Dear Chuck,
Procrastinators Unite! This weekend, my husband and I will be crashing on our tax returns, due Monday, April 18th, and we’re hoping to receive a return. What do you suggest we do with the money?
Procrastinator
Dear Procrastinator,
It is never best to wait until the last minute to do your income tax return but it is better than not filing or filing late!
Since the majority of filers will receive a refund, this is a great question; especially when the average tax return in 2015 was $3,120. Usually, I wouldn’t turn to a poll to offer advice, but I’m going to make an exception today after reading about a new one out from Bankrate.com. Despite assertions that the economy is doing well and unemployment is down, most people are experiencing stagnant wages with little job growth.
Bankrate found our present economy is impacting how people intend to use their money with “84 percent of Americans receiving refunds intend to pay down debt, save or invest their windfall or use it for everyday necessities.” In fact, only 7 percent said they intended to spend the money or take a vacation with the cash.
I thoroughly applaud the more than 8 out of 10 Americans intending to hold on to that cash. At Crown, we advise that a good budget begins with $1,000 in an emergency fund followed by a plan to get debt free and stick with a plan. According to the Pew Charitable Trust, 80 percent of Americans are in debt, though that does include people with a mortgage. Still, about 4 in 10 people have expensive consumer debt like credit card debt, student loans or car loans.
Debt is an anchor that destroys the freedom of being available to do whatever God calls us to do.. When we owe money, we are obligated to meet the terms of the one who holds our finances hostage. Proverbs 22:7 puts it like this, “The rich rule over the poor, and the borrower is slave to the lender.”
If you are getting a refund, already have an emergency fund AND are debt free, consider investing in a Roth IRA, which allows you to prepare for retirement. Because you would have paid tax on the money invested, you don’t have to pay taxes on the withdrawals during retirement. This kind of investment makes sense and will help save on future taxes, especially for people in the lower and middle-income range.
And while I will always encourage people to save for their later years, consider changing your deductions to eliminate most of your withholding if you are getting a large tax refund. In essence, you’ve made an interest-free loan to the government. On the average tax return of about $3,000, a change in withholding could mean about $250 more a month in your pocket to put in savings now and earn some interest on your money.
Of course, the most important caveat of that withholding change is that you do save the money!
Originally posted on the Christian Post on March 10
Dear Chuck,
Happy St. Patrick’s Day! In thinking about going green, I’m 
wondering if there are any principles to keep in mind and any ways to go green cheaply?
An Irish Wish
Dear Irish,
You’ve come to the right place! The Bible is the original source for understanding the world we live in and how God wants us to treat the planet and its resources.
“In the beginning God created the heaven and the earth,” notes Genesis 1:1. With that in mind, here are some principles to keep in mind for going green with God’s perspective:
The earth belongs to God the Creator, not man. “The earth is the LORD’s, and everything in it, the world, and all who live in it,” Psalm 24:1.
God commands us to take care of the earth, not abuse it. Genesis 2:15, “The Lord God took the man and put him in the Garden of Eden to work it and take care of it.”
God intended people to be in charge of the earth and use its resources for the good of man, not just to the benefit of the environment and animals. Genesis 1:26-28, Then God said, ‘Let us make mankind in our image, in our likeness, so that they may rule over the fish in the sea and the birds in the sky, over the livestock and all the wild animals, and over all the creatures that move along the ground.’ So God created mankind in his own image, in the image of God he created them; male and female he created them. God blessed them and said to them, ‘Be fruitful and increase in number; fill the earth and subdue it. Rule over the fish in the sea and the birds in the sky and over every living creature that moves on the ground.’”
God gave us the privilege to be stewards, or managers, of the earth, responsible to Him for how we manage His resources. Here are simple things you and I can easily do to go green, take care of the world we live in, and all the while worship the Lord, not the earth He created.
Cut your consumption of:
Taking care of the environment and saving money tend to go hand-in-hand. Consuming less and stewarding more is good for the earth and our budgets. Try having a no-spend weekend with your family or friends and see how much money you save while being good to the earth!
For some, talk of going green may feel like political correctness, but it doesn’t need to.
It’s up to all of us to take care of the world God allows us to use and enjoy. St. Patrick not only brought the gospel to Ireland, he was also famous for using the three-leaf clover to teach people about the nature of God and the trinity. The earth is God’s beauty and creativity on display – it acts as an evangelist of sorts as it proclaims the reality of our awesome Creator, so let’s take good care of it!
Did you know you can receive practical principles and daily encouragement from God’s Word? The God is Faithful devotional is sent straight to your inbox every morning to encourage you in your faith, finances, and daily life.
Dear Chuck,
After the amazing Super Bowl victory of the New England Patriots and their quarterback Tom Brady, he said that he was going to give the truck he was going to get as MVP to James White for catching all those passes Brady sent his way in the nail-biter of a game. He gave a previous truck for a Super Bowl win to Malcolm Butler, another teammate who played a great game. How easy is it to give a gift like that? Does the IRS get involved? (And where can I find a friend like that?!)
Just Curious
Dear Curious,
This is a very interesting and timely question! With tax season upon us, many Americans are expecting refunds and Crown has some great advice on 4 better ways to use them. But the IRS and tax law can also seem overwhelming so I appreciate your thoughtful question about gifts.
While very few of us are going to get a truck awarded for a Super Bowl win, many people may decide to give a generous gift during the course of a lifetime. One reason to make such a gift is to reduce the size of an estate before death in order to cut the estate tax your heirs might owe. I doubt that Tom Brady needs to worry too much about the tax implications of these gifts given his annual salary, but as you look at IRS regulations, usually the giver pays the taxes – but not always.
Here are some tips to keep in mind if you are thinking of giving a generous gift.
Depending on how much you want to give, you may be relieved to learn that the IRS allows you to give someone financial gifts up to $14,000 annually. And you could give up to $14,000 to any number of people without causing a tax issue. Still, there is some leeway in this, as there is a lifetime gift limit (more on that later), and you can double your gift if your spouse agrees – meaning a married couple can give up to $28,000.
There are some exceptions that can be comforting if you are receiving a gift because of a tragedy or an investment in education. For example, money paid directly to a medical facility for medical bills or money paid directly for tuition does not count as a “gift,” even if this is not being given to a child or relative. And gifts between spouses don’t count.
The IRS may require you to fill out Form 709 the year after the gift is given, a form that allows tracking of your lifetime giving. They also note note that most gifts will not affect your federal income tax. If you are thinking of such a gift, be sure to fill out the proper forms and talk with your tax expert.
The IRS says that there is a “basic exclusion,” also known as a “unified credit,” which represents both a lifetime gift tax exemption AND an estate tax exclusion. Basically, that means that you can give gifts over the course of your life in the amount of $5.34 million without paying gift or estate taxes. Handled correctly, you can probably give more than $14,000 to someone in one year if you claim that lifetime exemption. Few of us are going to be able to give gifts valued over $5 million, meaning that as long as you are careful to record your generosity, you should be in good shape. For Tom Brady, unless he has given more than $5 million in gifts to his Super Bowl-winning colleagues, he could be able to avoid a tax issue. And if his supermodel wife Gisele Bundchen agreed to the gifts, they can easily give away almost $11 million without triggering the gift tax.
Most of us have watched or heard about Oprah Winfrey’s show and her generous giving. But if a company gives a promotional gift – such as giving every member of a studio audience a car to promote a brand – the IRS will not consider that an altruistic gift because the company gained public relations value. In that case, because the audience member received an increase in their wealth from the gift, the taxes fall on them.
Brady’s running back, James White, did eventually get his truck. It turned out that no vehicle was included this year in the prize package to Super Bowl MVP Tom Brady, so TV host Conan O’Brien stepped in, making sure that White received a beautiful new vehicle. I’ll leave it to them to figure out the tax liability, but it was a generous moment.
It’s up to all of us to know our tax liability. As Jesus said in Luke 20:25, when it comes to the government, “give to Caesar what belongs to Caesar, and give to God what belongs to God.” Thankfully, the IRS embraces altruistic efforts (for the most part), and benefits those who want to quietly give generous gifts.
If you’re looking for a little encouragement in the year ahead, please accept this gift from Crown. You can receive practical principles and daily encouragement from God’s Word in the God is Faithful devotional, sent straight to your inbox to consider what God has to say about our daily life.
Originally posted on the Christian Post March 10, 2017
Originally posted on the Christian Post on February 17.
Dear Chuck,
I’ve been at my job for a while now, and I know that I make a valuable contribution to my company, but I don’t know how to go about asking for a raise. Employers seem to be able to say vague things about the economy being sluggish and rush past any conversation that involves compensation. What does the Bible have to say about how to have an uncomfortable conversation about compensation? Is it more “Christian” to take a lower salary and give up worldly riches?
Stuck with Sluggish Salary
Dear Stuck,
This will be fun! Hopefully this will cover the questions you are wrestling with and give you some tips for seeking a raise so you will be on track for a healthy increase in pay soon!
Your question raises an issue on which I believe many people are confused, namely how to understand how God views rich versus poor, and whether one of those states is more “spiritual.” The Bible is clear that God is the maker and master of rich and poor alike, who are both expected to be good and faithful stewards with what they have been entrusted.
But that doesn’t mean that a good man or woman should take a lower salary without comment or that God doesn’t care when people are underpaid. In fact, the Bible consistently tells employers to pay their workers fairly. In James 5:4, Scripture says that God hears the cries of workers treated unfairly, saying, “Look! The wages you failed to pay the workmen who mowed your fields are crying out against you. The cries of the harvesters have reached the ears of the Lord Almighty.”
Here are four recommendations for seeking a raise.
Step One: KNOW YOUR MARKET
You believe that your work is valuable to your company and that given your experience you should be rewarded. Romans 4:4 says, “Now when a man works, his wages are not credited to him as a gift, but as an obligation.” What would an employer be obliged to pay for the kind of work you do?
You must first research the job market in your area to consider what employers typically pay for your skill set and level of experience. Your employer doesn’t pay you because you are friends, but because you do something important that has an associated cost. If you find that you are underpaid according to your research, you can make the case that your work is valued higher than your current compensation, taking into consideration your experience and expertise. But you may instead find that you’re at the top of your market, and need to increase your skills. This is also a regional calculation, as you may not receive what a worker in New York City is paid, but you don’t have the cost of living in New York City. Check outSalary.com, Payscale or Glassdoor to begin your research.
In his new book Love Your Work, Crown President Robert Dickie III outlines strategies for getting to the next level of professional development AND job satisfaction. But a clear-eyed assessment of the job market and your skills must be step one, especially in a world in which many companies are downsizing.
Step Two: KNOW YOUR TARGETS
In any job, an employee has tasks for which they are responsible. To argue for an increase in salary, you need to show that you are doing the job in front of you. Luke 16:10 observes, “Whoever can be trusted with very little can also be trusted with much, and whoever is dishonest with very little will also be dishonest with much.”
Can you illustrate the impact of your work? For people in sales, it is rather obvious as you can point to how many units you moved out the door. But it’s important for every person headed into a salary negotiation to show how you met and excelled in the tasks of your position.
Most employees would agree that their job description “evolves” over time, leaving competent people with more work that doesn’t exactly fit their role. Unfortunately for them, when it comes time for more money and advancement, the employer looks at only a few of the things they were first assigned to do. Pay attention to what an employer truly wants from you, and when new tasks are handed to you, make sure you know what they want to see happen, so that the new work will “count” when it comes time to evaluate how you spend your day.
Employers love data, so get it together for them. Start keeping a daily record of what you do so that you can show the scope of your work. Compare your job description to job descriptions similar to yours to illustrate that you are doing more than is expected at other locations, which would call for more money. You can look at other job listings as one source of information to understand the scope of work expected by your profession.
Step Three: TELL YOUR STORY
So you have your market math, showing what your skills can earn, and you have your company math, showing how you contribute – now tell your unique story. If you don’t, no one else will. The Muse recommends that you prepare a one-page brag sheet – I prefer to call it a “value sheet” where you can identify how you are delivering results for the company.
A good framework for making your pitch is “Not only this… but that…” LifeHacker notes: “If you were to write it out as a formula, it might look like this: ‘Not only do I have [all the standard requirements that everyone else has] + but I also possess [the following unique traits that make me a better candidate and thus worth more money].’ Basically, you want to consider (and capture on paper) what makes you different.”
Writing in Time, Jim Hopkinson of SalaryTutor.com recommends that you evaluate your contribution by mentioning “unique, valuable, and complementary skills.” He observed:
“So if you know that the company you’re working for is looking to expand internationally, and they offer you a starting salary of $70,000, you might reply, ‘I appreciate that generous offer. However, since I’ll be coming into this position not only with proven marketing and team-building skills, but also as a multi-lingual manager with experience building out teams internationally, I was seeking a salary closer to the $80,000 range.’ If the hiring manager knows that this will be an asset in the future, or saves the time and cost to train a similar manager in language skills, you’re likely to get that additional salary.”
Step Four: KNOW WHAT YOU’LL TAKE
Through your preparation you can go into a negotiation confident that you do deserve a higher salary and can command that kind of compensation in your market. This should help you take the emotion out of what can be a tough ask for many of us. But are you ready to walk away if the answer is no?
It’s possible that your employer will not respond to your request or counter with a lower number. It’s possible that he or she may offer to take some work off your plate or sweeten the deal with more vacation time or a flexible schedule. It’s worth considering whether time might be more valuable than money. With your research in hand, you are equipped to consider if it is time to walk away and go to the next level in another company.
I hope you are ready to take the next step and make a case to your employer. Please let me know how it turns out! All the best to you.
If you’re looking for a little encouragement in the year ahead, please accept this gift from Crown. You can receive practical principles and daily encouragement from God’s Word in the God is Faithful devotional, sent straight to your inbox to consider what God has to say about our daily life.
Originally posted on the Christian Post on January 13.
Dear Chuck,
I mostly like my job, or at least I don’t mind the work, and I’m grateful for it. But I find that some of my coworkers are really the worst part of my day. They can be critical, mocking, annoying, and I find that most of my stress comes from dealing with a few bad apples. Some people go out of their way to make it difficult to get anything done. They are like roadblocks to peace or effectiveness. I know that God wants us to work, but what does He say about how to handle a difficult group of people, not just a job?
Frustrated by Human Roadblocks
Dear Frustrated,
As you begin a new year, be determined to enjoy your work more and to be bothered less by those who are difficult. You can find some excellent advice and examples in the lives of Daniel and Joseph, who literally faced life and death scenarios at work – caused by extremely difficult people.
When King Nebuchadnezzar defeated Israel in a war, Daniel was a young man selected for lifetime service in the court of his country’s conqueror. The king told his court officials “to bring into the king’s service some of the Israelites from the royal family and the nobility— young men without any physical defect, handsome, showing aptitude for every kind of learning, well informed, quick to understand, and qualified to serve in the king’s palace.”
As a young man, Joseph was sold into slavery by his jealous brothers. He first ended up in Egypt to serve Potiphar, Pharaoh’s captain of the guard. Then later he ran the prison that had once held him after being falsely accused of attempted rape by Potiphar’s wife, because she was angry he wouldn’t sleep with her.
While you have the option of getting another job if you really find the people too much to endure, first consider that both Daniel and Joseph faced service with people they could not escape. Let’s unpack some key lessons we can learn from both of these Biblical examples.
Both Daniel and Joseph:
Daniel consistently outperformed everyone around him, leading to some seriously jealous coworkers who wanted him to fail. But we read in Daniel 6:4, “They could find no corruption in him, because he was trustworthy and neither corrupt nor negligent.” Both men, facing lies and intrigue, chose to put excellence and integrity first. They could have tried to play ball or office politics. They could have taken easier paths. But they held firm to being “a workman approved unto God.”
Many remember that in Joseph’s story, the boy sold into slavery rises to second in command of Egypt, making preparations for a famine that could have devastated the world. When faced with the opportunity to let his brothers who had sold him into slavery starve, he instead saved them all. After Joseph’s father died, his brothers offered to become his slaves because they were afraid that he would take his vengeance now that their father was gone. But Joseph cared for them, saying, “Don’t be afraid. Am I in the place of God? You intended to harm me, but God intended it for good to accomplish what is now being done, the saving of many lives. So then, don’t be afraid. I will provide for you and your children.”
Difficult people are a reality of life and certainly a part of most work places. But as we confront challenging people with God’s perspective, we need to differentiate our feelings about how others behave and how we need to respond. Jesus says in John 13:34-35, “A new command I give you: Love one another. As I have loved you, so you must love one another. By this everyone will know that you are my disciples, if you love one another.”
Jesus does not say people will be easy to love or even that they will receive it well. But he tells us to offer it – and — that how we treat others is a sign of our relationship with Him. I highly recommend that you read about Daniel and explore Joseph’s life. Both men dedicated themselves to putting God first, no matter their circumstances, and to treating others righteously. This did not make every circumstance easy, but it did result in many blessings and the favor of God in their trials.
The ability to get along with all types of people is an essential skill in today’s workplace. When you can avoid stressing out about difficult coworkers (or saying what you really think), you will have more personal peace and better opportunities to advance professionally. Both Joseph and Daniel ended up basically running whole countries … who knows where the right approach to difficult people may take you!
Dear Chuck,
My spouse and I are on the opposite sides of Christmas. He’s kind of an Ebenezer Scrooge, doesn’t want to spend any money and thinks most decorating is a waste of time and resources, but I love the excitement of the season, and gift giving is a way I like to show my affection. Every year, we end up having huge disagreements over how to celebrate the holiday. He is a Christian, and so we both share an appreciation of Christmas as a celebration of Jesus’ birth, but we are not on the same page at all on what that looks like … or how much money to spend. Can you help us?
Tired of Christmas Conflict
Dear Tired of Conflict,
If it makes you feel any better, you’re not the first person to ask me that question. Just because you and your husband share an appreciation of Christmas doesn’t mean that you naturally agree onhow to mark this occasion (or other celebrations for that matter). My wife, Ann, and I have had to work through our own differences over the years as to how we prefer to mark this joyous occasion.
Interestingly, regarding your reference to Ebenezer Scrooge, Charles Dickens’ infamous character, is a great word picture for conflict over Christmas … in part because Dickens makes a real point that Christmas is about celebrating the birth of Christ and not frenzied consumerism (even as he encourages Scrooge to spend a bit more to enrich people).
He wrote in his beloved story A Christmas Carol: “For it is good to be children sometimes, and never better than at Christmas, when its mighty Founder was a child Himself.”
In fact, Dickens laid out a beautiful sentiment about this holiday in a conversation Scrooge has with his estranged nephew, Fred, who is trying to bring some Christmas cheer to his bitter uncle who argues that celebrating Christmas is worthless:
“’There are many things from which I might have derived good, by which I have not profited, I dare say,’ returned the nephew. ‘Christmas among the rest. But I am sure I have always thought of Christmas time, when it has come round—apart from the veneration due to its sacred name and origin, if anything belonging to it can be apart from that—as a good time; a kind, forgiving, charitable, pleasant time; the only time I know of, in the long calendar of the year, when men and women seem by one consent to open their shut-up hearts freely, and to think of people below them as if they really were fellow-passengers to the grave, and not another race of creatures bound on other journeys. And therefore, uncle, though it has never put a scrap of gold or silver in my pocket, I believe that it has done me good, and will do me good; and I say, God bless it!’”
Ok, now to your dilemma about money and the budget. You and your husband can find some peace in Christmas, during which we celebrate the birth of the Prince of Peace, by first sitting down together and agreeing that your goal is to put Christ first in your celebration and by agreeing that a tug of war over how big a celebration is not where you want to go. It is, by the way, the greatest birthday celebration the world has ever known and should be focused on worshipping and adoring the Christ child. That is a good place to start to find your common ground.
The reality is that in most marriages one person is a spender and one is a saver. Consider that God’s design for checks and balances, ensuring that the family benefits from both perspectives.
As with all financial decisions made as a team, agree that you will listen respectfully … and then do it! A good place to begin is to talk about what your childhood Christmases were like and what you would you like to replicate or never experience again in your own home. In counseling hundreds of couples around the world, I’ve learned that people are often reacting to their life experiences when they make financial decisions – trying to recreate good memories or avoid bad ones. So seek to understand your spouse’s point of view, hopes, dreams and fears.
In our case, I liked the over blown decorations and treasure trove of gifts under the tree because that was the way I grew up. Ann appreciates simplicity, fewer gifts with more meaning and a focus on worship. We have migrated her direction and it has been a blessing on many levels.
Second, decide together on one thing you both really want to enjoy as a family. Perhaps one of the problems in your Christmas celebration is that too much of your conflict comes from fighting over individual goals and not the shared goals of a man and woman becoming one at Christmas. This does not need to be about money. Low cost options could be enjoying free Christmas concerts, going caroling or ice-skating. Agree together on memories you want to create and make that your first priority. This year Ann and I have decided to enjoy Christmas Day serving food at a homeless shelter with our two youngest sons. This will be a first for our family and we are all looking forward to it.
Third, make a plan for what you want to spend. Some people truly have the gift of giving, but that still requires a budget. Crown has a wonderful free resource for making a Christmas plan, because no matter how much you want to give the perfect gift, that still requires resources. The spouse who does not want to tax a family’s resources provides an important point of view at a time of year when we are all encouraged to go into credit card debt in every television advertisement for things we don’t really need or want. I think it is wise to agree to a debt-free Christmas budget and work from there.
Fourth, given your husband’s desire to spend less, consider your gift giving in creative ways, with baked treats, or a homemade treasure, or a family heirloom that can be passed along, or with your time. The goal is to show your love, not your checkbook.
Finally, when it gets stressful, take a break and find something to laugh about. As Dickens wrote, “It is a fair, even-handed, noble adjustment of things, that while there is infection in disease and sorrow, there is nothing in the world so irresistibly contagious as laughter and good humor.” Remember, “joy to the world, the Lord has come!”
Originally posted on the Christian Post on December 9, 2016.
Dear Chuck,
I cannot believe that it’s Thanksgiving week and Christmas is coming in weeks. Most of the time, I feel more stressed than thankful at this time of year (unless you count how thankful I feel when it’s all over!). Have any advice about making Christmas more about Jesus’ birthday and less about a shop-til-you-drop time of year?!
Tis the Season for Stress
Dear Stressed,
Christmas is my favorite season of the year! It is the largest birthday celebration on Earth and appropriately so! Yet, we have tragically moved from worshiping a child lying in a borrowed manger that first Christmas Day to the modern extravaganza marked by frenzied shopping. Just this week my wife and I noticed a mammoth inflatable of Santa and his twelve reindeer on sale at the home improvement store. For only $299, this “yard decoration” could practically hide your entire house from view. Is there any end to these needless expenses? I’ll step off my soapbox and get to your question…
Thanksgiving weekend marks the official launch of holiday shopping, with the average American planning on spending more than $800 this
Christmas. It is appropriate to show our loved ones we care; but I’ll offer a few tips for doing so without unnecessary financial stress. This will help keep the season more about Christ’s love then Santa Claus.
Make a List: Make a list of people you plan to shop for and set a budget … and make that budget closed to re-negotiation! This will allow you to do some on-line comparison shopping before you ever step foot in the malls. Planning will save you time and money!
Jesus says count your costs: Luke 14:28, “Suppose one of you wants to build a tower. Won’t you first sit down and estimate the cost to see if you have enough money to complete it?” Be honest about what you can afford. If you cannot afford to get the gifts you think your loved one desires, seek a meaningful alternative.
Make it by hand: Consider that you might make something more meaningful (and less expensively) than you can buy, and it can be a fun family tradition to bake or sew or craft or build things that show the true purpose of a gift – that show your love and concern for the people in your life. Even a handmade card can be a keepsake especially if you take the time to write something – a memory, a special verse, a prayer – that shows how important someone is to you and your family. Be like the Proverbs 31 woman! “She selects wool and flax and works with willing hands.”
Use technology: Christmas cards can be extremely expensive especially when you add in the price of mailing them. This year, you might want to send something electronically or even skip the letter altogether or make a little video you can share. Teenagers today have so many technical skills, this could be a fun project, and a more creative way to share your family’s adventures. This is also an excellent opportunity to talk with your children about the year your family has just experienced and consider how God has worked in your lives and how we hope to see Him in the year ahead. Christmas cards don’t have to be a burden, but can open the door to meaningful conversation with your family.
Take a teaching moment! Deuteronomy 11:19-21: “Teach (God’s words) to your children, talking about them when you sit in your house and when you walk along the road, when you lie down and when you get up. Write them on the doorposts of your house and on your gates, so that as long as the heavens are above the earth, your days and those of your children may be many in the land the Lord swore to give your fathers.” Set aside a time to read God’s Word and share the true Christmas story.
Invest in experiences, not stuff: Most of us have all the things we need, with a few exceptions. Have you considered a family trip as a gift (no wrapping paper required) or enrollment in a class to open new opportunities for your child? For example, Crown has developed an innovative program, Career Direct, for the student or professional asking themselves, what work best fits with my unique gifts and skills? In thinking about what people might enjoy and areas where they can grow, is there an experience – a mission trip, a painting or cooking class, some career development training – that could turn the new year into a new day? It could be the gift that keeps on giving.
Make an eternal investment: During the Christmas holidays, my family makes it a point to serve others so that we remember the reason for our celebration. We are so blessed that a loving God came to earth to die for our sins so that we can again be at peace with Him. He showed us what real servanthood is by giving of Himself. As a family, consider donating some of what you intended to spend to invest in the work of God on earth and to show your love for the least of these. Many wonderful organizations serve the needs of others to the glory of God, and this is a good time of year to sacrifice some of our spending money in honor of the sacrifice that Christ Jesus made for us. Giving Tuesday is set for Tuesday, November 29, to follow Black Friday, when the shopping season kicks into high gear. Pray about doing a little more to invest in the work of organizations that you value. Matthew 6:21 says, “For where your treasure is, there your heart will be also.”
Dear Chuck,
My wife and I are struggling with the costs of our children’s extracurricular activities, which seem to be getting more expensive all the time. One of our sons wants to be on a travel team for sports, which is not only expensive, but includes the costs of hotels, food, and all kinds of incidentals to participate. And there are music lessons for two others, school fees for any activity (from speech club to Latin) along with the incredible pressure to do all these things to help our children compete with their peers, who are also taking classes, going to sports camps and paying for lessons of all kinds. I am concerned not only with the costs but also the pressure to keep up with the Joneses when it comes to kids and activities. But of course we want our children to have the skills and experiences they need to be successful. Do you have any advice?
Parents under Pressure
Dear Parents,
With four sons myself, I feel your pain, and you are not alone. In fact, the peer pressure and even emotional blackmail (which we can apply to ourselves) can lead to some dangerous financial choices. Add that to the reality that these costs are on the rise. Time magazine recently reported “according to this year’s Backpack Index — an annual look at the cost of school supplies and other expenses compiled by The Huntington National Bank and nonprofit Communities in Schools — the increase is a little over 7%, across all grade levels.” The costs averaged about $739 per child, per year, but were reported as higher in high school, and even more intense for parents with kids involved in high-level sports.
Anyone with a child in sports knows that financial pain. RetailMeNot, an online coupon site, reports than many parents are spending about $671 per sport with 1 in five spending more than $1,000.Travis Dorsch, an assistant professor at Utah State University, has studied parental spending on sports, and found that struggling families are paying up to 10.5 percent of their GROSS income (total income before taxes) on their children’s sports.
But to be fair, it’s not just parents with kids in football making that kind of investment. Raising a professional ballerina, from age three through high school, can cost $100,000. And there are those paying thousands of dollars for music lessons, private tutors, theatre camps or gymnastics. Entire industries have been built on the back of parents who want to give their children every opportunity to do well.
The truth is, however, that this level of spending is hurting a lot of family finances. The Wall Street Journal recently reported on the most common financial mistakes people make, depending on their age. In their 40’s, many parents hurt their long-term financial interests by spending too much on children’s activities while saving too little.
Certainly the Bible does tell parents repeatedly to instruct children about their faith and the right way to live in this world. Ephesians 6:4 says, “Fathers, do not provoke your children to anger, but bring them up in the discipline and instruction of the Lord.”
But there is no Bible verse saying “Thou Shalt Pay for Every Sport/Hobby/Interest Thy Offspring Desires.”
Choices need to be made. We need to model good stewardship, not just good sportsmanship!
Getting our kids the right tools is important, but part of that training needs to be an understanding of the costs and implications of making a choice. It’s not about saying “No” to 10 expensive options, it’s about saying “Yes” to a few that will reap long term benefits to their mind, body and soul.
Dear Chuck,
I’ve seen that you really encourage people to save $1,000 that they don’t touch at all except for extreme emergencies, but seriously, I CAN’T DO IT! I need some advice on where to cut because I’m so close to the edge. Got any ideas?
Open to Suggestion
Dear Open,
Trust me, you are not the first person to feel that way or ask that question! Most of us are so busy that we don’t feel we have the time to stop and evaluate our spending. The first thing you need to do is be sure that you have a functional budget. You may be surprised to see just where your money goes when you work through a plan. Crown has some wonderful free tools to help you with that, but let’s assume that you have a good budget in place, and you are still stuck. I have some “Budget-Hacks” to help you redirect money from things that most of us have hidden in our spending.
Think of it as the application of Ben Franklin’s wisdom, “A penny saved is a penny earned.” So let’s count some pennies we can save because pennies add up to dollars.
The average worker spends $20 a week buying coffee, adding up to more than $1,090. If you even brought coffee from home half the time, you just saved $500.
+Add $500 to your emergency fund.
Americans throw away about $165 billion in wasted food, which comes to about $529 per person. It adds up if you have a family. By planning your meals, you can save money every month, but let’s assume you only make a slight changes to shop more carefully. You still can conservatively save $500 per year for a family.
+ Add $500 to your emergency fund.
Estimates about how much people spend on entertainment varies, but a recent report looked at the budget of a family making about $50,000/year, and found that they spent about $2,605 on some kind of entertainment. That comes to $200 a month, or $50 a week. If you cut out just one outside entertainment a month (a trip to the movies perhaps), you could save approximately $600.
+ Add $600 to your emergency fund.
The average worker pays about $37 a week buying lunch out, more than $1,900 a year. Double that if you are married. If you skip just one week of eating out each month while at work, you can save $444.
+ Add $444 to your emergency fund.
Did you know that 67% of us waste about $468 a year by NOT using the gym memberships we have paid for? I’m all for exercise, and if you’re using the membership, that is fantastic. But if not, consider whether a gym membership is a good use of money. Get a great pair of running shoes and consider dropping the gym fees.
+ Add $400 to your emergency fund.
Americans spend a fortune on their pets, and while there are certain costs that are fixed, billions of dollars every year go to buy gifts for our furry friends. In fact, 65% of Americans have a pet and spend an average of $1,600 on a dog each year. Dog clothes, animal toys, and even pet parties are becoming part of American life. Remember that a pet really wants your attention and not your cash, so buy fewer toys and take more walks. Cut your pet budget by at least 10%.
+ Add $160 to your emergency fund.
Arranging garage sales of things you don’t want (or a sale through eBay, Craigslist or another shopping tool) is a great way to turn one man’s trash into cash. Consumer Reports indicates that each week, garage sales generate about $4.2 million in profit. Done correctly, the average garage sale can net $500 to $700. Who knows what money you might have laying in your home? Organize a garage sale and add at least half of your profits to the emergency fund.
+ Add $250 to your emergency fund.
In 2015, the average tax refund was $3,120 – a tidy sum. I’ve written a lot about how to manage that, including recommending to check your withholding because you may be deducting too much each month. But with January approaching, consider whether you already have saved $1,000 with Uncle Sam’s help. Change your tax withholding to avoid the refund.
+ Add $1,000 of your tax refund straight into the emergency fund or change your withholding amount and put $250/month into the fund.
I hope you see that by making just a few changes, rather than a drastic lifestyle overhaul, you can accumulate the needed $1,000. Of course, once you make the switch, be sure that the cash goes into your emergency fund! Just the few things listed above could lead to more than $3,600 and counting! Be sure to take advantage of direct deposit options at your work, free apps on your phone to track spending, and the tried and true system of carrying cash in envelopes to be sure you never overspend your budget.
And don’t forget the importance of becoming debt-free! Check out our mini video series – 5 Steps to Debt Free Living to learn how to pay off your debt faster. Or start with a free debt analysis and contact a debt counselor to help you eliminate your credit card debt faster.
The fact that it may take some time to build up your fund is to be expected. The Bible advocates saving a little amount over a long period of time. Proverbs 13:11 notes, “Dishonest money dwindles away, but he who gathers money little by little makes it grow.”
Originally posted on the Christian Post October 28, 2016.
Dear Chuck,
Should I buy a car from Craigslist? There seems to be a lot of great deals from private sellers. And I would love to pay cash rather than have a car payment. But the process seems so daunting. Many of the posts look like scams, and most sellers say “cash only” but I don’t want to carry that much cash. Is it worth the trouble?
Sincerely,
Craigslist Newbie
Dear Newbie,
Thanks for the great question. It’s one that I answer in the affirmative (it is worth the trouble) as I personally just used Craigslist to help my 18-year old son buy a used car. And yes, we paid cash to do it.
While it’s important to take safety precautions when making a purchase through this kind of network (as Craigslist itself advises), I have found it a useful tool for finding a quality vehicle for a lower price. I recommend a cash deal, if possible, when it comes to a used car. Although a little lengthy, I have provided some important tips and lessons we learned.
First, be very cautious of scams, thieves, and sellers with fraudulent intent especially as you are getting started. Certainly keep personal information to a minimum when communicating through e-mail or text. You may even want to set up a separate e-mail account for conversations like this.
Try to ask questions to determine if the person is really who they say they are and have some knowledge of the car they are selling. I often ask for information not listed in the advertisement like: “Where do you get the car repaired? Do you have a CarFax report that I can see? What has been the biggest repair you have had done on the car and who did that for you? Can you send me a few pictures of the engine and tires?” This gives you some idea if the person you are talking to keeps the car maintained and who they deal with locally.
When I decide I actually want to see the car, I take further security measures. I strongly recommend arranging a meeting in the parking lot of a local fast food chain or large retail store in the middle of the day – never at someone’s house. Some police stations have even set up safe meeting locations next to their stations. I let others know when and where I am meeting the seller to add additional protection.
Second, as with all sales experiences, it matters who you are dealing with, and I have found it best to buy from an individual or reputable dealer, being on the lookout for less than honest dealers pretending to be an “owner” when they are actually just getting rid of a lemon on their lot.
Here are a few guidelines I developed before we would set an appointment to look at a car.
Several people we talked with were trying to rip us off, and it can take time to get to the real facts about a car. My preference: buy a used car from the first or second owner that has not been through a major incident such as a wreck, flood, or auction.
Third, ask the seller for maintenance records, history of use (how often did the owner drive it and how far), where the car was serviced, when the tires were last replaced, etc. Save yourself some time by asking for this information through e-mail.
And fourth, do your homework on the value of the car you are considering. Before we went to test drive and inspect the car we did our research on the value using the Kelley Blue Book, nationally known for information on the value of cars, and the National Auto Dealers Association, where we received free, online services helping us evaluate if the price the owner was asking was fair.
For me, I was able to use this experience as a teaching opportunity for my sons, as I took them through this process. When we finally narrowed our search, and were ready to see some cars in person, I took both of my teenage sons, asking them to evaluate the condition of the car on a scale of 1 to 10, looking at tires, engine, interior, rust, windows, seats, power systems, spare tire, paint, etc., and I asked for their evaluation of the value of the car versus the price being asked.
Eventually, we found a car that the three of us rated an 8 out of 10 for quality of condition but the owner wanted a 10 out of 10 in price, top dollar, asking $7,500. It was worth considering, so we asked to have the car inspected by a mechanic (which cost us $100) and found that the car needed $2,500 in engine work! That was well worth the $100 inspection fee as the repairs needed were not obvious to our untrained eyes. That would mean the price had to come down 30+ percent for us to be interested.
We made an offer by text, which the seller initially refused, but three days later they contacted us again and to our surprise, took the reduced price. The repairs were made after the sale, and my son couldn’t be happier. We paid cash for the car and necessary repairs. When we made the actual purchase, I wrote a bill of sale, a title transfer and a mileage affidavit to ensure there would be no issues once we handed over the cash.
We kissed lots of frogs and only one turned into a prince. We emailed or texted about 25 sellers, test drove four cars, and made one offer.
To be frank, this was a time-intensive process and discouraging at times, especially when we felt deceived by some of the sellers. This process is not for everyone. An alternative is to buy “Certified Used” from a reputable car dealer. You will pay a premium, but the car will come with some guarantees and you won’t have to worry about finding out later the transmission is ready to fall through the floor of the car. But I’ve found that it is difficult to find anything under $10,000 that I think is a bargain from a dealer. Crown has some additional free advice on how to evaluate a car purchase you can read here.
Hopefully, you will enjoy the process. People have been enjoying the art of buying and selling since the beginning of time. Proverbs 20:14 observes, “’It’s no good, it’s no good!’ says the buyer– then goes off and boasts about the purchase.”
I hope when you finish shopping on Craigslist you will be as happy as we are with the car you find.
