Dear Chuck,
My husband and I have made a mess of our finances. We’re young, so I think we have time to recover. But, I’m concerned about my husband. He is having trouble sleeping (so am I for that matter), is emotional, and I fear he may lose valuable business accounts if he doesn’t learn to relax and trust God with our finances. How can I help him?
Sleepless and Stressed
Dear Sleepless,
Your plight is far too common for millions of people. I have often said that financial stress affects every area of our lives. Thank you for your honesty and desire to get some help. Here goes!
When under stress, the nervous system reacts to protect us with a series of physiological symptoms sometimes known as the “fight-or-flight” response. The body is put on high alert with the release of stress hormones that affect every organ. Emotional health is impacted as well as physical health. Perhaps you have noticed some of the following:
In March, the Harvard Business Review published The Financial Upside of Being an Optimist, by Michelle Gielan. It analyzed 2,000 Americans who were surveyed and tested for optimism, financial health, and attitudes and behaviors around money using scientifically validated measures.
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Gielan partnered with Frost Bank and found that optimists do three key things to increase financial health and decrease financial stress.
Characteristics of An Optimist
Optimism is defined as the inclination to put the most favorable construction upon actions and events or to anticipate the best possible outcome. Optimists are:
Hope is Granted Believers
I believe that Christians have something even stronger than optimism – a real reason to be filled with hope. Hope depends on a mindset of gratitude and faith. Because we live in a fallen world, we will face difficult things. The Bible calls these painful or challenging times, trials and tribulations. But, we can learn how to respond and experience what the Apostle Paul described: I can do all things through him who strengthens me. (Philippians 4:11a-13 ESV)
God is our Rock, our Refuge, our Protector and Provider. He provides strength for every situation. His Word is filled with hope. We simply have to renew our minds with it.
Rejoice in the Lord always; again I will say, rejoice… do not be anxious about anything, but in everything by prayer and supplication with thanksgiving let your requests be made known to God. And the peace of God, which surpasses all understanding, will guard your hearts and your minds in Christ Jesus. (Philippians 4:6-7 ESV)
What Now?
Here are some practical tips to help you improved your financial picture:
The Lord can restore hope and grant you confidence as a couple to meet the challenges you face. With God, all things are possible! God told Jeremiah, “Behold, I am the Lord, the God of all flesh. Is anything too hard for me? (Jeremiah 32:27 ESV)
Become a Better Steward
God has granted us the privilege of using all He provides to impact His kingdom. We are His ambassadors and stewards. How awesome is that!
Choose to be an optimist. Dwell on the beautiful things God has done for you. Spend time in nature, thank Him each morning, and choose to actively take control of your finances.
When anxious thoughts flood your husband’s mind, ask him to cry out to God to help his unbelief. (Mark 9:23-25 ESV) Together, you can trust Him, face your struggles, and implement Biblical financial principles for a sound future.
Originally published on the Christian Post, April 19, 2019
Dear Chuck,
When I listen to stories my grandparents tell of the hardships they endured and the sacrifices they and their parents made to provide and get ahead, I wonder if we have handicapped ourselves in our reliance on debt, the government, church benevolence, etc. I understand the need in emergency situations, but I’m concerned for our general population. Any thoughts?
Taking It Easy
Dear Easy,
It is not uncommon for the older generation to be concerned about younger generations. That may be why Ecclesiastes 7:10 says, Do not say, ‘Why were the old days better than these?’ For it is not wise to ask such questions.
But I generally agree with you that there’s a lack of discipline in many areas of life as evidenced by America’s obesity, sexual misconduct, porn addiction, gaming, obsession with entertainment and social media, growing federal debt and vitriolic rhetoric. I could go on, but let’s stick to my topic: money. Many of the financial problems we have in our country can be attributed to overspending, a lack of basic literacy in personal finance and ignorance of God’s financial principles.
It’s been said that if you don’t discipline your finances, they’ll discipline you. But, I’ll add that undisciplined spending punishes you.
Current Stats
It Doesn’t Have to Be This Way
In his book, Folks, this Ain’t Normal, Joel Salatin relates how he and his wife moved into his parents’ farmhouse attic and converted it into an apartment. When his grandmother, who lived in a mobile home on the property, passed away, his parents moved there, giving Joel their home to raise his family. His grown children have returned to live on the same land with their families.
Joel’s children had chores, started their own businesses, and at 20 years old, had $20,000 in the bank. Given no allowance, they earned money and saved for the future. He considers it liberating and launching. I find it lacking in many homes today.
Example of Patience and Prayer
Recently, I learned about a couple who stopped using credit cards. Their budget was tight and they ran out of diapers along with cash. Desperate, they prayed.
Sometime later, their neighbor appeared at the door. She asked if they could use a case of diapers that her child had outgrown. It was the exact size they needed. God provided.
I fear many are missing out on God’s blessings because of impatience. Rather than working hard, asking and waiting on Him to provide, they rely on easy credit or dependence on others. Many families are fractured and so burdened with debt they are unable to help one another.
God Has a Better Way
The Bible speaks to the importance of spending less than we earn, working diligently, saving consistently and avoiding debt. But more importantly, it speaks to our attitudes and beliefs. The Lord wants us to be transformed from the world’s ways to follow His ways so that we can be free. Here are some of the issues that will help anyone follow God’s way of managing money.
1. Confess and Repent
If we confess our sins, he is faithful and just to forgive us our sins and to cleanse us from all unrighteousness. (1 John 1:9 ESV)
2. Commit to God
The fear of the Lord is the beginning of wisdom and knowledge of the Holy One is insight. (Proverbs 9:10 ESV)
Delight yourself in the Lord, and he will give you the desires of your heart. Commit your way to the Lord; trust in him and he will act: He will bring forth your righteousness as the light, and your justice as the noonday. (Psalm 37: 4-6 ESV)
3. Recognize Wrong Attitudes
Better is a little with the fear of the Lord than great treasure and trouble with it. (Proverbs 15:16 ESV)
4. Trust Him
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)
5. Learn Contentment
…I have learned in whatever situation I am to be content…I can do all things through Him who strengthens me. (Philippians 4:11-13 ESV)
6. Prepare for Testing
The Lord tests the righteous. (Psalm 11:5 ESV)
7. Reject the Lies of the World
Do not love the world or the things in the world. If anyone loves the world, the love of the Father is not in him. For all that is in the world—the desires of the flesh and the desires of the eyes and pride of life—is not from the Father but is from the world. (1 John 2:15-16 ESV)
8. Guard the Heart
Finally, be strong in the Lord and in the strength of his might. Put on the whole armor of God, that you may be able to stand against the schemes of the devil. (Ephesians 6:10-11 ESV)
9. Flee Temptation
No temptation has overtaken you that is not common to man. God is faithful, and he will not let you be tempted beyond your ability, but with the temptation he will also provide the way of escape, that you may be able to endure it. (1 Corinthians 10:13 ESV)
Summary
Some families model Biblical financial principles. Others learn to trust God through mistakes and suffering. Thankfully, God is faithful to all who trust Him.
God, our Provider, has blessed us beyond measure. It is our responsibility to live as wise stewards, giving, saving, and planning ahead while fully depending on Him. Depending on Him unshackles us from depending on the world.
If you’re currently enslaved to your creditors because of overwhelming credit card debt, get in touch with our partners at Christian Credit Counselors. They’ve helped hundreds of thousands of families lift the burden of credit card debt by following biblical principles. You can learn more and start with a free debt analysis here.
George Muller once said: Be assured, if you walk with Him and look to Him, and expect help from Him, He will never fail you. He knew, like the Apostle Paul …my God will meet ALL your needs according to the riches of his glory in Christ Jesus. (Philippians 4:19)
Instead of worrying about the problems we see in coming generations, join us in the effort to teach and train Christians, old and young alike, to know and apply God’s financial principles. You can learn more about our online courses at crown.org.
Originally published on the Christian Post, April 12, 2019
Dear Chuck,
I see that mortgage rates are dropping. Several years ago, my husband and I bought more house than we really need. Is this the time to sell so we can purchase something more affordable? Our current home eats up 40% of our budget preventing us from saving and giving at a level we desire.
House Poor
Dear House Poor,
In a sense, you truly are “house poor,” like many Americans, as a result of carrying too high of a mortgage for your current income. I commend your interest in cutting your housing expense. It is the biggest expense in the American budget. And, now may indeed be a great time to lower your costs!
Rates for a 30-year fixed rate mortgage have dropped to a 14-month low amidst the largest weekly decline since June 2009. March 28th, Freddie Mac reported that a 30-year fixed-rate-mortgage (FRM) averaged 4.06% compared to 4.40% at this time last year. A 15-year FRM averaged 3.57% down from 3.9% last year.
Danielle Hale, chief economist for Realtor.com reports: Putting a home on the market in early April positions sellers to attract buyers seeking to a close and move before the beginning of the school year.
Realtor.com reveals that homes listed now will sell an average six days faster for several percentage points higher, granting sellers an average gain of $17,000. June is traditionally peak buying season, but where you live could be a determining factor, so do your research first.
High volume for peak selling means buyers have more homes to choose from, and sellers benefit from shorter marketing time with more buyers in the market.
If you want to stay put, refinancing may help your budget. Consider key factors and use our refinancing calculator before taking a leap. Also be sure you understand the difference between refinancing and recasting before you make a decision.
NerdWallet says buyers should compare mortgages at five lenders before applying for a loan. They calculated that this step could save $430 in interest the first year alone, based on a 30-year FRM on a $260,000 home. This will take some time but a mortgage comparison tool can help you see the differences in monthly payments and the long-term costs. It is well worth the time to compare rates to get your best deal.
Unless buyers are paying cash, they should get pre-approved to avoid missing a purchase in highly competitive markets. This reduces stress, grants higher acceptance of offers, provides credibility, and gives realtors the confidence needed to help find clients exactly what they want. In addition, appraisals can be ordered and the entire processing goes faster.
Last month, Market Watch released a report from RentCafe revealing that the number of renters over 60 has increased more than any other age group. The number grew by 43% over the past decade compared to an increase of 7% in renters under age 35.
If the trend continues, RentCafe economists predict seniors will be the second largest group of renters by 2035. A friend of mine explained that many seniors want a “lock and leave” situation that gives them freedom from maintenance and security issues as they travel and need more flexibility. The availability of their homes will be a blessing to those seeking to purchase homes in areas of housing shortages.
Overextending causes stress and deprives homeowners from living as God designed. New research from TD Ameritrade shows that “super savers,” those who save 20% or more of their income, spend less on housing that the rest of the population. The statistics are astounding: super savers spend an average 14% on housing while others spend 23%.
They discovered that cutting one major expense in their budget eliminates the fatigue of reducing lots of smaller budget items. And, they know that the extra space marketed in newer homes is not necessary. The living space per person in homes built today are double what they were in the ‘70s. The danger with the extra space is the temptation to fill it with “stuff” you don’t need, can’t afford and won’t want in the future. Smaller homes save in more ways than just the mortgage payments!
Whether renting or buying, God’s Word is timeless and helpful at all times.
In my Father’s house are many rooms. If it were not so, would I have told you that I go to prepare a place for you? And if I go and prepare a place for you, I will come again and will take you to myself, that where I am you may be also. (John 14:2-3 ESV)
Prepare your work outside; get everything ready for yourself in the field, and after that build your house. (Proverbs: 24:27 ESV)
By wisdom a house is built, and by understanding it is established; by knowledge the rooms are filled with all precious and pleasant riches. (Proverbs 24:3-4 ESV)
Everyone then who hears these words of mine and does them will be like a wise man who built his house on the rock. (Matthew 7:24 ESV)
You can work to increase your income, or immediately relieve the pressure by downsizing. One or both of those is required. In your case, 40% is far more than you should be paying for your mortgage, so it is a good time to get right-sized. Try to have a mortgage of no more than 14 -25% of your monthly net income. This will allow you to save and give more, and sleep better at night.
Originally published on the Christian Post, April 5, 2019
Dear Chuck,
The recent story of celebrities, business leaders, and wealthy parents bribing their children’s way to college has really bothered me. I feel bad for their kids. But it’s also called to light how much emphasis we put on attending college. Most people can’t bribe their way in, or even pay for college without incurring debt. What’s a college degree really worth?
Blue About Varsity Blues
Dear Blue,
Earlier this month, 50 individuals, including 33 parents, were indicted in the largest college admissions scandal to date. Parents paid anywhere from $15,000 to $6 million to alter their children’s SAT or ACT scores, get them on collegiate sports rosters, or buy their spot in the Freshman class at a number of universities. At the center of it all is William “Rick” Singer, who worked as the middleman, accepting bribes from parents and making deals with athletic coaches, standardized testing proctors, and administrators. Many of the students were unaware of their parents’ fraudulent actions on their behalf, but not all.
You’re absolutely right – it’s a heartbreaking case for everyone involved. For a student to find that their parents had gone to such great lengths to cheat their way into a college or athletic program probably feels a lot like they’re saying, “I don’t believe in you.” Not only is it hurtful, but now their admission process to any university in the future will likely be complicated at best.
What’s even worse is the injustice at the core of this scandal. Admission spots that could have been fairly earned by deserving, hard-working students were taken away by dishonest and unfair tactics.
Contrary to popular opinion, I would advocate that not everyone needs to go to college. And the college experience for students who do end up pursuing a degree can vary greatly depending on their desired career path and financial situation. I believe that God designed each of us and each of our kids uniquely, therefore a one-size-fits-all education path is nonexistent. However, in America, a 4-year college degree has been regarded as the “ticket” to a middle or upper-middle class life.
This mindset has put an incredible amount of pressure on students and parents alike to fit college into life plans, regardless of their financial situation or individual design. But as we’ve seen, this mindset of “first comes high school, then comes college, then comes a six-figure degree” can end in disappointment and serious financial burdens.
According to Student Loan Hero,
Among the Class of 2018, 69% of college students took out student loans, and they graduated with an average debt of $29,800, including both private and federal debt. Meanwhile, 14% of their parents took out an average of $35,600 in federal Parent PLUS loans.
Remember that switching majors or trying out different career paths during college can add on years and tens of thousands of dollars of debt. And none of this guarantees a job that will cover the debt upon graduation. If you or your child are considering pursuing a degree, consider using a tool like Crown’s Career Direct Assessment to help you discern the right career path and education plan for your unique design.
Earning a college degree debt-free is totally possible, although it may mean sacrificing a stereotypical college experience. Students can be proactive in high school by taking as many AP classes as possible, taking CLEP tests, scoring well (through honest means) on the SAT and ACT, and applying for scholarships. All these efforts, along with the option of attending community college for two years will help greatly reduce the price of tuition.
I’d also recommend resources like Lumerit Unbound. They help you save money while still getting a degree from the school you want. You can get a free quote by visiting their website.
Our boys applied themselves to studying and were awarded scholarships. Some earned college credit in high school, several attended community college and all had jobs while in high school. Working hard and making sacrifices isn’t glamorous by the world’s standards. But graduating debt-free, with integrity, and without $30,000 of debt hanging over your head is certainly worth it!
Responsible Parenting
I don’t doubt that many, if not all, of these parents thought they had good intentions. As parents, of course we want the best for our children. We want to see them succeed and have a happy life. But our responsibility as parents isn’t to move all obstacles out of our children’s way (snowplow parenting). Doing so robs our children of the opportunity to mature and grow.
Romans 5 says we “glory in our sufferings, because we know that suffering produces perseverance; perseverance, character; and character, hope.” Of course we don’t want to see our children suffer. What we want is to see our children full of perseverance, character, and hope, which are produced by enduring trials. Instead of moving trials and hardships out of their way, we prepare our children for them.
Psalm 127 gives us a beautiful picture of our children as arrows in our quiver. But we must remember the warrior’s job is to launch the arrows, not hold on to them. Our children are meant to leave our quiver; it’s our job to prepare them to do so well.
Preparing our children well includes teaching them many lessons they don’t learn in school (even at Yale or Harvard!). These start in the home and are taught through life experiences, trials, and your example.
The integrity of the upright guides them, but the unfaithful are destroyed by their duplicity. (Proverbs 11:3)
Better the poor whose walk is blameless than the rich whose ways are perverse. (Proverbs 28:6)
To do what is right and just is more acceptable to the LORD than sacrifice. (Proverbs 21:3)
For we are taking pains to do what is right, not only in the eyes of the Lord but also in the eyes of man. (2 Corinthians 8:21)
Let your eyes look straight ahead; fix your gaze directly before you. Give careful thought to the paths for your feet and be steadfast in all your ways. Do not turn to the right or the left; keep your foot from evil. (Proverbs 4:25-27)
My guess is that these 33 parents facing criminal charges wish they would have followed the wisdom of these verses earlier. Teach your students to walk with integrity.
The fear of the LORD is the beginning of wisdom, and knowledge of the Holy One is understanding. (Proverbs 9:10)
How much better to get wisdom than gold, to choose understanding rather than silver! (Proverbs 16:16)
Do not forsake wisdom, and she will protect you; love her, and she will watch over you. Wisdom is supreme; therefore get wisdom. Though it cost all you have, get understanding. (Proverbs 4:6-7)
The mocker seeks wisdom and finds none, but knowledge comes easily to the discerning. (Proverbs 14:6)
These verses explaining the value of wisdom aren’t just symbolic – wisdom is truly more valuable than a bank account full of money. Wisdom is eternal but money is not.
Do not store up for yourselves treasures on earth, where moths and vermin destroy, and where thieves break in and steal. But store up for yourselves treasures in heaven, where moths and vermin do not destroy, and where thieves do not break in and steal. For where your treasure is, there your heart will be also. (Matthew 6:19-21)
His master replied, ‘Well done, good and faithful servant! You have been faithful with a few things; I will put you in charge of many things. Come and share your master’s happiness! (Matthew 25:21)
The greedy bring ruin to their households, but the one who hates bribes will live. (Proverbs 15:27)
Extortion turns a wise person into a fool, and a bribe corrupts the heart. (Ecclesiastes 7:7)
Stewardship is not ordering your finances in a way you can spend whatever you want. It’s ordering your life in such a way that God can spend you however He wants.
Bribing your child’s way into college: $1.2 million
Incurring student debt for a 4-year degree: $30,000+
Living a life of stewardship and modeling it for your children: priceless.
Originally published on the Christian Post, March 29, 2019.
Hey Chuck,
I read more and more people pushing for Universal Basic Income (UBI)? This sounds cool but so does a free condo on the beach. First, what is it? More importantly, is it really a good thing?
Interested in UBI
Thanks for your important and timely question. UBI is being talked about heavily among Silicon Valley tech titans like Mark Zuckerberg. Recently, new presidential candidate Andrew Yang has even made it his central campaign promise.
On the surface, UBI does sound intriguing: everyone gets guaranteed monthly income; cash in the bank, no strings attached. This idea has been around for a while and is currently being tried in a number of places around the world:
Finland:
After a two-year-long experiment, the government found that the recipients “were no better or worse than the control groups at finding employment in the open labor market…” The Finnish government chose not to extend the program after the experiment ended.
Ontario, Canda:
Only 15 months into a planned three-year-long Basic Income experiment, the Ontario government shut down the program, citing that it was “not sustainable.”
Stockton, California:
Recently launched, the SEED program will give $500 a month to 130 individuals for 18 months. The recipients can spend the money however they want. Proponents of the experiment are hoping it helps low-income people “work smarter and harder.”
A 2020 Democratic presidential candidate, he calls his version the “Freedom Dividend,” which has a nice ring to it, doesn’t it? His proposal would call for a monthly stipend of $1,000 ($12,000/year) for everyone between the ages of 18-64 (working age Americans).
Most every proponent of the free money for all campaign share a common justification for the so-called pressing need to get this done sooner than later. They have a dystopian worldview that believes that technology is going to rapidly replace the lower economic end of the workforce with robots and artificial intelligence which will lead to mass unemployment, crime, poverty, and widespread violence. They assert that jobs in the trucking and retail industries will be the first to go, which are among America’s largest employers.
The most popular argument for UBI is that:
UBI would give individuals freedom to spend the money in a way they choose. In other words, UBI strengthens economic liberty at an individual level. This would help them to choose the kind of work they want to do, rather than forcing them to do unproductive work to meet their daily requirements.
Two main issues I have with this:
In short, no. I see several reasons UBI is in conflict with biblical principles.
Work was created by God to supply our physical needs, and should be a blessing to us. God charged Adam with work to take care of the earth and reign over the animals in Genesis, before sin had ever entered the world. We are designed to work and UBI removes the dignity, necessity, and satisfaction of work.
One of the main symptoms of discontentment is that you’re unable to experience peace living on what God has provided. You buy into the philosophy that you always need more, better, faster. You compare the things you have to the things you could have. What you currently have is never good enough. If everyone received $1,000 a month from the government, soon they’ll want $1,500, then $2,000. Ecclesiastes 5:10 says, Whoever loves money never has enough; whoever loves wealth is never satisfied with their income.
UBI perpetuates this attitude of discontentment by assuming money will solve the problem of poverty and make people happy.
But a lack of finances isn’t the cause of poverty – in the vast majority of cases, mismanagement of what we have is to blame, not only for poverty, but all kinds of debt, corruption, and destitution. Of course, there are extreme circumstances that lead to financial hardships, and those in the top 1% of income earners also mismanage money.
Putting more money into the hands of those who are not equipped to manage it with biblical principles will not solve their long term problems (regardless of their socioeconomic status). Attempting to equally distribute money will not result in equal stewardship of money. Instead, it will slow economic growth, de-incentivize business, and increase the tax burden of the country. Starting with the wrong assumption will always lead to the wrong solution.
The world’s economy promotes a scarcity mindset – that there is never enough. This feeds our sinful nature of greed, dishonesty, and selfishness. It tells us to pursue more, bigger, and better for our own gain. Most who vote for UBI do so to protect their own wealth, not to help less fortunate people.
But the principles of God’s economy are in stark contrast, encouraging us to live fruitful, productive lives, exhibiting generosity, honesty, and selflessness. God’s economy is based on the principles of abundance:
But I do not need the bulls from your barns or the goats from your pens. For all the animals of the forest are mine, and I own the cattle on a thousand hills. (Psalm 50:9-10)
And God is able to bless you abundantly, so that in all things at all times, having all that you need, you will abound in every good work. (2 Corinthians 9:8)
The LORD will open the heavens, the storehouse of his bounty, to send rain on your land in season and to bless all the work of your hands. You will lend to many nations but will borrow from none. (Deuteronomy 8:12)
Every good and perfect gift is from above, coming down from the Father of the heavenly lights, who does not change like shifting shadows. (James 1:17)
We serve a good God, a generous Father, who is eager to bless His children (Matthew 6:25-34, Matthew 7:11). Why would we look to the government for our provision when the Creator of all cares about our every need?
Ultimately, I see many more problems with UBI than sustainable solutions. I don’t see it as a realistic escape from poverty, a benefit to the economy, or a program in line with Scripture. I see it as massive tax leading to less freedom and less economic growth. We should reject UBI and promote the solutions that God says will help us: work diligently, steward wisely and provide private charitable help to those unable to work.
Originally published on the Christian Post, March 22, 2019
Dear Chuck,
I don’t know how my parents are going to afford to live their projected lifespan. If they are concerned, they sure don’t live like it. I’m saving and investing as much as I can, but I’m not sure I could adequately come to their rescue.
Need Hope
Dear Hope,
I understand your concern. Americans are living longer and many costs are greater than they anticipate. In addition, some don’t have life insurance or a will.
Aside from catastrophes that lead to debt, many elderly Americans are financially trapped by the pleasures they pursued in this life rather than experiencing the joy promised by Christ.
Undisciplined spending causes serious issues that can last a lifetime. Many in our nation rely on easy credit and give in to their desires without any thought of the future. As a result, we have a population mismanaging money, not giving, not saving, carrying debt, and totally unprepared for emergencies.
The 2018 Retirement Savings survey conducted by GoBankingRates.com found that 42 percent of Americans have less than $10,000 saved. The good news is that the majority has at least $10,000 saved! But 14 percent have nothing saved.
CreditCards.com conducted a poll and reported that 65 percent of Americans with debt do not know if or when they will get out of it. Twenty-five percent of them expect to die with debt. Their most common debt is as follows:
The high level of credit card debt is a major red flag. High interest rates can grow a person’s total debt to staggering levels. One reason why many carry credit card debt is because of emergencies and the lack of funds to cover things like car repairs, medical bills, or home repairs.
If you find yourself (or your parents) in overwhelming credit card debt, contact our partners at Christian Credit Counselors. They have a wonderful staff of professional and compassionate counselors who specialize in helping you pay off your debt in full 80% faster, which means you save significant time and money.
Retirement Debt
People should avoid retiring with debt, but 30 percent of seniors still carry a mortgage. It is vital that people prepare years ahead of retirement. This requires a disciplined lifestyle of sacrifices, lifestyle changes, and priority adjustments. It demands a realistic look at finances and a working knowledge of proper stewardship so that final years can be spent in financial peace. Unfortunately, many don’t prepare in time.
It is irresponsible, selfish and unnecessary for people to die expecting someone else to pay their bills. Sacrificing desires and living contrary to the world is how our forefathers were able to leave an inheritance for their children and die in peace. It is heartbreaking to see the stress brought on families because of debt. Unfortunately, many are unaware of what debt really costs. There is the dollar cost, but there are also psychological costs which affect physical health.
Many are financially unprepared because we are living longer. Consider these costs:
And, here are a few additional threats to retirement:
What the Bible Says
The Bible does not prohibit the use of credit, but there are three basic principles in how it should be used.
Few people who accumulate overwhelming balances set out to do so – the cycle of credit card debt is often caused by something like job loss or medical bills and perpetuated by a lack of savings or margin. Our partners at Christian Credit Counselors work every day to help individuals and families lift the burden of credit card debt. If you need help, or think you may need help, contact them today.
Imagine the peace of facing death knowing you’ve taken care of your finances. You can bless those you love and the body of Christ by preparing ahead and living a self-controlled life.
A good man leaves an inheritance to his children’s children, but the sinner’s wealth is laid up for the righteous. (Proverbs 13:22 ESV)
And Paul said: Owe no one anything, except to love each other, for the one who loves another has fulfilled the law. (Romans 13:8 ESV)
Originally published on the Christian Post, March 15, 2019
Dear Chuck,
I read that America has dangerous levels of federal debt but also read that it really doesn’t matter. Which is it? And what should I do about it?
Worried Taxpayer
Dear Worried,
America’s federal debt has recently swelled to twenty-two trillion dollars. Those are numbers that were once used only in the field of astronomy.
This is a confusing topic because it is impossible to accurately predict a tipping point for our national debt. The danger lies in our ability or inability to respond to a future crisis. It is my opinion that regardless of our government’s debt, believers should manage their finances in a way that honors the Lord: prepared for a crisis and not living dependent on the government.
Some make the argument that our debt doesn’t matter because America has an advantage over many nations. We have abundant natural resources, one political system, one monetary system, one primary language, fairly peaceful neighbors, and a population that all grant confidence for foreign investors. All true.
Our government debt is not an immediate concern for many because interest rates are low. However, if our lenders ever lose confidence in the good faith and credit of the U.S., then our debt could actually become a real threat. There are those who believe the Modern Monetary Theory in which a government in control of its currency just prints more as needed. Deficits don’t matter to MMT-ers, because the government can’t go broke. So they believe.
Despite the Naysayers, Debt is a Real Concern
Pete Peterson, for Newsweek in 2009 stated,
For years, I have been saying that the American government, and America itself, has to change its spending and borrowing policies: the tens of trillions of dollars in unfunded entitlements and promises, the dangerous dependence on foreign capital, our pitiful level of savings, the metastasizing health-care costs, our energy gluttony. These structural deficits are unsustainable.
Martin Crutsinger, at apnews.com, wrote:
The national debt is the total of the annual budget deficits. The Congressional Budget Office projects that this year’s deficit will be $897 billion – a 15.1 percent increase over last year’s imbalance of $779 billion. In the coming years, the CBO forecasts that the deficit will keep rising, top $1 trillion annually beginning in 2022 and never drop below $1 trillion through 2029. Much of the increase will come from mounting costs to fund Social Security and Medicare as the vast generation of baby boomers continue to retire.
Binyamin Appelbaum, with the New York Times, reported:
Economists have warned that government borrowing would limit private sector borrowing, which would constrain economic growth; that it would drive up inflation; and even that the government might find itself unable to borrow, if creditors presumed the United States was too deep in debt and might be unable to make interest payments or repay its liabilities in full.
Michael A. Peterson remarked that the federal debt “threatens the economic future of every American” when the $22 trillion milestone was crossed.
And, yet, investors still have confidence in the power of the U.S. economy. Bob Doll’s Weekly Investment Commentary for Nuveen states:
Rising debt issues are a concern but fundamentals still look decent. The overall debt profile of the U.S. government is worsening, which could present significant economic issues over time. But household and corporate debt levels are healthy, and we don’t think we are entering an environment of serious credit issues.
The Bible Warns Against Debt
The rich rules over the poor, and the borrower is the slave of the lender. (Proverbs 22:7 ESV)
For the Lord your God will bless you as he has promised, and you will lend to many nations but will borrow from none. You will rule over many nations but none will rule over you. (Deuteronomy 15:6 ESV)
And you shall lend to many nations, but you shall not borrow. And the Lord will make you the head and not the tail, and you shall only go up and not down, if you obey the commandments of the Lord your God. (Deuteronomy 28:12b-13a ESV)
It is easy to see the speck in government spending, but fail to see a log in our own eyes. Consider these recent statistics on personal debt in America:
Is our leadership influencing the populace? Does a government that runs on borrowed money endorse its people to do likewise? How would this nation look if it ran contrary to that fact; a nation with reserves protecting its people and prepared for unexpected emergencies?
It is easy to cast stones at the government’s debt and ignore our own. Americans in general have financial issues. We must ask ourselves if we are influencing culture or whether the culture is influencing us.
Compare our government and personal debt to a volcano. It can appear beautiful from a distance, but stretching far below the surface, hidden channels of hot magma are accumulating. Pressure is building, and at some point, the stress becomes so great that it erupts, and anything in its path gets burned.
Volcanologists can predict eruptions if they understand the volcano’s history and can monitor data from properly installed equipment. Even then, it is not possible to accurately predict the severity of the eruption.
So regardless of whether our government ever stops piling on more debt or will one day rein it in, we need to manage our personal finances in such a way as to reflect the wisdom of God. Minimize your personal debt, increase your savings, and lay up for yourselves treasures in Heaven where you have a guarantee on the safekeeping of your investments.
If you need to take the first step towards paying off overwhelming credit card debt (hopefully it’s still less than $22 trillion), get in touch with our friends at Christian Credit Counselors. We trust them because they help you attack your debt the right way. Over 300,000 families have already lifted the burden of credit card debt with their help, and you can, too!
Originally published on the Christian Post, March 8, 2019
Dear Chuck,
For several years now, my spouse and I have depended on our tax refund to make it through the year. A friend told me to not expect as much as last year and now I’m concerned about how that will affect our family. Can you offer any help for this year and tips to prepare for next year?
Taxed
Dear Taxed,
Great question, since roughly 60% of Americans expect to receive a refund based on their income tax filings.
The Tax Cuts and Jobs Act passed in December 2017 made changes that impact all of us this year. Many Americans do not know how those changes will affect them and may be pleasantly surprised or extremely disappointed.
The IRS released filing statistics for the week ending February 8th. The first two weeks of filing reveal that the number of returns is down and that refunds have dropped 8.7% with an average decrease of $186. These numbers are no reason to panic. We have another 6 weeks of statistics to analyze and some analysts predict higher returns.
Lower refunds are not indicative of more taxes paid, but the fact that tax savings showed up in paychecks throughout the year. This is the situation for those who did not adjust their withholdings after the new tax law changes.
Business Insider reported that UBS analyzed how the new tax law would affect tax refunds. The findings revealed the following:
Plan and File Early
Helpful Resources
Beware Of…
Work Toward a Zero Refund
Remember, refunds are interest-free loans to the federal government. If you are in the habit of receiving large returns, adjust your withholding (and mindset) to use the monthly increase in pay towards giving, saving, and paying down debt. Focus on being a wise steward.
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? (Luke 16:10-11 ESV)
Honor the Lord
Paying taxes is an opportunity to honor the Lord by living in obedience to His word. Consider some of the passages that should guide us:
He said to them, “Then render to Caesar the things that are Caesar’s, and to God the things that are God’s.”(Luke 20:25 ESV)
Let every person be subject to the governing authorities. For there is no authority except from God, and those that exist have been instituted by God. Therefore whoever resists the authorities resists what God has appointed, and those who resist will incur judgment. For rulers are not a terror to good conduct, but to bad. Would you have no fear of the one who is in authority? Then do what is good, and you will receive his approval, for he is God’s servant for your good. But if you do wrong, be afraid, for he does not bear the sword in vain. For he is the servant of God, an avenger who carries out God’s wrath on the wrongdoer. Therefore one must be in subjection, not only to avoid God’s wrath but also for the sake of conscience. For because of this you also pay taxes, for the authorities are ministers of God, attending to this very thing. Pay to all what is owed to them: taxes to whom taxes are owed, revenue to whom revenue is owed, respect to whom respect is owed, honor to whom honor is owed. (Romans 13:1-7 ESV)
Remind them to be submissive to rulers and authorities, to be obedient, to be ready for every good work… (Titus 3:1a ESV)
Be subject for the Lord’s sake to every human institution, whether it be to the emperor as supreme, or to governors as sent by him to punish those who do evil and to praise those who do good. For this is the will of God, that by doing good you should put to silence the ignorance of foolish people. Live as people who are free, not using your freedom as a cover-up for evil, but living as servants of God. Honor everyone. Love the brotherhood. Fear God. Honor the emperor. (1 Peter 2:13-16 ESV)
Pray
Our country is becoming more and more polarized. Let us commit to praying for our leaders at the local, state and federal levels. Pray for wisdom, discernment, and humility for responsible spending. Pray they will stop borrowing, work towards limiting government, and conduct themselves with diligence and dignity.
If my people who are called by my name humble themselves, and pray and seek my face and turn from their wicked ways, then I will hear from heaven and will forgive their sin and heal their land. (2 Chronicles 7:14 ESV)
First of all, then, I urge that supplications, prayers, intercessions, and thanksgivings be made for all people, for kings and all who are in high positions, that we may lead a peaceful and quiet life, godly and dignified in every way. (1 Timothy 2:1-2 ESV)
Originally published on the Christian Post, March 1, 2019
Dear Chuck,
In his State of the Union Address, President Trump declared that “America will never be a socialist nation.” Some say the Bible supports socialism. Does the Bible support it or any other specific economic system?
Unsocial
Dear Unsocial,
I’m glad you asked, because I fear many people are supporting an economic philosophy they really don’t understand. To many, it sounds good on the surface, maybe even compassionate and fair, a way to close the income inequalities that exist. In reality, it is none of those.
Remember, Robin Hood is a fairy tale. It should never be attempted as an economic system and it is certainly not supported in Scripture. God’s Word prohibits taking from the rich and poor alike.
It is not just an alternative form of government. It is a different way of life, one that is entirely incompatible with what Americans take for granted, the inalienable rights to life, liberty, and property, which have set the backdrop for the amazing economic development and progress.
Margaret Thatcher warned that the problem with socialism is that “you eventually run out of other people’s money.”
I have heard it said that socialism truly does usher inequality: equal misery for all.
Dr. Anne Bradley, with the Institute for Faith, Work & Economics, identified how Venezuela Took the Fastest Route to Poverty, in an article released February 1, 2019.
Eliminating prices and making things free or nearly free is the fastest road to poverty and ruin. Making something free doesn’t make it less scarce. It just means we have to find another way to finance those free things.
Printing money to finance the “free things” in Venezuela resulted in hyperinflation. Prices are needed, Bradley defends: “They are powerful market signals. Policies aiming to eliminate them are the surest, quickest way to poverty.”
Frank Vernuccio, in an article posted on January 17, 2019 in The Affluent Investor states that “Venezuela adopted socialism – the very same brand being promoted here in America.” He cites an article at the Mises Institute written by two Venezuelans, who explain this reality:
Ultimately, the lesson we learned is that socialism never, ever works…It was very common during the years we suffered under Hugo Chavez to hear these pundits and economists on TV saying that this time, socialism is being done right. This time, the Venezuelans figured it out. They were, and are wrong.
Having traveled the world, I’ve witnessed the devastation of socialism and communism. People struggle to overcome barriers that their governments impose and suffer as many of their resources are taken from them. They lose the incentive to work which is contrary to God’s plan for us. Inevitably, systems that are centrally controlled are corrupted, leading to widespread economic pain.
Issues like debt, lack of margin, and no motivation arise instead of financial freedom, generosity, and biblical ambition.
The Bible teaches that God gives resources to people, to individuals with private ownership and personal responsibility, and holds them accountable for stewarding these resources. The ability to work and steward our gain is a tremendous privilege in a free society where one can achieve according to their desire to work.
The Lord God took the man and put him in the garden of Eden to work it and keep it. And the Lord God commanded the man, saying, “You may surely eat of every tree of the garden, but of the tree of the knowledge of good and evil you shall not eat, for in the day that you eat of it you shall surely die.” (Genesis 2:15 ESV)
In all toil there is profit, but mere talk tends only to poverty. (Proverbs 14:23 ESV)
If anyone is not willing to work, let him not eat. (1 Thessalonians 3:10)
A little sleep, a little slumber, a little folding of the hands to rest, and poverty will come upon you like a robber, and want like an armed man. (Proverbs 24:33-34 ESV)
In all things I have shown you that by working hard in this way we must help the weak and remember the words of the Lord Jesus, how he himself said, ‘It is more blessed to give than to receive.’” (Acts 20:35 ESV)
Whatever you do, work heartily, as for the Lord and not for men, knowing that from the Lord you will receive the inheritance as your reward. You are serving the Lord Christ. (Colossians 3:23 ESV)
Work brings dignity and joy. It benefits the family and society, and provides the means of giving to others who cannot work. Economies where individual work and achievement are not rewarded will eventually collapse; dishonesty, greed, pride, and immorality will take over.
Last Thanksgiving, Jerry Bowyer shared how the pilgrims discovered abundance after a period of socialism and starvation. Decades later, our founding fathers, aware of the destruction caused by unleashed political power, created a limited government based on a constitution. The separation of powers, complete with checks and balances, were an attempt to protect the citizens of America. Private property rights and the freedom to enjoy personal advancement are supported by the 10 Commandments.
Although we hear a lot about socialism today, America does not need it. What we need is a return to the Biblical values that support capitalistic freedom governed by transformed hearts in a people that are willing to generously care for their neighbor.
It is easy to say we want someone else to care for our neighbor; it is hard to take that responsibility personally. But God said that along with our freedom to prosper is our responsibility to extend kindness by caring and sharing. Taking from others to achieve equality is not the right way or God’s way.
By the way, if you’re struggling with credit card debt or feeling trapped with too many bills, get in touch with our partners at Christian Credit Counselors. They can help you with a plan to escape!
Originally published on the Christian Post, February 22, 2019
Dear Chuck,
Doesn’t the Bible say we should protect the environment? Are we going to have to give in to centralized government controls to preserve our natural resources? This “Green New Deal” has me nervous.
Ms. Green
Dear Ms. Green,
There is a lot in your question so let’s take the issues in order.
Yes, the Bible says we are to be stewards of our natural resources. It also addresses climate and economics and what is good and what is evil. We should always try and evaluate public policy through God’s Word to avoid being misled by proposals that are contrary to it.
Genesis 2:15 says, “The Lord God took the man and put him in the Garden of Eden to work it and take care of it.” Adam was given a stewardship responsibility in the garden before the Fall of Creation. Man was placed here to work and manage the beautiful world God created.
But it doesn’t stop there. Throughout God’s Word we learn that we are to faithfully manage more than just natural resources but our time, talents, finances, our children, and the gospel as well. Stewardship is the Lord’s way of restoring all that is broken in the world. More on this below.
Second question, “do we have to become socialists to preserve our natural resources’? Answer: No. In fact, it is faulty logic to believe that the public sector will be better stewards of anything than those in the private sector. However, I do agree with you that what is being touted as the solution to potential environmental catastrophe, the Green New Deal (GND), is cause for concern and a great leap forward towards a dangerous form of government if the legislation is enacted as law.
In December, 2018 a Yale survey reported that 81% of American voters support the Green New Deal yet 82% knew nothing about it. An explainer with the polled question described the promised environmental benefits without including the social impact.
Now that the impact has been more clearly defined, we know a few things.
The GND is predicated on the alarming assumption that we are on a collision course for a massive environmental and societal disaster in the near term – ten years – by 2029.
“Our nation – and our world – face a “perfect storm” of economic and environmental crises that threaten not only the global economy, but life on Earth as we know it.” Jill Stein, Presidential Candidate in 2016 explaining the need for the GND.
Socialist Rep. Alexandria Ocasio-Cortez, D-N.Y., and Sen. Ed Markey, D-Mass., have toned the rhetoric down a notch calling climate change “a direct threat to the national security of the United States”. Their proposed resolution calls for the United States to “achieve net-zero greenhouse gas emissions through a fair and just transition for all communities and workers.” Other elements include phasing out air travel and “aid for those unwilling to work.” Elements of the proposal have already drawn support from some congressional Democrats, including several seeking their party’s presidential nomination.
This is an issue, if as popular as reported by the Yale survey, that will require great discernment. Setting aside politics and proposed solutions, we must ask if there is sufficient evidence that climate change is the greatest “direct threat to the national security of the United States” that warrants immediate and sweeping public sector intervention and control. One possible Presidential candidate in 2020, Howard Schultz, disagrees. “I think the greatest threat domestically to the country is this $21 trillion debt hanging over the cloud of America and future generations.”
If Schultz is correct, the proposed solutions in the GND would make our fiscal crisis worse by accelerating the already massive debt levels of the federal government and the burdens of individual and corporate taxpayers. The economic impact would be dangerous.
The Bible specifically warns about debt in Proverbs 22:7, “….the borrower is a slave to the lender.” Financial collapse seems a far more likely near-term threat to our way of life than climate change. Many young Americans are deeply concerned about our environment and rightly so; however, solutions must be grounded in sound economic principles. Out of control spending (caused by lack of good stewardship of our national wealth) is a threat that plagues our national security and there is no indication that either political party is willing to put on the spending brakes.
The Bible contains specific verses about God’s control of the climate and the consequences for man’s disobedience. We can safely conclude three things:
I do not know how the Green New Deal can avert problems with weather extremes. But I know what is needed: true repentance for our sins before the holy God who controls the weather.
Biblical stewardship means we must make decisions that will ultimately glorify God and positively impact the lives of others across the planet. Greed and exploitation are completely inexcusable. Love for God, gratitude for all He has given, and concern for people made in His image should drive our efforts.
This is how one should regard us, as servants of Christ and stewards of the mysteries of God. It is required of stewards that they be found faithful. (1 Corinthians 4:1-2 ESV)
Dr. John C. Bergstrom, in his paper, Principles of a Christian Environmental Ethic, states:
The Christian steward also respects and values nature because he or she knows that both people and nature will share in redemption and renewal in the new eternal heaven and earth.
Because of sin, we, and nature alike, look forward to God’s future work, as Paul wrote the Romans:
For we know that the whole creation has been groaning together in the pains of childbirth until now. And not only the creation, but we ourselves, who have the firstfruits of the Spirit, groan inwardly as we wait eagerly for adoption as sons, the redemption of our bodies. (Romans 8:22-23 ESV)
