Christian-perspective-on-finances – Susan's Reflections

Cultivating True Wealth

The Bible teaches us that true wealth can only come from having a personal relationship with Jesus Christ. To enter into a personal relationship with Jesus, we must admit that we are sinners in need of a Savior, recognize that Jesus is the only one who can be our Savior, and accept His freely-offered sacrificial death as cleansing for our sins. Repentance and faith in Jesus lead to true peace on earth and an eternity in Heaven.

In Proverbs 22:4, King Solomon wrote that “Humility and the fear of the Lord bring wealth and honor and life.” We must come to the Lord humbly admitting that we are sinners and in fear that He will give us the just punishment our sins demand before we can truly accept His gift of salvation. In accepting Jesus as our Savior, we become children of God and joint heirs with Christ in the abundance of Heaven.

When the rich young ruler came to Jesus and asked what he must do to obtain eternal life, Jesus told him to obey the commandments. When pressed for what else was necessary, “Jesus answered, ‘If you want to be perfect, sell your possessions and give to the poor, and you will have treasure in heaven. Then come, follow me.'” (Matthew 19:21) The next verse tells us, “When the young man heard this, he went away sad, because he had great wealth.” (Matthew 19:22) This young man was so tied to his earthly belongings that he was unwilling to give them up for the true riches of Heaven. How very sad! Our earthly possessions are fleeting, but true wealth will last forever.

This post is a reprint from my quarterly newsletter. If you would like to receive my free newsletter with other tips on managing your money in a way that honors God, subscribe here.

To learn more about how to honor God with your money and build treasure in Heaven, please click the Finances categories tab to find many blogs on money management, budgeting, and stewardship. My book Honoring God with Your Money is a great tool for financial money management.

Four Reasons to Check Your Credit Report

Most people have easy access to their credit scores. Mine is available on my credit card statements each month and from my banks. People are less likely to look at their credit report, especially if their credit score is good or excellent. However, it is a good idea to review your report occasionally. Here’s why.

Check for identity theft. If someone has gotten access to your personal information, they may have applied for a loan or credit card in your name. You need to review your report periodically for any accounts that you are unaware of. One of my credit card companies checks this for me and notifies me each month as to whether any new accounts have been open in my name. You may want to check with your credit card company to see if that service is available to you.
Check for errors. Credit card companies process more than a billion transactions each day. They are going to make some mistakes. The sooner you catch a mistake, the sooner it can be corrected and the less likely it will negatively impact your credit score. Additionally, some lenders may fail to report closed accounts or debts that have been paid in full, so you will want to check for those type of errors, as well.
Learn why your credit score is not higher. I spoke with a lady recently who told me her credit score was 580. That is on the cusp between Poor and Fair. She could not understand why it was so low, as she said she had no debt other than her home mortgage and a loan on one of her four family vehicles. We pulled her Experian credit report, which told a very different story. The woman had seven accounts that were flagged as Potentially Negative. Each of them was small debt that she had not paid and did not realize that she owed. It was immediately obvious why her score is so law.
Make a plan to improve your score. The seven debts that the lady had not paid have all been sent to collections. She needs to take care of each of these. Her plan is to (1) contact each creditor to verify that the bill is correct, and (2) pay each debt that is truly owed. In her case, one debt was for about $350 and the other 6 were approximately $100 each. She can pay off all seven bills for less than $1,000. She should see a significant increase in her credit score in 30 – 45 days.

In the case of the lady I spoke with, her credit score was quite low due to unpaid debts totaling less than $1,000. She can easily pay all of these bills, once she verifies they are accurate. In other instances, however, someone may have no debts that have gone to collection, yet still have a low credit score. This could be due to a pattern of paying bills late, opening too many new accounts in a short period of time, or having too much debt in relation to your maximum. It is difficult to assess why your score is low and make a plan to improve it without reviewing your credit report.

Everyone is entitled to a free copy of their credit report once a year from each of the three major credit rating agencies. Some financial experts recommend checking all three at the same time each year and comparing them, while other experts recommend spacing them out during the year. The lady I worked with pulled her Experian report last week. She will take care of each of the debts and allow 45 days for her records to be updated. Then she will get one from either TransUnion or Equifax to verify that the debts have been removed, and later in the year she will get the third one to ensure that she is staying on track with all of her open account.

To access your free credit report, go to annualcreditreport.com

If you need help to learn to manage your money and improve your credit, please check out some of my other blogs on Finances, Money Management, and Stewardship. My book Honoring God with Your Money is a great tool for financial money management.

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Pepperonis as Quarters

Pepperoni Pizzas — Photo by Polina Tankilevitch on Pexels.com

In a different phase of life, my husband and I bought a pizza franchise and opened a restaurant in the little town of Orange, VA. Our good friend, and pizza mentor, Jerry told us that we should look at “pepperonis as quarters.” An individual pepperoni probably costs a penny or less–I never did the math, but I got the point. Wasting food costs me money, and small wastes add up quickly and take money out of my pocket. Little things matter whether you are trying to make money in your business or trying to live within your means on a tight budget.

In my current job, I am a consultant in a small business development center. I meet with people each week who would like to start businesses. Many of these dreams will be derailed or postponed due to poor credit and/or lack of financial resources to get a business started. Often these people have plenty of income, yet they have failed to live within their means. Some of them have made big financial mistakes, such as buying a house that they cannot afford, but many are in trouble because they have failed to control small expenses. They forget that lunches out and $4 cups of coffee can make a big dent in their budgets.

As a Christian, I am a steward of all that God has entrusted to me. When someone mentions stewardship, money management is probably the first thought that comes to mind. Stewardship, however, encompasses all phases of your life, including how you use your time and how you use your talents. We can relate the “pepperonis as quarters” adage to time and talents, as well as to money. Saving a few moments here and there throughout your day can add up and allow you more time to play a game with your child, read a book for pleasure, relax with your spouse, or start a new project. Honing your talents little by little can help you gain speed and proficiency.

I Corinthians 4:2 tells us, “Moreover it is required in stewards that one be found faithful.” I hope that this word will encourage you to look for small ways to be a better steward of your time, talent, and money.

Cutting Your Losses

As a business consultant, I occasionally counsel someone who has made an unwise decision in opening a business. The business is losing money, and the business owner doesn’t want to give up. That it admirable, and in some cases, with time the business can be successful. In other cases, the business owner is pouring more money into a business that will never be successful. It is time to close up shop and cut their losses. It is a difficult and painful decision, as they often invested time and money into the business.

I was thinking about this as I read the story of King Amaziah that is recorded in 2 Chronicles 25:5-9.

“Amaziah called the people of Judah together and assigned them according to their families to commanders of thousands and commanders of hundreds for all Judah and Benjamin. He then mustered those twenty years old or more and found that there were three hundred thousand men fit for military service, able to handle the spear and shield. He also hired a hundred thousand fighting men from Israel for a hundred talents of silver.
But a man of God came to him and said, “Your Majesty, these troops from Israel must not march with you, for the Lord is not with Israel—not with any of the people of Ephraim.Even if you go and fight courageously in battle, God will overthrow you before the enemy, for God has the power to help or to overthrow.
Amaziah asked the man of God, “But what about the hundred talents I paid for these Israelite troops?”
The man of God replied, “The Lord can give you much more than that.”

Amaziah had invested 100 talents of silver to hire Israelite troops to fight for him. In today’s economy, that is equivalent to about $1.65 million. It is quite a lot of money to lose. However, the prophet tells him to give up the money and send the troops away.

Old silver coins — Photo by Pratikxox on Pexels.com

The prophet also promised Amaziah that God could give him more than the 100 talents of silver he was giving up. To his credit, Amaziah obeyed the prophet. In doing so, Amaziah secured God’s blessing and won the battle against his enemies.

It is hard to walk away from money you have invested. Yet, if the Lord instructions you that it is the right thing for you to do, you need to be obedient. God will reward your obedience, and He is more than able to restore to you all that you lost. Of course, it is best to seek the Lord’s counsel before investing in a business or making other major financial decisions. Still, it is comforting to know that when you do make a mistake, you can repent of that mistake and walk away from it secure in the knowledge that God will reward your obedience.

Proverbs 31 and the Ten Commandments of Thrifty Living

The Christmas season is a time for being generous and gathering with family and friends. However, after the holidays are over, many people find themselves saddled with significant debt accrued by giving gifts and throwing parties that went beyond their budgets. Even as we seek to be generous and shower affection on our loved ones, we must remember that the true spirit of Christmas is celebrating the birth of Christ and sharing God’s love with those around us. Being generous and sharing with others does not require one to go into debt. It does, however, require some time, effort, and planning.

Today I am sharing some ways you “Applying Proverbs 31 to the Ten Commandments of Thrifty Living”. The ‘commandments’ in bold were created by the author of this list–I found it many years ago and I no longer have any idea who authored it. The Scriptures were included in the list and are from the New International Version. The application of these principles are my own ideas. I believe these principles are still valid, and if you apply them to your holiday planning and spending, you will be able to have a meaningful Christmas celebration while staying within your budget.

Applying Proverbs 31 to the Ten Commandments of Thrifty Living

1) Roll up your sleeves. “She sets about her work vigorously; her arms are strong for her tasks.” Proverbs 31:17

Convenience items can save time but cost more. Sometime the trade off is worth it as the time saved may be more valuable than the money spent. Be wise in choosing convenience items that give you a good value for your money and do truly save time. Likewise, paying others to things you are able to do will save you time but cost you money. Make wise decisions about what taks you should do yourself and what tasks are worth paying someone to do for you.

2) Organize your world. “She watches over the affairs of her household and does not eat the bread of idleness.” Proverbs 31:27

Organization helps you save time and money. Organize shopping trips to accomplish multiple tasks while out to save gas and time. Organize online shopping to ensure that you get free shipping and don’t have to pay rush delivery charges to get gifts delivered by Christmas. To get ahead for next year, organize holiday decorations and leftover gift wrap and cards so they can be stored properly and be found easily next year.

3) Provide for each day’s need. “She gets up while it is still dark; she provides food for her family.” Proverbs 31:15

Caring for your family should be your first priority. Don’t let the business of the holidays interfere with taking care of the day-to-day needs of your family. It easy to get so busy that we end of eating out a lot and making multiple trips to the store for groceries and other necessities, both of which can wreck havoc with your budget.

4) Waste not; share your excess. “She opens her arms to the poor and extends her hands to the needy.” Proverbs 31:20

The holidays are a good time to clean out closets and give away items no longer needed. They are also a good time to share generously with others what God has given to you. I set aside a portion of my Christmas budget each year to buy new gifts for one or more children whose families need a bit of help. There are many, many ways you get share with others in deed. A few ideas are: donate unwanted items to Goodwill or similar organizations, buy new toys and clothing for children in need and donate through the Salvation Army, and pack a shoebox with small gifts to be donated to children in improvished countries through Samaritan’s Purse.

5) Discover your creative genius. “She speaks with wisdom, and faithful instruction is on her tongue.” Proverbs 31:26

God has endued each one of us with creativity, although we each express it differently. Pray and seek God’s direction in using the creative gifts He has given you to bless others. I enjoy knitting and knit Christmas stockings as gifts. I have friends who bless others with homemade jams, jellies, and baked goods. If decorating is your talent, your gift to a friend could be to help her decorate her home. Handmade gifts can save money but do require an investment of time, so plan ahead and be organized.

6) Learn prices. “She sees her trade is profitable, and her lamp does not go out at night.” Proverbs 31:18

Don’t fall for ads declaring that something is marked down 50% or more. Many stores mark prices up before the holidays to give the illusion that you are saving more money than you really are. The Internet and phone apps make comparison shopping easier than ever. Check prices on the items you need before you go out shopping.

7) Presentation is everything. “She makes coverings for her bed; she is clothed in fine linen and purple.” Proverbs 31:22

You can make even simple meals special by using nice dishes and decorating the table to be festive. You can make your home welcoming and inviting by adding inexpensive decorations, such as lights and tinsels, to your entrance. Simple, inexpensive embellishments can dress up your presents. Presentation does not have to be expensive to add a nice touch to your home and gifts.

8) Adjust your attitude. “She is clothed with strength and dignity; she can laugh at the days to come.” Proverbs 31:25

Don’t let the holidays cause you to become overwhelmed and stressed. If you get too concerned about buying everyone the perfect gift or creating the perfect holiday, you will wind up not enjoying the holidays.There is no such thing as a perfect holiday, anyway. Remember Christmas is a celebration of the birth of Christ and a time to spend with friends and family. Keep your focus on Christ and you will have a more satisfying holiday.

9) Out with impulse. “She considers a field and buys it; out of her earnings she plants a vineyard.” Proverbs 31:16

Plan your shopping before you leave the house. Know how much you plan to spend on each family member and stick to your budget. Impulse shopping leads to overspending and often to being less satisfied with your purchases than planning ahead and sticking to your plans.

10) Honor God. “Charm is deceptive, and beauty is fleeting but a woman who fears the Lord is to be praised.” Proverbs 31:30

Everything we do should honor God. When our focus is on God and celebrating the birth of His Son, our celebrations will truly be meaningful and enjoyable.

Honoring God With Our Money: Cultivating True Wealth

For the past three months, I have taught a Sunday School class entitled, ‘Honoring God With Our Money.’ In this final lesson, we looked at true wealth and how to cultivate it. Money is a necessity in our world and it serves many purposes. However, money in and of itself cannot bring true happiness, contentment, or joy. And money most certainly cannot buy eternal life.

When the rich young ruler came to Jesus and asked what he must do to obtain eternal life, Jesus told him to obey the commandments. When pressed for what else was necessary, “Jesus answered, ‘If you want to be perfect, sell your possessions and give to the poor, and you will have treasure in heaven. The come, follow me.'” ( Matthew 19:21) The next verse tell us, “When the young man heard this, he went away sad, because he had great wealth.” (Matthew 19:22) This young man was so tied to his earthly riches that he was unwilling to give them up for the true riches of Heaven. How very sad! Our earthly possessions are fleeting, but true wealth will last forever.

Jesus further illustrated to his disciples the way to acquire true wealth by telling them the parable of the sheep and the goats, found in Matthew 25:31-46:

“When the Son of Man comes in his glory, and all the angels with him, he will sit on his glorious throne. All the nations will be gathered before him, and he will separate the people one from another as a shepherd separates the sheep from the goats. He will put the sheep on his right and the goats on his left.

“Then the King will say to those on his right, ‘Come, you who are blessed by my Father; take your inheritance, the kingdom prepared for you since the creation of the world. For I was hungry and you gave me something to eat, I was thirsty and you gave me something to drink, I was a stranger and you invited me in, I needed clothes and you clothed me, I was sick and you looked after me, I was in prison and you came to visit me.’

“Then the righteous will answer him, ‘Lord, when did we see you hungry and feed you, or thirsty and give you something to drink? When did we see you a stranger and invite you in, or needing clothes and clothe you? When did we see you sick or in prison and go to visit you?’

“The King will reply, ‘Truly I tell you, whatever you did for one of the least of these brothers and sisters of mine, you did for me.’

“Then he will say to those on his left, ‘Depart from me, you who are cursed, into the eternal fire prepared for the devil and his angels. For I was hungry and you gave me nothing to eat, I was thirsty and you gave me nothing to drink, I was a stranger and you did not invite me in, I needed clothes and you did not clothe me, I was sick and in prison and you did not look after me.’

“They also will answer, ‘Lord, when did we see you hungry or thirsty or a stranger or needing clothes or sick or in prison, and did not help you?’

“He will reply, ‘Truly I tell you, whatever you did not do for one of the least of these, you did not do for me.’

“Then they will go away to eternal punishment, but the righteous to eternal life.”

I urge you, as you read this post, to consider whether you are cultivating true wealth through your relationship with Jesus Christ and through your actions. If you are not, it’s not too late to start. For those of you who do know Jesus Christ as your Savior, I urge you to use the money God entrusts in you wisely and to honor God in all that you do.

Honoring God With Our Money: Rules of Investing

If you have created a budget and are following it, eventually you will wind up with more in savings than you need for an emergency fund. At that point, you should think and pray about investing your excess money to meet future needs. The following rules of investing are adapted from Larry Burkett’s book, Family Budgets That Work.

Rules of Investing:

Never invest money you cannot afford to lose. All investments have an element of risk and the possibility exist that you might lose all or a portion of the money you have invested. One only has to look at the variability in the stock market to see that this is true.
Never get involved with things you don’t understand. Don’t try to buy individual stocks unless you know the company well and have confidence that it is well-run.
Demand sufficient information to thoroughly evaluate the opportunity. Take the time to thoroughly research possible investments.
Seek good, non-involved Christian counsel. There are many knowledgeable Christian financial counselors who will discuss your needs and goals and help you to make wise investment decisions.
- Proverbs 19:20 Listen to advice and accept discipline, and at the end you will be counted among the wise.
Set a minimum time to pray and seek God’s direction. Don’t let anyone rush you into an investment decision. If the opportunity is only available for a limited time, it is probably an opportunity you should forgo.
Once you have God’s direction, write out an investment plan. A written plan will help you keep your goals in mind and help you make investment decisions that are consistent with your goals.
- Proverbs 20:5 The purposes of a person’s heart are deep waters, but one who has insight draws them out.
Avoid ‘get rich’ schemes. Plan for slow, steady growth. If it sounds too good to be true, then it almost always is.
- Proverbs 21:5 The plans of the diligent lead to profit as surely as haste leads to poverty.
- Proverbs 28:20 – 22 A faithful person will be richly blessed, but one eager to get rich will not go unpunished. To show partiality is not good—yet a person will do wrong for a piece of bread. The stingy are eager to get rich and are unaware that poverty awaits them.

Honoring God With Our Money: Savings Plan

Most financial experts recommend that everyone should make a regular habit of saving 5% of their income. A goal for savings should be to accumulate enough savings to cover 3 -6 months of living expenses as a cushion for periods of unemployment due to layoffs and extended illness.

For those who are struggling financially and are unable to meet current expenses, savings is not an option at present. Everyone else should make a goal to save at least a small amount out of each paycheck and to increase that amount as circumstances allow.

Getting into the savings habit can be difficult, so I offer the following steps to assist in getting started on a regular, steady savings plan.

Tips for Developing a Savings Plan

1) Acknowledge that God’s word tells us that it is wise to save in the good times for lean times.

Proverbs 6:6-8 Go to the ant, you sluggard; consider its ways and be wise! It has no commander, no overseer or ruler, yet it stores its provisions in summer and gathers its food at harvest.

Proverbs 21:20 The wise store up choice food and olive oil, but fools gulp theirs down.

Story of Joseph in Egypt: Genesis 41: 29 – 36

Seven years of great abundance are coming throughout the land of Egypt, but seven years of famine will follow them. Then all the abundance in Egypt will be forgotten, and the famine will ravage the land. The abundance in the land will not be remembered, because the famine that follows it will be so severe. The reason the dream was given to Pharaoh in two forms is that the matter has been firmly decided by God, and God will do it soon.

And now let Pharaoh look for a discerning and wise man and put him in charge of the land of Egypt. Let Pharaoh appoint commissioners over the land to take a fifth of the harvest of Egypt during the seven years of abundance. They should collect all the food of these good years that are coming and store up the grain under the authority of Pharaoh, to be kept in the cities for food. This food should be held in reserve for the country, to be used during the seven years of famine that will come upon Egypt, so that the country may not be ruined by the famine.”

2) Develop a system for putting money directly into savings.

a. Use a company payroll automatic savings deposit, if possible. This puts the money directly into savings before you receive it.

b. Set up an automatic bank transfer from your checking account to your savings account.

c. Write your savings account a check just as if it were a creditor.

3) When an existing debt is paid off, allocate any extra money toward the next largest debt. When all consumer debt is paid off, then reallocate that money to savings.

4) Set goals for which you are saving, such as a new couch or a vacation. Having a goal for savings will keep you focused and less likely to fritter money away on things that are not truly needed. This money should be in addition to your long-term savings for ’emergencies.’

5) Use the money savings tips provided in an early blog to reduce expenses and have more money to put into savings.

Honoring God With Our Money: Maintaining Good Credit

This week lesson in our series on honoring God with our money covers way to deal with debt and to build credit. Today we will look at ways to maintain good credit and improve poor credit.

A good credit score is important to maintaining a good reputation.

Proverbs 22:1 A good name is more desirable than great riches; to be esteemed is better than silver or gold.

It is easier to maintain good credit than it is to rebuild a poor credit rating. A credit score of about 680 or higher is generally considered to be good or excellent. If your credit score is not good, you should take steps beginning today to rebuild your credit.

A good credit score:

1) Improves your chances of being approved for a loan.

2) Allows you to get better interest rates on loans and credit cards

3) Lowers your car insurance premiums.

4) Helps you to rent an apartment.

To maintain a good credit score or improve your credit score,

1) Always pay bills on time.

2) If you missed a payment, get current and stay current.

3) Never take on more debt than you can repay on your current income.

4) Keep credit card charges to 30 – 40% or less of your credit limit.

5) Don’t close old accounts as they contribute to a longer credit history.

6) Review your credit report annually to check for errors, identity theft, and issues that are pulling your credit score down. Checking your credit report and/or score does not hurt your score.

7) Minimize the number of credit cards you have. Opening new accounts lowers your score.

8) Have different types of credit, such as a mortgage or lease, education loan, car loan, and credit cards.

9) If you have never had credit, you will have no credit history. This can make it difficult to be approved for a mortgage or lease.

10) When shopping for a new car, do so in a short period of time, so it is viewed as a single inquiry rather than multiple. Multiple inquiries in a short time period will lower your score.

You are entitled to a free copy of your credit report each year from each of the three major credit reporting agencies: Experian, Equifax, and Transunion. To request your free credit report, go to

www.annualcreditreport.com

Honoring God With Our Money: Dealing With Debt

This week lesson in our series on honoring God with our money covers way to deal with debt and to build credit. Today we will look at steps to pay off debts and ensure that debt does not entrap.

Steps to Dealing with Debt

1) Determine in your heart to repay all your debts, as the Lord enables you.

Psalm 37:21 The wicked borrow and do not repay, but the righteous give generously.

2) Establish a payment schedule that includes all creditors.

Make a list of all debts from smallest to largest and/or according to interest rate.
Determine to first pay off either (1) the smallest debt or (2) the debt with the highest rate of interest.
Make minimum payments on all debts but the one to be paid off first.
Allocate as much money as possible each month to paying off the debt being retired first.
When one debt is paid off, concentrate efforts on the next debt to be paid off.

3) Contact creditors and asks for a lower interest rate. Many lenders will lower the interest rate to avoid default.

4) Contact all creditors, honestly relate your problems, and arrange an equitable repayment plan.

5) Buy on a cash basis, and sacrifice your wants and desires until you are current. Allow God to meet your needs without taking on more debt.

Psalm 37:7 Be still before the Lord and wait patiently for him

6) Do not cosign for another person unless you are able and willing to pay off the debt if he/she cannot do so.

Proverbs 22:26-27 Do not be one who shakes hands in pledge or puts up security for debts; if you lack the means to pay, your very bed will be snatched from under you.

7) Do not count on future raises to pay for today’s expenses.

James 4:13-15 Now listen, you who say, “Today or tomorrow we will go to this or that city, spend a year there, carry on business and make money.” Why, you do not even know what will happen tomorrow. What is your life? You are a mist that appears for a little while and then vanishes. Instead, you ought to say, “If it is the Lord’s will, we will live and do this or that.”

If you are dealing with overwhelming debt, you may need to seek assistance from a debt counselor. Also seek help from the One who supplies all of our needs. God wants to help you and is waiting for you to bring your burdens to Him. Psalm 55:22, “Cast your cares on the Lord and he will sustain you; he will never let the righteous be shaken.”

Please feel free your tips for dealing with debt.

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