### If you’re a contract worker— and more people *are* these days— you probably have irregular hours and pay. So how do you budget?

Developing a budget isn’t difficult, *if* you know how much money you have to spend. But what if your income keeps changing? Budgeting with a variable income may be a bit more complicated, but it’s certainly possible and more necessary than ever.

### New data shows that employers are using about [25%](https://www.ft.com/content/53329655-74b3-4820-a5f9-37ae39ad6d7d) more contract workers now than a year ago, largely due to fears of recession. That means a lot more people are struggling to budget with income that varies from week to week.

The need to budget doesn’t change just because your paycheck does. Spending less than you earn is the key to every financial success. It’s the foundation that everything else is built upon and it’s nearly impossible to do without a spending plan.

This is a plan that gives each dollar a job and directs the flow of money in and out of your accounts. You’ll never be able to maximize your giving and saving without a spending plan.

And this applies to everyone, whether you’re an employee or a contract worker. It’s imperative as a Christian that you wisely manage the resources God has given you. Proverbs 27:23 reads, *“Know well the condition of your flocks, and give attention to your herds.*”

Having a spending plan means that you know, either specifically or on average, how much you have coming in and going out and where those monies are directed. You’ll have to give an account someday for how you manage money, so you need to have a plan.

### The format you choose for your spending plan is up to you. You can use pencil and paper, or you can take a digital approach and for that we highly recommend you check out the [FaithFi app](https://www.faithfi.com/manage).

Our app will help you set up your budget using the tried and true envelope system, and it has the best financial content from a host of Christian authors like Shauntee Feldhahn, Art Rainer and Randy Alcorn.

No matter which approach you choose, begin by tracking your expenses for 30 days. Capture every expense no matter how small. Then, think about the non-recurring expenses and add them in with a monthly amount needed to have what’s necessary when that expense rolls around. These would be quarterly insurance payments, annual HomeOwners Association fees, vacation expenses and your Christmas fund.

Next, take that 30 days of actual spending, plus the non-recurring expenses and build an initial budget by category. Once that’s set up, you’ll need to bring the budget in line with your income, making sure that your spending reflects your goals and priorities. If it doesn’t, that’s where you need to start cutting back and making changes.

If you use the FaithFi app, you’ll find its envelope system particularly helpful for controlling the flow of money in your discretionary categories, which are the typical budget busters because they vary from month to month. These are things like eating out, shopping for clothes, gifts, and entertainment.

If you’re married, you’ll also have to decide who manages the budget going forward, husband or wife? We all have different gifts and talents. Sometimes the more detailed, organized person is the wife, sometimes it’s the husband. You’ve got to figure out what’s the best approach for you.

### You can have one person as the bookkeeper, but *both* spouses need to be in on the plan, and the commitment to *sticking* with it. This is why we recommend that you have a weekly “money date.”

That’s when you come together each week to review the spending for the last seven days, make course corrections, and address the unexpected and of course, the unexpected is always going to happen.

That covers variable expenses, now what about variable *income*— which is key for most contractors. Start with what you do know. What was your average monthly income for the last six months?  Can you reasonably expect to earn the same amount in the *next* six months?

The goal is to arrive at a budget that can be covered by the average (or slightly below average) amount you expect to earn each month. In the months that you earn more, put the excess in savings to fund the lean months.

You may also want to consider depositing all of your income into savings and then transferring only a set amount each month for living expenses. Then every six months or so, reassess your average income for the period and make necessary changes to your budget. That’s how contractors— or anyone— can budget successfully on a variable income.

You can also __[listen](https://www.faithfi.com/search?q=The%20Contractor%E2%80%99s%20Budget&videos=true&articles=true&podcasts=true&posts=true&groups=true&events=true&support=true)__ to the related podcast on this topic.

FaithFi

Articles

Budgeting with a variable income may be a bit more complicated, but it’s certainly possible & more necessary than ever.

The Contractor’s Budget

Countless headlines warn that people are not saving enough for retirement. If you’re a parent, one factor that might be holding you back on the savings front is providing too much financial support for your adult children. As ironic as it might seem, that could hurt more than *your own* financial security; it could hurt *theirs*.

### A slow path toward independence

According to a 2018 study by Merrill Lynch and Age Wave, 79% of parents of “early adults” (ages 18-34) provide them with some type of financial support. And not just during their children’s earliest adult years, when they might be helping cover the cost of college. The study noted that “these contributions can continue long after college graduation.” Common ongoing financial support categories include groceries (37% of parents with adult children provide *some* help with their food expenses, 23% pay *all* of the cost); cell phone bills (22% some, 32% all); car expenses (30% some, 17% all); and vacations (23% some, 21% all).

Many parents also help pay for large one-time expenses, such as a wedding or the down payment for a home.

One increasingly common scenario is adult children moving back home after college, potentially driving up how much their parents pay for food, utilities, and more. Toward the end of 2021, 46% of 18-to-34-year-olds were living in their parents’ home. While this number spiked to 52% in the first year of the COVID-19 pandemic, the current level is the same as before the pandemic and sits just below the previous all-time high of 48% seen during the Great Depression.

A [separate study](https://www.savings.com/insights/financial-support-for-adult-children-study) by savings.com found that 62% of adult children who live with their parents contribute nothing toward helping with household expenses.

### Willing to sacrifice

While many parents are already providing financial assistance to their adult children, many others stand ready to do so. According to the Merrill Lynch/Age Wave study, 82% of parents said they are willing to make “a major financial sacrifice” for their adult child. More specifically:

- 50% are willing to draw down their savings;
- 43% are willing to live a less comfortable life;
- 26% are willing to take on debt;
- 25% are willing to pull money from a retirement account (a [Bankrate survey](https://www.bankrate.com/personal-finance/financial-independence-survey-april-2019/) found that 50% of respondents had sacrificed or are sacrificing retirement savings to help adult children financially);
- 19% are willing to retire later/work longer;
- 14% are willing to refinance a house;
- 8% are willing to come out of retirement.

### An emotional and financial disconnect

Many of those providing assistance don’t seem concerned about the impact on their own finances. In fact, according to a [UBS study](https://www.ubs.com/us/en/investor-watch/2018/generational-ties.html), 80% of Baby Boomers who are providing financial help to their adult children said theyfeel goodabout being able to help. However, it’s noteworthy that many *recipients* feel otherwise. Half of millennials (ages 25-40) who are on the receiving end of parental financial support said they feel some shame, frustration, or guilt over it.

And in some cases, that financial “help” may be *hurting*. In the classic book, *The Millionaire Next Door*, authors Thomas Stanley and William Danko said their research found a direct negative correlation between “economic outpatient care” (parents providing money to their adult children) and the recipients’ ability to build wealth.

“In general,” they wrote, “the more dollars adult children receive, the fewer they accumulate, while those who are given fewer dollars accumulate more.”

As Stanley and Danko looked more closely at the dynamic of parents giving their adult children money, they also found that:

- “Giving precipitates more consumption than saving and investing.”
- “Gift receivers in general never fully distinguish between their wealth and the wealth of their gift-giving parents.”
- “Gift receivers are significantly more dependent on credit than are non-receivers.”
- “Receivers of gifts invest much less money than do non-receivers.”

The authors say many givers assume economic outpatient care will “get the youngsters going” and then won’t be needed anymore. That’s often the motivation, for example, behind helping with the down payment on a house. However, Stanley and Danko said recipients of such gifts often end up financially dependent for the cost of other home-related items, such as furniture and landscaping.
### 
### What are parents to do?

Ideas for parents to consider include:

- While it can be difficult to do this, especially if your adult children truly are in need, try to prioritize your retirement-related financial needs over the financial needs of your adult children.
- Clearly communicate what expenses you plan to stop covering for your adult children and by what age. When will they be on their own for health insurance, car insurance, cell phone service, and other bills?
- If your adult kids need or want to move back home for a time, will they be expected to help with some of the bills?
- Use the Envestnet MoneyGuide software to see specifically how various types of financial support for your adult children may impact your retirement plan. (MoneyGuide is [available to SMI Premium-level members](http://soundmindinvesting.com/moneyguidepro) for a $50 one-time fee.)

Here are other guidelines suggested by the affluent parents Stanley and Danko studied:

- Never tell children your family is wealthy.
- No matter how wealthy you are, teach your children discipline and frugality.
- Minimize discussions of the items that each child and grandchild will inherit or receive as gifts.
- Never give cash or other significant gifts to your adult children as part of a negotiation strategy.
- Teach through example that there are a lot of things more valuable than money.

### Selective support can help

Stanley and Danko said their research doesn’t close the door on *all* forms of financial assistance for adult children. Some, such as subsidizing a college education or helping to fund a business, can have “a strong positive influence on the productivity of the recipients.”

However, they strongly cautioned about cash gifts knowingly earmarked for consumption: “We find that the giving of such gifts is the single most significant factor that explains lack of productivity among the adult children of the affluent.”

Perhaps the authors summed it up best when they wrote, “Discipline and initiative can’t be purchased like automobiles or clothing off a rack…. Teach your children to live on their own. It’s much less costly financially, and, in the long run, it is in the best interests of both the children and their parents.”

*[Image](https://dcktxkaneetr8.cloudfront.net/2022/08/l4-helping-adult-children-financially-HD.jpg) used with permission.*

Since 1990, do-it-yourself Christian investors have relied on SMI for proven strategies and trustworthy guidance.

Sound Mind Investing

Personal Finance

Headlines warn that people are not saving enough for retirement. Here's one factor that might be holding you back.

When Helping (Adult Children Financially) Hurts

Annaliese Raynak

__The search for the right healthcare option is an adventure with unexpected surprises. Rising costs and an ever-changing healthcare landscape can make the process overwhelming. Despite that, it’s possible to be a good steward with your healthcare funds. Asking the right questions reveals the best options for your unique situation.__

Consider these four questions as you search for a budget-friendly healthcare solution:

__1: Is my money supporting something I can believe in?__

Considering an organization’s standards is just as important as navigating the services they offer. Values-based spending—or putting money into organizations whose values align with your own—can lead us to find options from organizations we’re honored to support. As Christians, we are called to be lights in the world—and this includes how we approach our healthcare.

Need a place to start? Look for the mission and vision statements of the organizations you’re considering, as well as anything they publish about where their funds go. Talk to individuals in the community, and gather testimonials to identify whether or not they’re in alignment with your biblical values.

When we put our resources behind an organization that demonstrates excellent principles, we are truly serving others as the hands and feet of Christ.

__2: Have I considered all my options?__

Finding healthcare that’s budget-friendly and aligns with principles of values-based spending doesn’t have to be overwhelming. It can be easy to overlook options when the healthcare market is full of potential choices.

Consider searching for alternatives that you might not have discovered or fully evaluated in your initial search. Create a list of pros and cons as you assess each option and reflect back on what would be manageable for your unique situation.

When we look for potential avenues to explore, we honor God as we manage our finances (Proverbs 3:9).

__3: Is this budget-friendly for my situation?__

When considering healthcare choices, it can be easy to focus solely on the possibilities and lose sight of the actual costs. Because each situation is unique, it’s essential to pick a program or level that fulfills your needs and is cost-effective.

Our finances are one of the many gifts of resources from God, and we’re called to be good stewards of them (James 1:17). Research what your actual monthly cost would be, in addition to the stated guidelines, in order to select a manageable option.

Considering what could be practical for your family will allow you to make choices that will achieve your budgeting goals (Luke 14:28).

__4: Do I need to get a second opinion?__

Once all potential healthcare options have been considered, you might be ready to make your selection. However, you might want a second opinion. After reviewing all the options, it’s possible that you may have overlooked an important aspect. Asking someone close to you for their opinion gives you a clearer overall picture of the situation.

God encourages us to seek second opinions when making choices (Proverbs 11:14). With guidance from trustworthy individuals, counselors, or mentors, our plans are even more informed (Proverbs 15:22).

Searching for budget-friendly healthcare can be manageable. By asking the right questions about your values, the alternatives, and second opinions, you can choose the right budget-friendly option for your family.   *AR*

*If you're a Christian looking for a cost-effective, accountable and faith-based framework to satisfy your healthcare costs and help fellow believers, consider joining Christian Healthcare Ministries (CHM). Christian Healthcare Ministries isn’t insurance, and doesn’t use insurance agents. We are a group of hundreds of thousands of Christians around the world who pray for and encourage one another and who share each other’s burdens in the area of healthcare costs. __[Learn more.](https://www.chministries.org/ministry/)__*

Christian Healthcare Ministries (CHM) is a budget-friendly, biblical, and compassionate healthcare cost solution for Christians in all 50 states and around the world.

Christian Healthcare Ministries

Budget-friendly healthcare options do exist. The answers to these 4 questions will help you find the right choice.

4 Important Questions to Assess Healthcare Options

### The stock market has few set rules. There are, however, certain truisms that have withstood the test of time. One is that bad market periods are always followed, in time, by good market periods.

SMI was started in July 1990 during one of those bad periods. The U.S. economy entered a recession that very month. The federal budget was facing a large deficit, causing President George H.W. Bush to back down from his famous ‘’no-new taxes’’ pledge. Iraq invaded Kuwait that summer, and the U.S. sent hundreds of thousands of troops to Saudi Arabia. Oil prices more than doubled, contributing to inflation.

In only our fourth issue, I was already writing to our readers reminding them that bear markets are periods of opportunity. (That’s been a familiar theme over the years.) I called that editorial “Bear Market P.M.A.” Here’s an excerpt from the SMI archives from 32 years ago:

> This month I want to encourage you to get ready for the bear market with a Positive Mental Attitude. I’m not saying we’re now in one, but if we are, are you prepared? Prepared to take advantage of it, that is.First, *are you prepared financially*? If you haven’t been investing with borrowed money, then you can survive any bear market. You just maintain your strategy and wait it out. But that’s looking at it negatively; lower stock prices are bad only for people who *have to sell*. They represent temporary bargain prices for people who have the money to buy. Are you prepared to systematically add to your holdings via a dollar-cost-averaging strategy?Second, *are you prepared psychologically?* Yes, short-term we have problems. But the long-range outlook is exciting. Years from now, stock prices will be far higher than they are now. [Note: As expected, stock prices resumed their long-term uptrend. Now, in 2023, the S&P 500 Total Return Index is more than *22* times higher than in the fall of 1990, representing annualized gains of 10.4% per year.]It is only through the down phase of market cycles that we are given the opportunity to buy at unusually low prices so we can sell later at high prices. Properly prepared for, bear markets are more of an advantage than a disadvantage. You need to embrace the mindset that a bear market in stocks is an opportunity, not a threat.You’re happy to take advantage of seasonal sales at the local mall, aren’t you? If you’re committed to the long-term with your investing program, you should have the same “opportunity is knocking” attitude about stock prices going “on sale.”Investment rewards, for the most part, come from developing a well-thought-out strategy that focuses on quality investments, and then having the wisdom to wait for the markets to do what they have always done in the past — reward the patient investor.

We may now be living in 2023 (and doing less shopping at malls), but the risks to investors today are not unlike those of a few decades ago. And our counsel is the same as before — prepare yourself financially and psychologically for the next major buying opportunity.

Tactically, SMI’s approach has changed a bit. In 1990, we didn’t have Fund Upgrading’s defensive protocols or the Dynamic Asset Allocation strategy to help steer our buying toward the end of bear markets. Our suggested approach has tilted away from “keep buying all the way through the bear market via dollar cost averaging” to “buy when your specific strategy signals tell you to.” But the broad idea remains the same: we want to take advantage of lower prices created during bear markets to supercharge our long-term returns.

(SMI still recommends that members continue to DCA by adding to their 401k or other investment accounts every month throughout bear markets. The only difference is now we wait for the SMI strategies to signal exactly when to deploy that cash into new stock holdings.)

We deal with market risk by diversifying according to SMI’s trend-following strategies, which are designed to keep you on the right side of the market’s long-term upward direction. We may step out of harm’s way temporarily when our signals give us a bear warning. But that’s just to preserve our firepower for when we get the signal to get back in the game!

As the title of this editorial implies, a bear market can work to the advantage of the long-term investor. We’ve spent the last 32 years fine-tuning this process. Now it’s time to patiently follow it through until the next bull market begins.

[Image](https://soundmindinvesting.com/articles/looking-forward-to-the-opportunities-at-the-end-of-this-bear-market) used with permission

Investing

The stock market has few set rules. There are, however, certain truisms that have withstood the test of time.

Looking Forward to the Opportunities at the End of This Bear Market

### A 529 plan is a college savings plan. 529 plans are run through individual states and provide significant tax benefits. Some 529 plans are prepaid tuition plans, but the majority of 529 plans are simply savings plans.

In December, the Secure Act 2.0 provided a big update 529 Plans. For anyone who desires to save for college expenses, it’s one worth noting.

First, here are some important pieces to understand about 529 plans:

1. __A person can choose any state’s plan.__ So, you are not stuck with your home state’s college savings options. And this is good news because other states may offer a better plan.
2. __A person places after-tax dollars into the 529 plan, invest it, and then pull out the funds tax free for educational purposes.__
3. __Contribution limits are usually extremely high, but individuals will want to check with the state’s plan for specific limits.__
4. __Withdrawals must be used for qualified educational purposes. These expenses include tuition, books, room and board, computer, and internet.__
5. __If beneficiary decides not to go to college (or doesn’t use all of the funds), plan owners can switch beneficiaries.__ Beneficiaries can be any qualified family member--spouse, child (or stepchild), sibling (or step-sibling), father (or stepfather), mother (or stepmother), first cousin, niece, nephew, aunt, uncle, father-in-law, or mother-in-law.
6. __Individuals can also use a 529 plan to cover K-12 educational expenses, up to $10,000 per year.__

There is now an additional answer for the common 529 plan question “What if my child gets a scholarship or decides not to attend college?” Up until the Secure 2.0 Act, the answer was to either change beneficiaries or withdraw the funds and get hit with income taxes and a ten percent penalty. Now, there is another option.

### In 2024, 529 owners can rollover their 529 savings to a beneficiary’s Roth IRA. This is significant. Here’s some important caveats to understand:

7. __The rollover must be for the beneficiary. The funds are *not* for the owner’s Roth IRA.__
8. __The 529 Plan must have been opened for 15 years.__
9. __Contributions and earnings that are less than 5 years old, cannot be rolled into the Roth IRA.__
10. __Rollovers are still subject to the Roth IRA contribution limit.__
11. __There is a $35,000 lifetime transfer limit.__

Further clarification of the new rule will likely be released in the future. This addition will play a role in an individual’s decision whether to use a 529 plan for their college savings. If you are a parent, guardian, or just a great person who’s looking to save money for college expenses, you now have another reason to consider a 529 plan.

[Image](https://www.christianmoneysolutions.com/post/big-update-for-529-savings-plans) used with permission

You were meant for more. Your money was meant for more. You and your money are meant for an exciting, adventurous, and satisfying purpose. You were designed to live and give generously. And deep inside you know this and want this.

Christian Money Solutions

For anyone who desires to save for college expenses, these changes are worth noting.

Big Update for 529 Savings Plans

### Lately, I’ve witnessed a lot of pastors grappling with this question: “Why have most people in our churches not shown themselves to be significantly different than the people of the world?” I often wonder why they don’t consider the discipline of financial stewardship and generosity.

It’s heartbreaking. “We thought we’d taught them better,” they say. “Discipled them.” But, often, the fruit is not there. This has brought the topic of discipleship to the forefront of conversations among pastors I know and work with.

Interestingly, while there is much consensus around the need for a better process of forming true disciples in our churches, I’m not hearing any conversation about generosity, stewardship, or giving as part of discipleship. This seems to be the most neglected area of discipleship in the American church.

That’s a problem.

Over the last 50-60 years, we have allowed the conversation in the church about giving and generosity to become more transactional than transformational, especially in our worship services. In other words, it has become more about how to give (in person, online, through an app, etc.) and where to give (to this budget, to this project, to this church) than *why* to give.

I’m not saying the “how to give” conversation is unnecessary. But we have allowed it to monopolize the conversation to the exclusion of the “why,” which leads to the transformational part – the piece that makes it a conversation about discipleship.

![](https://www.ncfgiving.com/wp-content/uploads/2023/02/Screen-Shot-2023-02-16-at-4.42.22-PM-1024x575.jpg)

*Photo courtesy of Jim Sheppard*
#### 
#### What God is after

A lot of people have a problem with the Church and money. They think the Church is after their money. Well, let’s clear that up.

God doesn’t want your money. God doesn’t need your money. God is not after your money. God is after your heart. And so is the Church.

God wants to see your faith increase. And so does the Church.

Once you are a Christ follower, your relationship with money is spiritual. What you do with it is financial, but your relationship with it is spiritual. Because of this, each act of stewardship of your money or possessions is an encounter with God. And that is a discipleship issue.

Our giving has the power to transform us. It can play a role in our sanctification. How we use it can make us more like Jesus. And that is a critical missing element in our discipleship strategies.

God knew money would have great power – even the power to draw our hearts completely away from him. “No one can serve two masters,” Jesus said, “for either he will hate the one and love the other, or else he will be loyal to the one and despise the other. You cannot serve God and mammon.”

He did not say, “You cannot serve God and Satan.” He said “God and [mammon](https://www.gotquestions.org/what-is-mammon.html),” a word for money, wealth, and material possessions. Mammon is materialism and worldly gain. It is the evil influence pursuing wealth can have on us. More importantly, the New Testament personifies it as a false god. Matthew uses the untranslated word, as if it were a name (6:24).

Money has power, great spiritual power. It has the power to draw you away from the altar of the one true God to another counterfeit altar. Have you thought about that? We get hung up thinking, “The Church is just after our money,” and ignore the reality that our money has this tremendous spiritual power in our lives. The need for us to give, regardless of any church’s intentions, is not about the church; it’s about us and our relationship with our Lord.

If we want fully formed disciples, financial discipleship must become an integral part of our church strategy. Yes, we absolutely should focus on other marks of discipleship, but not to the exclusion of stewardship and giving. Generosity is one of the marks of a person whose heart has been profoundly transformed by Christ. Let’s not ignore this.

Our relationship with money is critical, and if we seek to honor God with it, he can use it to transform us into Christlikeness. And if we leave it out of our discipleship discussions? It has the power to destroy us.

NCF helps people create a giving strategy based on biblical principles, so they can be wise stewards of all they have and experience the joy of greater generosity.

National Christian Foundation

Biblical Foundation for Giving

Our relationship with money is critical, and if we seek to honor God with it, he can use it to transform us.

The most neglected area of discipleship in the American church

### Does the word “budget” make you cringe? For many, the word conjures up images of a ball and chain strapped to their ankle, a heavy weight putting a drag on their finances and fun.

But people who use a budget — or, as I prefer, a cash flow plan — typically find it freeing. It provides peace of mind, guiding their use of money in a way that enables them to live generously, save and invest adequately, and enjoy living with financial margin.

Last month, we looked at the first step for using a budget: *[planning](https://soundmindinvesting.com/articles/budgeting-is-about-having-more)*. Once you have a plan for how much you intend to give, save, invest, and spend oneverything from food to clothing, you need a system to see what’s *really *going on with your cash flow.

In this article, we’ll introduce you to three different methods for *tracking* your cash flow. Which one is best? The one you will actually use!
### 
### __Write it__

The first way to track your cash flow is to use a *paper and pencil system*. Along with the Cash Flow Plan form on the SMI website, you’ll find a [Cash Flow Tracker form](https://soundmindinvesting.com/resources/downloads). Take the goals from your Plan and write them across the top of the Tracker.

> A budget guides the use of money in a way that enables you to live generously, save adequately, and enjoy financial margin.

Each time you spend money, whether you use cash, write a check, use a debit or credit card, or pay a bill online, write it down in the appropriate column. (The reason there aren’t 30 or 31 rows is that you won’t spend money in every category every day of the month — at least, I hope not!)

Keep your Cash Flow Plan and Tracker forms in a place where you’ll see them, such as your kitchen counter. That way you’ll be reminded to record the day’s spending. After you do, cross off the date at the bottom of the form as a reminder that you captured the day’s spending.

Use one form for each month, totaling up the spending for each category and using last month’s totals to keep track of year-to-date totals.
### 
### __Stuff it__

Another way to track your cash flow is to use the *envelope system* for many of your purchases. Some of your bills will be paid out of your checking account, such as your rent or mortgage, utility bills, and insurance premiums. But for other more day-to-day categories — such as food, clothing, and entertainment — the system calls for putting enough cash for each category’s monthly budgeted amount into a separate, clearly-labeled envelope.

For example, if you get paid once a month, get enough cash for the month’s budgeted amount for groceries and put it in an envelope marked “Groceries.” When you go to the store, take that envelope with you, pay for your groceries with that cash, and put the change back in the envelope. If you get paid twice a month, then on payday take half of the monthly budgeted amount and put it in the envelope.

### The envelope system is a literal “hands-on” visual tracking tool. You can readily see how much you have left for a particular category at any point in time. That will help you stay on track.

If you’re new to budgeting, I suggest starting with either the paper-and-pencil system or the envelope system. Use one of these approaches for at least six months and only then consider moving on to an electronic budget tool.
### 
### __Digitize it__

There are two types of electronic budget tools — software and online services. They have benefits in common, but also key differences. Quicken is the leading software program for budgeting and Mint.com is arguably the leading online budget tool, but [others exist as well](https://soundmindinvesting.com/articles/4-options-for-budgeting-online).

One of the strongest benefits of using electronic budgeting tools is that they do much of the tracking for you. When linked to your bank and credit card accounts, these tools automatically capture transactions you make by check, credit card, debit card, and online bill-pay systems, as well as online transfers and deposits. The only transactions to enter manually are cash transactions.

Electronic tools can even categorize your transactions if you want them to. For example, if you do most of your food shopping at Bob’s Finer Foods, these budgeting tools can be set up to automatically categorize each such transaction as “Groceries.”

With an electronic tool, you can readily see how you’re doing in any category at any time. It’s great to be able to pull up the status of your clothing budget on your smartphone while in the parking lot of a store before going in to shop.

Worried about sharing your financial information via online connections? The leading electronic budget tools use what’s called bank-level security, which is the same type of security your bank uses when you check your account online. They are also read-only services. Once you are logged in, you can’t use such tools to move money around; you can only *see* the information you’re interested in. (Of course, if you have concerns about online security, you could go with the paper-and-pencil approach or the envelope system instead.)

Quicken can generate a variety of detailed reports, so if you’re especially analytical, you might want to go that route. Mint is more streamlined. In the Bell household, we’ve been using Mint for many years. I like that it’s free (albeit with ads) and my wife and I can easily access it anywhere we can get on the Internet.

How can you best *make use* of the information you track? That’ll be our focus next month.

[Image](https://soundmindinvesting.com/articles/where-does-all-your-money-go) used with permission

Does “budget” make you cringe? For many, the word conjures up images of a ball & chain strapped to their ankle.

Where Does All Your Money Go?

### As a lifelong entrepreneur, I’ve found there are many ways that entrepreneurship is a profoundly spiritual experience.  Today I’d like to talk about the relationship between entrepreneurship and faith. First, let’s define faith. Faith is one of those words that shows up often in spiritual conversations, but it can seem hard to pin down. Hebrews 11.1 is a good place to start:

Now faith is the assurance of things hoped for, the conviction of things not seen

So, faith is both assurance and conviction.  Whenever you have to trust something you can’t see, you’re exercising faith.  You don’t just exercise faith in spiritual matters.  If my wife is out of the house picking up supplies to make dinner, I can’t see her.  If someone asked me if she’ll be coming home, I would say yes, because I know her well and she’s always come back before.  If someone tried to introduce doubt by saying “maybe she’s decided to run away and won’t come home”, I can’t prove that they are wrong because I can’t see her, but I can remind myself of her character and love for me and quickly conclude that it would be ridiculous to worry about such a thing.  My faith in my wife gave me conviction of something I couldn’t see and assurance of what I’m hoping for – in this case, one of her terrific dinners.

Before I was a believer, I thought of faith as naïve wishing - that a Christian’s faith was just them wanting to believe there was a God looking out for them as a crutch to get through life.  Now I see that faith is more about reminding myself what I know. In the process of becoming a believer, I spent months investigating the claims of the faith. I had experienced venture capitalists going through a “due-diligence” process in my company where they looked at all kinds of documents before deciding our claims were trustworthy enough to warrant an investment. I did something similar and read many books and articles to prove to myself that Jesus is a real, historically-documented person who told us salvation comes to those who trust in him and serve him and who then proved his authority through his miracles and resurrection.  In that light, it’s completely rational to trust his words and Gospel. That was some time ago.  Now, sometimes it’s easy to believe in him - he feels so close I can almost feel his breath.  Other times, he feels distant, and my old self starts to wonder if he was just in my imagination.  It’s then that I can remind myself why I believe and confirm that my convictions are well-grounded and that my hope in him is based on trustworthy assurances so that I can live like he is real until eventually, I feel that he’s real again. *

Now let’s see how that applies to Entrepreneurship.  An entrepreneur is someone who painstaking works at something only they can see in the hope that someday everyone will be able to see it.  When they have an idea for a product or company, it’s just that – an idea.  Nobody can see or touch it.  As they think through and develop the idea it becomes more detailed and refined. They can talk to friends about it so their friends can also see their idea.  When investors agree to put money into the idea or customers buy it or people come to work at the company it becomes more real.  Eventually, it may become a business that everyone knows about, and then it’s real to the whole world.  At every step though, there are new people deciding whether to believe in the idea.

### Throughout the journey, I’ve found it common to have doubts.  Often when I was about to meet with investors or make an important sales call, I had this fear that the other person would reject my idea and tell me I’m a fool – some people call this *The Imposter Syndrome.*  

Some doubt in my head would ask “what if they’re right?” “What if you’re just chasing a foolish dream?” This is where faith kicks in.  I have good reasons for the conviction I have about my business.  I’ve put in the time, asked hard questions, proven it works, and won over skeptics.  Someone may find a flaw, but I’ve been able to address flaws before and bounced back. While I can’t be certain I’ll succeed and this next skeptic will be won over; I can know that my assurance is based on reasonable convictions and that my hope for a good meeting is based on well-grounded assurances.  The same faith muscle that I use to believe in God is the one I use to confront doubts about my business.

Doubts are not unique to Christians.  All entrepreneurs second-guess themselves.  All salesmen project confidence while worrying about rejection.  Everyone at one time or another worries they will be exposed as an imposter at their job. It is a Christians’ advantage that this feeling isn’t strange to them because they’ve gone through it in their walk with God.  A Christian is also better equipped to deal with it because they have had practice in the past beating back irrational doubts.

The one difference between practicing faith in your work and practicing faith as an entrepreneur is that while the Gospel is perfect, it is likely there are flaws in your ideas you will need to address.  While groundless doubts can do you no good, there will be times when you will need to hear the truth in criticism and adjust your plans accordingly.  That is where the Christian virtue of humility is important – but that will have to be covered in a different article.

### So should you find your faith in Christ and the Gospel weakening, see it as an opportunity to build and grow your muscle of faith. Ask yourself how you came to believe and revisit what you know until you feel your faith growing strong again. 

Take note of how it feels and how you succeeded.  Now when you find yourself doubting your venture or plans, apply the same process of going back to what you know – being careful to honestly consider whether significant facts have changed in your business – and use your muscle of faith to empower you to decide and act even when you’re feeling less confident.  The faith God is growing in you as you walk with him will serve you well as you learn to extend it to other facets of your life.

I’ll end by noting that as you learn how your spiritual faith can equip you to have faith in your business; your success practicing faith in business could actually feed back into your spiritual walk.  It takes faith to talk to others about Christ and the Gospel.  Inner doubts that you don’t know enough or the other person will reject you are common and often shut us down when we feel the Holy Spirit urging us to share our faith.  When you learn to use faith the trust yourself and your story telling others about your business,  you may find that you also trust yourself more to share about your spiritual life.  When pitching your business, you may realize that you need to spend time getting better answers to particular questions or practicing what you’re going to say; this is also true about conversations about your relationship with God.  Your first try will probably not be perfect, but you can learn from it and improve using the same skills and discipline that has brought you success in business.

Many people can feel that they live a bifurcated life where they can alternate between being a business person and a person of faith but rarely feel that are both at the same time.  By embracing how your faith can help you in both roles, you will be taking an important step towards being a united person who’s spiritual side is always an active part of you.

** In fact, I’m even more sure Jesus has saved me than I am that my wife is coming home.  After all my wife doesn’t have complete control over her journey – there could be a traffic jam – but Jesus has all power and authority to do what he says he will.*

Faith Driven Entrepreneur is a movement dedicated to gathering one million Christ-following entrepreneurs and equipping them, so they can fulfill their call to create and transform the world around them.

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As a lifelong entrepreneur, I’ve found there are many ways that entrepreneurship is a profoundly spiritual experience.

Faith and Entrepreneurship

Often when parents make out a will, they simply divide their assets equally among their children, including property. But maybe that’s asking for trouble. We’ll talk about that  on Faith and Finance.<ul><li>One of the most common sentences included in a will is this: “My estate will be divided equally among my children.”</li><li>That’s fairly easy to do when the estate consists entirely of financial accounts that can quickly be converted to cash for distribution to heirs.</li><li>It’s quite another thing when the estate contains property, as most do. It immediately forces your heirs— usually your children— to make a difficult decision. Do they continue to hold the property in joint ownership? Or do they sell it and divide the proceeds? A third option exists if one or more heirs are willing to “buy out” the others.</li><li>Ideally, the heirs will all agree on a fair and equitable settlement. That usually means selling the home and splitting the proceeds. Or, the heirs could decide to divide up other assets so that one or more heirs are able to hold onto the property. But far too often, heirs have trouble reaching that kind of agreement.</li><li>Deciding as a group what to do with property becomes a complicated business. There are serious financial and emotional considerations.</li><li>Financially, what you think is a blessing may actually become a burden when you factor in maintenance costs, taxes, insurance, homeowners association fees, and other expenses. Who makes decisions about maintenance and hires contractors to perform needed work? Will the heirs divide those expenses equally? What happens if one heir doesn’t pay his or her share?</li><li>Sometimes, depending on location, the property becomes something like a “timeshare” for the various heirs and their families. But then who determines the schedule for using the place?</li><li>Emotionally, inheriting real estate may cause heirs to make unwise decisions based on feelings, rather than wise money management.</li><li>In many cases, the family home becomes a money pit that fosters arguments among surviving children who can’t even agree on minor things like what color to paint the living room.</li><li>Children often have different ideas about what to do with inherited property, based on their experiences growing up. Resentments that were hidden for years may boil up to the surface when Mom and Dad aren’t around anymore.</li><li>This is often made worse when one sibling is made executor of the estate. That person is then in a position to “lord it over” the others. Or the opposite can happen, with the executor heir taking grief from siblings who all demand different things. Handling the estate becomes a nightmare for them as siblings squabble. So as a side note, consider appointing an outside executor or personal representative for your estate.</li><li>To avoid these potential problems with leaving a house in joint ownership to your heirs, many experts suggest you handle it like any other asset in your will. Simply stipulate in your will that upon your death, all property will be sold and that the proceeds then are to be divided among your heirs.</li><li>When you do that, some heirs may decide to take the proceeds of that sale as part of their share in the estate. Others may want to “buy out” the others if they want to take on full ownership of the home or vacation property.</li><li>You don’t always have to divide the proceeds equally among your heirs. In his book "Splitting Heirs,” financial teacher and author Ron Blue says that “if you love your children equally, you’ll treat them uniquely” in your will.</li><li>Some may have greater needs than others. Some may not be able to handle money as well as others. In those cases, dividing things equally may not be best for your heirs.</li><li>But the key to making any of this work is transparency. You should discuss your wishes with your family so that no one is surprised after you go home to the Lord. Everyone needs to understand not only your decisions, but why you made them.</li><li>By having serious discussions about your estate ahead of time, you can eliminate the potential for infighting and resentment later, especially if you make it known that all real property is to be sold upon your death. That’s one less thing your heirs can squabble about.</li><li>If you need help drawing up a will  —or changing one— it’s important to work with an estate attorney who shares your Christian worldview. You can do that by finding a Certified Kingdom Advisor. Just go to <a href="http://faithfi.com/find">FaithFi.com/find</a>.</li></ul>On this program, Rob also answers listener questions: <ul><li>How do you determine whether to leave funds in a 403(b)?</li><li>How should you go about selecting a financial advisor?</li></ul>RESOURCES MENTIONED:<ul><li><a href="http://faithfi.com/find">FaithFi.com/find</a></li></ul>Remember, you can call in to ask your questions most days at (800) 525-7000. Also, visit our website at <a href="https://www.faithfi.com/">FaithFi.com</a> where you can join the FaithFi Community, <a href="https://faithfi.netviewshop.com/donate2">and give </a>as we expand our outreach.

Faith & Finance is a daily radio ministry hosted by Rob West. The program offers a practical, biblical and good-natured approach to managing your time, talents and resources.

Faith & Finance with Rob West

Often when parents make out a will, they simply divide their assets equally among their children, including property. But maybe that’s asking for trouble. We’ll talk about that  on Faith and Finance.

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Beauty matters to painters, musicians, and photographers, but what does it have to do with investing? The creation account suggests that beauty lies at the core of faithful stewardship, and investing as well. We’ll talk about “investing in beautiful”  with Jason Myhre. Jason Myhre, Executive Director of the Eventide Center for Faith & Investing. The Eventide Center is an educational initiative of Eventide Asset Management and an underwriter of this program. Learn more about Jason Myhre and the Eventide Center for Faith & Investing at <a href="https://www.faithandinvesting.com/">faithandinvesting.com</a>. <ul><li>Investing is a word we tend to associate with money, retirement, risk, and return. But rarely – if ever – do we link the words “investing” and “beauty.” So why should we connect beauty with our approach to investing?</li><li>Beauty is found when we attend an orchestral performance. When we hike the mountains or stroll along the beach. When we splurge on a bouquet of flowers to adorn our home. But rarely do we connect it with work, let alone with our finances or investing.</li><li>BEAUTY IN WORK AND INVESTING</li><li>However, beauty matters for our work and our investing. Beauty is an essential characteristic of creation, which makes it central to our work as stewards of God’s creation.</li><li>We see beauty in the Genesis account of creation. God is portrayed there as a worker. He creates “the heavens and the earth.” Everything he makes is “good.” </li><li>Seven times in Genesis 1. Of the whole of creation God sees that it is “very good.” And in the Hebrew derivation, the word for “good” used in Genesis 1 means not only moral perfection and functional excellence but surpassing beauty.</li><li>A better translation would be a compound word, “beauty-good.”</li><li>God is portrayed as a wise artisan, artfully crafting the world. This is also indicated by the word “Eden,” which means “delight.”  So beauty is an essential aspect of God’s work.</li><li>As we reflect on the beauty and goodness of God’s creation, we might think, who could add anything to the splendor and majesty of creation? And the bible here is very surprising. It tells us that we are to add to the beauty and goodness of the world through our work. </li><li>THE BIBLE ON GOODNESS AND BEAUTY IN WORK</li><li>We see this in Genesis 2:15. God places humanity right there in that garden of delight and gives them the gift of work.</li><li>Genesis 2:15, “Then the Lord God took the man and put him in the Garden of Eden to cultivate it and tend it.”  Essentially, God placed humanity in his “very good” creation and told them to make it “even better” through the things that we make.</li><li>If God’s creation was already “very good” – if it was “perfect” – how can we improve on it? The answer is that God made the world full of potential. </li><li>We know that God made the world beautiful and good. Part of that beauty is manifest in the things God made in creation – we can see it. And part of the beauty and goodness is hidden within creation, as a potential for us to uncover through our work. </li><li>Easy examples are bread and wine. The grain that God creates has always had the potential to become bread. God placed that potential there so that we would discover it and make it manifest through our work. Or grapes that God makes have always had the potential to become wine through our work.</li><li>Imagine that you are a sculptor. And imagine that one day you receive a phone call from Michelangelo the great sculptor. And Michelangelo says to you, “Look, I’ve just started work on this new sculpture, this major, major sculpture, but I want you to come and finish it for me. I want you to come and complete the sculpture and develop the potentials I've built into it so far so that when it is done the sculpture will enhance my reputation in the art world.” </li><li>According to Genesis 1 and 2, that’s what our work should be like.</li><li>APPLYING IT TO THE MODERN WORLD</li><li>Let’s translate this biblical picture of work to the modern world of business and investing.</li><li>We need to see the world of business and investing today in light of this biblical vision of work. The Genesis instructions to develop the beauty and goodness of creation are the same for humanity today. This is still God’s design and desire for our work in business and investing.</li><li>And so we must ask ourselves, how can the specific work of business and investing contribute the beauty and goodness of creation?</li><li>Business is called to create products that are good. You know, we have this language for the products of business, we call them “goods” and “services.” And this is no accident. The products of business, in God’s design, are intended to be genuinely “good.” And the products of business, in God’s design, are intended to be a genuine “service” of humankind. Humanity through business is to create goods that are truly good and services that truly serve.</li><li>BEAUTY IN INVESTING</li><li>Investors are called to supply the capital that enables the work of good businesses. Investors are to supply the capital to enable and enlarge the work of business to create those goods and services.</li><li>When we are contemplating our investing, we need to be asking, are the businesses that I will be investing in through this investment, are they businesses making products that are good? Are they providing a service that is truly a service? Are they making things that enhance the world? These are things we should embrace.</li><li>And, understanding that we live in a fallen world, where this is now a marbled mix of good and evil and a marbled mix of beauty and ugliness, we must ask, are any of these companies that I would own through this investment destroying the beauty and goodness of the world? Are they diminishing and desecrating God’s world? These are things we should avoid.</li><li>That’s a lot of responsibility. But the good news is that the faith-based investing movement continues to grow.</li><li>There is a whole industry of Christian faith-based investments that’s been raised up to make it easier for us to seek a biblical vision of work in business and investing today.         </li><li>These investments are mutual funds and ETFs just like common investments, but with specific Christian ethical criteria used for the selection of companies in the investments. </li><li>For example, some are seeking to avoid companies whose products run counter to this biblical vision. Other investors are seeking to avoid the bad while also targeting the good— looking for companies whose products meet human needs and enhance the world.</li><li>Eventide has put together two resources for Faith and Finance listeners. The first is an article on beauty and investing as discussed. The second is a list of the faith-based investments that are out there.  Find those at <a href="https://www.faithandinvesting.com/faithfi">faithandinvesting.com/faithfi</a>.</li></ul>On this program, Rob also answers listener questions:<ul><li>Is it best to use a lump sum of cash to pay off student loans or simply make double payments over time?</li><li>What can you do if you're having a hard time getting receipts for your gifts to a nonprofit organization?</li></ul>Remember, you can call in to ask your questions most days at (800) 525-7000. Also, visit our website at <a href="https://www.faithfi.com/">FaithFi.com</a> where you can join the FaithFi Community, <a href="https://faithfi.netviewshop.com/donate2">and give</a> as we expand our outreach.

Beauty matters to painters, musicians, and photographers, but what does it have to do with investing? The creation account suggests that beauty lies at the core of faithful stewardship, and investing as well. We’ll talk about “investing in beautiful”  with Jason Myhre.

Invest in Beautiful with Jason Myhre

Asked if he’d like dinner, a budget airline passenger asked, “What are my choices?” The attendant responded, “Yes or no.” When you’re on a budget, you may forget that you still have choices and flexibility. Today John Putnam joins Rob West to talk about the “3-D Budget” and how it can help you get your priorities straight. This is Faith and Finance - biblical wisdom for your financial decisions.John Putnam is a Certified Financial Planner, a Certified Kingdom Advisor, and founder of <a href="https://smarterstewardship.com/about/" target="_blank">Smarter Stewardship</a>, a marketplace ministry.<ul><li>I recently came across the 3-D budget you offer as a free resource at SmarterStewardship.com and I really want to share this with listeners as a fresh, new way to look at their spending plans. Why is that important?<ul><li>Over time, your budget categories can begin to look “the same” and you can overlook the simple options you have for control, efficiency and impact to reach your respective financial goals. So often, we look at our budget and forget an important fact: All expenses are not created equally.</li></ul></li><li>How does your 3-D budget help someone get better control of their money?<ul><li>It’s designed to remind you of the expenses you have each month and categorize them in a way that creates a fresh perspective that can highlight related opportunities. This can refresh your goals, decrease flexible outflows, increase cash flow and provide a written record that can be shared with your spouse, friends or advisor.</li></ul></li><li>What are the nuts and bolts of a 3-D budget?<ul><li>Imagine a grid with 3 columns: Budget, Need to pay, have to pay and want to pay.</li><li>Column 1 is what I NEED to pay - needed, but flexible (ex. Internet, cable, dry cleaning, maybe ‘rent’).</li><li>Column 2 is what I HAVE to pay – payment that is contractual or required (ex: credit card).</li><li>The third column is what I WANT to pay – 100% optional (ex. Eating out, coffee shops, movies).</li><li>The third column is what you can take to zero, for example, during recessions.</li><li>The NEED TO and HAVE TO columns also hold opportunities for flexibility, they’re just more difficult to affect.</li></ul></li><li>How does this help you prioritize your actions — what you can do now, or in the next few months, and even longer range planning?<ul><li>It helps provide a fresh perspective of flexibilities and efficiencies in budgeting for listeners and gives them additional options.</li></ul></li><li>You can get your own copy of the 3-D budget on the resources page at <a href="https://smarterstewardship.com/" target="_blank">SmarterStewardship.com</a>.</li></ul>Next, Rob answers these questions at 800-525-7000 or via email at <a href="mailto:askrob@faithfi.com?subject=Faith%20and%20Finance%20Listener%20Question&amp;%20Finance%20Listener%20Question">askrob@FaithFi.com</a>:<ul><li>What should you do with an annuity IRA you inherited from your husband who passed away last year, and you are the primary beneficiary but his brother is the contingent beneficiary and you want to the funds to benefit your children? (Rob referred the caller to a CKA professional, by going to faithfi.com and clicking the <a href="https://www.faithfi.com/find">Find a CKA</a> at the top of the page.).</li><li>Should you pay for a company to guard your credit or just freeze your credit report, if you don't want to get scammed?</li><li>Is it true that you don't have to worry about capital gains tax if you purchased 60 acres of raw land 20 years ago for about $1000 an acre and could sell it now for up to six times as much?</li><li>What should you do if you are attempting to roll over a 401k from a company that closed in 2021, and the plan administrator is saying you need to contact the employer but they no longer exist?</li></ul>Remember, you can call in to ask your questions most days at (800) 525-7000. Also, visit our website at <a href="https://www.faithfi.com/">FaithFi.com</a> where you can join the FaithFi Community, and even download the free FaithFi <a href="https://www.faithfi.com/manage">app</a>.

Asked if he’d like dinner, a budget airline passenger asked, “What are my choices?” The attendant responded, “Yes or no.” When you’re on a budget, you may forget that you still have choices and flexibility. John Putnam joins Rob West to talk about the “3-D Budget” and how it can help you get your priorities straight.

3-D Budget with John Putnam

Are annuities the best product since sliced bread … or a house of mirrors? Or could they be both? We’ll talk about it today with Mike Miller on Faith and Finance. Mike Miller is a Partner and Senior Private Wealth Advisor at the South Carolina office of Ronald Blue Trust. He’s also a certified financial planner and a Certified Kingdom Advisor.  Mark Miller is a Certified Kingdom Advisor. If you want to learn even more about annuities, you can listen to his two-part podcast on the topic at <a href="https://talkingmoneyradio.com/">TalkingMoneyRadio.com</a>.<ul><li>At Faith and Finance, we’re generally not fans of annuities. But let’s take a closer look. First, what is the main problem with any investment that guarantees returns, such as annuities?</li><li>Miller says they’re always a tradeoff. Guarantees come with a cost. Typically, the lower the risk, the lower the return. </li><li>WHAT DOES THE BIBLE SAY?</li><li>You won’t find the word “annuities'' in the Bible, but there is a biblical principle to guide us on this topic. </li><li>Miller talks about the Parable of the Talents found in Matthew 25. One of the servants buried his talent in the ground. The master asked why he did that. The servant said he was afraid, and the master was displeased.</li><li>Miller says all too often, annuities are marketed and purchased based on fear. </li><li>WHAT TO LOOK OUT FOR</li><li>If a salesperson is ONLY selling annuities, rather than a full suite of investment options, that’s a potential problem. If he or she only has a square peg to sell, they’ll always try to sell a square peg, regardless of whether the hole is a square, a circle, or a triangle. </li><li>Also, if an annuity salesperson is trying to get you to put a large percentage of your money into an annuity? If so, watch out! It’s always a good idea to diversify. </li><li>And do you feel like someone is trying to sell it because it's in your best interest? … or because they’re trying to win a contest? Listen to those spirit checks if you feel like they’re not acting in your best interest. </li><li>There are three different types of annuities: Fixed, indexed, and variable. </li><li>Fixed annuities do have some advantages in an era of elevated interest rates. You usually get a higher guarantee than in other types of annuities, at least for a period of time. </li><li>Variable annuities have a higher potential upside, but a higher potential downside as well. </li><li>Whatever the annuity, it always makes your money less liquid and available. And if you’re going to leave that money alone for a long period of time, why not invest in the things the insurance companies are investing in (the market)? Just take a long-term approach and diversify properly. </li><li>There are some limited situations in which an annuity makes sense. That could be a situation in which you’ve exhausted other investment options. Seek out a kingdom adviser if you want to evaluate annuities for your needs. </li></ul>On this program, Rob also answers listener questions: <ul><li>What is the best option to consolidate debt? </li><li>How can a married couple get out of a living paycheck-to-paycheck situation? </li></ul>RESOURCES MENTIONED:<ul><li><a href="https://www.bankrate.com/">Bankrate.com</a></li></ul>Remember, you can call in to ask your questions most days at (800) 525-7000. Also, visit our website at <a href="https://www.faithfi.com/">FaithFi.com</a> where you can join the FaithFi Community, <a href="https://faithfi.netviewshop.com/donate2">and give </a>as we expand our outreach.

Are annuities the best product since sliced bread … or a house of mirrors? Or could they be both? We’ll talk about it today with Mike Miller on Faith and Finance.

The Scoop On Annuities With Mike Miller

Michael Blue

So, you went to college, you got the t-shirt, and even got the diploma.  Congratulations! But, if you’re like most Americans, you also left school with close to $40,000 in student debt and a big question: How to pay for it?

#### The average student debt for 2017 college graduates was $39,400.

Unfortunately, many people have debt much higher than this without also having a job that pays enough income to realistically repay the debt. This happens when a person did not fully understand what they were buying in terms of an education, and didn’t have a plan for how they would repay it.  The cost of a college education has been skyrocketing for years, but there are still huge variations in how much a person could pay for a college degree. For example, according to The College Board, the cost of tuition for one year of college in 2017 ranged from $3,520 for the typical community college to $33,480 on average for a year at a private college. 

For those who are still looking at where to go to college, two important questions should be asked before taking on debt, choosing a school, and choosing a major:

__- How much debt do you really need to pay for this education? Can you work during college? Are scholarships available? Are you living as frugally as possible? Etc. Take out as little debt as you possibly can.__ 

__- How are you going to repay the debt after college is over? How much debt will you have? How much will the monthly payment be? What is the expected salary for your major? Etc.__

For those who are done with college and wish they could have asked these questions before starting, let’s look at some things you can do to make your student debt a little more manageable. 

Note: the following suggestions were compiled by Maurie Backman from The Motley Fool with a little help from the research team at MoneyWise.

### 1. Look into an income-based repayment plan

If you took out federal student loans within the last few years, the average loan payment is $351/month.  However, you can apply for income-based repayment plans, where that payment may be lowered to a rate that’s a more reasonable percentage of your income. To apply, you must submit an application called the Income-Driven Repayment Plan Request online at StudentLoans.gov or on a paper form, which you can get from your loan servicer.

### 2. Refinance your debt

Just as it's possible to refinance a mortgage, you can also refinance your student debt. Just know that there are trade-offs with every one of these decisions. Refinancing a loan means you may be able to get a lower rate and a different length of time, or term, in which to pay it off. This gives you more control on when you get out of debt while also helping you manage the monthly payments.  However, if you trade in your federal loan for a private loan, you lose the repayment-plan flexibility and the ability to switch between plans that I just mentioned. And, if you extend the term, even though you have a lower rate, you may end up paying more in the long run. 

Both federal and private student loans are eligible to be refinanced, but you need to have a excellent credit to qualify for a rate reduction.  If you haven’t yet established good credit, it might be worth holding off on refinancing until you do.

### 3. Get a second job

Working more than your main job may seem less than ideal, but if you keep the end in mind -- that of being out from under the burden of $40,000 in debt -- it’s easier to stomach.  Always remember that this is just a season in your life and it doesn’t have to last forever.  

### 4. Move back home

Making your student loan payments is tough when you’re also paying for rent, car payments, food, and utilities. But you can eliminate some of those bills if, with your parents’ permission, you move back home on a temporary basis.

Remember, though, that your relationship with your parents is not the same as the one you left when you went to college.  Now that you’re an adult, the temptation is for you to set your own course and your own rules for the way you live. If you’re moving back in with your parents, you have to set that aside for awhile as well. Their house? Their rules.

How do you get from under the weight of your student debt?

4 Ideas to Increase Student Debt Repayment

In Al Wolters’ book *Creation Regained*, he makes the point that Christians are reformers, not revolutionaries. A revolutionary wants to wipe the slate clean and start over, but a reformer seeks to restore something that’s been tarnished, acknowledging that it was once *good*. “Humankind, which has botched its original mandate and the whole creation along with it, is given another chance in Christ; we are reinstated as God’s managers on earth,” writes Wolters. “The original good creation is to be restored.”1

This is a helpful framework for investing. Needless to say, investing has often been sullied with greed and idolatry. Throughout church history, warnings against usury have echoed from pulpits and town squares. But God’s original intent for investing is entirely good. As with our vocational endeavors, God intends that our investing be done with the aim of furthering human flourishing.

### God’s original intent for investing is entirely good. As with our vocational endeavors, God intends that our investing be done with the aim of furthering human flourishing.

We do that by sharing in ownership of good businesses — ones that provide ‘goods and services’ to meet the world’s needs, that create meaningful work, and make real contributions to their communities and society.[2](https://jeffhaanen.com/2017/07/21/theology-for-business-keynote-address/) Indeed, our task as Christians in investing is not to wipe our hands of a fallen world, but to find ways to redeem what has been disfigured by sin and evil.  A restored vision for retirement (i.e., for our later years) is, I believe, critical to that redemptive view of investing.

How, then, might this biblical view of retirement (aging) contribute to a more holistic vision for investing? Here are four ways.

### 1. A biblical view of retirement opens the door to portfolios that prioritize human flourishing.

Concern for the vulnerable, environmental stewardship, the curing of otherwise intractable diseases — these are the sorts of human-flourishing-focused business outcomes that often fall by the wayside when investors narrowly focus on maximizing their retirement savings. Yet if we have a vision of retirement not as a 20-year vacation but as a time of humble contribution as elders committed to the good of the world that God loves, investors are freed to take a closer look at their portfolios and make a foundational shift. *God believes redemption is more important than returns.*[3](https://denverinstitute.org/integrating-faith-way-invest/) *So should we.*

### God believes redemption is more important than returns. So should we.

If you plan on working for a lifetime, albeit less as you age, you simply don’t need as much to fund your retirement lifestyle. More importantly, you can see your work, and your investing, as contributions to human flourishing over a lifetime — provided, that is, that your investing is appropriately calibrated to a vision for the human flourishing brought about by the good businesses of which you’re a partial owner. The fear/greed combo subsides in the context of God’s promise of provision for his children, and opens the door to re-envisioning investing beyond a narrow focus on returns (2 Corinthians 9:8[4](And God is able to bless you abundantly, so that in all things at all times, having all that you need, you will abound in every good work.)).

### 2. A biblical view of retirement provides a better vision for the vocation of financial advisors.

The idea of retirement sits at the core of the work of financial advisors. In a short piece I once wrote for financial advisors, I said:

> Financial advisors have the privilege of encouraging people to prepare for the day when they cannot work due to old age or health. Saving is wise (Proverbs 21:20 [5](The wise store up choice food and olive oil, but fools gulp theirs down.)) . They also have the honor of helping clients still have enough to share with others (Proverbs 13:22 [6](A good person leaves an inheritance for their children’s children, but a sinner’s wealth is stored up for the righteous.);  1 Timothy 6:17-19 [7](Command those who are rich in this present world not to be arrogant nor to put their hope in wealth, which is so uncertain, but to put their hope in God, who richly provides us with everything for our enjoyment.)) .
> 
> But Christian financial advisors resolutely resist the narrative about saving for retirement built on utopian dreams of travel, never-ending vacation, and a care-free lifestyle. They recognize that sin and the Fall have affected all people, both wealthy and poor, and that there is no such dream of heaven on earth until Christ comes again. They also boldly call into question fear-based motives for saving in retirement, pointing people to trust God alone for their daily bread.
> 
> Also, since retirement (the cessation of work for the balance of one’s lifetime) is essentially a foreign concept to the Bible, Christian financial advisors work diligently to help people save for the day when they can no longer work due to health concerns — but not for the day when they simply don’t want to work.[8](https://www.uncommonretirement.com/financial-advisors)

Financial advisors serve as caretakers of their client’s investments, but also as gatekeepers (protectors from) our secular contemporary notions of retirement. A biblical view of retirement gives financial advisors a broader, more faithful vision for their vocations.

### 3. A biblical view of retirement re-situates investing in proper proportion to giving, saving, and spending money.

How much do I really need for retirement?

This question is entirely dependent on your vision for what you want your retirement to look like. If you want a perpetual vacation, that’ll be expensive. You’ll need to invest as if maximized returns are all that matters.

But if it’s a biblical view of growing older — which includes a mix of family, work and rest over a lifetime — you might consider giving more to charity now. Or spending money on vacation(s) while your kids are young rather than waiting for your own vacation in your seventies. It may mean spending money on private school tuition, saving for an aging parent’s condo, or adopting a teenager from foster care. Service comes in a great variety of forms.

Jesus told a haunting parable about a rich fool who stored up wealth for himself by building bigger barns on the very same night his life was demanded from him (Luke 12:16-21 [9](And he told them this parable: “The ground of a certain rich man yielded an abundant harvest. 17 He thought to himself, ‘What shall I do? I have no place to store my crops.’ 18 “Then he said, ‘This is what I’ll do. I will tear down my barns and build bigger ones, and there I will store my surplus grain. 19 And I’ll say to myself, “You have plenty of grain laid up for many years. Take life easy; eat, drink and be merry.”’ 20 “But God said to him, ‘You fool! This very night your life will be demanded )) He also says that our confidence in having enough for tomorrow should ultimately be more like children who ask a parent for bread each morning, simply trusting that it’ll be there (Matthew 6:11 [10](Give us today our daily bread.) ).

Investing for old age is important, including as a means of loving and serving our neighbors through the human flourishing work of good businesses. In fact, this is one of the primary ways we fulfill the cultural mandate, the sacred assignment given to humans in the Garden of Eden. Still, investing must be put in its proper place among other biblical priorities for money, including giving, saving, and spending (Genesis 1:28 [11](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.”) ). If God promises to care for us now, he will most certainly care for us as we age (Matthew 6:25-34 [12](“Therefore I tell you, do not worry about your life, what you will eat or drink; or about your body, what you will wear. Is not life more than food, and the body more than clothes? 26 Look at the birds of the air; they do not sow or reap or store away in barns, and yet your heavenly Father feeds them. Are you not much more valuable than they? 27 Can any one of you by worrying add a single hour to your life? 28 “And why do you worry about clothes? See how the flowers of the field grow. They do not labor or spin. 29 Yet I tell you that not even Solomon in all his splendor was dressed like one of these. 30 If that is how God clothes the grass of the field, which is here today and tomorrow is thrown into the fire, will he not much more clothe you—you of little faith? 31 So do not worry, saying, ‘What shall we eat?’ or ‘What shall we drink?’ or ‘What shall we wear?’ 32 For the pagans run after all these things, and your heavenly Father knows that you need them. 33 But seek first his kingdom and his righteousness, and all these things will be given to you as well. 34 Therefore do not worry about tomorrow, for tomorrow will worry about itself. Each day has enough trouble of its own.) ).

### 4. A biblical view of retirement heals our vision of work and rest over a lifetime.

In Leviticus 25, God called his people to give the land a rest one year out of every seven — the origin of our concept of sabbatical. Yet today, we stack up all our years of rest onto the end of life and call it retirement.

Could you imagine taking one year off after every six years? Could you imagine the kind of investment in your family, your heart, and your professional growth if you took even 6 months off every 7 or 10 years? For most, this is financially impossible. Though some voices are encouraging sabbaticals in corporate America, this is mostly a luxury for the rare senior executive.[13](https://www.thesabbaticalproject.org/) But a biblical view of aging gives us a vision for rhythms of work and rest of which a workaholic American culture knows nothing.

If you see retirement more as a different season of productive service, what would that mean for how you prioritize rest now? Rather than “scale quick and exit,” as is common in the tech startup world, or the FIRE movement (Financial Independence by Retiring Early), which is common among white-collar professionals, a humbler vision for vocation over a lifetime opens the door to new possibilities. Do good work today, even if you’re paid less, because this is your life *today*. Get enough rest *today*, because God himself, who never tires, nevertheless chose to rest after six days of creation. And be content with enough *today*, because your God, not your portfolio, is your final provider.

This vision for retirement has long-term policy implications as well. Could ‘retirement’ accounts be used, in part, for mid-career sabbaticals? Might companies build sabbatical policies into their benefits packages as a way to invest in employee health and retention?

A biblical view of retirement (aging) is one small part of creation regained. It heals the motive for investing, the work of financial advisors, our relationship to money and our vision for work.

It also points us to a better and truer vision of Del Webb’s “paradise town,” a lasting inheritance for those whose treasure is finally in heaven (Luke 12:33-34 [14](Sell your possessions and give to the poor. Provide purses for yourselves that will not wear out, a treasure in heaven that will never fail, where no thief comes near and no moth destroys. 34 For where your treasure is, there your heart will be also.)).

([image](https://www.faithandinvesting.com/journal/retirement-3/) used with permission.)
### Footnotes

1. Al Wolters, Creation Regained: Biblical Basics for a Reformational Worldview (Eerdmans, 2005).
2. See my keynote address, “Theology for Business,” [https://jeffhaanen.com/2017/07/21/theology-for-business-keynote-address/](https://jeffhaanen.com/2017/07/21/theology-for-business-keynote-address/).
3. For an excellent article on faith and investing, see: Tim Macready, “Integrating Faith with the Way We Invest,” Denver Institute for Faith & Work, 12 Oct 2017, [https://denverinstitute.org/integrating-faith-way-invest/](https://denverinstitute.org/integrating-faith-way-invest/).
4. And God is able to bless you abundantly, so that in all things at all times, having all that you need, you will abound in every good work.
5. *The wise store up choice food and olive oil, but fools gulp theirs down.*
6. *A good person leaves an inheritance for their children’s children, but a sinner’s wealth is stored up for the righteous.*
7. *Command those who are rich in this present world not to be arrogant nor to put their hope in wealth, which is so uncertain, but to put their hope in God, who richly provides us with everything for our enjoyment.*
8. This manifesto can be found at: [https://www.uncommonretirement.com/financial-advisors](https://www.uncommonretirement.com/financial-advisors)
9. *And he told them this parable: “The ground of a certain rich man yielded an abundant harvest. 17 He thought to himself, ‘What shall I do? I have no place to store my crops.’ 18 “Then he said, ‘This is what I’ll do. I will tear down my barns and build bigger ones, and there I will store my surplus grain. 19 And I’ll say to myself, “You have plenty of grain laid up for many years. Take life easy; eat, drink and be merry.”’ 20 “But God said to him, ‘You fool! This very night your life will be demanded*
10. *Give us today our daily bread.*
11. *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.”*
12. *“Therefore I tell you, do not worry about your life, what you will eat or drink; or about your body, what you will wear. Is not life more than food, and the body more than clothes? 26 Look at the birds of the air; they do not sow or reap or store away in barns, and yet your heavenly Father feeds them. Are you not much more valuable than they? 27 Can any one of you by worrying add a single hour to your life? 28 “And why do you worry about clothes? See how the flowers of the field grow. They do not labor or spin. 29 Yet I tell you that not even Solomon in all his splendor was dressed like one of these. 30 If that is how God clothes the grass of the field, which is here today and tomorrow is thrown into the fire, will he not much more clothe you—you of little faith? 31 So do not worry, saying, ‘What shall we eat?’ or ‘What shall we drink?’ or ‘What shall we wear?’ 32 For the pagans run after all these things, and your heavenly Father knows that you need them. 33 But seek first his kingdom and his righteousness, and all these things will be given to you as well. 34 Therefore do not worry about tomorrow, for tomorrow will worry about itself. Each day has enough trouble of its own.*
13. *One interesting push in this direction is The Sabbatical Project: [https://www.thesabbaticalproject.org/](https://www.thesabbaticalproject.org/).*
14. *Sell your possessions and give to the poor. Provide purses for yourselves that will not wear out, a treasure in heaven that will never fail, where no thief comes near and no moth destroys. 34 For where your treasure is, there your heart will be also.*

*DISCLOSURE*
*This communication is provided for informational purposes only and was made possible with the financial support of Eventide Asset Management, LLC (“Eventide”)®, a registered investment adviser. Eventide Center for Faith and Investing is an educational initiative of Eventide. Information contained herein has been obtained from third-party sources believed to be reliable.*

Four ways by which a biblical view of retirement (aging) can contribute to a more holistic vision of investing.

Reform Retirement, Redeem Investing Part 3

### As we walk through a period of time, it’s common to ponder where we’ve been and where we’re headed. It’s also a very good idea to take a long look at who we’ve become and line it up with who God says we should be. If you dream of living the “good life” I urge you to put checking your definition against Scripture at the top of your goals.

Socrates said, “Not life, but a good life, is to be chiefly valued.”

And Scripture says, *“The good life is reserved for the person who fears God, who lives reverently in his presence”* ([Ecclesiastes 8:12](https://biblia.com/bible/esv/Eccles%208.12), MSG).

Are you living the good life?

People define the good life in different ways, but everybody wants to live it. After all, what’s the alternative? Living a bad life? A pointless, guilt-ridden, or miserable life?

### We’d all choose the good life any day, and yet we often don’t understand how to make it happen.

A quick online search reveals that most people’s idea of the good life includes happiness. That makes sense—nobody wants to be unhappy. Most of us also want to make other people happy and help them if we can. But when it comes down to it, even Christ-followers suspect that spending our lives serving God and others might cost us our happiness.

Wouldn’t it be great if we could do what pleases God and what’s best for others, while at the same time enjoying happiness and deep satisfaction?

But that’s not possible, you may think.

Or is it?

What if we really can live the good life without being selfish? What if God not only wants us to live life more abundantly, as Jesus put it ([John 10:10](https://biblia.com/bible/esv/John%2010.10)), but also provides clear instructions for how to actually experience it? What if it’s possible to discover what to embrace and what to avoid so we can live a meaningful and fulfilling life—the good life—even in this broken world?

Does that sound too good to be true?

Actually, it’s both “too good” and true.

### The Good Life Is Countercultural

We live in a world that screams, “Make lots of money and spend it on yourself, and you’ll be happy. That’s the good life!”

There’s just one problem. It’s a lie.

Throughout His ministry, Jesus repeatedly turned our definition of the good life on its head. For instance, He said, *“There is more happiness in giving than in receiving”* ([Acts 20:35](https://biblia.com/bible/esv/Acts%2020.35), GNT).

Jesus told us that parting with money to help others will bring us more joy than hanging on to that money. Counterintuitive as it may seem, our greatest good, and the happiness that accompanies it, is found in giving, not receiving.

In other words, generosity is the good life.

This idea that giving away money and possessions equals happiness is a paradox. Human reasoning says that spending money on ourselves is in our best interest—and to a degree, that’s true. We all need food to eat, a place to live, clothes to wear. But once our basic needs are met, money can easily stop helping us and start hurting us.

Debt is routinely incurred in pursuing the good life, yet psychologists attest that a debt-funded lifestyle leads to depression, anxiety, resentment, stress, denial, anger, frustration, regret, shame, embarrassment, and fear.

This is the very opposite of the good life. It’s the terrible life!

Here’s a truth that can set us free: “living large” actually makes us smaller. Living “the good life” (as our culture defines it) results in missing the best life.

Deep down, we all know it’s true: you can spend every last cent you own on yourself—and, through credit, far more—and still end up miserable. In fact, if you want to be miserable, greed and stinginess are the perfect recipe. Those who hoard their money, like those who spend it all on themselves, are the unhappiest people on the planet.

Jesus calls us to do something radical: love others by giving away our money and time. That sounds like loss, not gain. Yet in God’s economy, that’s exactly how we can expand and enhance our own lives.

### Generosity Pays Off

You may wonder if I’m trying to make the generous Christian life sound easier and happier than it really is.

First, I’m not suggesting that giving always comes easily or without sacrifice. What I am saying is that in God’s providence, the payoff far outweighs the sacrifice. Generosity is God’s best, designed just for us. This is always true in the long run, and usually it’s true in the short run too.

Suppose I give up some vanilla lattes and two lunches out each month in order to support a child in Haiti. There’s nothing wrong with lattes or meals out, and I may miss them, but thoughts of how the money helps a needy child flood me with happiness greater and far more enduring than twenty minutes of pleasure from a drink or eating out. My life gains a purpose beyond myself, and as I say no to that small thing, my day is put in perspective. That gladness and perspective don’t disappear when I finish the meal or toss the coffee cup.

The truly good life is a joy-filled, openhanded adventure of following Jesus, which brings us lasting pleasure and reaches far beyond this life to the next. Once we believe in Christ, what can we do to experience the abundant life—a life overflowing with vibrancy, satisfaction, and contentment?

Though we’ve been granted eternal life, many Christians don’t fully experience what Jesus came to give us. The stresses and pressures of life weigh us down and leave us feeling like we’re missing something. We lose both joy and purpose. Life becomes drudgery, not an adventure. It’s a shrunken life, not a flourishing one.


![](https://cdn11.bigcommerce.com/s-2s3kbsk/images/stencil/1280x1280/products/361/491/Giving-Is-the-Good-Life__00000.1555695021.jpg?c=2&imbypass=on)


If that’s where you find yourself, take heart. True, it’s not possible to eliminate difficulties and challenges until we’re living at last in the world we were made for (the New Earth, not this one). But we certainly don’t have to wait until we die to experience the abundant life Jesus promised.

The bad news and the very good news about money is described in 1 Timothy 6. The bad news is that loving and serving money will destroy us and rob us of life and happiness. The good news is that if we recognize God’s ownership of everything, we’ll steward our resources to help meet physical and spiritual needs. Our reward will be both future rewards and present contentment, purpose, and what Scripture calls *“the life that is truly life”* ([1 Timothy 6:19, NIV](https://biblia.com/bible/niv/1%20Tim%206.19)).

[Image](https://www.epm.org/static/cache/42/3a/423a5a27dba01151bd73bda91ba543f2.jpg) used with permission.
[Image](https://cdn11.bigcommerce.com/s-2s3kbsk/images/stencil/1280x1280/products/361/491/Giving-Is-the-Good-Life__00000.1555695021.jpg?c=2&imbypass=on) used with permission.

As we started a new year, it’s common to ponder where we’ve been and where we’re headed.

What is the Good Life?

### On Friday morning, all three major averages (the S&P 500, the Dow and Nasdaq Composite), which track the stock market’s overall performance, were on pace to closing with weekly losses. In fact, the S&P 500 was headed toward its worst performing week in two months.

There’s no doubt this up-and-down ride in the markets has been the regular since 2020. So, what should investors be doing?

Many financial experts will tell investors to look at this as an opportunity to buy stocks, bonds and other investment vehicles at a bargain, avoid unnecessary risk, diversify and be patient. But what should a financial disciple who invests be doing?

Well, the same, really…

While there is some good advice coming from the finance world, God’s Word is full of it, too. For instance, we’re instructed to spread among seven, even eight, because we do not know what evil will come (__[Ecclesiastes 11:2](https://www.biblegateway.com/passage/?search=Ecclesiastes+11%3A2&version=NKJV)__).

Understanding the importance of investing isn’t just a worldly thing—it’s a biblical thing. So, no matter what is happening in the market, keep these tips in mind:

> __Timing is everything__

Interestingly enough, the Bible even warns us that there is a time and place for everything…

__[Ecclesiastes3](https://www.biblegateway.com/passage/?search=Ecclesiastes+3%3A1&version=NKJV)__ begins with, *“To everything there is a season, A time for every purpose under heaven.”*And __[Ecclesiastes 3:6](https://www.biblegateway.com/passage/?search=Ecclesiastes+3%3A6&version=NKJV) __says there is, *“a time to gain, and a time to lose.” *

Investing is always a wise practice. But doing so at the wrong time is not wise.

What I mean is, if you do not have cash (that is, enough to cover an emergency), investing now would be bad timing. When you cross paths with the unexpected—and expensive—you may end up falling into debt, such as credit cards, or dipping into your investments (or retirement savings for many of us). And that may come with extra taxes and other penalties.

> __Don’t invest money you cannot afford to lose__

Only invest with money you wouldn’t miss if you never got it back. Investing requires patience, because returns typically take time. The Bible warns us not to be hasty (__[Proverbs 21:5](https://www.biblegateway.com/passage/?search=Proverbs+21%3A5&version=NKJV)__). So, watch out for those “get rich quick” ideas.

What we use to invest should only come from our disposable income. That means the bills must be paid first, food must be put on the table and the emergency savings account must be funded; because any investment could lose its value, even all of it. And if that happens, you don’t want to end up in a tough situation, simply because you were counting on using that money to cover your needs.

> __Diversify your assets__

Remember what it says in Ecclesiastes 11:2: spread among seven or eight.

In other words, don’t put all your eggs in one basket.

I think of my mom every time I hear this saying. She’d continue with, “Because when the basket drops, all the eggs break.”

Traditional portfolios look something like 60% stocks, 30% bonds and 10% cash. But depending on your financial situation, your age, your goals and needs, this may look very different.

But the point is: invest the money you have in different assets. Getting a good idea of which assets to invest in (precious metals, cryptocurrency, stocks, real estate, etc.) and how much leads me to the next tip…

> __Seek wise counsel__

Yep. This is encouraged in the Bible, too.

It says that it’s foolish to lean on your own understanding, but it’s wise to get advice (__[Proverbs 12:15](https://www.biblegateway.com/passage/?search=Proverbs+12%3A15&version=NKJV)__).

It doesn’t hurt to seek advice from others. After all, we’re not expected to know everything; and for many of us, investing can be intimidating.

For counsel from a biblical perspective, you can speak with a Kingdom Advisor, a Christian financial professional who is trained in biblical financial advice. Or you can get information from Sound Mind Investing, an organization that provides biblically based strategies to do-it-yourself investors.

(Learn more about them here: [https://kingdomadvisors.com](https://kingdomadvisors.com/) and here: [https://soundmindinvesting.com](https://soundmindinvesting.com/).)

> __Maintain an eternal perspective__

Certainly not least, keep God at the forefront of your mind and heart.

To me, this is actually the most important, because it has helped me ignore negativity, trust no one but God and be a better person.

When you’re conscious of keeping God at the center of your life, especially when it comes to money and possessions, you learn not to be swayed by things that make most people nervous. You learn to be content. You learn to depend on Him as your Provider. You learn to believe in God’s economy. You learn what’s really important.

I strongly encourage you to read the entire chapter of Ecclesiastes 3, where this verse is found: “…nothing is better for them than to rejoice, and to do good in their lives” (__[Ecclesiastes 3:12](https://www.biblegateway.com/passage/?search=Ecclesiastes+3%3A12&version=NKJV)__).

God wants us to practice wisdom, because He wants us to have a good life. He doesn’t want us to work so hard but never enjoy the fruits of our labor. He wants us to have an abundant life.

But He wants us to be able to do good.

So, if you hear Him telling you to be a little unorthodox… be unorthodox.

If He tells you to sell your possessions and give them to the poor, do it. If He tells you to travel abroad to share the Gospel, do it. If He tells you to give more than you invest, do it. Because as you give, so will He give back to you… in good measure, pressed down, shaken together and running over (__[Luke 6:38](https://www.biblegateway.com/passage/?search=Luke+6%3A38&version=NKJV)__).

*[Image](https://compass1.org/wp-content/uploads/2023/02/Compass-Blog-Cover-1.png) used with permission. *

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Dr. William Cavanaugh discusses the importance of seeing the hidden connections between investing and people.

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