Dear Chuck,
My parents moved in with us this year. We have two children in high school and a college student who has moved home to finish school. Our budget is tight but we want to be able to have a meaningful Christmas without going into debt. Your help is appreciated.
Dreaming of a Great Christmas
Dear Dreaming,
You’re one of a growing number of those who have children AND parents under your roof. The good news is, you CAN make Christmas meaningful for the whole family and avoid going into debt.
In 1940, approximately one-fourth of Americans lived with three or more generations in one home. This declined after WWII, but a Pew Research report reveals that the number of multigenerational homes are increasing.
The key to celebrating well is to plan early and ignore the world’s take on Christmas. The example we, as parents, set for our children is enormous. Many of my sweetest memories cost nothing.
Love, affirmation, joy, and hope can be given without going into debt. So, gather the family and discuss everyone’s favorite traditions, record them for reference, and get to work. Be sure to shop without your credit card if you fear you will not be able to pay the balance in full when you get the statement in January!
I asked my wife, Ann, to help me with some of her best ideas for any family as she is the pro in our home at making Christmas meaningful without overspending. Here you go!
If you decorate, allow each generation to express themselves. Life is short – enjoy one another. Make this memorable with special food and music. Share the history of special ornaments and decorations. Your parents may have stories that are new to you!
Collect your recipes, make your menus, and plan your grocery shopping list. Shop sales and freeze ahead when possible. Bake cookies together. And, try mocha punch. It’s an unhealthy favorite at our house!
December can be a flurry of activity with recitals, concerts, and parties. That’s why it’s important to plan family times. Include the lonely, sick or grieving in your planning to build compassion in the hearts of your young people.
Start a Christmas memory journal and encourage all to write or draw their contributions. Bring out photo albums and family movies of Christmases past.
Make an advent wreath or a paper chain to count down the days. Share Jesse Tree or Advent readings each evening. Sing Christmas Carols – the words are beautiful and timeless.
Host a Carol Sing or potluck Open House. A White Elephant Gift Exchange can be hilarious or deeply meaningful depending on your intent. Enjoy acting out the 12 days of Christmas. Attend community Christmas concerts, plays, and programs. Many are free!
Hold an affirmation night where you express words of appreciation over each family member. Allow time to prepare thoughtfully. Memorize Luke 2 together and recite it by candlelight on Christmas Eve.
Have Monopoly Marathons or play other board games. Read good books aloud. Teach the younger generation a skill or craft over the holidays.
Give adults personal time to exchange gifts or spend together. Remember family members who can’t be with you.
Plan a New Year’s Day Walk ending with a special brunch or breakfast. Bless the new babies and marriages. Pray for families who send you Christmas cards, focusing on one each day.
Pray blessings aloud over each person on Christmas Eve. Write a keepsake letter to each family member to give on Christmas morning. If you choose to exchange gifts, draw names to keep the costs down. Or make gift cards like lessons in a skill you can teach, a special outing, housework, yardwork or painting a room.
Pick a needy family or individual to bless anonymously. Pass down decorations and have your family collect money during the month to contribute to their financial needs.
Now you know why I asked Ann to help me with the Christmas ideas! I personally believe the benefits of multigenerational families outweigh the costs. Even, if not especially, at Christmas. It’s the accepted way of life in many other nations and for many of our immigrants. It works when there’s a high level of mutual respect, open communication, flexibility, humor and love. Expectations of finances, chores, and space must be clearly expressed and understood.
There are many benefits to living with multiple generations under the same roof. Children blossom under the wisdom, attention and love of multiple adults in the home. The elderly are much less likely to experience loneliness when they have purpose, love, and needed care. Sharing the blessings of childcare, homework help, meal preparation, home and car maintenance skills is priceless. Building home equity rather than paying for retirement housing or assisted living is a great financial benefit. Expenses can be shared among the adults. And lastly, family values and traditions are strengthened in multigenerational homes.
The challenges in these situations may include caregiving stress, lack of privacy or quiet, and communication strife. Poor work ethics negatively impact the entire home. Young adults playing video games rather than participating in quality family time or fulfilling household responsibilities is just one example. Setting clear expectations from the start will help everyone to flourish under one roof.
I recommend regular meetings that all look forward to attending. This is especially important before Christmas. Concerns can be voiced, the budget analyzed, and goals set. Expenses can be discussed with the goal of teaching and redeeming. Accountability between loved ones is particularly important this time of year. Teens and young adults can benefit from advice when winsomely given. Many of them are blossoming later and struggling with issues we did not have to navigate.
This Christmas, I pray that everyone in your home celebrates the birth of our Lord. It’s an opportunity to live and share your faith, the most priceless gift. Guard the good deposit entrusted to you. (2 Timothy 1:14 ESV) and celebrate Christ’s birth, the one …who is and who was and who is to come, the Almighty. (Revelation 1:8 ESV)
Originally published on the Christian Post, November 30, 2018.
Dear Chuck,
I want to make the spirit of Thanksgiving last the entire year. But it seems like we Americans gather together, eat the obligatory bird, watch football, and then promptly forget what we have to be thankful for as we rush off to join the Black Friday shopping frenzy. I know I sound like a pessimist, but I could use some encouragement!
Gloomy about Thanksgiving
Dear Gloomy,
I love the Thanksgiving holidays and have sweet memories of times spent with my family. This year we gathered with a number of the Crown staff families who are separated from their nuclear families to celebrate together. One family, who are immigrants from Venezuela, celebrated their first American Thanksgiving.
So I hope I can shed some light on your discouragement and give you hope for the days ahead.
It’s a holiday that’s been honored in America since the Pilgrims’ celebration of 1621. Despite their fears, hardships, and mourning, they gave thanks to God for his provision in their bountiful harvest. They honored Him and understood their hope was in Him and Him alone.
Throughout the years, our celebrations have evolved and there have been other proclamations to establish this tradition.
President Abraham Lincoln gave his Thanksgiving Proclamation in 1863. It was a dark time in our nation’s history. The holiday, he hoped, would bring the nation together in the midst of our Civil War.
I do therefore invite my fellow-citizens in every part of the United States, and also those who are in foreign lands, to set apart and observe the last Thursday of November next as a day of thanksgiving and praise to our beneficent Father who dwelleth in the heavens. And I recommend to them that while offering up the ascriptions justly due to Him for such singular deliverances and blessings they do also, with humble penitence for our national perverseness and disobedience, commend to His tender care all those who have become widows, orphans, mourners, or sufferers in the lamentable civil strife in which we are unavoidably engaged, and fervently implore the imposition of the Almighty hand to heal the wounds of the nation and to restore it, as soon as may be consistent with the divine purpose, to the full enjoyment of peace, harmony, tranquility, and union.
But long before the Pilgrims, the people of God were instructed to give thanks. He knew we needed to remember His wondrous works. Why? Because we so easily forget! Throughout Scripture we read of those who erred because they did not remember.
It’s been forecast that average consumer spending this holiday season will increase 4.1% over last year, climbing over $1,000. Multiple economic factors predict retail sales ranging up to nearly $721 billion. But, don’t let the numbers alarm you. This year, many people are hurting. It is an incredible opportunity for the church to shine her light into the darkness of mourning hearts. Shopping will never satisfy that longing.
By observing Thanksgiving, and continuing in thankfulness throughout the year as you suggested, it takes our eyes off ourselves, our problems, the issues of the world around us and onto the Sovereign One who is worthy of our complete trust.
Comparison is a dangerous practice, so it is not good to look around and judge how others may be overlooking the real reason for this wonderful holiday. In spite of how many Americans may be missing the point, as Christians, we can give thanks with joy. We can give thanks with hope. We can give thanks from a heart of gratitude for every kindness the Lord has shown us.
Let us be thankful; winsomely contagious with gratitude by focusing on Christ.
If then you have been raised with Christ, seek the things that are above, where Christ is, seated at the right hand of God. Set your minds on things that are above, not on things that are on earth. (Colossians 3:1-2)
No matter what situation we find ourselves, there is always, always, ALWAYS something for which to be thankful.
Rejoice always, pray without ceasing, give thanks in all circumstances; for this is the will of God in Christ Jesus for you. (1 Thessalonians 5:16-18)
And, in the praise of our thanksgiving, may we know peace and share it where He leads us.
And let the peace of Christ rule in your hearts, to which indeed you were called in one body. And be thankful. Let the word of Christ dwell in you richly, teaching and admonishing one another in all wisdom, singing psalms and hymns and spiritual songs, with thankfulness in your hearts to God. And whatever you do, in word or deed, do everything in the name of the Lord Jesus, giving thanks to God the Father through him. (Colossians 3:12-17)
I hope you had a wonderful holiday with family and friends and you continue giving thanks throughout the days ahead.
Originally published on the Christian Post, Nov 23, 2018.
Dear Chuck,
My husband and I have not been married very long. We grew up in homes where the holidays were celebrated in a grand way. I’m feeling pressure to do the same but my husband refuses to go into debt to do so. We have student loans and he wants those paid off as soon as possible. This has become a very emotional topic because our friends and family will likely be giving us very nice gifts at Christmas and we won’t be able to do much for them this year.
Holiday Stress Has Begun
Dear Holiday Stress,
I am so glad you wrote to me about this. Holiday stress is a terrible problem and can take the focus away from what truly matters. But you don’t have to live with it. There’s great hope for your family and I have some practical advice to help.
By the way, you are a very fortunate woman. In 2017, 74% of Americans admitted they failed to budget for the holidays and ended up an average $1,054 in debt. Give thanks for a husband who cares about eliminating debt. That will bless your marriage far more than you know right now.
Thanksgiving and Christmas are times for believers to celebrate the love and grace of God. It’s historically a time to be joyful, to savor favorite foods, to begin new traditions and keep the old, to give with no expectation of return. It’s truly a time to rejoice.
I grew up with a dog-eared Sears catalog that marked the pages of the things that my brother, sisters and I were dreaming would be under the tree. Even though Mom and Dad had a limited budget, they made sure we were able to get at least one thing we really wanted each Christmas.
Today, people both young and old have more than a catalog at their disposal. Magazines, social media, television, computer ads, radio and billboards attempt to extract as much out of our budget between Thanksgiving and Christmas as possible. Many individuals suffer with self-induced pressure to decorate and make purchases to satisfy a longing to keep up or impress others. The fear of missing out plagues our society, plunging many into unnecessary debt, and even anxiety and depression.
To reduce or eliminate any pressure, give yourself a little margin by creating and sticking to a holiday budget. Ignore what the world says to do, and choose to honor your husband. You will experience peace and unity in your home, which is far better than expensive gifts under the tree. Ask God to unite your hearts and give you a common desire to observe the upcoming holidays.
One of the greatest threats to our walk with God is the trap of materialism. We must work at not being lured away from Him and spending money on our own desires so that we are no longer able to fulfill our primary purpose – to glorify God.
At first glance, the scriptural warnings about riches and their dangers might suggest that we should avoid all luxuries. But that’s simply not true. God does not prohibit us from enjoying the benefits of this world; after all, they are His.
The tenth commandment, Do not covet (Exodus 20:17) is an easy one to overlook because it happens in the heart. Rather than desiring what others have and are able to do, rejoice with them! Avoid judging them or feeling sorry for yourself. Give thanks and praise God for His mighty provision in your life and theirs.
Rejoice in the Lord always; again I will say, rejoice. Let your reasonableness be known to everyone. The Lord is at hand; 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 4:4-7)
We can unintentionally get sucked into the grip of materialism and comparison in the midst of parties, pageants, and presents. We must choose to forego the notion of perfect families, decorations, and gifts. Nostalgia and media create expectations we cannot and should not strive for. It’s a matter of guarding our hearts and practicing what Paul told the Romans: Do not be conformed to this world, but be transformed by the renewal of your mind (12:2a)
The truth is that most of us can hardly remember what we received for Christmas last year or the year before. The most lasting of all gifts are those that convey true love and appreciation; even though they might not cost much money, the receiver will consider them priceless. Avoid debt this Christmas! If you’re already struggling with overwhelming credit card debt, contact Christian Credit Counselors today.
Originally published November 16, 2018
Dear Chuck,
I have friends who retired a few years ago. Several are thriving while others seem to wish they were back at the careers they left behind. I thought retirement was supposed to be the best years of our life. I am trying to determine: a) should I retire and b) when? Any thoughts?
Close to Retirement
Dear Close to Retirement,
This is a great question and one we should all wrestle with. Retirement, American style, is a problem I have observed as well so I am happy to share some of my thoughts about it.
The upsides of retirement are made to look as if you leave all your headaches and stress behind, take up your favorite activities full time and live a peaceful, blissful life until the end.
Very few advertisements will tell you that the beach or sunny golf course or favorite pastime will easily become boring with overuse. As Proverbs 27:7 says, One who is full will loathe honey… Too much of anything is not good for us and we will eventually lose interest.
Many of the patriarchs, prophets, and apostles worked hard until the day God took them home. Some did their greatest work after the time we would have considered them to be “old men.” Moses, Joshua, and Paul each understood their God-ordained purpose and served until their dying days.
Moses was 120 years old when he died. His eye was undimmed, and his vigor unabated. (Deuteronomy 34:7)
Now Joshua was old and advanced in years, and the Lord said to him, “You are old and advanced in years, and there remains yet very much land to possess.” (Joshua 13:1)
Paul said: For to me to live is Christ, and to die is gain. If I am to live in the flesh, that means fruitful labor for me. Yet which I shall choose I cannot tell. I am hard pressed between the two. My desire is to depart and be with Christ, for that is far better. But to remain in the flesh is more necessary on your account. (Philippians 1:21-24)
Retirement is mentioned once in the Bible (Numbers 8:23-26), concerning the retirement of the Levites from the tent of meeting.
Chris Farrell, author of Unretirement: How Baby Boomers Are Changing the Way We Think About Work, Community and the Good Life, wrote:
Boomers are healthier and better educated than previous generations, eager to stay engaged at the workplace and in their communities, exploring options that range from bridge jobs to starting their own businesses.
Bank of America Merrill Lynch conducted a study in 2014 that found:
72 percent of pre-retirees want to work after they retire. Kevin Crain, of the firm, says 60 is no longer old. (I agree!) But, the increasing concern about Alzheimer’s is causing many to remain active with hopes of avoiding cognitive decline.
Christians must look at retirement differently and repurpose our talents, experiences, and skills.
Going from structure to total flexibility is often a shock. Boredom can lead to destructive behaviors and addictions that prevent people from finishing well. Many seniors admit to being lonely and fear the loss of independence, physical health, and financial well-being. Mental health issues like depression arise when there is no purpose to the wealth, knowledge, experience, and wisdom accumulated during the decades of a career.
In his book, Rethinking Retirement, John Piper wrote:
Finishing life to the glory of Christ means finishing life in a way that makes Christ look glorious…not living in ways that make this world look like your treasure…. It means being so satisfied with all that God promises to be for us in Christ that we are set free from the cravings that create so much emptiness and uselessness in retirement. Instead, knowing that we have an infinitely satisfying and everlasting inheritance in God just over the horizon of life makes us zealous in our few remaining years here to spend ourselves in the sacrifices of love, not the accumulation of comforts.
Don’t think of yourself as “elderly” but as an “elder.” The knowledge, experience and wisdom elders accumulate over a lifetime can be shared with the younger generation. The Bible emphasizes helping the younger generation to grow in faith, to live godly lives and to strengthen the family unit.
A Career Direct assessment helps individuals of all ages to discover their purpose and passion so they can do what they love. It is especially helpful to direct those with the time and flexibility of a new season of life.
Originally published on the Christian Post, November 9, 2018
Dear Chuck,
My husband and I would love to buy a home before our second child is born next spring. We are seriously considering a subprime loan since we don’t have a down payment. We have a few years left on our student loans and a car payment. We’ve been told that renting is like throwing money away every month. What are your thoughts?
Primed for a Home
Dear Primed,
Well first, congratulations on the good news that you have another child on the way!
A subprime loan is a mortgage loan offered to those who wouldn’t be eligible for a conventional mortgage for a number of reasons, including a low credit score, or in your case, no down payment. Because these loans are offered to individuals who pose a higher risk to the lender, they also come along with high interest rates, dramatically increasing what you pay over the lifetime of your loan.
To be straightforward, subprime loans are not a good idea and I would strongly advise against one. I want you to carefully consider the dangers of a subprime loan and some of the options I offer below.
A decade ago, Lehman Brothers Holdings Inc. collapsed when mortgage delinquencies and the market slump turned their assets sour. It propelled the government and central bank into rescue mode. But, today there are rumblings of new risks on the horizon, including another recession.
In 2006, real estate prices began falling and by 2008, many homeowners owed more on their house than it was worth. They were “underwater” due to job loss, other bills or insufficient income to begin with, and could not sell the homes to pay off the mortgage. So, many defaulted.
Today, similar to 10 years ago, the more highly leveraged the household, the greater the possibility of default or foreclosure. In more basic terms – the more you owe the bank, the less likely you’ll hold on to your house, especially in the case of economic turbulence. Any tremor or shock in the economy can totally disrupt a homeowner’s ability to cover expenses.
I’m familiar with the common advice that you should avoid renting since it’s just “throwing money away” and while I understand the intention of this advice, I think it oversimplifies a complicated decision.
First of all, your rent pays for a place for you to live, which, in my opinion, is a dollar well-spent! Your rent is not building any equity for you, but it gives you flexibility if your job or income changes, exempts you from condo/HOA fees, and puts the responsibility of any maintenance and repairs on your landlord. Your insurance is cheaper, you don’t have closing or selling costs, and you’re not on the hook if your dishwasher breaks. Often (and hopefully) your monthly rent is less than a mortgage would be, so it should allow you to save and live with financial margin.
Furthermore, home ownership is not for everyone and comes with a laundry list (pun intended) of responsibilities and financial commitments. Before you apply for a single loan, take the following into consideration.
In recent decades, debt has become a way of life for many people. Personal, corporate, and government debt have skyrocketed, putting families, companies, and citizens at risk.
God’s Word doesn’t specifically say, “Do not borrow.” However, it does contain warnings about borrowing. Following are some principles that you, as a borrower, should know.
If you can buy as cheaply as you can rent (considering all costs of home ownership) then buy. But, be mindful of the guidelines above to minimize your risk of long-term financial stress and loss!
Your home is a lifestyle decision that requires prayer, research and counsel. This is the largest financial decision most families make. Seek the wisdom and experience of others who have gone before you. Be patient and don’t get caught in the comparison trap or assume you’re missing out by renting.
Keep in mind these Biblical warnings:
“The rich rule over the poor, and the borrower is servant to the lender.” (Proverbs 22:7)
“Without counsel plans fail, but with many advisers they succeed.” (Proverbs 15:22)
Thanks for the question and may the Lord direct your steps.
Originally published on the Christian Post, November 2, 2018
Dear Chuck,
There is a lot of talk lately about the potential profits to be earned by investing in cannabis (marijuana) opportunities. Personally, I think it is wrong, though some of my Christian friends see it as an appropriate way to invest. As a parent of teenagers, I am very concerned about the likely legalization for recreational use. Where are you leaning on this issue?
Not Riding the High
Dear Not High,
This is a loaded question! Sorry for the bad joke. It is actually a serious topic that I have been asked to respond to by a number of my friends as well.
A friend reported to me that he attended a party in a state where medical marijuana is legal now. At the party, he was offered “a drink or a joint” by his Christian hosts. Although he declined both, he said it was eerie how much of a non-issue his friends now consider smoking marijuana.
One of my acquaintances is a licensed, legal grower. He got into the business because medical marijuana helped reduce his young daughter’s seizures from many per day to only a few per week. He sees the good it can do for those that have found no other medical solution to their issues. On the other hand, I recently sat on a plane next to a man that was an early investor in a California-based growing operation. He said he lost money and would never make another investment in a cannabis operation. When I asked him why he lost money, he said the workers were stealing too much of the product all along the distribution chain.
Some have predicted that the marijuana business could reach $22 billion by 2022 due to states legalizing recreational use and the promotion of medicinal marijuana. The US beer market is approximately $100 billion in annual sales and the market for painkiller medications is estimated to be $300 billion by comparison. Interestingly, many Christians invest in companies that own or produce these products (alcohol and painkillers) which are also addictive and in many cases harmful.
Whether legal or on the black market, the sale of marijuana is big business.
For Christians, we should never allow the lure of money and big returns to cause us to compromise our values. Greed and a get-rich-quick mentality are terrible reasons to justify any investment.
Because research still remains to be conducted, I will refrain from specifically addressing the use of medical marijuana. I am only addressing here the question if Christians should generally invest in the cannabis market regardless of how the product will be used.
Canada legalized cannabis across their county, with recreational sales to begin this month. That is pretty close to home.
Many are interested in the future of marijuana stocks. Some believe these stocks are in a bubble like we saw with the hype over Bitcoin. In our rapidly changing country, many states face a difficult decision as they weigh the pros and cons of legalization. Marijuana ETFs (Exchange-traded funds) are struggling partly because many banks are not willing to hold the underlying securities due to regulatory uncertainties.
States desire the tax benefits of the products to prop up their public schools and pension funds.
Since your main question is an investment one, I sought advice from Jerry Bowyer, a trusted friend who is a Christian, an economist and professional investment advisor. Jerry said, “It seems to be [Not High’s] view that other Christians who do invest in these stocks (for medical purposes) are wrong. I think that takes things too far. I think that liberty of conscience is the main thing here. Seems as though at arm’s length, investments in publicly traded companies are more like meat sacrificed to idols, or what Lutheran theologians call ‘adiaphora,’ things neither forbidden nor commanded…”
I don’t believe the economic benefits will be able to cover the problems our society will experience from a wide-spread legalization of cannabis for recreational purposes. Make no mistake, large corporations will lobby for their ultimate goal to make it available as easily and broadly as possible.
Coca-Cola is considering infusing beverages with an ingredient in marijuana that eases pain without inducing a high. Heineken, Corona, and Coors are interested in marijuana-infused alcohol along with Lagunitas “IPA-inspired” sparkling water products. Wonder why they’re investing?
Marijuana has an ingredient known as THC (Tetrahydrocannabinol) – the cannabinoid which produces the euphoria or “high” that users want. Today’s marijuana has a much higher THC level than decades ago. Scientific modification has altered the plant. One article (a must-read, in my opinion) outlines some of these differences.
The dangers associated with recreational use have been documented despite the growing belief that it is harmless because of legalization. Consider the negative effects of our opioid epidemic. Legalized marijuana will change our nation.
I wonder if proponents of recreational public use have asked themselves the following:
In an article last year, my friend, Randy Alcorn said he would not want his grandsons to try marijuana. Why? He says, “Because I love them and don’t want them to go where it leads. Even if it doesn’t become the gateway to other drugs (which it very well may), it would mess with their minds and bodies, dull their consciences, and impair their walk with Jesus and testimony for Him.”
We, God’s stewards, are called to conduct our lives in such a way that honors God. Our Biblical worldview should be evident in the way we spend and the way we invest our resources. And, we are called to be sober-minded and alert, which is contrary to what cannabis does to the mind.
For you are all children of light, children of the day. We are not of the night or of the darkness. So then let us not sleep, as others do, but let us keep awake and be sober. For those who sleep, sleep at night, and those who get drunk, are drunk at night. But since we belong to the day, let us be sober, having put on the breastplate of faith and love, and for a helmet the hope of salvation. (1 Thessalonians 5:5-8)
Marijuana effectively serves to alter our perception of reality. This mind-altering effect can be compared to the warnings of drinking to excess in Proverbs 23:29-35. How much better would it be to help others learn to enjoy reality.
I hope this has been helpful. I will continue to watch this trend and others like it as I try to help Christians to make wise financial choices.
Originally published on the Christian Post, October 26, 2018
Dear Chuck,
I’m hearing and reading murmurs of a coming recession. My investments took a beating in the last one, and our property value has finally recovered. I’m feeling uneasy and would love your advice on how to adequately prepare?
Getting Nervous
Dear Nervous,
The idea of preparing for hardship is timeless. Noah built an ark. Joseph stored grain. Moses and the Israelites stocked up before leaving Egypt.
The truth is that we never really know when tough times or calamity will strike. So God, in His infinite mercy and wisdom, has warned us to always be prepared for the unexpected: The prudent see danger and take refuge, but the simple keep going and pay the penalty. (Proverbs 27:12)
There is good reason for the rumors you are picking up on about the increasing potential for a recession. The current bull market is the second longest in history. However, a recent report revealed that economists with the IMF (International Monetary Fund) expressed their concerns that America’s chances of a recession are growing. This is due to factors that include trade tensions, rising interest rates, and predicted slower growth. If so, our public wealth could be cut by around $5 trillion.
A recession is technically two consecutive quarters of negative GDP growth. The Great Recession, from December 2007 to June 2009 was our last downturn. They have generally occurred every eight years on average in our modern era with 10 years being the longest period between recessions. In March of 2019, this bull market will celebrate its 10th birthday. But recent market volatility has had some experts wondering if it will make it to the 10th birthday. No one knows when, but a downturn is certain.
The warning signs include bubbles. Recall the real-estate bubble that led to the 2008 recession and the stock market bubble prior to Black Friday in 1929. Last year, George Friedman said, “The precursors to a depression — such as irrational exuberance of asset classes, rising interest rates, a negative yield curve, and proclamations that ‘this time, it’s different’ — have at most been modestly appearing. But the clock is ticking.”
As a nation, Americans are woefully unprepared for another recession. High levels of debt have become an accepted lifestyle and the personal savings rate, which was actually negative before 2008, has not improved substantially since the Great Recession. We need to prepare but not be paranoid. In fact, preparation should dramatically reduce fears of the uncertain future we will all face.
Many can actually prosper during a downturn. Here are a few strategies:
We are to prepare to weather any coming storms. But we are to do it as the salt of the earth.
We are to be God’s preserving agents filled with love and surplus resources that we can share with others who are suffering.
A recession could be the greatest opportunity for demonstrating the love of Christ and sharing the Gospel that we will see in our lifetimes. Financial AND spiritual preparation will enable you to be the compassionate representative of Christ’s interests during a time of need.
Psalm 112, verses 1 and 7 assure us, Praise the Lord. Blessed are those who fear the Lord, who find great delight in his commands…. They will have no fear of bad news; their hearts are steadfast, trusting in the Lord.
Originally published on the Christian Post, October 19, 2018
Dear Chuck,
I’ve made many mistakes with money over the years. I live in regret of how I squandered so much and failed to prepare for the future. My wife is insecure and concerned that we don’t have enough saved or invested for retirement. We need to move forward but are making zero progress. Can you help me/us over the hurdle?
Painfully Stuck
Dear Stuck,
You are not alone. The truth is that we all mishandle money at some point in our lives. Few of us were taught what God says about money in the Bible and as a result, we flounder around trying to do the best we can. The good news is, that once we realize the Truth, we can identify our mistakes and learn from them to avoid making the same mistake over and over again. God’s mercy far outweighs any financial loss and we can trust in His unfailing love to guide our decisions in the remaining years of our lives.
Don’t despair. Only 20% of American adults claim they have no financial regrets, while the rest admit to making their share of financial mistakes. Of the 80% who have financial regrets, here’s what they regret most:
The solution does not lie in reliving the past or dwelling on the negative feelings. It rests in the forgiveness of God and the knowledge that He promises to work all things together for good, for those who love Him and are called according to his purpose. (Romans 8:28)
It is never too late to begin to work together and make a fresh start. Financial mistakes can be a severe mercy God uses to reveal the idols, self-indulgence, or wrong attitudes about money that we have allowed to control our lives. It’s how He got my attention!
My wife and I were in much the same boat that you describe when we turned forty. It was then that we attended a Crown Bible Study and united our hearts to fight the financial problems instead of each other. We made a plan to align our marriage and our finances with God’s Word. We changed from the inside out: what we believed about money, how we communicated with each other and how we looked to the Lord to show us His ways to become better stewards. We have made great progress over the past 21 years and you can, too!
In our marriage, we discovered that we have different strengths. My wife is VERY good at financial defense. She watches our budget, carefully shops for good deals, pays our bills on time and protects our money to ensure we are always making progress towards our goals. I am better at financial offense. I take on the responsibility to earn our household income, invest it wisely and help it to grow. We have united as a couple around these roles for managing money and it has worked very well for us. Of course, we talk about each other’s role and seek counsel as needed but we try not to get in each other’s way.
I’d encourage you to believe that you do not have to do this alone. Invite your wife to help you in this journey and use her strengths plus your strengths to make progress. It will require total transparency, humility, and sacrifice, but it will bless your finances and your marriage. Talk about who can play offense and defense with your finances and start practicing.
Once you have agreed on how your dynamic will work, start putting things into place. The best financial advice I can give you is to honor God with the first of all your income. (Proverbs 3:9) Begin giving to God as your top financial priority. If you and your wife can agree on this, it will begin to help you align on many other financial decisions you will make together.
It’s also vital you establish a budget and start using it immediately. We have free tools and resources to get you started.
The first goal of your budget should be to establish an emergency savings fund. Start with $1,000 and put it somewhere you aren’t going to touch it. That money is to be set aside for true emergencies only.
Once you have your emergency fund, start attacking your debt. I find both the debt snowball and debt avalanche methods to be extremely helpful. You can learn more by watching our 5 Steps to Debt-Free Living mini video series. If you’re dealing with overwhelming credit card debt, get in touch with Christian Credit Counselors.
After that, invest wisely for retirement. You do have some catching up to do and won’t have the luxury of decades of compound interest working on your side. But you CAN do it! Don’t allow what the world says you need for retirement scare you. Start to save aggressively now. Trust God and work as unto Him. He’s more than capable to bless your efforts and guide your decisions.
The ability to save and invest quickly may be determined by how much you can increase your earnings and decrease your expenses. Retirement is a decision about lifestyle – it will dictate the amount of money you have available to put to work for you. The habits you develop now can carry you through retirement. Learn to be faithful in little so you will be faithful in much. (Luke 16:10)
By prioritizing giving in your budget, you protect yourself from the infectious disease of greed and pride. It’s a directive close to the heart of God and one that blesses both giver and receiver.
Learn to be content with what you have by being thankful in all things and fully depending on God.
Ask God to reveal the root of your fear that has gripped your heart so that you can experience freedom from regret and doubt. Align your desires with God’s and He will teach you to speak and act in accordance with the truth.
Make all financial decisions with the desire to please God as your foremost goal. Recognize His majesty and power. He wants you to acknowledge that He is your Provider, Sustainer, Redeemer, and Friend. Identify your fears and concerns, give them to God, and you will find peace.
Rejoice in the Lord always; again I will say, rejoice. Let your reasonableness be known to everyone. The Lord is at hand; 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 4:4-7)
Originally published on the Christian Post, October 12, 2018
Dear Chuck,
My wife and I do not agree on giving. In fact, we’ve had a few heated arguments over the matter. She says we need to give 10% of our income. I don’t know where we could come up with that much. We give every month, but it varies in amount, depending on what we have available after I’ve paid our bills. What should we do to come to an agreement?
Feeling Frustrated
Dear Frustrated,
I hear your pain. It was not too many years ago that I was in your same place! Spoiler alert — I think your wife is right, but let me give you some background before I offer my advice.
I used to really dislike it when preachers taught on giving, especially if I brought guests to church with me! It wasn’t that I didn’t believe in giving. I did! It’s just that I did not think I had enough money nor did I like parting with it until Ann and I learned, through a Crown Bible Study, that it wasn’t my money in the first place. It was God’s!
When I recognized and began to appreciate His love and provision, I wanted to give out of a heart of gratitude. It was like God gave me a totally different mindset. For the first time in my life I saw giving as an opportunity, not an obligation. And the benefits I experienced convinced me that giving first to the Lord is indeed a divine priority.
To be transparent, our giving went from 2.6% of our gross annual income to 10% of our gross annual income and even more as we are able. This required a lot of adjustments to our spending habits, but it has been a wonderful decision on spiritual and financial levels.
God intended giving to bless both the giver and the receiver. The word “tithe” repels some because they do not understand its true meaning. The tithe is a testimony to God’s ownership. Abraham acknowledged this when he gave a tenth of his spoils back to God before the law was ever given (Genesis 14:20). Why? Because he loved God. Convicted that the tithe belonged to God in the first place, he gave. He was a true steward, able to surrender everything, including his precious son, Isaac.
The amount of the tithe is not important to God; He owns everything. The amount is important to us! Many verses in Scripture point to the promise of blessings and warnings about giving. Ultimately, we are the ones who miss out when we fail to give out of love and obedience to the One who so generously gives to us.
God does not need our money. But receiving our gifts in return is His way of allowing us to share in His work. God honors the attitude more than the amount as evidenced in Luke 21:1-4:
Jesus looked up and saw the rich putting their gifts into the offering box, and he saw a poor widow put in two small copper coins. And he said, “Truly, I tell you, this poor widow has put in more than all of them. For they all contributed out of their abundance, but she out of her poverty put in all she had to live on.”
Americans are generous people. We enjoy giving to ourselves and don’t mind going into debt to do it. We need to reverse that mentality and joyfully give to God first, for that’s where true joy is experienced. Paul said: Each one must give as he has decided in his heart, not reluctantly or under compulsion, for God loves a cheerful giver. (2 Corinthians 9:7)
Whoever is generous to the poor lends to the Lord, and he will repay him for his deed. (Proverbs 19:17)
Giving for the right reasons makes us more grateful, generous, and loving people. Throughout Scripture we are reminded to give because much has been given to us. Give sacrificially and without earthly expectation. Keep your eyes on God and look to Him for your reward.
So here is my advice: Stop arguing and fighting about the amount. Make peace with your wife and agree to work together to begin to give a full 10% of your household income as soon as you are able. Thank God for all He has given you, especially for your generous and wise wife.
Originally published on the Christian Post, October 5, 2018
Dear Chuck,
My wife and I are working really hard to get out of debt. We are overwhelmed with 5 credit cards, 2 car loans, student loans for both of us, a mortgage, and furniture that we financed. We now clearly see the mistakes we made and the dangers debt can present. I’ve been doing some research to figure out the best way for us to pay off the debt without going bankrupt and am confused between debt consolidation vs debt settlement. Can you explain and recommend which is best?
Drowning in Debt
Dear Drowning in Debt,
I am so sorry for the pain and stress you are experiencing. That kind of financial burden can be crippling and have devastating effects on your health, relationships, and financial future. My wife and I suffered under crushing debt early in our marriage so we are compassionate toward those who have made similar mistakes.
The good news is that you CAN work your way out of this. Debt consolidation and debt settlement options are tempting because they seem to lance the pressure. But, I do not recommend either one. Here’s why.
This is a process where debts are combined into one loan, making it easier to pay one bill than several. But it has some major drawbacks:
Transferring your balance on a high-interest credit card to a low-interest credit card can be an option, but only for those with excellent credit scores (above 700). Again, even this option comes with hefty drawbacks: you may be charged a fee of up to 5% of the balance, you cannot miss or fall behind on any payments, and interest kicks in after 12-18 months. You can read more about it here.
Personal loans via banks, credit unions or online lenders charge a lower fixed rate than credit cards. Origination fees, prepayment penalty, and collateral (home or car) may be involved. Your new loan will have a fixed interest rate and a fixed monthly payment.
Home equity loans are secured by your house. The danger with these is that you could lose the house if you don’t keep up with the payments. They typically have lower interest rates than an unsecured loan and do not require good credit, but repayment terms can be 10 years or longer.
401(k) loans have significant drawbacks. With lower interest rates than unsecured loans, you are borrowing from yourself. The loan is not counted on your credit report. However, it reduces your retirement fund, and charges heavy penalty and fees if you cannot repay. If you lose or leave your job, the loan is due in 60 days. Ouch!
This is a dangerous method that entices desperate consumers. Avoid it!
Supposedly, companies negotiate with creditors so people can pay less than what is owed. The settlement company charges you before they settle or reduce your debt. The Federal Trade Commission has been involved in numerous cases where companies simply walk away with the fee.
Pursuing debt settlement is risky, and I would say unwise, for several reasons. First, you’re using debt to solve a debt problem. While I understand how desperate and overwhelming debt can become, turning to these last-resort solutions puts you in greater danger and prevents you from making more progress.
Additionally, the debt settlement process can take two to three years, accruing late fees and penalties during that time. It negatively impacts your credit score and remains on your credit report history for seven years. Typically, you’ll pay a fee of about 20-25% of the final settlement and may be taxed for the amount forgiven. You can get sued if you haven’t paid; you’re not guaranteed that the creditor will agree to the settlement, and settlement companies are never motivated by your best interests.
Below are a list of suggestions to help you find more money in your budget to pay off debt. Some are extreme, and could even be painful, but remember that your goal is to get out of debt as fast as you can. The overwhelming pain and stress you’re feeling now is worse than any of these solutions!
I suggest you choose to live like your poor. That doesn’t mean you will be miserable. In fact, the benefits far outweigh the stress of debt. These are temporary remedies that will alleviate some of the immediate pressure and help train you to handle money responsibly.
A debt management plan is typically a three- to five-year program involving counseling and education so you don’t find yourself in the same predicament a decade from now. You’ll pay back the loans without creating more debt. I highly recommend Christian Credit Counselors; they’ve been our trusted partners for years and can walk you through this process the right way. Get in touch with them and start a free debt analysis today.
Things that you can start on your own:
Credit should never be “normal” for Christians. The only debt that it good for us is found in Romans 13:8 and, that should be your ultimate goal in your debt payment plan: Owe no one anything, except to love each other, for the one who loves another has fulfilled the law.
We have many free resources to help you in your journey out of a bad financial situation. Take it one day at a time. Start small and don’t give up until you are free!
Originally published on the Christian Post, September 28, 2018
