Does Your Budget Reflect Your Priorities? with Brian Holtz

Many people are using the FaithFi app to help provide the wisdom, community, and money management to stay on track, financially speaking. To date, over 37,000 members are using its digital envelope system, participating in our community forums, and engaging in virtual workshops. And one of the most convenient features is the ability to keep all your accounts in one place for an easy-at-a-glance view. You can choose from one of three options, depending on your management style, and it's available on desktop or mobile.

Go to faithfi.com and click App to get started. Brian Holtz joins us today with a question. Does your budget reflect God's priorities or yours?

Then we'll take your calls at 800-525-7000. This is faith and finance, biblical wisdom for your financial decisions. Well, we always look forward to having Brian Holtz on the program.

He's the CEO of Compass Financial Ministry and brings great insights into biblical money management. Brian, great to have you back with us. It's great to be back, Rob.

Thank you. Brian, it seems obvious that we should organize our finances according to God's priorities, but share with us why exactly we should do that. You're right, Rob. It does seem obvious, but it's one of those things that's easy to overlook in our daily lives. It starts with one of the most fundamental concepts of Christian finances, the topic of ownership versus stewardship. Psalm 24 one clearly identifies God's role as the owner by telling us the earth is the Lord's and all it contains. Then First Corinthians one and two teach us that our role is as stewards or managers and that stewards must be found faithful. Yeah.

And then the next question is, of course, OK, faithful to what? Exactly. As stewards, we're supposed to be faithful to the owner's goals and priorities rather than our own. Think of it this way. If I lend my car to someone and ask them to run some errands for me, but they bring the car back, having not run any of my errands, they wouldn't have been a very good steward, would they? It's the same way when God entrusts something to us and we use it to pursue our goals rather than his.

Exactly, Brian. So then we need to know what God's priorities are. Would you unpack those for us?

Sure. I believe scripture reveals five key priorities. The first is generosity. There are over 300 verses about giving and generosity, and we're always encouraged to give our first and best, never the leftovers. So I've got to place this as God's top priority for money. The second is providing for our families and relatives basic needs. This is strongly established in First Timothy five, eight, where the apostle Paul writes that anyone who does not provide for their relatives and especially their own household has denied the faith and is worse than an unbeliever.

It seems harsh, but I think that's exactly the point. This is a big deal to God, so it should be a big deal to us. The third priority is to meet our financial obligations. In Romans 13, seven and eight, Paul instructs us to give to everyone what you owe them. If you owe taxes, pay taxes.

If revenue, then revenue. If respect, then respect. If honor, then honor. Let no debt remain outstanding except the continuing debt to love one another. As representatives of Jesus here on earth, we must meet our financial obligations. The fourth priority is to save for the future. Biblically responsible saving is intentional and allows us to be faithful in the first three priorities during times of hardship or when our normal income might be insufficient. Finally, the fifth priority is to enjoy God's abundant blessing.

In First Chronicles 29, 28, we hear that King David, a man after God's own heart, dies having, quote, enjoyed long life and abundant wealth, unquote. When we are faithful to God's priorities, we shouldn't be surprised or ashamed when God allows us to enjoy his abundance. We just want to make sure we don't place this last priority ahead of his greater priorities.

Yeah, those are really helpful. So generosity, providing for our families, meeting our financial obligations, saving for the future, and then enjoying God's abundant blessing. What about somebody who's listening today, Brian, who says, I just don't think my budget, the way it stands today, is aligned with those priorities you just outlined. Where do they go from here?

Yeah, I think we've all found ourselves there. The best thing we can do is to admit to God that we've made a mistake and recommit to pursuing his goals. Then as a family, if you have one, start making financial trades to get your biggest budget lines aligned to God's top priorities and your smallest ones to match God's lower priorities. Ask questions like, what abundance could we cut back on in order to be more generous? What are we saving too much for at the expense of our family's immediate needs? What could we stop doing that would allow us to pay off debts faster?

And once we have our priorities in order, how can we honor God by enjoying his abundant blessings? Brian, that is so good. Unfortunately, we're out of time. Thanks for stopping by, my friend. Thanks for having me today, Rob. Folks, if you want to learn more, head to compassfinancialministry.org.

You can find resources that fit the time you have and how you prefer to learn, whether it's reading, watching, or listening. Again, that's compassfinancialministry.org. Back with your questions right after this. As the leading advocate for the Christian financial industry, Kingdom Advisors serves the public by promoting the integration of a biblical worldview across every aspect of the financial services industry. And we serve a growing network of thousands of Christian financial professionals, equipping and empowering them to carry biblical financial wisdom to their clients, peers, and community. For more information, visit kingdomadvisors.com. That's kingdomadvisors.com. Great to have you with us today on Faith and Finance.

We're taking your calls and questions today, 800-525-7000. You know, if you think about wise money management, once you understand God owns it all and we're stewards, you can look to God's word for principles and you can really boil them down to a simple few, perhaps five. Spend less than you earn because that's the key to every financial success. Avoid the use of debt because debt mortgage is the future. Set long-term goals because the longer term your perspective, the better the decision you're going to make today.

Have margin or liquidity, meaning you're living on less than you make, so you've got surplus. That's how you fund your goals. And then five, give generously because giving breaks the grip of money over our lives.

And if we live with God as our ultimate treasure, finding our abundance in him, and then using money as a tool, applying those simple principles, well, we can put ourselves in a position, I think, to experience God's best in this area. We want to help you do that in light of your very practical questions that you have today, so give us a call, 800-525-7000. Let's head to Iowa and begin today with John. John, go right ahead, sir.

Hi there. I love the idea of the QCDs, and that's great. They work with IRAs. I've got a bunch of 403b accounts. Can I do this with 403b accounts?

You cannot. Unfortunately, a QCD is not eligible from a 401k or a 403b. However, if those are, and if you have multiple 403bs, I suspect at least some of them are with former employers, you could roll them to an IRA. And as soon as it gets to the IRA, then you could turn around and make that qualified charitable distribution. So that's not a taxable event. As you probably know, 403b to IRA, and then you'd be positioned to make the qualified charitable distribution. Oh, that's great. Okay, see if I got it.

So I can roll over my 403b into an IRA, which then will allow me to do the QCDs. That's exactly right. Yep, you just have to be 70 and a half, and then you're off to the races. Yeah, that's good.

I'm 59 right now. I'm just trying to think ahead of time. All right, great. That's what I needed. Thanks a lot.

Have a great day. You sound like a planner, John. I like it. Planning ahead. That's great.

And anything that involves more giving is always a good thing. God bless you, sir. Thanks for being on the program today.

All right, let's go to Akron, Ohio. Hi, Sally. How can I help you? Hi, Rob. I listen to your program all the time and I used to have investments but had some high veterinary bills, and I'm on disability, and I'm trying to get an emergency fund, but every month I have to use the money that I put aside.

And I just needed some encouragement for how to get an emergency fund because I think that's the first step I have to do. Yeah, I think you're right, Sally. And boy, I can totally understand, especially now more than ever. It just seems like there's always more month than money because expenses are up across the board.

I was just reading the other day, Sally, that the same basket of groceries that they looked at three and a half years ago versus today, again, the same items in the shopping cart are 21% higher today than they were three and a half years ago. Well, that's real. And that's expensive. And you mentioned vet bills. And I know being a pet owner myself, Murphy, our golden retriever, you go to the vet, you're going to spend a lot of money.

It's just the way that it is. And so I think the challenge is when you're on a fixed income and you have unexpected expenses, and it seems like the unexpected should be expected just because it happens so frequently, on top of the fact that expenses are up across the board, it's hard. So I think what we have to do is take a deep breath, invite the Lord into your financial life. You need to do your very best to budget your spending so that you don't allow your money to find its way into things that are unplanned to the best of your ability. So try to control your spending. And then try to set as much aside as you can every month as surplus.

So you got to live within your means, meaning you want to live below your income. So you have some what we call margin or surplus. And the goal is for that margin to be able to go automatically into your emergency savings every month. It may be $25 or $50, but at least something is going in to emergency savings. Now, there's going to be those months where you get to the end of the month and you say, despite my best efforts and really trying hard on this, I just don't have anything left. In fact, I had to pull a little bit out of emergency savings.

I get that. But the key is don't give up, don't lose heart, just stay at it, be diligent, and just try to get something into that emergency savings every month, even if it's just a few dollars, so that you can build it up over time. And the goal is, of course, and I realize this is easier said than done, the goal is to get to three to six months worth of expenses.

And it may take you some time to do that, Sally, but I believe you can. Is that helpful, though? That is helpful. I try my best. It seems like at the end of the month is when things happen.

I'm doing pretty good. And then the end of the month comes and something comes up. Yes, ma'am. I certainly understand that. Julie and I experienced that in our lives.

We use the FaithFi app, and so we've got our digital envelope set up. And so every day I'm in there and I'm watching them and how are we doing in the eating out category. Yeah, we have four kids. One's off at college. I've got three in high school.

And they're all athletes, and so they consume a lot of food. And I go through a gallon of milk just about every day, it seems like. But it seems like you're doing just fine. And then all of a sudden, you open the app one day and it's like, what happened there?

It just seems like there's always unexpected expenses coming out of left field. But you just need to stay at it. Hopefully we can be an encouragement to you here, Sally, each day. But I do appreciate you checking in with us. And if you have any other questions along the way, don't hesitate to reach out. May the Lord bless you, Sally. And thanks for being on the program. And thank you for being a faithful listener as well.

Let's go to Columbia, South Carolina. Hi, Deborah. Go right ahead. Hi, Ron. Thank you so much for taking my call. Yes, ma'am. My husband and I are considering a reverse mortgage.

Okay. And I was wondering, is this a good idea? And would we lose ownership of our home if we did this? It's a great question. And it may be a good idea.

I like to look at it as a tool in the toolbox, not necessarily for everybody, but it may be a good one. If you're at least 62, you have 50% equity in your home. And you're looking either to supplement your cash flow or to have a line of credit available. You do not lose ownership of your home with what's called a home equity conversion mortgage, which is the more common and newer version of a reverse mortgage. When you move out of the home or pass away, the reverse mortgage would need to be paid. And often that means the home needs to be sold, but you retain ownership of it until that time, very similar to a conventional mortgage. The only difference is with a conventional mortgage, you have a monthly payment with a reverse mortgage you do not. The other difference is with a conventional mortgage, you're personally guaranteeing it. So if for some reason the home was not valued enough at the sale to satisfy the loan balance, you'd then be responsible for that. With a home equity conversion mortgage or a reverse mortgage, the federal government is guaranteeing anything beyond the value of the home. Now, normally that's not an issue because the home continues to appreciate even as you're pulling money out systematically. And even if you live a long time, let's say you live to 120, you know, you still should have some equity. But if you did not, and let's say you were upside down, the home sale would be enough to cover it. Does that all make sense, though? That does make sense. If I wanted to keep the home in the family, I would just sell it to a family member.

Yeah, it would just have to be the mortgage balance would have to be repaid and they could get that by getting a conventional mortgage or selling it. I've got to take a break. Let's finish up off the air, Deborah. We'll be right back on Faith and Finance.

Stay with us. We're grateful for support from Guidestone, whose diversified suite of investment solutions align with Christian values to create positive change in the world. More information is available at Guidestone funds dot com slash faith. Investing involves risk, including potential loss of principal. Carefully consider the investment objectives, risks, charges and expenses of Guidestone funds before investing.

They're distributed by four side funds distributors, LLC, which is not an advisory affiliate, a registered investment advisor, nor do they provide investment advice. We're so glad to have you with us today on Faith and Finance. We've got some lines open today.

We've got room for several more questions. If you've got a financial question today, we'd love to tackle it with you. The number to call is 800-525-7000. That's 800-525-7000. You can call right now. Let's go to Miami. Hi, AB.

How can I help? Hi, Rob. I have a question. I'm looking forward to start a business and I'm kind of having a good mind whether to open it as an LLC or an S-Corp. It's a new, it's kind of a small business.

Yeah. S-Corps and LLCs differ in terms of taxation. S-Corps are pass-through entities, which means the business itself doesn't pay income, federal income tax.

Instead, the individual shareholders report the income and deductions and credits. An LLC is also a pass-through by default. However, you can choose how they're taxed, the members of the LLC, and can instead elect to be taxed as a corporation if it's more advantageous to the members.

So you have a little bit more flexibility there. An S-Corp offers limited liability protection to owners and shareholders and it has some stricter ownership eligibility than LLCs. So you can't have more than 100 shareholders and they have to be individuals, usually U.S. citizens. And I would say that forming an LLC does establish your business as a separate legal entity from yourself as the owner. So you are not responsible for the debts and liabilities of the business, which is one of the main benefits.

So I would say generally, in your case, the LLC is that business structure that's going to combine the limited liability protection of a corporation with the flexibility and simplicity of the sole proprietorship or partnership, primarily from a tax standpoint. So I would say for most people, the LLC is the way to go. But I think it's never a bad idea to check with a CPA and an attorney just because you're going to need them anyway. A CPA to help you get your book set up and make sure you keep good separation between your personal finances and the business for your deductibility purposes.

You're going to want to be able to show what was clearly a business expense versus a personal expense to the IRS. And then the attorney to get your articles of incorporation filed, help you set up your books, make sure you've got a good rhythm in terms of keeping the business compliant with annual filings and so forth. And when you're dealing with those two professionals, they could look at your specific situation and advise you on the best business structure. But I would say for most people, the LLC makes a lot of sense.

If you don't have an attorney or a CPA, AB, you could head to our website, faithfi.com, click find to CKA, and any of those Certified Kingdom Advisors could make a referral to you. But hopefully that helps you, sir, gives you a few things to think about. We appreciate your call today.

Let's go to Ohio. Hi, Pam, how can I help? Hi, my first question, and I hope it's very simple, but I have my will and everything specified in there how to how things are divided down as far as my house and etc, etc. I also have investments and those are all have beneficiaries on it. My financial advisor says I don't need a trust.

My kids are pushing me to get a trust to avoid probate. Is that which is true? Well, everything is designated.

Yeah, is it necessary? No, because eventually with a will that's valid, and up to date, your estate, everything in it, your property, personal property and assets and cash, plus the beneficiaries that are named on the accounts will ensure that everything ultimately gets to the air of choice or the ministry or charity that you designate. The beneficiary, the accounts with beneficiaries will pass outside of probate. They are correct that it will require the probate court to get involved. But it should typically be minimal in terms of time and expense if it's a fairly simple situation. You know, it happens every day, but it you know, it will extend it a little longer than if you have a trust and just in terms of you know, could it take a month or a couple of months?

Sure. If it's complicated, it could take even more than that. And there are some probate costs.

But is it necessary? No, a valid will and up to date beneficiaries and other, you know, legal documents like living wills and healthcare directives is sufficient. The benefit of the trust, even though it's going to cost a little bit more than the will, is that you know, it's going to pass all of it. Well, anything in the name of the trust, which could be your home and, and other assets will pass outside of probate will not be a part of the public trust. Will not be a part of the public record, therefore it's anonymous, will not be subject to probate court costs, and could be managed by a trustee in the event you're incapacitated prior to death, whereas a trust only goes into effect at death. So there are certain benefits, but you're talking a couple of thousand dollars probably to put a trust in place, whereas a basic will is probably more like 500.

Right. Now, my last will was made prior to my husband passing away, everything was to come to me, and I did that happened. But do I need to get my will updated now that my husband's gone?

I believe the secondary was our children after you know, if I passed, my husband would get it. Do I need a new will? I would get it updated, you wouldn't need to have a new will, but you would want to have it updated. And so I would go back to that. Yeah, anytime you go through a major life transition, or you want to make changes to how you have, you know, your estate distributed, absolutely, it's a good time, just for for that to be updated, just that's going to streamline things make it simpler.

You know, in terms of the fees, I mean, an uncontested probate or administration through appointment with no minors involved, I mean, you're talking probably less than $5,000 in probate costs, you know, generally somewhere between 2500 and 4500. But you know, again, it's it's totally up to you as to what your objectives are. But both will suffice. At the end of the day, though, I absolutely would get that will updated at following his death. And with the deed to my house, both my husband and I's name are on there. Do I need to get that changed? And does that take a lawyer?

Yeah, it's a good question. I would, you know, generally, it's advisable to update the deed of the property. You know, the the laws say that, you know, you, you know, are now the owner as a result of it.

But, you know, I don't think it's a bad idea, you would want to get an attorney to help you, you know, get that new deed recorded with the local county recorders office. And I think that's a good idea, just to have everything current and up to date and exactly the way that it should be in light of of, you know, who is is currently living. I appreciate your time. And thank you so much for your ministry. Thank you, Pam.

Hey, let me send you a gift just for being on the show today. There's a wonderful book called wise women managing money. It was written by Miriam Neff after the passing of her husband, Bob Neff, just about, you know, as you're stepping into this role where you're managing everything, not that you didn't manage some of it while your husband was living, but obviously, you've now got all of it. And I think this will just be an encouragement to you.

It was written specifically for widows as they step into this role of financial manager and steward of God's resources. So stay on the line, Pam, we'll put wise women managing money in the mail to you. Okay. God bless you all. I appreciate your program.

All right. God bless you. Well, that's going to do it for us today, folks. Thanks for being along with us on behalf of my team today. Autumn Simmons and answering our phones today. Grateful for autumn. Devin Patrick, my producer and on research today. Mr. Jim Henry for everyone here at faith. I made the Lord bless you. Come back and join us tomorrow. We'll see you then. Bye bye. faith and finance is provided by faith buy and listeners like you