Do you know why ducks can’t keep a secret? It’s because they always quack under pressure. Okay, sorry about that one but since there aren’t many ducks in the audience, it’s safe to let you in on a few secrets for financial security, ways to finally get control of your money. This is MoneyWise Live - biblical wisdom for your financial journey.
Full disclosure - these aren’t really secrets, but they might as well be, since so many people don’t do them. If you know one of those people, maybe you can pass these along. <ol><li>Live on less than you earn. If you don’t, there’s no way to save and you’ll almost always run up debt. But if you can get on a budget that allows you to live even a little below your means, you’ll stay out of debt and have something to put in the bank for emergencies. Fail to do this and you’re looking at a long, hard road full of financial potholes. The MoneyWise app makes setting up a budget a breeze. At your app store, just look for “MoneyWise, biblical finances.”</li><li>Ignore investing “experts” on TV , especially if they tell you to buy everything in sight when the market’s up, or that the sky is falling and you need to sell now. The real secret to successful investing is to own quality index and mutual funds, along with some bonds, and to hold them for a very long time, regardless of what the market’s doing. Unless you’re a very savvy investor, or have money that you can afford to lose, shy away from individual stocks. Forecasting the profitability of single companies is too complicated for the average investor.</li><li>Buy term life insurance to protect your loved ones, should something happen to you. Avoid whole life and permanent policies that mix insurance with investments. Anything but term insurance is too expensive and won’t give you the returns you can get by investing separately.</li><li>Extremely important in times of high inflation: Get rid of credit card debt. Use the snowball method to pay down the smallest balance first, and then move on to the next. But you can only do this if you’re following the first secret, live on less than you earn. That way you’ll have extra each month to retire your credit card debt. Paying interest on consumer debt is like burning money. Can you really afford that?</li><li>Buy cars for the right reason. Cars are expensive and having sky high monthly payments on a car loan is a sure way to bust your budget. Buy cars for reliability and fuel efficiency, not to show off to the neighbors.</li><li>There’s more to relationships with those living around you than just being social. For example, a neighbor can be a source of tools you won’t need to buy, as long as it’s a two-way street and you always return anything you borrow in good condition. Neighbors can also be a wealth of information about your area, like the best places to shop and what deals are out there. Just be sure to give as much as you receive.</li><li>Don’t touch your retirement savings. Throughout your working years, there will be many times when it seems like a good idea to tap into your 401(k) or IRA. But it’s a quick, short term solution that’ll cause long term pain. Instead, work diligently to build an emergency fund of 3 to 6 months living expenses.</li><li>Turn off the TV. How will that help? You won’t be bombarded by advertising. Financial teacher Ron Blue likes to say that advertising convinces you to buy things you don’t need and can’t afford, to impress people you don’t like. The less advertising you see, the less likely you’ll be to buy something on impulse that will almost certainly end up in a closet or out in the garage when the novelty wears off.</li><li>As an extension of the above, have you ever invested in a hobby that you later realized wasn’t all that fun or interesting? Like taking up golf or scuba diving? These can cost hundreds or even thousands of dollars just to get started. Instead, look for hobbies that have little or no ongoing costs. An example might be teaching yourself how to play a musical instrument or taking a class on building a website or cooking. You can do many of these things online now at relatively low cost.</li><li>Don’t gamble. That includes not playing the lottery. You have better odds of being hit by lightning twice than winning what is really just a state-sponsored numbers racket. It’s also bad stewardship. Gambling doesn’t glorify God in how you use His money.</li></ol>On-Air Mention: As we talk about today’s topic, it reminds me of Proverbs 25:28 that we featured in our latest Weekly Wisdom email where King Solomon said, "A man without self-control is like a city broken into and left without walls." The paradox in this verse is the idea that financial discipline is also an element of financial security. A paradox is something that seems to be one way but is really the opposite. We think discipline limits our freedom, but actually it enhances it. For example, we have to discipline ourselves to live on a spending plan when we’d rather spend as we like. Discipline doesn’t really limit those options; it merely delays and focuses them. Over time, practicing discipline with spending adds to our financial freedom. Be encouraged with this truth the next time you’re struggling to stay on budget, because it's worth it in the long run! If you’d like to sign up and receive our weekly wisdom email and get weekly messages like this one in your inbox, go to moneywise.org and click the “Create a Free Account” button on the homepage.” Next, Rob answers these questions at 800-525-7000 or via email at Questions@MoneyWiseLive.org: <ul><li>Is debt consolidation or a home equity loan a good idea if you and your husband have about $40,000 in credit card debt and $40,000 in other loans and have reduced your spending considerably, but are still struggling with paying down what you owe?</li><li>What should you do with five income producing houses you are getting as part of a divorce settlement if your husband had always taken care of the finances?</li><li>How do you go about cashing in I Bonds you have been purchasing for your 19 year old grandson since he was born?</li><li>How do you get out of a trust you inherited from your mother about a decade ago, if you are a beneficiary but not the successor Trustee?</li><li>Should your daughter put a savings account she has for her six year old daughter into a different type of account if she wants it to grow faster, but it's not necessarily earmarked for college?</li><li>Should you use $50,000 you have in a retirement account with the United Methodist Church to pay off your mortgage if you are retired and have no other debt? </li></ul>Be sure to check out the rest of MoneyWise.org to connect with a MoneyWise Coach or access our books and our many free helpful resources. You can also find us on Facebook (MoneyWise Media) and join the conversation. Thanks for your prayerful and financial support that helps keep MoneyWise on the air. And if you'd like to help, just click the Donate tab at the top of the page.

FaithFi

Listen to MoneyWise Live each weekday at 4pm EST on Moody Radio.

MoneyWise Live

Do you know why ducks can’t keep a secret? It’s because they always quack under pressure. Sorry but since there aren’t many ducks in the audience, it’s safe to let you in on a few secrets for financial security, ways to finally get control of your money.

Secrets For Financial Security

FaithFi | Sep 29, 2022

Show Notes

Where Faith Meets Finance

You May Also Like