Dear Chuck,
We have always filed our taxes taking the standard deduction. A friend at church suggested I might qualify for a greater deduction because of our increased giving in 2023. What do you think is the best option?
Paying Caesar What Is Caesar’s
Dear Paying Caesar What Is Caesar’s,
Charles Schwab notes that for most people, total itemized deductions may be less than the standard deduction. My advice is simple, take whichever provides the greater deduction. It requires more time and patience to go the itemized route, but you may be rewarded in unexpected dollars refunded to you in overpayment of taxes. The Do-it-Yourself tax filing software makes it as easy as filling in the blanks. Just be sure you have receipts.
April 15th is the tax filing deadline. If you are filing an extension, the deadline is October 15th.
The standard deduction for the 2023 tax year is set at $13,850 for singles, $27,700 for those married and filing jointly, and $20,800 for heads of households. Taking advantage of available tax credits and itemizing deductions, however, can significantly lower your tax bill. Simply total your allowable itemized deductions. If the amount is higher than the available standard deduction (see above), then itemize. Take your time to avoid these common errors.
If you are preparing your own taxes this year and have yet to file or are interested in finding ways to increase your tax savings for next year, keep reading. Due to limited space, I am only addressing some commonly overlooked credits and deductions.
Tax Credits
Make sure to record all possible tax credits because they reduce the tax bill dollar for dollar.
Limited to $2,000 for every dependent under 17 with $1,600 refundable for the 2023 tax year. Details here.
This credit covers a percentage of daycare or similar costs for children under 13. You (and your spouse, if married) must have earned income from a job or be full-time students to qualify. If you run the maximum amount through a plan at work but spend more on work-related childcare, an extra dollar amount can be claimed. For tax year 2023, the maximum amount allowed to claim is $3,000 for one dependent or $6,000 for two or more. This does not apply when adjusted gross income exceeds $438,000. Details here.
This applies to those who lost a job, took a pay cut, or worked fewer hours during the year. It ranges from $632 to $7830. The amount varies depending on income, marital status, and family size. A tax return must be filed to qualify for the refund. If you failed to claim it in the past, you can file and claim an EITC refund for the three previous tax years.
American Opportunity Tax Credit (AOC): Maximum of $2,500 for the cost of tuition, books, equipment, and school fees—without including living expenses or transportation.
Lifetime Learning Credit: 20% of the first $10,000 paid toward tuition and fees. Maximum of $2,000.
Itemized Deductions
TurboTax reported that 45 million Americans itemized 1.2 trillion dollars’ worth of tax deductions. The total for those who claimed the standard deduction came to $747 billion.
The income tax deduction is usually larger unless you paid significant sales tax for big-ticket items like cars, trucks, boats, airplanes, etc., or major home improvements. This is especially helpful for those living in income-tax-free states. You can also total (with proof) all sales tax paid during the year. The total itemized deductions for all state and local taxes are limited to $10,000 per year.
If you owed taxes last year, include that with your state tax itemized deduction on the 2023 return, plus your state income taxes (if applicable.)
Deduct the points over the life of the loan. $1000 of points spread over 30 years gives a $33/year deduction. If the house was sold or refinanced and the loan is paid off, any remaining points can be applied that year.
Active duty military personnel who relocate can deduct these expenses unless reimbursement was provided by the government. This includes costs of travel, lodging, and the moving of possessions.
Besides the dollar amount given, you can write off expenses incurred while serving: 14 cents per mile if driving for charity, ingredients for soup kitchen, stamps purchased for a fundraiser, etc. Be sure you have receipts for monetary donations or gifts in kind to qualified charities.
A student, not claimed as a dependent, can deduct up to $2,500 of interest paid by you or someone else. Details.
If an employer pays your full salary but requests that jury fees be turned over to the company, you can deduct them.
Be sure to note that gambling winnings are considered taxable income. Losses are deductible but cannot exceed winnings.
Retirees need to pay attention to the 13 overlooked tax deductions for retirees.
I do not know anyone who finds pleasure in filing their taxes. However, I enjoy seeing how much I can reduce them by carefully reporting all possible deductions. As citizens of this nation, we are called to render unto Caesar the things that are Caesar’s and to God the things that are God’s.” (Luke 20:25 ESV) It is good stewardship to pay your full taxes after taking advantage of all available credits and itemized deductions.
I’d like to invite you to join a free Crown Bible study on the YouVersion app. We have several devotionals regarding money and stewardship that will help bring God’s Word into your daily life.
This article was originally published on The Christian Post on March 1, 2023
Dear Chuck,
My brother wants to have a family reunion at a casino resort. He thinks it is a real bargain. My husband and I are totally opposed. Can you give us some guidance?
Not a Gambling Family
Dear Not a Gambling Family,
First, there are a number of factors here that must be considered. The most exciting part is that your family wants to have a reunion! That is the good news. You don’t want to offend them or miss the opportunity. Family gatherings are priceless. But I certainly understand why you want to avoid a casino resort. It would be helpful to have more information about the “casino resort.” For instance, most of the large mainline cruise ships have casinos on board, but these can be avoided while enjoying other amenities and entertainment options. It does not sound to me like that is the case with the location your brother prefers.
Casino Resorts
This PlayUSA.com article explains that casino resorts have become tourist destinations because they have “everything one needs for an enjoyable weekend getaway.” They include entertainment, dining, gambling, spa, wellness and relaxation, and outdoor activities like hiking, golfing, sightseeing, and shopping. Customers say the resorts are a budget-friendly vacation. But the real costs are often hidden. These “budget-friendly vacations” are available only because so many of the guests will lose their money gambling.
Some people say gambling is just entertainment, like fishing, seeing a movie, or going to a baseball game. But when someone wins at gambling, they do so at the expense of others. Those who lose often go into debt. Addicts gamble more, thinking a big win will cover their debts. Many have shipwrecked their finances and possibly their entire lives by starting out with the idea of spending a limited amount on “entertainment” only to find themselves either addicted to the adrenalin rush of winning a few times or trying to double down and make up for their losses.
Gambling really boils down to self-gratification. It’s the thrill of possibly hitting the jackpot at any time. And winners don’t have to look at all the people who have been hurt by their participation.
The Facts about Gambling
EarthWeb.com gives these statistics:
PlayToday.co states, “The average loss of casino addicts is around $55,000,” and it is estimated that “23 million Americans are in debt because of gambling.”
Fortune.com reported that the casino industry was on track to win a record $60 billion from gamblers last year. According to the industry’s national trade association, the U.S. casino gambling industry generates almost $329 billion. 1.8 million jobs are supported by commercial and tribal casinos, either at the location themselves or in servicing them.
A gambling rivalry has existed between Virginia and North Carolina for years. Virginia opened a new Caesars last May, just across the border from North Carolina. The casino could be profiting as much as $250 million from North Carolinians. Some think casinos could improve the state’s economic growth. Others believe it would expose their communities to crime, addiction, and sex trafficking.
Despite the fact that casinos add revenue to communities, states, and the federal government, there are social costs involved. Technology has changed the look of gambling, and sports betting is on the rise. All segments of society are vulnerable to the temptation of gambling due to the availability of cell phones. People must determine not to play and be able to defend their stance.
“Almost every time, it’s in your best financial interest not to walk into that casino and place the bet—the math simply isn’t your friend.”
(Chris Neiger at Investopedia)
For Me to Win, Others Must Lose
Some say gambling is good for society, just like investing. There is a vast difference between gambling and investing. If you invest in a successful company making advances in medical technology, you’re putting your money into something that has intrinsic value: jobs are created, there are returns on your investment, and patients benefit from products the company creates. It’s a win-win situation. Those who gamble and hit the jackpot celebrate their win while ignoring the fact that others suffer loss.
Believers should focus on wisely stewarding the money they have, not dreaming of what they might win at gambling.
“Steady plodding brings prosperity; hasty speculation brings poverty.”
(Proverbs 21:5 TLB)
Faith that is put in luck and random chance ignores God’s Word. Relying upon His wisdom, understanding, and knowledge, while seeking godly counsel, improves the opportunity for financial success. We must aim to be faithful with what we have and trust God to multiply our efforts, no matter how small, for His glory.
Don’t Gamble on Your Family Reunion
Armed with the facts, I suggest you have a warm conversation with your brother about why you would like to avoid the casino resort. Perhaps you can suggest an alternative family-friendly place nearby? Or you could stay elsewhere and join them at meals or excursions not held at the casino. Presented with love and grace, I think you will be able to agree with the need to find a more suitable option.
If anyone you know is struggling with credit card debt, Christian Credit Counselors is a trusted resource. They can help consolidate debt to get on the road to financial freedom.
Dear Chuck,
I serve on the benevolence committee at my church. Inflation seems to be a common issue. How can we help the hurting during this time without creating dependencies?
Helping Without Creating Dependency
Dear Helping Without Creating Dependency,
Many people suffering from the impact of inflation are hurting because of the symptoms of a deeper problem. With rare exceptions, the problems they experience began years earlier, perhaps even in childhood.
Many of the symptoms we see today, like business failures, bankruptcies, divorce, job-juggling families, soaring credit card debt, etc., stem back to the problem of a lack of understanding of God’s financial principles. Few come from homes that instill basic financial training or Biblical stewardship. False attitudes toward money were essentially modeled for them. Here is an example of that problem I recently addressed that may be helpful to those you serve: https://www.crown.org/all-resources/ask-chuck-practical-advice-for-the-young-and-broke/.
Let’s review the basics that can help those seeking benevolence support to avoid having to return in the future.
Budget
Proverbs 13:18 reads, “Poverty and disgrace come to him who ignores instruction, but whoever heeds reproof is honored.”
Spending less than one earns is vital to avoid many of the financial issues that families encounter. Overspending should be so discouraged in Christian homes that children wouldn’t even consider it a possibility in their own homes later.
Borrowing
Psalm 37:21 says, “The wicked borrows but does not pay back, but the righteous is generous and gives.”
Not only are we to repay what’s owed, we should save for needs, not borrow to get them. Trusting God to provide without borrowing is the beginning of financial freedom.
Saving
Proverbs 21:20 states, “Precious treasure and oil are in a wise man’s dwelling, but a foolish man devours it.”
The availability of easy credit is crippling today’s society. Families must model the Biblical and financial wisdom of saving for the future rather than relying on creditors. Expecting a continual bailout from the church, family, friends, or the government is wrong.
Hasty Decisions
Proverbs 21:5 says, “The plans of the diligent lead surely to abundance, but everyone who is hasty comes only to poverty.”
Hoping to win the lottery or living off the compassion of others is not a strategy to break dependency. A firm financial foundation is built by taking small steps over a long period of time. A husband and wife who commit to managing money in God’s way will model self-control, self-discipline, and sacrificial living. One of the best disciplines a parent can teach a child is working toward a goal. When things are given without effort, then an expectation of that becomes a lifetime habit.
Become Outwardly Focused
Many Scriptures teach about the dangers of material riches, but God’s Word does not teach that poverty is the alternative. Greed and covetousness lead many to financial ruin. Greed is wanting more of what you already have. It is the endless pursuit of more. Covetousness is wanting what someone else has. Both are misplaced desires for things that cannot meet our deepest needs for fellowship and communion with God. When we set the standard for pure motives and contentment with what we have, we will be transformed from selfish-driven pursuits into the character and goodness of God that puts others’ interests ahead of our own.
God wants us to see money as a tool to use in accomplishing His plan through us. It is a matter of conforming to the standard of what He set forth in His Word. Here are some basic guidelines for families who want to break the cycle of dependency and desire to wisely steward the resources with which they have been entrusted:
The need for Biblical financial literacy training in the church is acute. I hope your committee will consider all the resources that Crown can provide.
Another helpful and trusted source is Christian Credit Counselors. They can help consolidate debt and get those with financial dependency on the road to financial freedom.
This article was originally published on The Christian Post on February 16, 2024
Dear Chuck,
Based on the high cost of retirement housing, we’re considering building an ADU on our property for my parents. We want to make sure it’s a wise investment. They are elderly but healthy and have offered to pay a small rental fee and for all utilities. Do you see this as a good investment?
Options for Retirement Housing
Dear Options for Retirement Housing,
ADU is a new term for me. It is sometimes known as a granny flat, in-law suite, casita, carriage, or guest house. ADUs, or accessory dwelling units, are growing in popularity for adult children or elderly relatives. According to Investopedia, an ADU is “a legal and regulatory term for a secondary house or apartment that shares the building lot of a larger primary home.”
Some Insights into ADUs
ADUs are sometimes used for an office, studio, gym, or home-based business. They can be rented out or provide space to house friends or family. Buying or selling one separately from the main house is prohibited.
There are prefab, off-site construction, and on-sight building options. There are DIY assembly packages, those that require professional assembly, and a multitude of builders for custom work. The size, location, and cost vary according to individual needs and desires. In my neighborhood, one neighbor converted an extra garage into a two-bedroom guest house. Another is in the process of building a detached garage with upstairs living quarters.
Pros
Cons
Do Your Homework
Jesus used this verse to consider the cost of being a disciple. It is appropriate here as well. “For which of you, desiring to build a tower, does not first sit down and count the cost, whether he has enough to complete it?” (Luke 14:28 ESV) That’s pure logic!
Before diving into the project, check with your city or county to see what you are allowed to build. Zoning laws and permits are extremely important. Gather as much information as you can. If you add onto your existing home, you will gain extra square footage and save on yard space if you own a small lot. Check the bylaws of your home-owner association. What is permissible? Will it add value to your property? Not necessarily.
I suggest you try to determine your return on investment before proceeding with a project. This requires research on property values, the impact on your taxes, and knowledge of market trends in your location.
Funding can come from savings, selling an investment, a cash-out refinance, a second mortgage, a reverse mortgage, a home equity line of credit (HELOC), a 401K loan, a construction loan, a renovation loan, and on and on. There are pros and cons to these, and everybody’s situation is different. More information is provided here. To avoid overspending, factor in the additional costs that will accompany an ADU. Do not forget the expense of furniture and appliances. If you plan on rental income, make sure you can cover all bills should a lapse occur.
Care for Family
Most of our friends who have provided quarters for their elderly family members have truly enjoyed the overall experience. Although it can be hard at times, they have precious memories of being there in their time of need. They learned to establish clear boundaries and financial expectations for occupants. Put it in writing and have it signed and witnessed. If you buy the unit to house your parents, perhaps your siblings will cover other costs of their care. If allowing an adult child to live there, prepare for others to follow in the future. Keep communication open so no resentment or hard feelings ensue.
An ADU can be a blessing to you and those you love. Just do your research, abide by the law, and work within a clearly defined budget. Consider the priceless memories of showing your parents love and kindness at the end of their lives when determining the true return on your investment.
Do you want more tools and tips regarding financial freedom? Are you interested in receiving ministry updates from around the world? Sign up to receive the Crown Newsletter emails by using the form on the homepage at Crown.org.
This article was originally published at The Christian Post on February 9, 2024.
Dear Chuck,
Last year was the first time I had ever heard of Frugal February. Our family of four plans to try it, and we welcome some of your ideas to make it work.
Family Needs to Save More
Dear Family Needs to Save More,
Frugal February is a term that people have adopted as the month to focus on saving money. My guess is it was born out of what many experience as a Holiday Hangover—too much spending on the three major events in November, December, and January. Whether desiring to pay off debt, build savings, or work toward a specific goal, February is the chosen month for the challenge.
I have had to learn to be frugal. My wife, Ann, has it in her DNA, but I am the opposite. I always spent more than we had, so progress was a challenge for years. The two of us have collaborated here to share some of our best tips since she is our in-house expert on frugality. We will start with her tip: make frugality fun! Yes, she sees this as fun, which is a very helpful way to get your family excited about it. Let’s get into some of our helpful tips.
Frugal Families Work Together
Small adjustments in spending can add up to make a big impact. Practiced over time, a frugal mentality helps financially strapped individuals and families make great progress. The challenge can actually be fun, so recruit friends or family to join you. Set some goals and rewards for the children to get excited about.
If you don’t already have one, establish a budget. Try Crown’s Quick Start Guide or NerdWallet’s list of free templates. Track your spending, and aim to reduce variable costs as much as possible. Cut out all unnecessary spending. Do you really need every one of those streaming services, subscriptions, or apps? If you are paying $12.99 per month for one, that is $156 every year. Five services cost $779 per year. 10 services add up to $1559 annually! That money could go a long way toward paying down debt or funding an emergency account. In addition, try the following:
Manage Your Food Costs
Cut way back on food expenses by planning to eat at home. Weekly meal prep will save you the cost of eating out. Cook from scratch. Don’t know how? Invite an older friend or family member to teach you. Make your own coffee, carry lunch to work, and prepare snacks to avoid buying fast food. Eat out of the pantry and freezer. This is a great way to clean and save money! Prepare extra to freeze, to take for lunch, or to enjoy later.
Get creative. Google “frugal meals.” Have fun! Eat breakfast for dinner, and give thanks. How about hosting a Frugal Potluck? Think about poor nations whose people are glad to have anything to eat! Do not complain. Instead, look forward to the extra money you will save during the month. When March comes around, you may have developed new habits that will enable you to continue saving.
Consider Lifestyle Changes
Perhaps this is the month you need to pray about and pursue major lifestyle changes to relieve financial stress and reach important goals. It is easy to get caught up in worldly things, but they will never truly satisfy. Ask the Lord to give you discernment and unity with your spouse in decision-making.
In addition to cutting spending, use the month to get your financial house in order:
Cut the cost of entertainment by finding free (or low-cost) museums, parks, and cultural events. Invite friends over. With the money saved in less than 30 days, you can reduce your credit card debt, fund an emergency account, or save for a major goal.
Take the Frugal February challenge one day at a time, and see how much a little self-discipline can work for you! Contentment is key. Don’t get discouraged because of a setback. You can be frugal in March, April, May, etc.! Seek to become a better steward of what you’ve been entrusted with, and post your frugal tips below!
“For I have learned in whatever situation I am to be content. I know how to be brought low, and I know how to abound. In any and every circumstance, I have learned the secret of facing plenty and hunger, abundance and need. I can do all things through him who strengthens me.” (Philippians 4:11b–13 ESV)
Set and achieve your goals with the help of a personal business coach. Crown’s online Budget Coaching program matches you with a certified coach who will work with you to develop a customized plan to put you on the road to financial freedom.
This article was originally published on The Christian Post on February 2, 2024
Hey Chuck,
I work with someone who is under a great deal of financial stress. It’s beginning to affect his ability to work, and I want to help my friend. What approach do you recommend?
Friendly Financial Help
Dear Friendly Financial Help,
I hate financial stress. It can be devastating to our emotional, physical, and spiritual well-being. Far too many Americans are struggling with financial stress right now. The consequences of financial stress are real and to be taken seriously. A look at several recent surveys confirms this:
Since I don’t know the source of financial pain in your friend’s situation, let’s examine the common causes.
Causes of Financial Stress
Financial stress can be caused by many things:
Impact of Financial Stress
People handle stress differently. The inability to cover bills causes many to borrow from friends or family. The repercussions may involve late penalties, utilities being cut, plummeting credit scores, repossessed vehicles, and more. Saving and giving are threatened in the face of survival, and, unfortunately, debt can spiral into more debt. Individuals often suffer with:
Helping a Friend with Their Financial Stress
One of the reasons I hate financial stress is that I can relate because of all of the mistakes I have made with money. It gives me compassion and a sincere desire to help others avoid it. Our deepest fellowship is often with those who share or have experienced common suffering. In the preface to The Problem of Pain, C.S. Lewis wrote, “When pain is to be borne, a little courage helps more than much knowledge, a little human sympathy more than much courage, and the least tincture of the love of God more than all.” Compassion is a gift we crave in the midst of suffering and a gift we learn to offer others.
Without any guilt trips, judgment, or condemnation, I would start by asking your friend if you can help. Explain that you desire to be an encouragement and support. If they agree to trust you, begin by asking questions. Can they analyze what can be done to immediately help the situation? What can be sold? What bills can be negotiated: medical, credit cards, insurance, phone service, etc.? In critical situations, it may be necessary to cash in investments, withdraw from retirement funds, seek a personal or home equity loan, or use a balance transfer credit card. Make sure details and ramifications are clearly understood. Read the fine print, and do not hesitate to ask questions.
Take one day at a time. Jesus said, “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) Worrying does not solve anything.
So here are some practical steps to suggest to help your friend get on track:
Some talking points I might use:
Thanks for the question. May God give you favor as you seek to serve your friend.
Another helpful and trusted source is Christian Credit Counselors. They can help consolidate debt and get your friend on the road to financial freedom.
Dear Chuck,
I’m really trying to develop a Biblical mindset when it comes to money. Can you give me some foundational changes I need to make?
Moving from a Worldly Money Mindset
Dear Moving from a Worldly Money Mindset,
I am reminded of the Parable of the Rich Fool in Luke 12. He earned plenty of money but decided to build bigger barns so that he could live the good life—to eat, drink, and be merry for many years into retirement. Nothing wrong with wealth or savings or planning; but Jesus reminded him that his life was only temporary and that it is more important to be “rich toward God” than plan for a life of temporary personal fulfillment.
Renew Your Mind
The Apostle Paul wrote in Romans 12:2, “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.” You will learn to think Biblically about money when your mind is transformed by God’s Word. There are more than 1,000 references to money in the Bible—second only to the subject of love. The Bible points out that the key to transformation is to renew our minds on Truth so that we think differently. To do this, you must immerse yourself in the Word. Ask God to open your heart and mind to gain the knowledge and principles to handle money His way.
I recommend finding a Bible reading plan and resolving to stick with it. If you are an auditory learner, then listen to it. This is one of the best investments of your time that I can recommend.
YouVersion.com gives statistics that demonstrate how reading Scripture can change your life.
Those who read the Bible four or more times a week are:
Embrace the Right Motives
Our relationship with money is determined in great part by our attitudes and motives. Having the right attitude and motives is more than just learning to live on a budget and tithing. Right attitudes include total commitment to God, listening to the counsel of other people (including husbands or wives), dealing fairly and honestly with other people, being humble and thankful, and forgiving others (in terms of debts that are owed.) Our spiritual values are reflected through finances. How we handle money will be an outward indicator of our true beliefs and priorities.
God gives us financial principles because He knows they are best for us. Money or material possessions are not the problems; they are symptoms of real problems. God constantly warns us to guard our hearts against greed, covetousness, ego, pride, and more because these are tools Satan uses to control and manipulate us. That is why we need to know what God says about money.
The Short List of God’s Way to Manage Money
It is not an easy task to begin thinking “contra mundum”—in ways that are contrary to the world.
We are bombarded with secular thinking at every turn. Yet God will honor your motives and the sincere desire to learn. Psalm 347:4–6 reads:
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.
We have a library of financial tools and resources available at Crown.org. In addition, check out our teaching at Bible.com and rightnowmedia.org along with other ministries’ teaching on money. In my own life, I moved from a temporal perspective to an eternal perspective more than 24 years ago. My only regret is that I did not make the shift earlier in my life.
Do you want more tools and tips regarding financial freedom so you can thrive in 2024? Are you interested in receiving ministry updates from around the world? Sign up to receive the Crown Newsletter emails by using the form on the homepage at Crown.org.
This article was originally published on The Christian Post on January 19, 2024.
Dear Chuck,
I received a sizable bonus and am thinking about investing a portion of it into CDs while rates are up. We are nearing retirement and do not want to risk it in the stock market right now. Any advice?
Cautious Investors
Dear Cautious Investors,
Congratulations on that bonus! I know it will be helpful to overcome some of the painful increases in the cost of living in 2023.
Saving vs. Investing
A small but important distinction is to parse out the difference between saving and investing. Money saved is money that is secure and readily available with the exception of possible constraints of time or tax laws. Money invested is money that is at risk of loss and possibly under the control of another fiduciary who has established terms and conditions around your investment. With that in mind, I look at your question as one related to savings if you chose to put the funds in CDs (certificate of deposits) vs. in the stock market, which I would consider a means to invest the funds. So… let’s get more practical with your question.
To Go with CD’s or Not to Go with CD’s? That Is the Question
CDs or certificates of deposit allow you to lock into an interest rate for a certain length of time. They are considered cash “investments” designed to get a modest return on your passive deposits in exchange for leaving them in the account for set periods of time. It is important to choose them based on personal savings goals and the time needed before you have to access the money. They work best as savings accounts when the funds are not intended for emergencies or retirement. They cannot be accessed quickly without a penalty and typically do not keep up with normal inflation. They are good for specific savings goals.
There are a variety of options available, but online banks are offering the best interest rates. They are paying good interest rates on 6, 9, and 12-month CDs. At the time of writing, I found several offerings over 5.50%. See current rates here. Online banks do not have the overhead costs of brick-and-mortar institutions and are able to pay higher rates. However, I did find comparable promotions at credit unions.
Ask Chuck Cd’s And Low Risk Investments For Cautious Investors
Consider Laddering
If you are concerned about interest rate changes for your deposits, you could ladder several to take advantage of the current APY (annual percentage yield). Then research and pray through your options before they mature. This is a strategy in which you spread cash over multiple term lengths. The benefit is having access to short-term CDs that mature on different dates. This offers you the flexibility to decide whether to reinvest at maturity. For example, if you have $20,000 to put into CDs, you could put $5,000 into a 6, 9, and 12-month CD and a 3 or 5-year CD. As the shortest term matures, you can determine if you want to roll it over or move it. See NerdWallet.com for a more thorough explanation.
Pros (of FDIC-insured CDs)
Cons (of FDIC-insured CDs)
Tools: CD Calculator / CD Ladder Calculator
I recommend federally insured institutions. FDIC and NCUA protect deposits up to $250,000 should a bank collapse. Note: that cap includes all accounts held at a particular bank.
Investing
Should you decide you prefer to invest the funds, your spouse and you would need to agree on the level of acceptable risk and the time frame that you are comfortable with. Obviously, a professional advisor can give you a variety of options that may best fit your needs. Look for a service like the Everyday Steward of Blue Trust. They describe it like this on their website: “Designed for individuals who need one-on-one financial planning or investment management (ranging generally from $100,000 up to $1 million in assets), Blue Trust’s Everyday Steward advisors work with people who are beyond the debt stage, but who desire objective, biblically based advice.”
You are wise to diversify and consider all your options before moving the funds to CDs or any form of investment. The Bible does not give specific advice to investors outside of what King Solomon said. He said, in essence, “diversify.” This is the wise way to minimize your risk of loss.
Give a portion to seven, or even to eight, for you know not what disaster may happen on earth. (Ecclesiastes 11:2 ESV)
The Proverbs also warn us to avoid emotional, spontaneous, and ill-informed guesses about where to place funds.
The plans of the diligent lead surely to abundance, but everyone who is hasty comes only to poverty. (Proverbs 21:5 ESV)
Crown’s online Budget Coaching program matches you with one of our certified coaches to thoroughly analyze your financial situation. Your coach will work with you from the convenience of your home to help with your specific challenges. He or she can serve as a beginning point for advice while you pray for the Lord’s direction.
This article was originally published on The Christian Post on January 12, 2024
Dear Chuck,
I want to lose weight and get in physical shape this year. I need to join a gym, but I have a limited budget. What is the best way to save money on a gym?
Fit and Frugal
Dear Fit and Frugal.
Getting fit is a common goal for many people at the beginning of a new year. Whether losing weight, gaining strength, improving balance, or enhancing bone health, a gym membership can be beneficial and pay great financial dividends over a lifetime.
My wife and I desire to be healthy, maintain our vitality, and minimize risks associated with lethargic lifestyles. We try to eat well but need to do better. We walk regularly and enjoy hiking when we can. Ann likes working out at home to YouTube routines. I like access to all the machines and free weights, so I joined a local, private gym at the urging of one of my sons. First, I participated in their free trial for seven days, and then I joined. My membership is structured without a contract. I pay only month-to-month and can cancel anytime.
Getting a Good Value for Your Gym Membership
The cost of a gym membership varies according to the gym and its location. Here are some tips:
Check and compare gym prices online. Ask friends and neighbors where they go. Investigate discussion forums to research costs. Take time to read reviews of your potential choices. Request a tour of possible gyms, and ask lots of questions. Consider how far the gym is from home or work and what time of day you want to exercise. Ask for a non-commitment trial. Most gyms will provide a one or two-week pass for facility use.
Month-to-month plans allow you to leave without extra fees but can cost more per month. A contract is usually a better deal unless you move, get injured, stop going, or want to go to a different gym. But it can be a hefty one-time fee. Ask for unique discounts like military, student, or senior citizen. The pay-as-you-go option may actually save you money in the long run until you develop a regular routine. You will get to know employees and learn about discounts or promotions.
Many gyms have sales quotas. You might find them willing to deal privately at the end of the month. Take advantage of membership promotions. When negotiating, explain that you have shopped around and would like them to meet the fees of a competitor. If not possible, see what they can offer. If you pay for the year upfront, they may reward you with a decent discount.
You can also ask what they will offer with the amount you can pay.
Some people suggest negotiating late in the day and/or late in the month. Avoid sign-up or registration fees. Read a contract thoroughly. If you join and a membership promo is later offered, ask the gym to give you that reduced rate.
Here is an article that may be helpful if you live near one of the large gym chains: Big Box Gym advice. January can be the worst month to join because people try to keep resolutions and work off excess pounds gained over the holidays. So prices go up, and the facilities get crowded. However, some gyms offer promotions, knowing that people are eager to get started.
If you cannot join within your budget, do not be afraid to tell them. Be willing to walk away. Never sign up for something you cannot afford.
Alternatives to Gyms
If your budget doesn’t allow it, you can get in shape without joining a gym. Lose weight with a diet plan, and find someone who wants to go on the journey with you to stay motivated. You can save money by cutting out fast food and sugar. Walk, run, bike, hike, and take the stairs at work. Park where you have to walk farther. Buy or borrow some equipment, and find a YouTube workout you like. Set specific, attainable goals, and post them where you will see them daily. Form a group to encourage one another and offer tips. Our Crown staff started a Slack channel for that this year.
Priceless Returns on Investment
I read that 50% of the people who join a gym drop their membership in the first year. The truth is that joining a gym will only do you good if you go regularly. Be sure you stay committed to your goals, remembering that long-term health is a huge cost savings and an increase in the quality of your life. However, the real priceless returns are training to become more Christ-like. Paul wrote this advice to the younger Timothy:
Have nothing to do with irreverent, silly myths. Rather train yourself for godliness; for while bodily training is of some value, godliness is of value in every way, as it holds promise for the present life and also for the life to come. The saying is trustworthy and deserving of full acceptance. (1 Timothy 4:7–9 ESV)
I have to wonder if Timothy was considering how much time to spend working on his physical strength. Financial fitness is available right now through a Crown budget coach. Get started now, and experience financial freedom in 2024!
This article was originally published on The Christian Post on January 5, 2024
Dear Chuck,
Thank you for the lessons you bring us each week and how you tie them back to the Word of God. Please provide some tips to help my husband and me be better stewards in the new year ahead.
Stewardship Tips
Dear Stewardship Tips,
Thank you so much. My wife, Ann, helps me research and respond to questions each week. We are grateful for your kind words. We can share some of the tips that have helped us.
Pray, Reflect, Give Thanks
I suggest you find a place and time that is free of distractions so you can ponder and pray deeply. Ask the Lord for help to reflect on the past year—to recall specific ways in which He has helped, guided, or provided in ways you never could have imagined. Hebrews 12 is an excellent way to begin the process of reflection. It reminds us to remember with reverence and awe how God provides and sustains us through the years.
Look back through your calendar or journal for prompts. There may have been days of deep sorrow or great joy. In both, we are told to give thanks because God uses them to sanctify us and conform us to His image.
Ann and I often refer to Lamentations 3:21–24 upon rising in the morning. We go back and forth, reciting the phrases. It is a good one to think about in reflecting over the past year:
But this I call to mind, and therefore I have hope:
The steadfast love of the Lord never ceases; his mercies never come to an end;
they are new every morning; great is your faithfulness.
“The Lord is my portion,” says my soul, “therefore I will hope in him.”
It’s a valuable practice to recall the ways we experience God’s love and mercy and praise Him for His faithfulness. It enables us to look to the future with renewed hope.
A Stewardship Analysis: Money, Motives, and Management
Set aside a few hours and review your earnings, spending, giving, saving, and investing over the past twelve months. This will prepare you to do some analysis. Make a rough draft, then copy it in a journal or place that you can refer to in days/years to come. Access it frequently to remember God’s work in your life. Imagine keeping decades of reflections to pass down to loved ones. Don’t rush. In fact, you may recall things that you need to record in days to come. Your family may want to participate and share their reflections together.
Give Thanks
After reflecting on the year and God’s faithfulness, pause and thank God. The phrase “Give thanks to the Lord, for He is good; His love endures forever” is repeated in the Bible and should be repeated by us throughout our days. See 1 Chronicles 16:34; 2 Chronicles 5:13; Psalm 106:1; Psalm 107:1; Psalm 118:1, 29; Psalm 136:1; Jeremiah 33:11
Ask Him to Guide You in the New Year
We all make financial mistakes, experience unwanted hardships, and need God’s wisdom to make progress on a daily basis. With every new year the Lord gives us to live, we can start fresh with renewed hope and dreams for serving His purposes as good and faithful stewards. For Ann and I, our financial journey started fresh after 21 years of marriage. For the past 24 years, we have been blessed to have seen God redeem us from so many mistakes early in our marriage and have the joy of learning and applying His financial principles. I hope you will look to Crown for resources to help you in this exciting journey.
Happy New Year.
Crown.org provides many free resources, from budgeting to financial planning to family stewardship guidance to directions for career choices and many more. We would be honored to help guide your family in financial freedom and purpose in the new year.
This article was originally published on The Christian Post on December 29, 2023.
