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Biggest Financial Mistakes With Ron Blue

FaithFi: Faith & Finance | Jun 11, 2024


Show Notes

Some people learn from the mistakes of others. Unfortunately, some people have to be the others.

You certainly don’t want to be one of the “others” who must learn things the hard way by making mistakes. Today, we'll talk to Ron Blue about some of the biggest financial mistakes you want to avoid.

Ron Blue is the Co-Founder of Kingdom Advisors and the author of many books on biblical finance, most notably “Master Your Money: A Step-by-Step Plan for Experiencing Financial Contentment.”

Setting Financial Goals

Ron emphasized the importance of establishing clear financial goals. Without clear financial goals, you're essentially aiming at nothing. Goals help you prioritize and manage your spending effectively. Setting goals provides direction and ensures that your spending aligns with your priorities.

Avoiding a Consumptive Lifestyle

A consumptive lifestyle involves spending significantly more than necessary, often on things that don’t build financial equity. We all face the temptation of greed—a new car or a dress. Overspending on consumable items leads to a lack of financial growth. Instead, focus on investing in things that build equity and create long-term value.

The Pitfall of Greed

Greed is often disguised in pursuing the American dream. It's a subtle but pervasive issue. Tim Keller, a well-known pastor, once pointed out that in his experience, greed is rarely confessed as a sin. We often justify our spending under the guise of higher motives, which can lead to financial mismanagement. Avoiding greed starts with creating and sticking to a budget.

The Importance of Budgeting

Many view budgeting as restrictive, but it's quite the opposite—budgeting is liberating. A budget allows for pre-planned spending, which includes saving for vacations and preparing for emergencies like car repairs or broken appliances. Planning your expenses provides financial freedom and security.

Giving: A Key to Financial Freedom

Many believe that giving should come from surplus rather than regular income. However, giving is essential for experiencing true financial freedom. It's not about the money but about your heart and willingness to trust and honor God with your finances.

By following these principles, you can achieve financial contentment and freedom. 

On Today’s Program, Rob Answers Listener Questions:

  • What are the tax implications of an inheritance I received from my deceased mother-in-law? Part of the inheritance was a CD, which I understand has no tax implications. The other part was an IRA worth around $9,800 that was distributed to me. I don't know if there is a requirement to withhold taxes from that distribution or what the tax basis would be.
  • I have a balance I have been trying to pay down at the hospital. I have been making $100 monthly payments, but when I get my statements, they still show the original balance and no credits for my payments. I have called the hospital billing department twice, and they said they would call me back within three days, but I never received a return call. Is there a way to get them to show where my payments are being reflected, or should I call the hospital administrator's office to resolve this since I am not getting responses from the billing department?
  • My 97-year-old father had a term life insurance policy that he has now outlived. I checked with the insurance company, and they said something about a tariff that would apply if we tried to renew the policy at his age. Is it financially beneficial to continue the policy?
  • How will my IRMAA score impact my retirement planning? I would like to know if my situation is affected by this. My wife and I have been paying off debt and increasing our income over the past ten years through overtime and promotions. We are now debt-free, and I have recently surpassed six figures in income. I want to understand how my current income level might affect my Medicare premiums and overall retirement planning as I approach that stage of life in my 60s.

Resources Mentioned:

Remember, you can call in to ask your questions most days at (800) 525-7000. Faith & Finance is also available on the Moody Radio Network and American Family Radio. Visit our website at FaithFi.com where you can join the FaithFi Community and give as we expand our outreach.

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