__It’s amazing how the Lord can use a small gesture of generosity to make a big impact. This summer, we encourage you to take advantage of the extra time you have with friends and family to think of creative ways you can give together.__

To help you get started, here are 10 simple ways you and your family can practice generosity this summer:

1. __Take a vacation from digital__: Close the laptop, put down your phone, and give the gift of uninterrupted time to your family and friends. Make it a priority to savor moments together. Encourage everyone to look at life through each other’s eyes, rather than through the lens of a phone’s camera or by scrolling through social media.
2. __Go on a family giving adventure:__ Set up some time with an organization and surprise your kids or grandkids with a service opportunity. You can even choose a nonprofit together by [logging in to your Giving Fund](https://mygiving.secure.force.com/welcome) to browse charities by cause.
3. __Explore your family giving story:__ Where do your beliefs about money and giving come from, and what does the next generation believe? Learn [how to tell your giving story](https://www.ncfgiving.com/stories/how-to-tell-your-giving-story-and-why-its-so-important/) and take advantage of time together this summer to ask questions that could impact your legacy.
4. __Empower someone to make their first grant:__ Share the joy of generosity by [opening a Giving Fund](http://www.ncfgiving.com/open) for a family member, friend, or employee. Tell them how you use their Fund, choose charities, and budget for giving. Then, plan a celebration for when they make their first grant.
5. __Share your bounty:__ If your garden is overflowing or it’s time to empty your fridge before vacation, donate to a community fridge near you. Find one near you at [freedge.org](https://freedge.org/locations/), or learn [how to start one](https://mashable.com/article/how-to-get-involved-community-fridge/) in your neighborhood.
6. __Encourage your encouragers:__ Pick up the phone or schedule a coffee date to tell your spouse, parent, grandparent, or someone else who has influenced you just how much they have blessed you. Start with: “The greatest gift you ever gave me was _____,” or “I want you to know how much it meant to me when you _____.”
7. __Get ahead on Christmas generosity in July:__ As you vacation this summer, dream big about how God wants you to give in the future. Now is a great time to start planning your year-end giving, before the rush of autumn arrives. [Contact your local NCF team](http://www.ncfgiving.com/locations) to discuss opportunities to maximize your resources with [non-cash giving](https://www.ncfgiving.com/solutions/non-cash/) while there’s still plenty of time.
8. __Keep a generosity journal:__ Take some time out on vacation to reflect on your giving journey. You can download our *[10 Days of Biblical Generosity devotional](https://www.ncfgiving.com/library/#resource-10-day-devotional) *to explore Scriptures about giving and record your thoughts, prayers, and questions. Your journal will come in handy when you create your [Giving Strategy™](http://www.ncfgiving.com/strategy).
9. __Make someone’s day with a playlist:__ Support a friend with a [Spotify playlist](https://open.spotify.com/playlist/015degtTp0r3xIAa5Ewovf?si=dd349b6f750f418b) of worship songs or music that speaks to their situation. Send it with a note, such as, “Listen to this when you’re lonely on the long drive home,” or “Play this to pump you up before your busy day.”
10. __Cultivate joy with a thankfulness jar:__ Take time to savor blessings that come your way each day by jotting them down on a scrap of paper and placing them in a special jar. Make sure the whole family participates. Then, open the jar on Labor Day to look back on the highlights of your generous summer.

__Start your summer of giving today.__

([image](https://www.ncfgiving.com/stories/10-ways-to-be-generous-this-summer/) used with permission.)

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

Family

It’s amazing how the Lord can use a small gesture of generosity to make a big impact. Try these generosity ideas.

10 ways to be generous this summer

I’m encouraged when I see believers focused on getting out of debt. My book *[Money, Possessions and Eternity](https://store.epm.org/money-possessions-and-eternity/) *has a whole chapter on debt. My little book *[Managing God’s Money](https://store.epm.org/managing-gods-money/) *has a couple of chapters related to debt. I alsotalk about debt briefly in *[The Treasure Principle](https://store.epm.org/the-treasure-principle-revised)* and again in my newer book *[Giving Is the Good Life](https://store.epm.org/giving-good-life/)*.

According to [CreditCards.com](https://www.creditcards.com/credit-card-news/credit-card-debt-statistics-1276/), the average American has $5,111 in credit card debt. Slightly more than 40 percent of Americans carry credit card debt month to month, continuing to spend more than they earn and remaining in financial bondage. [The average college student](https://www.credit.com/personal-finance/average-student-loan-debt/) graduates with $36,510 in student loans, and some with far more.

Those pursuing the “good life” routinely incur debt, yet psychologists attest that a debt-funded lifestyle leads to depression, anxiety, resentment, stress, denial, anger, frustration, regret, shame, embarrassment, and fear. (That doesn’t sound like a very good life after all.)

If we take God’s Word seriously, we should avoid debt when we can, since *“the borrower is servant to the lender”* ([Proverbs 22:7, NLT](https://biblia.com/bible/nlt/Prov%2022.7)). And since Jesus tells us we cannot serve both God and money, we should ask ourselves, before undertaking any debt, *How will this affect my capacity to give generously?*

In rare cases—for instance, when we buy a reasonably priced house that may be a good long-term investment—we should borrow only enough to allow us to make affordable payments and pay off the debt as early as possible. Countless people end up spending more on a house than they can afford, and then for years regret that they “can’t afford to give.”

We must learn to say no to many of our wants in order to say yes to obedience, freedom, and generosity—and the happiness God brings to us through them.

Though staying out of debt to begin with is preferable, I’m all in favor of people working to get out of debt. My one concern is that I see some believers whose whole purpose in doing so is to have more money to spend on themselves. It’s not that making plans for the future and going on vacations are inherently wrong. The problem arises when the end result is these debt-free believers becoming more efficient materialists rather than devoted hearts sold out to the kingdom of God.

I’ve even heard teaching within the Christian community, including personal finance counseling, that encourages people not to give before they get out of debt. That’s not eternity-minded, kingdom-centered advice!

When we give, God is pleased and will honor our efforts to pay off our debts. God says that when His people give Him tithes and freewill offerings, He will *“throw open the floodgates of heaven and pour out so much blessing that there will not be room enough to store it”* ([Malachi 3:10, NIV](https://biblia.com/bible/niv/Mal%203.10)). Even if you don’t believe this passage applies to New Testament Christians, surely these words of Jesus do: *“Give, and it will be given to you”* ([Luke 6:38](https://biblia.com/bible/esv/Luke%206.38)). Isn’t that exactly what people who want to get out of debt need?

So my advice to those who are in debt and want to get out is this: be a generous giver. And, at the same time, labor to get out of debt so you can invest in God’s kingdom with the money that is freed up. Yes, this won’t always be easy and will take wisdom. But that’s exactly what God promises to give us when we ask ([James 1:5](https://biblia.com/bible/esv/James%201.5)). We should desire to become wise stewards and generous givers, rather than self-serving keepers.

Unfortunately, I think many Christians today are getting only half the message about financial stewardship. They grasp the part about the importance of getting out of debt. But they think it’s so that they can have more money to spend on themselves. No! Jesus’ warning applies here: *“Watch out! Be on your guard against all kinds of greed; life does not consist in an abundance of possessions”* ([Luke 12:15, NIV](https://biblia.com/bible/niv/Luke%2012.15)).

Let’s get out of debt so we can give more money to God’s kingdom, and be financially free, not centering our lives around our debt. Our goal should be a life that mirrors Jesus’ generosity, not a money and possessions-driven life.

*[Image](https://www.epm.org/static/cache/47/ff/47ffc91ad78c0b0ab28bc5b3a002f295.jpg) used with permission.*

Eternal Perspective Ministries, founded and directed by author Randy Alcorn, is focused on investing in what lasts for eternity, and helping others to do the same.

Eternal Perspective Ministries

Articles

Our goal should be a life that mirrors Jesus’ generosity, not a money and possessions-driven life.

How Important Is It for Believers to Be Debt Free?

__Sooner or later, we all face financial challenges. Sometimes life throws us a curveball and we’re not ready to hit it, and sometimes our poor financial decisions come back to haunt us at the worst time. If you’re worried about your finances, you aren’t alone. According to a recent survey from Capital One and the Decision Lab, more than three-fourths of Americans wrestle with anxiety over their financial situation.__

God offers His children the privilege of prayer as a substitute for worry. As Paul told the Philippians, *“Do not be anxious about anything, but in everything by prayer and supplication, with thanksgiving, let your requests be made known to God”* (Phil. 4:6). But how should we pray about financial challenges, especially when we bring some of those challenges on ourselves? Here are three tips on praying through financial obstacles.

#### Pray with a Focus on God’s Sovereign Provision (Matthew 6:25-34).

God knows your needs before you ever approach Him in prayer, so pray confidently! He is more than able to meet your needs. In a society paralyzed by anxiety, much of it rooted in financial difficulty, God challenges His people to trade their trepidation for trust.

Jesus addressed anxiety during the Sermon on the Mount. He covered topics including our grocery budget (Mt. 6:26) and our clothing budget (Mt. 6:28-30). While those needs are important, trusting God is infinitely more so. Jesus calls His people to seek God’s kingdom and God’s righteousness first, not our daily needs. With that perspective, everything else will fall into place.

My mom is a fantastic prayer warrior. Anytime I share a need with her, her immediate response is, “Well, have you prayed about it?” I’ll admit that I don’t always enjoy that question. I’m usually better at worrying than praying. I try to tell her that I’m not worrying. I say I’m just “intensely curious.” But the excuse works with Mom about like it works with the Lord. It doesn’t. Jesus’s powerful counsel In Matthew 6 is more than a mere suggestion. The command, “do not be anxious,” appears three times in this passage, so Jesus is serious about calling us to trust in God’s sovereign provision.


![](https://static.wixstatic.com/media/1844e63f2ea441578a1cb71efea3fb1f.jpg/v1/fill/w_1108,h_746,al_c,q_85,usm_0.66_1.00_0.01,enc_auto/1844e63f2ea441578a1cb71efea3fb1f.jpg)


#### Pray with Humble Honesty, and Repent if Necessary (Psalm 51:1-4).

Sometimes we bring financial struggles on ourselves. We act unwisely with the resources God has entrusted to us, and the results are disastrous. God calls His children to steward His resources wisely, but we sometimes make a mess of our responsibility. We may face financial pressure because of sinful or unwise choices, so our prayers should include humility, contrition, and repentance.

King David understood that sin causes pain and addressed that pain in Psalm 51. There, David poured out his heart to God after Nathan confronted him for his adulterous relationship with Bathsheba (2 Samuel 11 and 12). The king of Israel bore his soul before the Lord. He took personal responsibility for offending his Creator. He needed soul cleansing before he could begin trying to repair the damage his choices had caused.

Like all other sin, financial sins hinder our walk with God. Confession cleanses our soul so that we can align our hearts with the will of God. While we probably won’t enjoy immediate relief from the financial mess, we will experience immediate joy in knowing that our fellowship with God (and the joy of our salvation) has been restored.

> Like all other sin, financial sins hinder our walk with God. Confession cleanses our soul so that we can align our hearts with the will of God.

Ultimately, your walk with God is far more important than your net worth. If your financial challenges are self-inflicted because of selfish priorities, then honest confession of sin can bring peace and mental clarity. The blessing of a restored walk with God will help you focus on tackling your challenges in a way that honors your King.

#### Pray with Persistent Faith Because God Always Acts Justly (Luke 18:1-8).

Kids are experts at persistence. They ask the same question, repeatedly, until they either get their way or cause major problems. Trust me, I teach high school social studies! Students make bathroom requests, ask to see the nurse, and remember that they forgot their textbook (or, more likely, their phone). The requests never end, which is why my beard is turning grey!

In Luke 18, Jesus provided a striking example of persistence. He told the story of a widow in desperate need of justice. The problem was that the judge she faced was unjust. Scripture says that he, *“neither feared God not respected man”* (Lk. 18:2). What a horrible person to put in charge of justice! Repeatedly, the woman begged the judge to do the right thing, and eventually, she wore him down and got what she needed.

We need to be careful with this parable. Jesus doesn’t want us to irritate God until we get our way. Remember that God is a righteous judge who always acts righteously! Rather, Jesus uses a teaching technique called *Qal va-homer* (literally, “light and heavy”). The technique is an argument from the lesser to the greater. If the unjust judge rewards persistence, *how much more* will our righteous God give justice to his children when we persevere in prayer?

God always does what is right (Gen. 18:25). As we face financial challenges, we can pray with boldness, with confidence, with persistence, and with peace, because we know that God always does what is right.

So pray with a focus on Gods sovereign provision. He will take care of His children. Pray with humble honesty and repent of any selfishness that might have caused your financial crisis. Finally, pray with persistent faith because God always acts justly!

*[Images](https://static.wixstatic.com/media/1844e63f2ea441578a1cb71efea3fb1f.jpg/v1/fill/w_1108,h_746,al_c,q_85,usm_0.66_1.00_0.01,enc_auto/1844e63f2ea441578a1cb71efea3fb1f.jpg) 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

The More Than Money Podcast helps listeners get financially healthy for the sake of giving and living generously. In each episode, Art Rainer provides fun, practical, biblically-based financial advice through interviews and listener questions. Our goal with this podcast is for you to understand God's design for you and your money as you learn to give generously, save wisely, and live appropriately.

More than Money

Sooner or later, we all face financial challenges. Sometimes life throws us a curveball and we’re not ready to hit it.

How to Pray When Facing Financial Challenges

__Last month's FDIC takeover of unstable Silicon Valley Bank, and the subsequent shutdowns/shoring up of other banks, have made bank depositors wary.__

In recent articles, Mark and Matt have addressed depositor concerns, [explaining what transpired](https://soundmindinvesting.com/articles/what-to-make-of-the-recent-banking-crisis) with the troubled banks and why, even if other banks were to fail, [most bank depositors aren't in danger](https://soundmindinvesting.com/articles/is-your-money-safe) of losing money.

But what about *brokerage firms*? Could follow-on effects from the forces troubling the banking industry put brokerage businesses at risk? It's a natural question to ask. When destabilizing things start to happen in the financial world, everyone gets nervous!

However, it's important to remember that the business model of a bank and the business model of a brokerage firm differ.

#### Banks and brokers

__• The banking model:__ Banks take deposits and, in turn, use those deposits to make loans. Banks earn money on the loans and pay some of those earnings to depositors as interest. (Interest is somewhat like a "rental" fee paid to depositors for the use of their money.)

When too many depositors demand their money back immediately, a bank can find itself in an "illiquid" situation. The bank may not be able to meet depositor demand.

__• The brokerage model:__ Investors determine how their money will be deployed, and brokerage firms implement those choices. Typically, clients purchase investments such as stocks or mutual funds.

If many customers suddenly opt to sell their holdings and close their accounts, the brokerage firm wouldn't suffer a liquidity crisis. The broker would sell underlying investments, and the proceeds would be returned to the clients.

The liquidating investors would get their money back, and the financial health of the broker wouldn't be affected directly. (However, a decline in a broker's customer base would affect future earnings due to a loss of client fees.)

It's also worth pointing out that securities regulations prohibit brokerages from mingling investor funds with a firm's operating capital and accounts. Therefore, by law, the money returned to investors must come from investor accounts (and their underlying holdings), not from the brokerage firm's financial resources.

#### Schwab's two hats

One thing that's made some people wary about how banking-industry problems might affect brokerage firms is that [Charles Schwab operates both kinds of businesses](https://www.google.com/search?q=“The+initial+Schwab+concern+had+to+do+with+the+amount+of+deposits+invested+during+a+low+interest+rate+period+and+thus+held+at+a+loss+currently.%22&ei=7kksZMDONMyB0PEPgOGF8AQ&ved=0ahUKEwjA_YPZzJD-AhXMADQIHYBwAU4Q4dUDCBA&uact=5&oq=“The+initial+Schwab+concern+had+to+do+with+the+amount+of+deposits+invested+during+a+low+interest+rate+period+and+thus+held+at+a+loss+currently.%22&gs_lcp=Cgxnd3Mtd2l6LXNlcnAQAzIKCAAQRxDWBBCwAzIKCAAQRxDWBBCwAzIKCAAQRxDWBBCwAzIKCAAQRxDWBBCwAzIKCAAQRxDWBBCwAzIKCAAQRxDWBBCwAzIKCAAQRxDWBBCwAzIKCAAQRxDWBBCwA0oECEEYAFC2DliGGWDVG2gBcAF4AIABAIgBAJIBAJgBAKABAqABAcgBCMABAQ&sclient=gws-wiz-serp) (a paywalled *New York Times* article that's free via Google). As you probably know, Schwab is one of SMI's recommended brokers, but there is also a [Charles Schwab Bank](https://www.schwab.com/bank) — the 10th-largest bank in the U.S.

Although Schwab's two businesses are separate, they are closely connected. Schwab (the broker) deposits the cash held in investors' sweep accounts with Schwab (the banker). And while that money remains in sweep accounts, it is FDIC-insured because Charles Schwab Bank is an FDIC-insured institution.

Of course, sweep accounts aren't intended to be long-term investment options. They're temporary holding places for cash that'll be deployed elsewhere in short order. Most savvy investors keep relatively little money in sweep accounts on an extended basis, especially since sweep accounts pay very little compared to money-market funds.

Indeed, with Schwab's own money funds (from Schwab, the broker) paying more than 4%, investors have been moving cash from their sweep accounts and into better-yielding Schwab MMFs.

"Clients aren't moving bank deposits out of Schwab," noted Schwab CEO Walt Bettinger in [an interview](https://www.wsj.com/articles/charles-schwab-says-it-could-ride-out-a-deposit-flight-a8b2a626?st=osz7cla0jvluxjp&reflink=desktopwebshare_permalink) with *The Wall Street Journal*. "All they're doing is realigning their investments, as they should."

#### What if a brokerage firm *did* run into trouble?

To protect investors in the unlikely event that a brokerage firm was to fail, Congress created the Securities Investor Protection Corporation (SIPC) in 1970. Any brokerage firm registered with the Securities and Exchange Commission must be a member.

SIPC insurance protects the "custody function" of a brokerage firm. It doesn't protect investors from investment losses from market downturns or interest rate changes — otherwise, the SIPC would be very busy!

From the SIPC website:

> SIPC protection is not the same as protection for your cash at [an FDIC-insured] banking institution because SIPC does not protect the value of any security.... Instead, in a liquidation, SIPC replaces missing stocks and other securities when it is possible to do so.

In other words, if any assets were missing because of a brokerage failure, the SPIC would attempt to restore those assets — deploying up to $500,000 per investor account to rebuild portfolios. The SIPC insurance limit for uninvested cash holdings is $250,000, but money-market funds — which are mutual funds invested in "cash" assets — are protected under the $500,000 limit.

To further assuage investor concerns about safety, many brokerage firms carry "excess of SIPC" coverage from other insurers.

Fidelity, an SMI-recommended broker, has additional coverage through Lloyd's of London, with no per-customer dollar limit on coverage of securities. Uninvested cash is covered up to $1.9 million. "This is the maximum excess of SIPC protection currently available in the brokerage industry," [according to Fidelity](https://www.fidelity.com/why-fidelity/safeguarding-your-accounts).

Schwab, too, offers "excess" coverage in the event SIPC protections are exhausted. "The combined total of our SIPC coverage and our 'excess SIPC' coverage means Schwab provides protection up to a combined return of $149.5 million per customer, up to $1.15 million of which may be in cash," [says the Schwab website](https://www.schwab.com/legal/account-protection). (TD Ameritrade, which Schwab owns, has [even more robust protections](https://www.tdameritrade.com/account-protection.html) in place.)

E-Trade offers "excess of SIPC" coverage via Morgan Stanley (which owns E-Trade). [According to the Morgan Stanley site](https://www.morganstanley.com/terms), "Excess Coverage provides additional protection up to the full net equity value of each account, including unlimited coverage for uninvested cash."

Vanguard, too, offers additional protection. The company's current ["Brokerage Account Agreement"](https://www.vanguard.com/pdf/vbsaac_042016.pdf) document (PDF) provides sparse details, however, saying only that "Vanguard Brokerage maintains additional coverage through an insurer that supplements SIPC coverage."

#### Acting as matchmaker

In addition to its role as an insurer, the Securities Investor Protection Corporation stands ready to serve another crucial role: matchmaker. If a brokerage firm was at risk of failing, the SIPC would try to find another firm willing to take on the failing business's clients — similar to how the FDIC tries to find a healthy bank to assume the accounts of customers of a failed bank.

If the SIPC failed to find a match — and if investor assets had been compromised — only then would the SIPC's insurance function come into play. If that insurance proved insufficient for some clients, the "excess" coverage from other insurers would kick in.

#### A high level of protection

So, is your brokerage account safe? Yes, to the highest degree possible. It is protected by regulations that segregate brokerage accounts from investor accounts. It is further protected by SIPC insurance and other SIPC functions. And finally, it is covered by supplemental insurance running well into the millions of dollars.

Although it is theoretically possible that all of those backstops and protections could fail, the risk is so remote that it is not worth losing sleep over.

*[Image](https://soundmindinvesting.com/img/asset/Y2xvdWQvcmlzay1hc3Nlc3NtZW50LTUyNTAyMTQ3MS5qcGc=?fit=crop-6-95-1&w=1660&h=896&s=e0cc359dd68cd98b82e18be71cabf9a8) used with permission. *

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

Sound Mind Investing

Investing

Last month's FDIC takeover of unstable Silicon Valley Bank have made bank depositors wary.

"Is my brokerage account safe?"

__The stock market barely missed a beat after the tragedy of 9/11. In an industry with so little time for reflection, we must learn to pause and ask the important questions.__

All of us, the entire sixth floor of brokers, stood with muted headsets dangling from our necks as we clustered around televisions hanging from the ceiling. Normally, ticker tape scrolled 24/7 across the bottom of the screens as talking heads breathlessly spelled triumph or gloom depending on the energy of the hour. But now the screens filled with scenes of black smoke billowing from the Twin Towers and images of planes crashing into the Pentagon and into a field in Pennsylvania.

It was eerie—in that vast space usually humming with the cacophony of so many voices and so much frenetic energy—to have everything be stone cold still. All the money in the world, all the power in the world, was impotent in that moment, even if only for a flash. Reports detailed how Cantor Fitzgerald, a financial services firm, lost virtually its entire New York workforce, 658 dead. These were people like us, working in a building like us, doing a job like us. That morning they went to work just as we had, but they would never be going home.

> All the money in the world, all the power in the world, was impotent in that moment, even if only for a flash.


In the years previous, the dot.com boom had led to wild speculation and people treating the stock market like a slot machine. Technology stocks had been on a five-year scorcher, but, in a Wall Street-style Chernobyl, it culminated in a cataclysmic meltdown. The Nasdaq index dropped 77%. A slew of companies went belly up. Unemployment skyrocketed. Things were dire. And then terrorists struck, and everything about our future and economy and way of life felt threatened. On that terrible day, we couldn’t have imagined the recovery that was coming. Soon the phones would go mad again. That feverish ticker tape would scroll again with new highs. The talking heads would soon be punch drunk with how the good times were back.

The Fed responded to the shock of 9/11 by doubling down on lower interest rates in an attempt to stimulate the economy, while shoppers responded to the odd patriotic call to defy the terrorists with consumeristic abandon: *spend! spend! spend!* The money engines revved with new fury. Capital poured into the markets. Only a year previous, my firm had (for the first time ever) laid-off employees, but now they couldn’t hire brokers fast enough. Management cajoled us into working overtime. One afternoon an American Express Travelers Cheque arrived in my mailbox, a crisp gold bill that was my employer’s way of saying: *Thank you for enduring the insanity…please don’t leave.*

I learned that markets and economies have little interest in deliberative discernment. Few paused to wonder whether all that we’d endured as a nation—all our hubris and our greed, all that we’d suffered through the terrorist attack and the financial collapse—had anything to teach us. Who had time for reflection when it was boomtime again?

> I learned that markets and economies have little interest in deliberative discernment. Few paused to wonder whether all that we’d endured as a nation—all our hubris and our greed, all that we’d suffered through the terrorist attack and the financial collapse—had anything to teach us.


Sometimes the most important questions are the ones we never ask.

So, with no time for discerning reflection, the market surged. Amid this frothy environment, IPOs (*initial public offerings*, where a company sells its shares for the first time) were exploding, and I joined our firm’s new IPO team. With the technology boom reigniting new frenzy, a few IPOs’ stock prices skyrocketed, filling headlines with sensational stories of overnight billionaires. The gold rush was on. Investors rushed after the next quick profit, often without any basic understanding of the company they were investing in, or the risks involved. Folks were stepping up to the slot machine again.



> The gold rush was on. Investors rushed after the next quick profit, often without any basic understanding of the company they were investing in, or the risks involved.


As I began to learn the world of IPOs, I saw afresh the underbelly I’d discovered when first interviewing for a broker job. With lots of firms, their only driving concern was to move the IPO shares they’d been allotted. They had a product to sell, and they wanted to sell it—whether or not it was a wise investment for their customer. Eventually, regulators insisted brokers assess customers’ awareness of what they were getting into, but this process was often merely perfunctory.

This wasn’t our approach. My manager drilled into us how much care we needed to take in explaining what an IPO was and how perilous the whole process could be. We’d slowly walk clients through the litany of questions: *Did they understand how the IPO could go down just as easily as up? Were they investing money they were willing to lose? Did they understand the investments they were making?* I was proud of our ethical commitments, our forthrightness and attempts to ensure no one was taken advantage of. But this wasn’t how things worked everywhere.

And yet, in the years since, it’s become obvious that what was needed here was more than only ethics and honest dealing. Remembering our diligence in all those conversations with clients, all those methodical queries, I’m struck yet again by how easy it is to never ask some of the most important questions. Our exchanges—in every broker interaction, not only with IPOs—centered around profit or loss, around risk and portfolio suitability—but we never asked anything more fundamental. *How does this company’s business or product align with your faith? Do you actually want to be an owner of this company—do you want to use your resources to contribute to their work in the world? How will your investment in this company contribute (or not) to the common good—and does that matter to you? How is the nobility of work and the goodness of creation being sustained, or harmed, with your investment?*

> Our exchanges—in every broker interaction, not only with IPOs—centered around profit or loss, around risk and portfolio suitability—but we never asked anything more fundamental.


While we wouldn’t expect a broker to pose each of these questions to a client at every turn, the fact is that these vital questions never even occurred to me. They weren’t part of the larger vision. Was *anyone* having these conversations? Was anyone considering what responsibility we’re taking on whenever we become a partial owner of some enterprise? Was anyone thinking through the immense privilege of using our dollars to do more than prepare for retirement, to actually do good in the world?

__With any investment, we’re foolish if we don’t consider the basic concerns familiar to every investor: risk, market volatility, return on equity, etc. However, wisdom invites us to give diligent attention to far deeper questions, to the many core questions that prevailing investing philosophies rarely stop to ask.__

__[Read](https://www.faithfi.com/eventide-center-for-faith-investing/a-stockbrokers-tale-part-1-worthy-of-trust-5474)__ Part 1 of this series.

__[Image](https://www.faithandinvesting.com/journal/questions-we-never-ask/)__ used with permission.

__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.

Inspiring an authentically Christian practice of modern investing.

Eventide Center for Faith & Investing

Winn Collier shares about his time working as a stockbroker in this two-part series.

A Stockbroker’s Tale, Part 2: The Questions We Never Ask

__Today's workers and retirees are feeling far less confident than last year that they will have enough money to live comfortably throughout retirement. That’s the lead finding from The Employee Benefit Research Institute’s (EBRI) 33rd annual Retirement Confidence Survey. Some 64% of respondents reported feeling somewhat or very confident about their retirement funding — down sharply from last year’s 73%. That's the biggest hit to retirement confidence since the Great Financial Crisis of 2008.__

Not surprisingly, the biggest concern weighing on people’s minds is inflation, with 84% of today’s workers and 67% of retirees saying the increased cost of living is making it more difficult to save money. Large numbers from both groups say inflation is causing them to make substantial cuts to their spending.

As for their actual preparedness, 44% of workers age 55 or older have less than $250,000 saved for retirement.

#### The weight of debt

Debt is another issue weighing on people's minds. Some 62% of workers say debt is a problem for them (up from 56% last year). Those figures are much lower for retirees, with 34% saying debt is a problem for them (about the same as last year).

While the survey didn’t break debt down into specific types, other surveys have pointed to an increase in the number of people bringing a mortgage into their later years. As we have recommended before, it’s wise to plan to retire your mortgage by the time you retire. And if you plan to refinance, be careful about resetting the 30-year payoff clock to a date that’s past your intended retirement age.

One other area of vulnerability: Just 44% of today's workers have planned for how they would cover an emergency or big expense in retirement.

#### A little knowledge could go a long way

Several questions on the survey highlighted where an investment in financial education could be very beneficial. For example, while target-date funds (TDFs) have become the default investment choice in many workplace retirement plans, 40% of this year’s survey respondents said they do not understand how such funds work.

As [we’ve written before](https://soundmindinvesting.com/articles/dont-be-surprised-if-target-date-funds-miss-the-mark), different companies that offer target-date funds design their funds with different asset allocations — even for funds that carry the same target retirement date. Such funds are only becoming more complex with the introduction of TDFs that have annuities baked into their design.

Many survey respondents acknowledged not knowing where to go for financial or retirement planning advice. Asked where they do go for such counsel, the most popular answer, at 40%, was family or friends.

Similar to past surveys, just 51% of today’s workers have taken the time to estimate how much money they are likely to need to have saved by the time they retire.

#### A consistent story

As has been true in the past, the latest EBRI Retirement Confidence survey shows a couple of important areas of disconnect between today’s workers and today’s retirees. For example, whereas 73% of today’s workers believe they will work for pay to some degree in retirement (up from 70% last year), only 30% of today’s retirees have actually done so.

While some 68% of workers expect to retire at age 65 or later, only 32% of today’s retirees waited that long. More specifically, 33% of today’s workers expect to retire at age 70 or never, whereas that was true for just 6% of today’s retirees.

Importantly, 46% of today’s retirees said they left the workforce earlier than planned, often for reasons that were outside of their control, such as health issues for themselves or a loved one or a company downsizing.

One takeaway? Use retirement planning software, such as [MoneyGuide](https://soundmindinvesting.com/articles/a-new-better-process-for-getting-started-with-moneyguidepro), to run some numbers on your retirement. And when you do, base your calculations on a retirement age that’s a bit younger than your true intended retirement age. Having a well-thought-out plan will do wonders for your retirement preparedness and peace of mind.

To read more about the survey results, [click here](https://www.ebri.org/retirement/retirement-confidence-survey).

*[Image](https://soundmindinvesting.com/img/asset/Y2xvdWQvYXJ0aWNsZXMvaXN0b2NrLTEyNTMyNzI4NzguanBn?fit=crop-4-49-1&w=1660&h=896&s=f17cdb93c6af0ca55454de2de82dac48) used with permission.*

Retirement

Today's workers & retirees are feeling far less confident than last year that they will have enough money later in life.

Tough Economic Conditions Bring Big Drop in Retirement Confidence

__The prospect of buying a new home can be exciting. But for many, the process seems complex and overwhelming. They are not sure what steps they are to take and when. As stewards of God’s resources (Matthew 25:14-30), we are compelled to make wise purchase decisions. And given that a home purchase is often the largest purchase a person will make, it is important that they have a good understanding of the process to go about it wisely. To simplify the homebuying process, here are six steps for buying a home that you need to know:__

#### Step 1: Determine your budget and get a pre-approved.

Before you start searching for a home, you must determine how much you can afford. Skipping this important step can result in purchasing a home that is too expensive, resulting in increased financial stress, decreased financial flexibility, and decreases generosity. As a rule of thumb, it is recommended that you are able to make a 20% down payment on the home and have a mortgage payment of no greater than 30% of your monthly income.

Once you have determined your budget, you will need to get a preapproval letter from a lender. This lets sellers know that you can access the funds needed for the purchase. But be careful with the approval amount. The amount approved is the maximum amount the lender is willing to lend, not the amount you should spend. More often than not, the amount you should spend is lower than the approved amount.

#### Step 2: Determine your must-haves.

Identify your wants and needs in a home. Your needs may include the number of bedrooms and bathrooms, a certain location, and a yard. Wants may include a certain kitchen décor, a specific neighborhood, and desired square feet. List your want and your needs and prioritize both lists. This will help you filter homes  and reduce your search time.

#### Step 3: Start house hunting.

To get started, you can use online tools like Zillow and Redfin to search for homes based on location, price range, and other criteria. You can also set up alerts to be notified when new homes are listed that meet your search criteria. You can also drive through neighborhoods that interest you and get an overall feel for the area to which you are moving.

However, you will eventually want to work with a real estate agent. Real estate agents help you find homes that match your must-haves and provide guidance throughout the home buying process. They usually have a good knowledge of the local market and the homes for sale. They also help you navigate the negotiations and paperwork involved in buying a new home.

Be patient when house hunting. Finding a home that meets you needs at a price you can afford typically takes time. Rushing to make a purchase can either leave you with a home you don’t like or a debt burden that is too large. Of course, it is possible that you don’t find the perfect home and must compromise on some wants.


![](https://static.wixstatic.com/media/978a5c_49219d3e8984470a9c89648c46267ea7~mv2.jpg/v1/fill/w_1108,h_738,al_c,q_85,usm_0.66_1.00_0.01,enc_auto/978a5c_49219d3e8984470a9c89648c46267ea7~mv2.jpg)


#### Step 4: Make an offer.

Once you have found a home that you would like to purchase, you must make an offer to the seller. If you have a real estate agent, they will help you determine a good offer amount and submit the offer for you. The seller may accept the offer, reject the offer, or provide a counteroffer. If both parties are able to come to an agreement, the home becomes under contract.

#### Step 5: Get a home inspection.

As part of a typical contract, several contingencies are included to protect the buyer and the seller. A home inspector will examine your home for any issues that you need to be aware of. The inspector will check the roof, electrical, plumbing, HVAC, appliances, and other parts of the home. Once the inspector has examined the house, he or she will present you with the findings. If they determine that costly repairs or replacements are needed, you can make the covering the expenses as part of the negotiation with buyer. As “as is” offer skips this part of the homebuying process. Such an offer puts the buyer at risk and is usually not recommended.

#### Step 6: Get an appraisal.

An appraisal determines the value of the home. If you are using a lender for the home’s purchase, they will likely require an appraisal. The lender wants to make sure that they are not lending more than the home is worth and that the loan-to-value is accurate. If the value of the home is lower than expected, you will either need to renegotiate the purchase price or bring more money to the table for the purchase.
#### 
#### Step 7: Close the sale.

There are other contingencies in the contract, like a clean title and ensuring that funding is in place. Once everything checks out, the buyer can close on the house. Often, the buyer’s real estate agent and an attorney are present at the closing. There also may be others present. The closing agent ensures that all documents are signed and recorded, that any fees are properly distributed. Once everything is complete, keys are given to the house's new owners.

*[Images](https://static.wixstatic.com/media/978a5c_49219d3e8984470a9c89648c46267ea7~mv2.jpg/v1/fill/w_1108,h_738,al_c,q_85,usm_0.66_1.00_0.01,enc_auto/978a5c_49219d3e8984470a9c89648c46267ea7~mv2.jpg) used with permission. *

Debt

To simplify the homebuying process, here are six steps for buying a home that you need to know.

7 Steps for Buying a Home

__One of the simplest ways to stay out of credit card debt is to save for major purchases. By planning ahead and saving for things you know you’re going to need or want in the future, you avoid having to borrow. Taking certain steps can make this a lot easier.__

You might be thinking, “Save for things I’ll need in the future? Isn’t that what my emergency fund is for?” Actually, no, it isn’t. Saving for expected, major purchases is sometimes called a “sinking fund,” a term borrowed from the business world.

It’s a pool of money you regularly contribute to so you’ll eventually have the cash you need for an upcoming big-ticket expense, like a vacation, a new car or home repairs. 

You’re actually “paying yourself” to delay that purchase because your savings will accrue interest. Compare that to putting the purchase on a credit card with a sky high interest rate, where you’re paying to use someone else’s money for a time. By grasping this concept of delayed gratification, you’ll save yourself a lot of money over your lifetime.

You also won’t be tempted to tap into a retirement account for a major purchase. That is extremely expensive money. You’ll have to pay taxes on anything you withdraw and possibly a penalty. That money is intended for another major purchase, your retirement! 

So what’s the best way to save for your big ticket item? First, you need a goal. For example, if you know the house will need a new roof in the not-too-distant future, and it will cost $7,500 or more (which is typical these days), that becomes your goal.

__Next, look at your budget to determine how much you can pull each month from other categories to go toward your new roof. Let’s say that’s $500. Divide 7500 by 500 and you get 15. That’s how many months it will take to save up enough cash to replace your roof.__

It’s okay to start small. If you can’t put away $500 a month, start with $100. But begin looking for ways you can increase that amount by cutting your expenses. Be flexible. It’s okay to adjust your savings as needed, just keep in mind that you want to reach your goal as soon as possible.

You might think it’s silly, but you can also start a change jar if you still use cash on a fairly regular basis. Empty your pockets or wallet into a one gallon jar or jug and forget about it. When it’s full of mixed change, you’ll have roughly another $400 toward your goal.

For the rest of the cash you’re saving, you’ll want to open a special savings account at an online bank to get the best interest rate. If this special purchase is several years away, you can put some of the money in CDs to earn more interest. You should ladder CDs, so that one is coming due every 6 months or so. As you near the target date for your big purchase, cash out the CDs and put the money back into savings.

__Those are some tips to help you save for a major purchase. We hope you find them useful and when you reach your savings goal, let us know. We’d love to hear how you did it.__

FaithFi

By planning ahead and saving for things you know you’re going to need or want in the future, you avoid having to borrow.

Saving for Major Purchases

John Putnam joins us today on Faith and Finance. He is a Certified Financial Planner and Kingdom Advisor. You can dig deeper at <a href="https://feeds.simplecast.com/SmarterStewardship.com">SmarterStewardship.com</a>.The concept of taking a vacation is Biblical, and anchored at Mark 6, Jesus tells the disciples to come away and rest for a while. They went away to rejuvenate with friends, Jesus and God, the Father.Vacations often fall short of expectations…why?<ul><li>Aren’t well planned</li><li>Expectations aren’t shared</li><li>Distractions keep us from being present</li></ul>Simple steps for vacation maximization:<ul><li>Set and share expectations (financial, personal, physical, relational)</li><li>Get prepared at the office…for returning after vacation</li><li>Set budget in advance</li><li>Family<ul><li>Set a phone free zone</li><li>Invite kids into the financial conversation to understand limits and have some ownership</li></ul></li><li>Be present with daily prayer</li><li>Be flexible when plans don’t work out</li><li>Stay engaged, stay true to money plans</li></ul>Worksheet called…Vacation maximation guide located here: <a href="https://content.app-sources.com/s/34635933408404906/uploads/Resources/CFYD_80_Vac_Max_Expectations_worksheet-3597223.pdf">Vacation Maximization Guide.</a> This guide is free.Catch the 4-part podcast <a href="https://www.faithfi.com/smarter-stewardship">here</a>. These are about 15 min each with over 25 tips to help you have a better vacation.On today’s program, Rob also answers listener questions:<ul><li>How do you go about budgeting and recalibrating your finances after the death of a spouse? </li><li>What is the benefit of paying for the services of a financial adviser and how do you determine if that’s the right choice for you? </li><li>How should you approach your investment strategy as you near retirement? </li><li>Who needs long-term care insurance and when is the right time of life to look into that?</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://feeds.simplecast.com/FaithFi.com">FaithFi.com</a> where you can join the FaithFi Community, and give 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

Smart summer vacation planning.
Listen to how you can tip the hands in your favor for a great vacation - put more fun, more rest and more God in your vacation.

Vacation Maximization with John Putnam

Where timeless biblical wisdom meets today's financial decisions.

Become Wise With Money

Our trusted partner, Christian Credit Counselors, offers a debt management program that can get you out of credit card debt 80% faster while honoring your debt in full.

Struggling with credit card debt but don’t know where to start?

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Whether you’re just getting started or well on your financial  discipleship journey, Compass can help you learn, apply, and multiply the Bible’s teaching on money and possessions.

Learn, Apply, and Multiply What the Bible Says About Money and Possessions

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Discover the secret of "winning by not losing".

Profit & Peace of Mind - No Matter What's Happening in the Market

Financial health is just a means to a greater end. I want to see you in a place where you are living and giving generously, advancing God's Kingdom, without the hindrance of debt or any other financial barrier.

Give generously. Save wisely. Live appropriately.

Investing can be more than just returns

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Join a movement of investors, fund managers and leaders who believe that God owns it all and he cares deeply about why and how we steward his investments.

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Join the Movement

Behind every great movement of God are generous leaders who partner with those who proclaim the gospel. We call them Gospel Patrons.

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Do you have a giving strategy? We would love to help you explore all the opportunities to make the most of what God has given you.

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Most conversations about giving end with an ask for money. Generous Giving hosts free events that help explore Jesus-like generosity without asking for anything in return. This leads to stronger families and deeper relationships with God.

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INVEST IN PRAXIS MUTUAL FUNDS

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After nearly 20,000 meetings with people just like you, helping them grow in wisdom, confidence and joy, and coaching millions more over radio, television and digital media, we'd love to help you, too!

Money’s not bad, but it’s also not easy.

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Smarter Stewardship

Credit cards can be a great tool, but they also carry some hidden costs that you should know about. We’ll talk about that on this Faith and Finance. <ul><li>Proverbs 22:7 warns us, “The rich rule over the poor, and the borrower is the slave of the lender.” Is that anywhere more obvious than with credit cards?</li><li>And <a href="https://www.pymnts.com/credit-cards/2023/gen-z-millennials-use-credit-cards-30-more-than-the-average-cardholder/">recent surveys</a>show that nearly half of credit card holders in the U.S. carry a balance from month to month. With the average interest rate now at just over <a href="https://www.forbes.com/advisor/credit-cards/average-credit-card-interest-rate/#:~:text=The%20average%20credit%20card%20interest%20rate%20is%2024.12%25%2C%20according%20to,financial%20products%E2%80%94credit%20cards%20included.">24%</a>, it’s easy to see the cost of not paying off a credit card in full every month. </li><li>But let’s say you use a credit card for much of your monthly spending, racking up rewards points, but paying off the balance faithfully each month. Are there still costs that may not be as obvious? Well, it turns out the answer is, yes. That’s due mainly to psychology.</li><li>THE SPENDING RISKS OF PLASTIC</li><li>Studies have shown that folks using credit cards tend to spend 10-30% more on purchases than people using cash. The psychology there is that it’s more difficult to part with actual dollars than it is to swipe a credit card.</li><li>On the other hand, using a credit card makes it easier to not only spend more, but to leave larger tips for services, and to buy things on impulse, which you’re a lot less likely to do if using cash.</li><li>Now, keep in mind that the tendency to spend more with a credit card applies even if you pay off the balance each month and stay on budget. That means you’re having to pull money from other categories in your budget, and more likely than not, it’s the savings category that will suffer. So you’re not carrying a balance, but you’re not getting ahead, either.</li><li>Here’s a bit more psychology. The <a href="https://academic.oup.com/jcr/article-abstract/42/5/688/1857957?redirectedFrom=fulltext">Journal of Consumer Research</a>reports that you’re more likely to increase your connection to something you’ve purchased if you use cash instead of a credit card. That seems to make sense— the more difficult something is to acquire, the more you value it.</li><li>So the lesson here is that the more susceptible you are to making off-budget, impulse purchases, the more you’ll benefit by not using a credit card and paying with cash instead.</li><li>Now, we talked about how using a credit card may increase your spending even if you manage to stay on budget, but that will be more difficult to do if you use plastic instead of cash. </li><li>Use of a credit card can make it more difficult to know whether you’re staying on budget for the month. </li><li>Of course, if you use the <a href="http://app.faithfi.com">FaithFi app</a> to set up your budget and track your expenses, you’ll know in real time if you’re staying on budget or not. It actually has a digital form of the tried and true envelope system to stay on top of your spending.</li><li>BAILOUT TRAP</li><li>There’s another potential hidden cost to using a credit card.It’s the tendency to use it as a crutch— a “bailout” when things go bad. That can turn a one-time, isolated problem into a long-term, recurring debt..</li><li>If you have the mindset that your credit card will save you if you lose your job, or you have a major medical issue, or a car wreck, then you’re not going to save for those unfortunate events ahead of time. And those things always happen, sooner or later.</li><li>EMERGENCY FUNDS</li><li>If you have an emergency fund with 3 to 6 months of living expenses in liquid savings, you’re prepared for the worst. You’ll have the cash you need to weather whatever financial storm comes up.</li><li>Without it, you have to rely on a credit card or some other type of borrowing, which means you’re automatically in the hole and now you have to dig your way out, paying interest all along the way.</li><li>So if you don’t have an emergency fund in place, start saving today. Set a goal of $1,500, then 1 month’s expenses, then two, and so on until you have at least 3 months' worth.</li><li>So, those are the hidden costs of using a credit card. We’re not saying you should never own a credit card. Just be aware of the impact it can have on your budget, even if you pay it off in full each month. </li></ul>On this program, Rob also answers listener questions: <ul><li>How do you determine whether to sell the home of a deceased parent? </li><li>How can you help a close friend who doesn’t handle money well? </li><li>Do you have to pay tax on any debt forgiven by a debtor for past medical bills? </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.

Credit cards can be a great tool, but they also carry some hidden costs that you should know about. We’ll talk about that on this Faith and Finance.

Hidden Costs of Credit Cards

There’s a cost to following Jesus. Our affluent Western lifestyle can make us complacent and unwilling to accept that cost. We’ll talk with Michael Blue about surrendering to follow Christ more fully, on this Faith and Finance. Michael Blue is the President and General Counsel for the Ron Blue Institute for Financial Planning. He’s also the author of the groundbreaking book, <a href="https://www.amazon.com/Free-Follow-Discover-Riches-Surrendered/dp/0999867334">Free To Follow: Discover the Riches of a Surrendered Life</a>. <ul><li>Complacency is a real problem for us as Christians living in the most affluent nation in history. And today, Ron Blue shares how he came to realize life wasn’t quite complete. </li><li>When we talk about living a life of surrender, it all begins with knowing God. And knowing that God is actually better than everything else.</li><li>Psalm 37 tells us, “Delight yourself in the LORD and he will give you the desires of your heart.”</li><li>So the point of following God is to find the light in him, and as you do that, your desire to know Him more grows.</li><li>Trust in God ultimately leads you into deeper dependence upon God. You gain a deeper understanding that through him is the only way things happen in your life and in the lives of other people.</li><li>While the Bible tells us to plan, save, and prepare responsibly, we can easily fall into the trap of trusting in our portfolios rather than God. </li><li>It’s important to continually ask yourself certain questions: </li><li>Is the way you’re spending money drawing you into a relationship with God? </li><li>Is it demonstrating that He is worth everything in your life? </li><li>And then how is it actually drawing you either towards Him or towards the world? </li><li>As yo spend money, how is it moving your heart? Is it drawing you to desire more, covet more, and want more of what the world says will make you happy? </li><li>Or is it drawing you to value eternal priorities? </li><li>And so your daily money decisions truly are spiritual decisions.</li></ul>On this program, Rob also answers listener questions: <ul><li>How do you determine the right balance for your portfolio in the current investment climate? </li><li>What considerations should you take into account when estate planning for your loved ones?  </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.

There’s a cost to following Jesus. Our affluent Western lifestyle can make us complacent and unwilling to accept that cost. We’ll talk with Michael Blue about surrendering to follow Christ more fully, on this Faith and Finance.

Surrender and Follow With Michael Blue

One of the simplest ways to stay out of credit card debt is to save for major purchases. By planning ahead and saving for things you know you’re going to need or want in the future, you avoid having to borrow. And taking certain steps can make this a lot easier. We’ll talk about that on this Faith and Finance. <ul><li>Okay, you might be thinking, “Save for things I’ll need in the future? Isn’t that my emergency fund?” Actually, no, it isn’t. This is sometimes called a “sinking fund,” a term borrowed from the business world.</li><li>It’s a pool of money you regularly contribute to so you’ll eventually have the cash you need for an upcoming big-ticket expense, like a vacation, a new car or home repairs.</li><li>First, you need a goal. Let’s say you want to put a new roof on the house and you estimate it’ll cost $7,500, which is pretty typical these days. That’s your goal.</li><li>Next, you have to look at your budget and determine how much you can pull each month from other categories to go toward your new roof. Let’s say that’s $500. Divide 7,500 by 500 and you get 15. That’s how many months it will take to save up enough cash to replace your roof.</li><li>It’s okay to start small. If you can’t put away $500 a month, start with $100. But begin looking for ways you can increase that amount by cutting your expenses. Be flexible. It’s okay to adjust your savings as needed, just keep in mind that you want to reach your goal as soon as possible.</li><li>WHERE TO PUT YOUR SAVINGS</li><li>So now you’re ready to start saving, but where should you put that money? It should definitely go into a separate account apart from your usual checking and savings, and even your emergency fund. You want to reduce the temptation to tap into this money for something else.</li><li>So put these special savings into an online bank to get the best rate. Like with your emergency fund, you can have a certain amount automatically transferred into this account from every paycheck, once a week, or once a month. Then pretend it’s not there.</li><li>Now, if this special purchase is something you know is several years down the road, like a car or even a house, you can put some of this money in a CD or money market account to get a better rate. You should ladder CDs, so that one is coming due every 6 months or so. As you near the target date for your big purchase, begin cashing the mature CDs and putting that money back into savings.</li><li>SMART GOALS</li><li>Okay, you may remember a while back we talked about setting up SMART financial goals. That’s S.M.A.R.T. and it stands for Specific, Measurable, Attainable, Relevant and Timely.</li><li>So first, Specific. Make sure you know exactly what you’re saving for and how much you’ll need, like with our example of the replacement roof. The more specific the goal, the more likely you are to get there.</li><li>Next, it should be Measurable. Set your monthly savings goal and track how well you’re doing. Make adjustments as needed.</li><li>Then there’s Attainable. That means setting a goal that you can realistically attain. If you set it too high, you’ll get discouraged along the way.</li><li>Next is Relevant. Make sure this big-ticket item you’re saving for is important, something you know you’ll need or really want. That way you’ll stay motivated.</li><li>Finally, there’s Timely. Set a deadline for reaching your savings goal. That will also hello keep you motivated. It’s okay if you don’t get there by the deadline, just keep plugging away until you do.</li><li>So, those are some tips to help you save for a major purchase. We hope you find them useful and when you reach a savings goal, let us know. We’d love to hear how you did it.</li></ul>On this program, Rob also answers listener questions: <ul><li>What happens to the amortization schedule of your original mortgage when you take out a second mortgage? </li><li>Should we be concerned about the future security of the US dollar currency? </li><li>Is a cash-out refinance a wise thing to pursue?</li><li>When does it make sense to invest in a fixed annuity? </li></ul>RESOURCES MENTIONED:<ul><li><a href="https://www.faithfi.com/find">Find a CKA</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.

One of the simplest ways to stay out of credit card debt is to save for major purchases. By planning ahead and saving for things you know you’re going to need or want in the future, you avoid having to borrow. And taking certain steps can make this a lot easier. We’ll talk about that on this Faith and Finance.

__At some point in our Christian walk, many of us come to a fork in the spiritual road where the Lord makes us aware that we’ve been asking Him to join us in what *we* are doing, rather than us joining Him in what *He* is doing.__

That’s often the uncomfortable bottom-line of the choice we have as Christians when making decisions. It’s easy to take all the available information, set our course, then ask God to join us in what we’ve decided. It’s much harder to surrender a decision to God, ask for His direction, then wait for an answer.

(No, I don’t always hear clear direction, even when I ask, wait, and seek. Be encouraged — the Lord often grants us the freedom to choose among our available options. Moving forward in a case like that is quite different from not asking, waiting, and seeking first!)

The problem with setting our own course without listening first for God’s direction is that even seemingly great ideas don’t always line up with God’s plan. Surrendering completely to God often leads to surprising outcomes.

King David’s experience with the temple offers a great illustration. If ever someone could have reasonably assumed his thoughts were being led by God, it would be David in 2 Samuel 7-10. These chapters are the glory years of David’s life. God had shown him incredible favor, established him as king, and given him victory over his enemies.

As David reflected, it bothered him that the Ark of the Covenant was sitting in a tent while he was living in a palace. So David decided to build God a temple. But David had learned (in 2 Samuel 6) that God can be very particular about how He wants things done. So before taking action, he called the prophet Nathan to confirm this plan was indeed God’s will.

At first, this seemed to be such an obviously good idea that Nathan immediately agreed David should proceed. Oops. See, building a temple was something God wanted to happen. The *idea* was right. David’s *motive* was right. The problem was God didn’t want David to be the one to build it.

The reason wasn’t obvious at the time; only later do we learn why God chose someone other than David to build the temple: *“You are not to build a house for my Name, because you are a warrior and have shed blood”* ([1 Chronicles 28:3](https://biblia.com/bible/niv/1%20Chron%2028.3)). God corrected Nathan’s assumption, reminding us that His plans don’t always line up with our “common sense.” David was humbly surrendered to do whatever God wanted. So David’s son Solomon was given the honor of building the temple, and God was pleased.

Each of us can apply the lessons of this story to our lives — including in the area of our personal finances. First and foremost, have we really surrendered our finances 100% to God, or are we merely asking Him to join us in what we’re doing? (This requires regular check-ups. Even if we’ve surrendered before, we have a tendency to gradually re-assume control of areas that were once fully given over to the Lord.)

When we’re sure our heart is surrendered to whatever God’s answer may be, the next step is simply to ask Him to show us His will. Here are a few specific areas to ask the Lord about:

- your job or career path;
- retirement plans and amount of saving;
- current and future giving;
- family plans/children/childcare-work decisions;
- lifestyle and other purchase choices.

Could it be the Lord desires something out of the ordinary from you in one (or more) of these areas? Once you’ve prayed and asked Him to reveal His will in a particular area, be diligent to look and listen for His answer! If we come with an open heart, God is faithful to show us areas we need to surrender.

The path to true financial freedom begins with surrender and the realization that God owns it all anyway. We are merely His managers and stewards. Too often we believe the age-old deception that God’s plans and our personal best interests are two separate things. Pride whispers that we really do know best; that giving up our rights costs us something of value. But as we lay down our agenda and surrender to God, we realize that His plans and our best interests are perfectly aligned.

As John Piper says, “God is most glorified in us when we are most satisfied in Him.” *We* get maximum satisfaction in the same place *He* gets maximum glory. The journey to that place begins with our surrender and a willingness to follow His lead.

__[image](https://soundmindinvesting.com/articles/view/financial-surrender)__ used with permission

Faith and Finance

Many of us come to a fork in the spiritual road where the Lord asks us to join Him in what He is doing.

Financial Surrender

__Many, if not most, people in the United States desire to own a home. However, many first-time home buyers don’t anticipate all the expenses related to home ownership. As a real estate professional, I have witnessed this first-hand. The excitement of new home ownership can be quickly dampened by the slew of costs that come along with this exciting adventure.__

When my wife and I purchased our first home, we experienced this same phenomenon. Not that we have any regrets about buying our house—it has been one of the best decisions, financial or otherwise, that we have made. But I must admit, many of the costs did catch us off guard.

By being prepared and anticipating these expenses in advance, you can help ensure that your home remains a blessing rather than becoming a curse. Let’s explore some of those costs.

### Closing Costs

Unfortunately, some of the costs of home ownership show up even before you technically own the home. These include costs related to the mortgage and the proper execution of the closing. Collectively, these are called closing costs.

So, what exactly are *closing costs*?

Closing refers to everything involved with finalizing the sale of a home between the buyer and seller. This includes paying the attorneys who conduct title searches, prepare the deed, and oversee the closing itself. It also covers compensating the lender involved in making the loan. Finally, closing costs include paying or prepaying any property taxes or insurance involved with the sale.

How much are they? Rocket Mortgage reports that closing costs can add up to as much as 3-6% of the total cost of a loan.

To prepare for these expenses, ask your lender as early as possible for a *loan estimate*. This is a document that will outline your projected payment as well as the estimated costs at closing.

### Replacement costs

Once you own the home, that’s when the real fun begins.

Some of the largest, most expensive items in a home can be the most easily overlooked. Items like the roof and HVAC systems may not jump out to the first-time homebuyer, but they are vital to consider. Like all physical items, these systems have a lifecycle. It’s important to establish where they are on that timeline when you purchase your home.

For instance, the average roof lasts 15 to 20 years and costs $5,600 to $12,200 to replace. If the roof is fifteen years old when you purchase the home, it is likely you will need a new one soon. Likewise, the average air conditioner costs $7,000 to replace and can be expected to last 12-15 years. Other big-ticket items include furnaces, water heaters, and septic systems (for some homes).


![](https://static.wixstatic.com/media/d328be826f0b43e389543b06e3d317de.jpg/v1/fill/w_1108,h_746,al_c,q_85,usm_0.66_1.00_0.01,enc_auto/d328be826f0b43e389543b06e3d317de.jpg)


Keep in mind that you never know when one of these large systems won’t last its entire expected lifecycle. When we purchased our first home, the air conditioner was only nine years old. We figured to get several more years out of it. Unfortunately, after just six months, the unit went kaput, and we had to pony up. We either had to buy a new unit or let my wife and two toddlers sweat out the Kentucky summer. We chose the latter option.

The key to being aware of potential large, upcoming expenses is to get a thorough home inspection prior to buying the house. Assess the age and expected remaining life of each system and make sure you have the cash put away to cover repair or replacement when needed.

### Maintenance costs

Owning a home means maintaining the house itself, but it also means maintaining the property around it. Driveways, sidewalks, decks and fences don’t always catch the attention of starry-eyed home shoppers, but they are part of the property and may be a big source of maintenance.

During the first two years in our new home, my wife and I paid $600 to have our blacktop driveway resealed (recommended every 2 to 3 years) and paid several thousand dollars to rebuild and stain our wooden backyard fence. In the near future, our kids’ wooden playset and backyard storage shed are due to receive some attention. These are items that didn’t necessarily catch our eyes during the home search, but as we’ve lived here day in and day out, their need for maintenance has become more apparent.

When you are financially ready, owning a home can be a great financial move. Homeownership provides benefits far beyond just money. But most first-time homeowners don’t fully understand all the costs when they sign on that dotted line.

Plan in advance for how you will handle all the expenses involved with homeownership, and your house will be a blessing for many years to come.

*[Images](https://static.wixstatic.com/media/d328be826f0b43e389543b06e3d317de.jpg/v1/fill/w_1108,h_746,al_c,q_85,usm_0.66_1.00_0.01,enc_auto/d328be826f0b43e389543b06e3d317de.jpg) used with permission. *

Exciting new home ownership can be quickly dampened by the slew of costs that come along with this exciting adventure.

The Surprising Costs of Homeownership

### *“The wicked borrow and do not repay, but the righteous give generously.”*  - Psalm 37:21.

As Christians, we know that paying our debts is important. We serve a just and righteous God who hates dishonesty, but what if someone owes *you* money? What recourse do you have?

God’s Word contains dozens of verses about repaying debt, but usually from the perspective of owing it to others. Another example of this is Ecclesiastes 5:5, *“It is better that you should not vow than that you should vow and not pay.”*

We have to dig a little deeper to discern God’s will for us when someone owes *us* money, but one thing is very clear, the Lord expects us to act differently than the world.

For one thing, if the person who owes you is a fellow believer, you should never sue to recover that money. Paul says this in no uncertain terms in 1 Corinthians 6:6-7, *“But brother goes to law against brother, and that before unbelievers? To have lawsuits at all with one another is already a defeat for you. Why not rather suffer wrong? Why not rather be defrauded?”*

Of course, this applies only if the person owing you money is a fellow believer. The Bible doesn’t say that you can’t sue someone *outside* the church. If you own a business, you may someday be forced** to take someone to court for non-payment, simply to keep the doors open.

### That’s not to say you have no recourse *within* the church. If someone rightfully owes you money and doesn’t pay, there’s a four-step process for reconciling the issue.

__First is to put the matter into perspective.__ You shouldn’t be surprised if another believer attempts to defraud you. Romans 3:23 reads, *“For all have sinned and fall short of the glory of God.”*

With that in mind, consider how Jesus treated sinners— with kindness and patience. You want to avoid confrontation. A good way to do that is by praying for the one who owes you money. You might say to God:

> “Heavenly Father, I lift this person up to you and put this situation in your hands. Please give me wisdom. Please bless this person financially so they will never feel the need to borrow in the future. Your ways are not our ways. Please use this situation to give glory to You and guide my steps. Help me act as Christ would, showing mercy, that others might see and be drawn to him. In Jesus’ name, Amen.”

__The next step is to meet with the person who owes you money.__ In Matthew 18:15 Jesus says, *“If your brother sins against you, go and tell him his fault, between you and him alone. If they listen to you, you have won them over.”* This means keeping the matter private for now. Don’t grouse about it to your spouse or friends and certainly not on social media.

The idea is to show respect for the other person so their heart might be softened. The real goal is reconciliation. Getting what you’re owed is secondary. Be willing from the outset to forego payment if need be.

If meeting privately with the person doesn’t work, __step three is to take other Christians with you for another meeting.__ Jesus goes on to say in verses 16 and 17:

> “*If they will not listen, take one or two others along, so that “every matter may be established by the testimony of two or three witnesses.” If they still refuse to listen, tell it to the church; and if they refuse to listen even to the church, treat them as you would a pagan or a tax collector.*

That seems pretty drastic, but we’re entering the realm of church discipline. It’s important to understand that this isn’t to punish the individual, but to help him or her see the error of their ways, repent, and make good.

If this person rightfully owes you money and refuses to pay, it’s a sin and the Church needs to deal with it. Just as with adultery or any other type of public sin, the Church must exercise proper discipline or it ceases to honor God. If the offender refuses to repent, Jesus Himself says they should be treated as an unbeliever.

__And finally, step four. You must continue to show humility, respect and love for the offender.__ You must remember that you represent Christ and that you trust Him for the outcome.

People are watching you. Think of the situation not as a win/lose proposition, but as an opportunity to express the love of Christ in a difficult situation. As believers, we should be better than the world at resolving conflict.

### Pray that the Holy Spirit will show His power through this process, that God’s will should be accomplished through you, whether you’re paid or not. Either way, you must forgive that person, as Christ has forgiven you.

Mark 11:25 reads, “*And whenever you stand praying, forgive, if you have anything against anyone, so that your Father also who is in heaven may forgive your trespasses.”*

You can also __[listen](https://www.faithfi.com/search?q=When%20Someone%20Owes%20You%20Money&videos=true&articles=true&podcasts=true&posts=true&groups=true&events=true&support=true)__ to the related podcast on this topic.

We know that paying our debts is important. But what if someone owes you money? What recourse do you have?

When Someone Owes You Money

Hannah Cumming

Seven Intuitive Questions for an Investor

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