financial principles and enjoying both the present and eternal rewards for keeping our hearts faithful to Him. These are the riches that cannot be lost, stolen or destroyed in contrast to mere worldly wealth.

Care for the Poor

God wants us to serve those who are hurting, who are weak and who need hope and encouragement. Remember Peter, James, and John’s words to Paul when he returned after fourteen years? They accepted his sharing the gospel to the Gentiles, but added one request:

 “Only, they asked us to remember the poor, the very thing I was eager to do” (Galatians 2:10 ESV).

Be Cautious 

Proverbs 13:11 (ESV) says, “Wealth gained hastily will dwindle, but whoever gathers little by little will increase it.” Be cautious managing and investing your resources by surrounding yourself with Godly counselors that do not have a conflict of interest with the advice they give you. Be very slow, discerning and patient when deciding where and how much to invest. My tip is to avoid making any major purchases for a year. After the year is over, when tempted to spend a lot of the money you received, pray and ask God for His wisdom. Wait 30 days after you are at peace with the purchase and then ask yourself, “Can I live without this?” 

Some of what I’ve mentioned here comes from my book, Root of Riches. I recommend you pick up a copy and read more in depth what the Bible says about money and possessions. I also recommend my friend Randy Alcorn’s book, Money, Possessions, and Eternity.

Thank you for writing. Let us know how we can help in the future. Happy Thanksgiving!

Originally published on the Christian Post, November 29, 2019