It’s Not About The Money

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That's 800-525-7000. This is faith and finance, biblical wisdom for your financial journey. Jesus mentions money a lot, but his teaching is rarely about money itself.

It's always about something bigger looming in the background. Put another way, money issues reveal what's in our hearts. God's word uses money as a teaching tool because no matter who we are, where we live, or what stage of life we're in, money is something we all have to think about. Money easily becomes a source of stress, confusion, and conflict. Whether it's in our personal lives or relationships, money can push our emotional buttons.

Money issues are not really about how much you make or how much you spend. It's about where your heart is. Jesus is clear about this in Matthew 6 21 where he says, For where your treasure is, there your heart will be also. You see, if we dig deeper, we find that money isn't just a practical matter. It's a spiritual matter. And more often than not, it's a question of what we value, not just what we have. For example, money is often cited as one of the biggest reasons for divorce. But those conflicts in the marital relationship are rarely about money itself. More often, it's a matter of conflicting values. Maybe one person wants to save for the future while the other is all about enjoying the present. One person may see money as a tool to help others, while the other might see it as something to secure their own comfort and security.

And here's where the tension lies. Money is a mirror of our hearts. When two people with different values come together, the conflicts start to emerge, and it's easy to get caught up in the numbers and forget the deeper issue at play.

It's not about the money. It's about what we value. Each person has valid concerns.

It's just that they may conflict. It's helpful in those situations to take a step back and recognize that every spending decision is actually a spiritual decision. It may sound strange to think of purchasing a cup of coffee or a new pair of shoes as a spiritual decision, but it really is.

Jesus says in Matthew 6 24, No one can serve two masters, for either he will hate the one and love the other, or he will be devoted to the one and despise the other. Jesus is talking about priorities. We cannot fall into the trap of loving money.

Now that doesn't mean we can't buy that cup of coffee or those new shoes. God wants us to enjoy his provision. Ecclesiastes 3 12 and 13 read, I perceive that there is nothing better for them than to be joyful and to do good as long as they live, also that everyone should eat and drink and take pleasure in all his toil.

This is God's gift to man. God wants us to enjoy what he provides, but he also wants our lives to reflect his values. When it comes to reconciling differences about money, whether as individuals or in a marriage, the key is recognizing that differing values actually represent an opportunity to grow closer to each other and to God. The first step in achieving that is to pray.

And our friend Howard Dayton likes to say, It's hard to quarrel when you're praying together. For married couples in particular, honest and respectful communication is key. Talk about your values.

Talk about your goals. Maybe one of you wants to invest for retirement while the other wants to create lasting family memories through travel. Both desires can honor God. You just need to find common ground. Sometimes a financial advisor, such as a certified kingdom advisor, can help a couple determine their shared financial goals to reconcile their spending differences. Financial disagreements, whether with a spouse, a friend or even within ourselves, don't have to create division.

In fact, when handled with humility, prayer and a shared desire to honor God, they can actually deepen trust, build unity and draws closer to Christ. If you're struggling with a financial decision today or facing tension in a relationship because of money, don't walk through it alone. Invite God into the process.

Talk it through with someone you trust. Most of all, remember that it's not about the money. God wants your heart. And when your heart is aligned with His, your financial decisions will follow. All right, your calls are next.

The number 800-525-7000. Stick around. FaithFi is grateful for support from One Ascent. One Ascent believes that your values inspire why you invest and how they can inspire how you invest. One Ascent's goal is to provide solutions designed for every need and invest in businesses that bless the people and places God has made. They want to help investors do well by doing good to explore a new way of investing that aligns with your values.

More information is available at OneAscent.com and by clicking Analyze My Investments. Are you feeling overwhelmed by credit card debt? As followers of Christ, we are called to be good stewards of what God has given us. That's why our trusted partner, Christian Credit Counselors, is here to help. Their debt management program can help you pay off your debt 80% faster while honoring your commitments in full. Take the first step toward financial freedom today.

Visit ChristianCreditCounselors.org or call 800-557-1985. Great to have you with us today on Faith and Finance. Looking forward to taking your calls and questions today on anything financial. You can call right now. We've got lines open for you.

The number is 800-525-7000. We'd love to hear from you today and tackle whatever is going on in your financial life. Perhaps it's your spending plan, just trying to rein in expenses and stay on budget. I realized how challenging that can be, and the reality is living within your means is the key to financial success. Once we understand God owns it all and we're a steward, being able to live within God's provision, not outside it by using debt, but living within God's provision and even below it so we have margin to fund our goals is really key. Perhaps it's getting out of debt once and for all, or maybe it's giving wisely or navigating the stock market, just the volatility that we've seen as of late. It's been challenging and yet we should be long term investors, steady plotters investing for the future, realizing that we should set aside a portion of what we received today for the future.

And the best way to overcome the effects of inflation is to put that to work. That's just good stewardship. Well, there's a right way to do that.

And then there's a wrong way. We can certainly talk about what that looks like in your life. Any of those questions and more in play today? The number to call 800-525-7000. Again, that's 800-525-7000. Let's dive in. We're going to begin in Illinois today. Hi, May. Go ahead.

Hi, thank you for taking my call. I have a credit card with a company with a balance of about $9300 and they calculate the interest rate based on an average daily balance. And there's a different rate for cash advances, which is about 3% higher than the rate on purchases.

Yes. And even when there are no cash advances, I'm still being charged interest. My question is, how can I pay this off in a short period of time and avoid these high difficult to understand interest charges?

Yeah, yeah, very good. It is not uncommon for you to have two different credit cards. Issuers, so in your case, Capital One, see cash advances as riskier than purchases. And the credit scoring data will show that card users who take out cash advances typically carry higher what are called debt to income ratios. So the amount of debt you have versus your income tends to be higher. They use a larger portion of their credit limit. They're often late on payments, at least more often. And so, you know, they also recognize that they collect what are called merchant fees for purchases. So they charge the merchant where you're, you know, using your credit card to make a purchase, the merchant is taking a portion of that and sending it to the issuer, in your case, Capital One. And as a result of that, you know, that's one of the ways that they make money. Well, with a cash advance, they can't do that.

There's no merchant to, you know, charge that back to. And so part of the way they make up for that, just in terms of their own profit, is in fact, by charging a higher interest rate. So what you're experiencing there is pretty typical. You know, I think the key for you may is really to dial back your lifestyle spending, try to get out of debt as quick as you can. Did you say the total amount of debt that you have is, is right at 9000?

Is that right? Yes, 9300. Okay, how does that break down, you know, between the cash advance versus the charges? Well, in this particular case, this month, with the $9300 balance, there were no cash advances. Okay. But of course, I'm being charged the interest rate on my previous cash advances.

Yes. And how does that break down just in terms of the balance you're carrying? How much of it is as a result of cash advances you did in the past versus charges?

It's about 8200 in purchases, and 1160 in cash advances. Okay, got it. Yep. Have you looked at what's called a credit counseling program? Have you heard me talk about that in the past?

Yes, I have. Okay. Yeah, I mean, that would be one thing to consider. Now, you can pay off the cash advance portion of your credit card balance. And, and I would do that as soon as you can. So any payment you make, according to the, you know, credit card act, going back to 2009, any payment you make above the minimum required has to be applied to the balance with the highest interest rates first. And since that cash advance is typically going to be the case, you know, that it's really important for you to be able to send beyond just that minimum scheduled payment, so we can get that cash advance portion down. The other option would be to, you know, move the whole account over into a debt management program, where we're going to see a pretty significant reduction in the interest rate that you're paying. And, you know, that will allow you to get out of debt, you know, much quicker. However, the card does have to be closed, at least while it's in the program, so you would not be able to use it, which sounds like the better option for you. I think maybe just pay above the minimum payment.

Yeah, yeah, you certainly could do that. I mean, obviously, you're still paying that higher interest rate on whatever portion each month is subject to the prevailing rate. And you'd pay a lot less if you if you did it through credit counseling, but at the very least, I would just really try to limit your lifestyle spending and get that, you know, extra going toward the reduction of principal, which again, is going to first be applied to the cash advance portion. Okay, now, is it going to affect my credit if I move it to a debt management program?

Yeah, it's an interesting question. The fact that you're in debt management, so when you enroll in the program, that is not factored into the credit scoring algorithm. So that in and of itself does not affect your credit score. What will affect your score is the fact that you have that account has been closed.

And so, you know, it should be fairly minimal. You know, as far as I'm concerned, I'm far more interested in you getting out of debt and paying as little interest as possible along the way than I am whether or not your score, you know, sees a temporary reduction, because you've got a card that's been closed. Especially if you're not out looking to buy a house or a car anytime soon, that credit score is really, you know, not very important. Doesn't mean we don't want to try to keep it as high as we can, but you getting out of debt is far more important.

So I think the answer is yes, it does affect the score, but not just by virtue of going into the program. It would just be like your score would be affected if you closed any account regardless of whether or not you're in credit counseling. Sure, I understand.

Got it. So the next step, if you wanted to go that route, or at least explore it would be to head to our friends at Christian credit counselors.org. That's Christian credit counselors.org. You could also call them, they have a toll free number that you could reach out to them on 800-557-1985.

But they're wonderful. They're all believers, and they'd be delighted to serve you. Okay, thank you. Okay, thanks for your call, May.

Call anytime. Before we head to the break, let me remind you, if you listen to this program regularly, you're a part of the faith and finance family, and you want to help others learn God's way of handling money so they can be a faithful steward, well, we'd like to invite you to become a Faithify partner. These folks are committed to living out biblical stewardship principles in their lives and share a desire to see others be good and faithful stewards as well. A gift of $35 a month or more allows you to become a Faithify partner, where you'll receive exclusive quarterly ministry updates and early release copy of each of our studies and much more. Just go to faithfi.com and click Give.

That's faithfi.com and click Give. Back with more calls just around the corner. Stick around. . . . . . . . . . . Yeah, well, I appreciate that background, Kathleen.

Let me say a couple of things about this, but one quick question. What's the roughly the total of the investable assets that you have there when you put all the accounts together? The annuity, I mean, it's almost 200. Oh, yeah, I should explain that in a minute. But it's like that. And then I'm going to say that we probably have around 500,000.

Okay, yeah, maybe 10,000, depending on what's going on. So here's my thought. I mean, number one, Edward Jones is a great brokerage firm, you know, they are a wonderful institution, they have more certified financial planners than any firm in the industry. They're soon to have right now they're the number the second largest for certified kingdom advisors.

And just based on their growth rate, they'll be the largest of ck's in the country. So nothing wrong with Edward Jones, just like any firm in the, you know, up and down Wall Street, you can have an advisor that you work well with, and you might have one that you don't, and they could be at the same firm. So perhaps the next step for you. And again, if you wanted to move to Schwab, to your point and manage it yourself, you absolutely could, you need to make this call, you're the steward.

But I think with that sum of money, my advice would be for you to have an advisor. Now, it may not be the one you have right now, because clearly, you've lost confidence, it doesn't sound like there's been a lot of great communication. And you should understand exactly how you've done. And if you've underperformed the market, you should understand why.

And it sounds like you do not. And so, you know, my recommendation would be number one, I would love for you to keep an advisor who's overseeing this, but perhaps consider a change. And maybe what you do is look for a certified kingdom advisor, who's also at Edward Jones for you to move the account to. And that way, you could stay right there at Edward Jones, you wouldn't need to move out of the firm, but you could change the advisor, and I'd perhaps interview two or three find the one that you feel like is the best fit. But at the end of the day, with that significant sum of money, I'd rather that money not be on autopilot, I'd rather you be with an advisor you have a good rapport with, who really spends the time to get to know you and or you and your husband, understand where God's taking you, you know, clearly builds an investment strategy. That makes sense, based on your goals and objectives, and keeps you really informed in the process.

Does that make sense, though? And then I've got two other, I've got like Fisher and then another person who uses Schwab, but he's like an independent, and he's wants to only charge me like 75%, you know, like 0.75%. And then it's like really good, but he uses people that, you know, that work at Schwab for his choices.

So I don't know to do that. And then like Fisher investments is higher. And then like it Edward Jones, if I choose them as a fiduciary, then that's going to be, you know, two or 3% or something, even if I change. And then yeah, so yeah, you got a lot of moving parts here. Here's what I would do.

I would try to find an advisor that you establish a good rapport with. Yes, you should look at the fees. That's certainly one consideration. It's not everything. There's a lot more to a relationship with an advisor and a fiduciary, who's overseeing your investments, providing tax planning advice, perhaps, you know, assisting with financial planning, even helping you align your values as a believer with your investment decisions and your financial planning. So all of that goes together. Yes, you should look at the fees, but I would probably, you know, is it bad to have multiple advisors?

No, it just creates more complexity. So if you could find one advisor that you really feel good about, the fees are in line, the performance is there, they're spending the time with you, and preferably, they share your values as a Christ follower, that would be the place that I would go next, and perhaps look to consolidate everything under one roof with that trusted advisor that emerges over time. Now, if you want to find a CK there at Edward Jones, you can go to our website, faithfi.com, and click Find a CK.

But hopefully, that gives you some things to think about here. And I'm confident you'll make the right decision. Thanks for your call today.

Let's go to Texas. Donna, how can we help you? Hi, I was calling I currently have two certificates of deposit. Okay.

And I was wanting to know if I should dissolve them and open up an IRA instead of the certificates of deposit. Yeah, do you have? I'm sorry to interrupt you, Donna.

I'm short on time, but I want to get to the end of your question. Do you have what's called earned income? Not passive, but earned income? Are you working? No, I'm retired.

Okay. Yeah. So unfortunately, you have to have earned income in order to make new contributions to an IRA. Is that what you were thinking?

Yes, sir. So you would not be able to do that is make new contributions to an IRA, you could roll a 401k into an IRA. But you would not be able to open an IRA and make a new contribution without earned income. So like wages or tips or, you know, business income from a small business that you own, something like that, not social security or passive investment income. So unfortunately, that's not an option.

But you could, you know, begin making systematic contributions to just a taxable account with a high quality mutual fund, like, you know, one of the faith based investing funds. So perhaps our friends at soundmindinvesting.org could be helpful to you. If you're comfortable on the web. If not, our team can get you the information and the phone number. But hopefully that helps you, Donna.

Unfortunately, I don't think the IRA is going to be an option. May the Lord bless you. Thanks for calling today. Well, that's going to do it for us today. A big thanks to my team today. So thankful for our call screener today, as well as Dan and Amy and Jim.

Couldn't do them without them. Hope you'll come back and join us next time. And we'll do it all over again. Until then, God bless you. Bye bye. faith and finance is provided by faith by and listeners like you