Financial Management for Christians

Mutual Funds Can Be A Good Investing Vehicle

2010-10-24T15:26:00.001-04:00

If you are new to the investing world then you might want to consider investing with mutual funds. In this article I'll introduce some of their advantages.

A mutual fund is a pool of money that is managed by a team of money managers. When you are interested in you will be sent a prospectus. This prospectus teaches you about how the managers will invest your money. If you like the direction of the investing team you can buy fund shares which means you are giving the management team permission to invest your funds according to the goals laid out in the prospectus.

Why Can They Be A Good Investment?

Mutual Funds offer a Good way to Diversify

Because of minimums and investing fees you would never want to invest your few hundred dollars in 50+ stocks. However, when you buy one share you are essentially buying part in all of the stocks that the fund owns.

Ease of Subsequent Contributions

Want to add more money to your investment? They are set up to allow you to reinvest more money with ease. Remember, most companies have a minimum investment amount.

Mutual Funds less complicated than stocks

Because they are only bought and sold at the end of each trading day they are less complicated to buy and sell compared to other investments like stocks and exchange traded funds.

They Help Make Tax Seasons Simple

When you handle your own investments you'll need to track capital gains and losses. However, why you invest via these funds your management team will track send you a tidy report at the end of the year that has all the tax information you need.

Government Regulates Mutual Fund Companies

Investment accountability is important. Management teams cannot operate as they wish. There are checks and balances in place to be sure they properly manage your money.

While there are some negatives they can be a good investment.

Craig is a Christian personal finance blogger who teaches people how to start investing and how to get out of credit card debt.

Personal Finance Software

2010-10-17T16:09:00.001-04:00

Sometimes it seems as though nothing is simple any more. Our world is no longer one that is divided by simple choices like paper or plastic. Instead, we are constantly introduced to tons of products.

When I recently started shopping for a new personal finance software I was immediately overwhelmed by all the options. My quest was to find the best personal finance software, but I quickly found out that 'the best' is in the eye of the beholder.

Desktop or Online? Online programs have an advantage in that they are often free and always portable. Some folks love the fact that they can check up on their finances while on the road away from their computer.

On the other hand, desktop programs typically appeal to those who are not comfortable entering their own private security passwords online.

Free or paid? It almost seems silly to ask if you want a paid product, but the thing to know is that most free products are free because of the advertising. Some people would rather forge all the ads and pay for a products.

What is the most important feature for you? I think this is the most important question to ask because certain financial software specializes in different things. For example, if you are looking for the best foreign currency features you would probably consider Moneydance. For budgeting You Need A Budget is recommended. Quicken seems to have the best way to track investments.

Accessible from multiple computers or just one? Similar to our first question (desktop or online) you need to decide if you will be using multiple computers or just one. Some desktop software only sell a single license that can only be downloaded on one computer. Therefore, if you use multiple computers in your home make sure you can legally have the said software on each computer.

Is it compatible with your bank and other financial institutions?

If you bank with a small institution or a credit union I would suggest calling the the software company before buying the product to see if they are compatible with your bank. In addition to credit unions it seems like lots of software has issues with the ING Direct security features.

Price and Upgrading: Once you've compared everything and determined your favorite software then you final step is to consider the price. When comparing the prices it is important to find out if the product requires must be updated occasionally. Quicken, as an example, requires you to buy a new license about every three years. Technically they don't require it, but if you want to use online banking then you need then you need to buy the newest Quicken product. This last time my Quicken expired they did offer 25% off an upgrade. Moneydance, on the other hand, never requires an upgrade. Here's my Moneydance review.

Once you have decide on what product you want if it is a paid product don't forget to spend some time searching the internet for special deals or promotions.

Must Read Articles at MH4C

2010-07-22T23:13:00.001-04:00

Best Personal Finance Software 2010

Lending Club & P2P Lending

How to Make a Budget

Get Out of Credit Card Debt

Debt Snowball Spreadsheet

Short Term Missions Handbook

Best Personal Finance Books

Moneydance Review

Free Budget Spreadsheet

Christian Lenders | Should Lending Be Abolished?

MailChimp Vs. Aweber

Student Loan Debt Forgiveness For Ministers

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Resources For Credit Card Debt Problems

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Fast Free Ways To Send Money

"Come Visit Me at my new Home," says the blog

2009-05-05T00:08:00.001-04:00

I have officially left blogger. I found that blogger limited me with what I wanted to so I packed by bags. So go to my new home. Hope you like the new look with the same great content!

All the old posts have been transferred over (and some spiced up as a part of the renovation project).

www.moneyhelpforchristians.com

Save Money By Listening?

2009-05-04T08:00:00.000-04:00

At times women tend to complain that men do not listen. Men commonly defend themselves by saying they just have selective listening skills.

A few days ago I was in a doctor's office reading a magazine. Actually, I wasn't reading anything because there was nothing of value to read by flipping through a magazine. Sure seemed like a better plan than staring at a blank wall though. While I was reading, a nurse entered the room and called my name (three times). "You're just like my husband," she complained as we walked together. "Men just don't listen."

What if I told you you could save money just by listening? I think most of us could.

While I run there is not much else to do than listen. While I could listen to music I find it much more informative to listen to something that might affect or impact me. If you are a runner, listen to the radio a lot, or drive a lot I wanted to suggest two podcasts you can listen to that might help you with your money.

The first is MoneyLife, a Crown Financial Ministries 30 minute radio show. Click here to download up to two weeks worth of programs.

The second is the Dave Ramsey Show. Dave Ramsey hosts a three hour radio show daily, but allows one hour of his show to be downloaded free each day. To get the Dave Ramsey Show I suggest you download a postcast organizer like Zencast and update it daily to get the show. To download the organizer click here. From there you just need to subscribe to the Dave Ramsey Show.

Bible Thought: Three Men and their Money

2009-05-03T07:25:00.001-04:00

Here is a quick thought for you to consider:

Luke 17:16-21- As the wealth (blessings increased) this man simply looked for more options for storing the increasing wealth. He horded. The fool is the one who stores up for himself AND is not rich towards God.

Luke 19:8 – Zaccheus gives half his possessions away and Jesus says ‘salvation has come to this house’

Luke 18:22 – Jesus says that nothing short of everything would be what this man needs to give to have eternal life.

Lesson: It is not how much we give, what God seeks is a giving heart. The number might differ from person to person.

What would you say is the condition of your heart? What is your attitude toward money?

Can Money Buy Happiness?

2009-05-02T07:29:00.004-04:00

In the book, What Would Jesus Do Today? Mike Cope and Rubel Shelly give us a great list of things money can and cannot provide in our lives. Here is the list:

One more trip to the mall cannot fix you. Money Can buy:
Sex, but not intimacy
A house, but not peace
Medicine, but not health
Amusement, but not joy
Therapy, but not healing
A bed, but not sleep
Allies, but not friends

I love that list. At times I think we all misplace our expectations of money. Notice the internal issues that really add meaning cannot be touched by a magic wand. Those parts of us can only be healed by the One who created us.

The Fourth Thing You Can Do With Money

2009-04-30T06:00:00.002-04:00

It is common in Christian financial circles to speak of the three things you can do with money.
Dave Ramsey and Crown Financial Ministries (along with others I'm sure) say you can:

Give
Save
Spend

This is a great, simple summary that is easy to remember.

However, a fourth category may clarify our thinking. What about adding the category "live" as something we can do with money? This would make the four things - give, save, spend, and live. This may help us remember that some spending is the necessary stuff of life. Other spending is just something we have always thought would be cool to own. We all know that purchases can be broken into needs and wants. And it would probably take a long time (can someone say eternity?) for us all to agree that the same items belong in the same list. Nevertheless, this reminds those of us who are seeking to live a simplistic life that there are some forms of spending that are necessary and some spending (gasp) that we can live without.

Try prioritizing how you use money. And yes, the list IS in order of importance.

Give
Live
Save
Spend

What the Bible Teaches about Work

2009-04-29T14:00:00.001-04:00

After reading 2 Thessalonians 3:6-15 notice that Paul prides himself in his hard work. Paul was a tent maker (Acts 18:1-3) and spoke frequently how this labor morning and night was a blessing to God’s church (1 Cor. 4:12, 1 Cor. 9:6, 2 Cor. 6:5, 2 Cor. 11:23, 1 Thess. 2:9)

Why should a Christian work? First we must recognize that Mat. 4:4 says man does not live on bread ALONE, but this does not deny the reality that man does live on bread.

The Bible gives at least two reasons why Christians should work:

Reason #1 – Christians work so that our families do not become a burden to the church body. 1 Tim. 5:8 says "If anyone does not provide for his relatives, and especially for his immediate family, he has denied the faith and is worse than an unbeliever" (1 Timothy 5:8, NIV). There is an undeniable reality that money is a limited resource. For anything that is a limited we become either consumers or contributors. We work so that we do not illegitimately or inappropriately consume the resources of the church.

The church should not be forced to help someone who is not in genuine need because in the future the church might be unable help another who is in genuine need. We work so we will not consume the resources that ought to be directed towards those who are legitimately in need.

Reason #2 – we work so we have something to contribute to the church. Our first goal is to make sure we are not consumers, but our second goal is to become contributors to the church. As such people are encouraged in Acts 20:34-35 to hard work and help the needy. Moreover, Ephesians 4:28 says Christians must work so to have something to give to the needy.

The work can include any legitimate form of full-time work or the best part-time work.

Why do People Go into Debt?

2009-04-28T17:00:00.000-04:00

In his book Taming the Money Monster well-known Christian financial counselor Ron Blue introduces his readers to common reasons why people go into debt:

Lack of Discipline
Lack of Contentment
Search for Security
Search for Significance

Here’s what I think:

If I were to rate these I would put the lack of discipline as number one. In our convenience oriented world people often do not really interact with cash. The pay check is automatically deposited. Their bills automatically withdrawn. They pay for groceries, gas, and goods with a credit card. So they never really interact with cash. Why pay attention to it? Why spend time with it? As long as there is money in the account (and even when there is not) I can still charge that item, so why spend time trying to figure everything out?

Lack of contentment. Not really sure about this one. We are a people who seem to 'need' a lot. I do not know if we are not content, or greedy, or just have a high level of need. Probably we have a bit of all of these things.

Search for security. Be honest. We all feel a little better when there is a cash cushion in the account. The question is always when does saving become hoarding, and when does security become a false security with misappropriated hope? I suspect there are a lot of us who feel less secure after the 2008 experience than we did prior, and yet our God is the same yesterday, today, and tomorrow. Interesting to consider.

Search for significance. There is a lot to this. Power and significance go hand in hand. Seems as though the Bible does not have a lot of positive things to say about humanity's quest for power.

Perhaps I could add a fifth to the list - ignorance. Many people are in debt simply because they thought debt was the right or best way to succeed. They have not had much teaching at home. They did not get any teaching in school. One cannot know unless he has first been taught (unless he can teach himself, but that would require self-discipline which we have already recognized is in short supply in the financial realm).

By the way, to see more of Ron Blue’s material you can check out his website here.

Helping You Think and Plan Ahead

2009-04-27T09:05:00.000-04:00

Consider using the following questions to help you look ahead and think ahead:

Topic Question: Will the wife work outside the home?

Depending on how one answers that question there are many implications as to how they ought to be living today. For example if you answer no, the wife will not work outside the home, this impacts:

Vehicle purchase: Pay cash for a vehicle so that car payments do not burden the family to a point that you can no longer afford to live on one income.
House purchase: When considering what you can and cannot afford, if the wife is currently working do not include her income. Make the purchase only on one income.
Emergency Fund: If you would like to make this transition but are financially leery, start living on one income now, save the difference, and then you have some funds that will help make the transition easier.

Topic Question: Do I want my kids to go to college?

Depending on how one answers the question there are implications for today.

For example if you want your kids to go to college this impacts other decisions such as:

Teaching your children to handle money: It does not matter if you plan to help your kids with the bill or not, but they need to be taught today to handle money so that whatever help they do get will be a blessing to them.
Encourage your child to get a part-time job: People rarely go to college for nothing. A little sacrifice now on your children's part will go a long way towards preparing them for college.
Open a college savings fund like a ESA. Those few dollars every month will make a big difference in the future.

Sit down today and think ahead. What does the future look like for you and what decisions can you make today that will start putting those ideas into action?

Bible Thought: Attachment

2009-04-26T10:00:00.000-04:00

We are all attached to something. There is some type of 'emotional glue' that causes us to stick to certain things or people. Those attachments provide: hope, security, acceptance, love, and confidence among many other things.

People often find these emotions in money, or at least they assume they will. They become attached to their money, to wealth, to success. They are glued to them and feel as though if those items were taken so would their comfort, security, acceptance, and confidence.

It is not bad to have things, unless that attachment is stronger than our attachment to God. Put another way, where is your security? Where does your confidence come from? Of course there is also the common saying, "you can have things, just don't let things have you."

Luke 9:57-62 speaks of three would-be disciples. Disciples that showed some level of promise. There was raw potential. But there were also unhealthy attachments. Their problems are associated with their lack of freedom. They are attached to things, the first to comfort, the second two to family. Allegiance to Christ must be first and cannot be shared.

What are you attached to? What would be the 'stumbling block' for you if you were called to do some new form of discipleship? What things or relationships would you find difficult to give up for Christ? It is always a good reminder for us that second is good when your talking about the Boston Marathon, but second is never enough when we are talking about our relationship with God.

Money Saving Tip: Price Protectr

2009-04-25T20:00:00.000-04:00

Here is another quick and easy money saving tip. Check out Price Protectr (not a spelling error). Many stores these days offer a lowest price guarantee. Also many credit cards offer a similar program to purchases you make. But, who is going to continue checking the ads for 30, 60, and 90 days after a purchase? Now enters Price Protectr. If you make a purchase from one of 150 supported stores they will monitor the price for as many days as you set. It's simple - just copy your URL from the item you purchased or intend to purchase, set your preferences, enter your email address and wait for an email if your price drops. They have a short instructional video that I recommend to anyone new to Price Protectr.

Begin with the End in Mind

2009-04-25T09:55:00.000-04:00

What if you were to script your life today? As Stephen Covey says in The 7 Habits of Highly Effective People, Habit Number 2: begin with the end in mind. We ought to do the same in our financial lives. See the end and then decide today based on that end.

What do you want to do with your money?

I want there to be peace between my spouse and I on issues of money.
I want to help the church, the poor, the needy.
I want to do what I love - I’ve been thinking about changing careers.
I want to travel.
I want to stay home with the kids.
I want to volunteer at the church.

These are decisions that typically only those who begin with the end in mind get to make.

Budgeting - A brief Thought

2009-04-24T13:32:00.000-04:00

I have the impression that as Christians there is a fear in some of us. We are afraid that if we spend time, energy, and attention dealing with issues related to money we will them be viewed alongside famous money hoarders like Silas Marner or perhaps better the money gathering Ebenezer Scrooge.

But consider the following facts:

The average person will spend 2,080 hours per year working.
While some are fortunate enough to work out of choice or calling, most work for money.
Most people would think it unbearable and oppressive to spend 52 hours a year (1 hour a week) to manage their money.
MSN Money says only 40% of Americans use a budget (see the article here)

Make any sense to you? Work 40 hours a week, but be unwilling to spend 1 hour a week with a budget?

How to Save a Few Extra Dollars When Shopping Online

2009-04-23T19:00:00.000-04:00

Do you ever shop at the following online stores?

Ebay, Target, JC Penny, Overstocked, Old Navy, Best Buy, Buy

Well here is a way to save between 1 – 10% by adding one small step to your online shopping experience.

Use Ebates.com to link you to your travel site.

Example rebate amounts:

Ebay (3%)

Target (4%)

JC Penny (4%)

Overstock (4%)

Old Navy (1%)

Best Buy (1%)

Buy (1%)

There are hundreds of other stores too ..

If you ever purchase travel online consider the following rebate amounts:

Choice Hotels (3%), Expedia (1%), Hotwire (2%), Orbitz ($3), Priceline (2%), Best Western (2%), Virgin Atlantic Airways (1%), Air France (1%), Southwest (3%), Avis (3%), Budget (3%), Crowne Plaza (5%), Holiday Inn (5%), Sheraton (3%).

This is a great way to save some money. If you currently buy travel or even shop online, a small adjustment can save a few extra dollars.

It’s quick and easy to sign up.

Allow me to refer you to Ebates.com. You could do me a favor by allowing me to refer you by clicking Email me! You will get $5 and they also give me a bonus.
Enter your registration info and viola your done.
Don’t forget to go to Ebates whenever you shop online.

How does it work?

Access your Ebates account.
Click on stores
Find the place you want to shop and click on the link.
That’s it – now you just shop like you normally would only you get between 1%-10% cash back depending on the store.

When do you get your money?

If you buy between Jan 1-Mar 31 then your funds will be delivered on May 15

If you buy between Apr 1-June 30 then your funds will be delivered on Aug 15

If you buy between July 1-Sept 30 then your funds will be delivered on Nov 15

If you buy between Oct 1-Dec 31 then your funds will be delivered on Feb 15

Remember, you need to earn at least $5.01 within that three month period or they will carry your balance over to the next month. Also, the $5 sign up bonus I mentioned does not count towards your first $5.01. But once you get $5.01 in rebates you can expect the first check to reflect that balance plus the referral money.

How do you get your money?

You can sign up to have a check sent to your mailing address or have the money automatically deposited into your PayPal account.

How did we get to be in this mess?

2009-04-23T13:41:00.000-04:00

"How did we get to be in this mess?", perplexed people often ponder. When did we choose this life? How did it get to a point that I couldn’t sleep at night? What happened that made me afraid to pick up a phone? When did things get this bad?

Drowning in a sea of debt is a conscientious decision few have made. The flaw of many was simply thinking only about today.

Margaret Atwood in her book Payback: The Shadow Side of Wealth rightfully remarks, “a story is a string of actions occurring over time.” Often we would not have selected our current status, but one, two, or a hundred poor decisions along the way have led to a mess.

Perhaps you are a young person who has yet to script much of your story. Or perhaps even you are an older person who so far has been fortunate enough to avoid large amounts of consumer debt. It might even be that you are already struggling with massive amounts of debt. Regardless, the rest of the story is waiting to be scripted. Interestingly, you can either write your own script or just a few ignorant decisions and before you know it 10 -15, 20 years of your life has already been scripted by the need to repay.

Look ahead. Where do you want to be tomorrow? What needs to happen to your finances today so you get to choose your own story?

Debt as Obligation

2009-04-23T10:18:00.000-04:00

Every debt you sign leaves you, the individual ‘in debt’. Who wants to be 'in debt'? And what does it mean to be 'in debt'? Being 'in debt' tends to have a negative implication. But getting debt presents itself as the sophisticated means of getting wealth. A debt is never assumed without an obligation. A debt, therefore, always costs some level of freedom. The amount of debt attained dictates the amount of freedom sacrificed. A bad series of debt decisions often leaves the individual powerless to the masses of creditors. Their future is now controlled by a series of seemingly insignificant decisions about debt. This has resulted in an entire shifting of power - away from the individual and to the creditor. Power away from your free will to enslavement to the will of the creditor.

Those in debt will often say,

"I cannot look for another job, I'm in debt."
"I wish I could help with that ministry or mission, but I'm in debt."
"I would love to do some other things with my life, but I'm in debt."

That debt we thought would be a ticket to something greater has now become the leash that limits our freedom.

Along these lines the teacher of Proverbs observes: "The rich rule over the poor, and the borrower is servant to the lender" (Proverbs 22:7 NIV).

Also Deuteronomy 15:6 records the following teaching "For the LORD your God will bless you as he has promised, and you will lend to many nations but will borrow from none. You will rule over many nations but none will rule over you." Here we see Israel’s claim as a free nation includes the avoidance of debt. Debt is a type of servanthood or slavery. Israel knows intimately the burden of slavery. Israel's God does not want His people ruled over. When we are ruled over we are put on a leash and forced to do something that someone else wants. God wants us in a position where we only need to do what he wants. Thus the one who lends, rules and the one who borrows is ruled over.

Are you completely free to serve God when he calls? Can you go where he sends you? Can you be his body in helping those in need? This is where God wants us to be and it is my intention to continue to provide resources necessary to help us come to a place in life where our only obligation is to God and his kingdom.

Introduction to this blog

2009-04-22T20:00:00.000-04:00

While I intend for this blog to go into very practical money saving and money-producing tips, I hope we will often lift ourselves up beyond those details to see the large issues related to Christian finances. I want for us to take time to discuss the background and to look behind the scenes of money. In the book The Challenge of the Disciplined Life Richard Foster introduces the readers to important questions about money. Following his lead we will ask: As Christians what are our assumptions about money? What drives us? What motivates us? How does it differ from the world? Through our dialogue, I pray we can always provide the necessary checks and balances in the discussion of finances. This is one topic where there is an ever present danger to drift. Jesus was not speaking in jest when he spoke about the difficulty of the rich to enter the kingdom of heaven. It will take focus and attention. This forum for openness and accountability will continually force us to ask – was that decision I made about money a truly Biblical and Godly decision?

Perhaps at times this blog will simply be my own personal struggles with the above questions. On some occasions I find that I have a firm grip on the matter. The teachings are clear, the perspective is understandable. And then moments later the understanding slips between my greasy fingers. Is God really saying that? Does God really want that? Or am I being blinded my own cultural biases.

As such you wont find much ready made and prepackaged on this blog. You’re going to have to pray alongside me. You’re going to have to question. You’re going to have to hold the hand of your Savior until he makes everything as clear as he chooses.

I’ll be honest, I sort of think this is where God wants us to be with finances. Always fully obedient, but never completely satisfied with our current situation. God has often thrown curve balls. In a field of calculators and balance sheets our faith forces us to deal with something neither predictable nor consistent. What God calls one person to do with finances he does not often call another. So we each carry the burden of listening to the Word of God, and then discerning.

Biblical Finances versus Personal Finances

2009-04-22T14:03:00.000-04:00

In his book The Scandal of the Evangelical Conscience Ronald J. Sider explores the question why are Christians Living Just Like the Rest of the World? Sider introduces several areas of life where statistically there is little difference between the Evangelical Christian population and the larger American society. The areas include: divorce, materialism and the poor [money], sexual disobedience, racism, and physical abuse in marriage. Sider comes to the disappointing conclusion that (statistically) Christians tend to conform to American cultural trends more often than they transform those trends.

This causes me to ask a question –

What differentiates Christian or Biblical finances from secular personal finances?

Here are seven such distinguishing characteristics:

1. God is the Master of our money. Christians seek to be guided by and obedience to the Word of God. The Bible is chalked full of guidance, teachings, warnings, and rebukes about money. A Christian will seek to determine and submit to those guidelines.

2. Our motivation for interacting with finances differs. For the Christian, wealth is something we are entrusted with. Christians are motivated by a desire to use the resources that God has given for His glory. Most often this is called stewardship.

3. Our goals with money differ. All our dealings with and interactions with money are tempered with an understanding that there is an eternity beyond. Wealth is a blessing and is of some value, but the wise Christian knows the ultimate limitations of money.

4. Our use of money differs. Christians should be doing something differently with money called giving. The generous action is often labeled tithing. There are also lifestyle choices that Christians can make so the use of their money is not only self serving.

5. Our mindset differs. We seek contentment with finances. Money seeks to grip its talons deeply into all of us. But, as Christians we seek to free ourselves of that race, that pursuit, that quest. Instead, we seek to be content with whatever we have. Our worth is not defined by what we own, but by our owner.

6. Our management of money differs. Christian budgets ought to have different line items, like the tithe. Spending ought to progressively become less and less self-centered and seek more and more to bless others.

7. Our means of attaining money may differ. Christians have limits of what they will or will not do for money. Boundaries must be in place to ensure one does not compromise their values just to gain a little more. Such boundaries protect virtues such as honesty or integrity. These characteristics are of immense value should never be sold for financial advantage.