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Uh You track your steps, maybe even your calories, but do you track what it really costs to live each month? I am Rob West. It's easy to overlook, but your personal cost of living is one of the most important numbers in your financial life. And if you don't know it, you may be spending in ways that don't reflect your values or your faith. Today I'll show you how to figure it out and why it matters.
And then it's onto your calls at 800-525-7000. This is Faith in Finance, biblical wisdom for your financial journey.
Well, it's always a good idea to revisit the basics. Regardless of your income level or stage of life, the core principles of stewardship remain unchanged. There are five things you can do with money: earn it, live on it, give it away, owe it to others, or grow it through saving and investing. Today we're focused on what it means to live on it. how much it takes to cover your day-to-day needs.
But it's not just about rent and groceries. A true picture of your cost of living also includes less frequent expenses, like insurance premiums, car repairs, and even Christmas gifts. You need a complete picture, not just a snapshot.
Now, inflation may be slowing, but most of us are still paying more than we used to. And while the Federal Government reports the national cost of living each month, that number doesn't reflect your personal circumstances. That's why tracking your own cost of living is one of the wisest steps you can take. It gives you clarity, and clarity is the starting point of stewardship. To calculate your personal cost of living, try using the Faith Phi app.
It's a simple way to track your income, giving, saving, and spending all in one place and guided by biblical wisdom.
So where do you start?
Well, begin by tracking your giving. For believers, giving isn't just a line item, it's a first priority. It's how we acknowledge God as Provider and participate in His kingdom work. List what you give to your church and other ministries regularly.
Next, add your savings goals. If you're building an emergency fund, saving for a large expense, or contributing toward retirement, the app can help you set monthly targets and track your progress.
Now enter your expenses. These generally fall into three categories fixed, variable, and irregular. Fixed expenses are those things that stay the same each month things like rent or mortgage payments, car loans, insurance premiums and subscriptions. They're usually easiest to track. Variable expenses, such as groceries, gas, and utilities, fluctuate from month to month.
To get a reliable average, look at what you spent in these categories over the past few months and estimate a monthly amount that reflects your typical spending. Then there are irregular expenses, the ones that don't show up every month but still impact your budget. Think annual insurance premiums, property taxes, car maintenance, holiday gifts, and back-to-school costs. Make sure to build these costs into your plan by assigning a monthly amount, even if the actual bill only comes once or twice a year. Once you've entered your giving, savings, and all your expenses, the FaithFi app will show you your total monthly financial needs, your true personal cost of living.
You'll also be able to see how that number compares with your income and whether you're living within your means, building margin, or heading into financial stress. If you find that your expenses exceed your income, the app makes it easy to spot the problem areas and make adjustments. That could mean cutting back on nonessentials, reevaluating fixed commitments, or pausing some discretionary spending for a season. The point isn't guilt, it's stewardship. Proverbs twenty seven reminds us, Know well the condition of your flocks, and give attention to your herds, for riches do not last forever.
That's ancient agricultural wisdom for a very modern principle. Be aware of what you have and how it's being used. Awareness leads to faithfulness. Tracking your cost of living isn't just about staying on budget, it's about living intentionally with a heart that seeks to honor God with every dollar. It's one of the simplest yet most powerful ways to help us walk in greater clarity, purpose, and faithfulness.
And remember, the goal isn't perfection. Life happens, needs shift, but the more you accurately understand your financial picture, the more confident you can be as you make decisions, set goals, and practice generosity. That's why I encourage you to download the FaithFi app today. With a FaithFi Pro subscription, you'll gain access to helpful tools, exclusive articles, digital Bible studies, and daily encouragements that equip you to manage money with wisdom and purpose. You can find more and learn all about the app at faith5.com.
Just click app. You can also search for FaithFi in your app store.
So, do you know your personal cost of living? If not, there's no better time to find out. Back with your calls after this. The number 800-525-7000. We'll be right back.
Right now, more people than ever are looking for biblical wisdom to navigate their finances, and you can help meet that need. When you become a FaithFi partner, you're equipping believers to trust God, steward his resources well, and live with kingdom purpose. Partners receive early access to our newest resources, our quarterly Faithful Steward magazine, and the pro version of the FaithFi app. Become a FaithFi partner with your gift of $35 a month or $400 a year at faith5.com/slash partner. Faith in Finance is thankful for support from The Good Investor, a book by Robin John.
In his book, Robin shares his journey from an immigrant child struggling in school to co-founder and CEO of Eventide Asset Management, a faith-based investment firm. This Faith and Work memoir seeks to inspire readers to view their work and investments as opportunities to honor God and bring blessing to the world. More information is available at goodinvestor.com. That's goodinvestor.com.
So glad to have you with us today on Faith and Finance. If I'm Rob West, well, looking forward to taking your calls and questions today as we dive into what you're thinking about in your financial life. No matter what it is, we'd love to tackle it and help you think about it through the lens of scripture. You know, living out of a biblical worldview is how we need to approach every domain of our lives, and that certainly includes this area of money management. And so we want to help you be that faithful steward each day that we know you want to be.
And so let's do that together. We've got some lines open today. And if you want to get through with your question, now would be a great time before the lines fill up. The number to call is 800-525-7000. Again, that's 800-525-7,000.
You can call right now. Before we head to the phones, in the news today, it's common knowledge that the Social Security Trust Fund will be empty by around 2035.
Now, at that point, even though Though it's empty, it doesn't mean Social Security benefits go away. Estimates are that benefits would have to be reduced to 83% of current levels. I've seen some studies saying perhaps it is as low as 75%, but I've not seen anything below that.
So just current revenues without anything in the trust fund would allow benefits to be paid equal to about somewhere between 75 and 83 percent of today's levels.
Now, that's unless, of course, Congress steps in to correct the problem, and we certainly expect they will. But what should those steps be?
Well, that's a question that's been hotly debated. And the new survey of 2,200 Americans by the National Academy of Social Insurance shows that 85% of respondents want benefits to stay the same or increase.
Now, that's not surprising. What is a little surprising is that they don't mind raising FICA taxes on employees from 6.2% to 7.2% to solve the funding shortfall. Only 15% of their respondents said they wouldn't mind reducing benefits if it meant avoiding a tax increase. Even more popular among those surveyed was eliminating the payroll tax cap for individuals earning over $400,000. Without that cap, those taxes could increase on higher income earners, even though their Social Security benefits would stay the same.
Also, those surveyed were not enthusiastic about raising Social Security's full retirement age, which we've done as of late. It now sits at age 67. That, of course, would be a way to solve the program's funding shortfalls, but it's not popular.
Now, what is going to happen?
Well, only the Lord knows. This will be a matter for Congress eventually, and it will be dealt with. This is a very unpopular issue, but current Congress has been kicking the can down the road. They will have to take it up at some point. I suspect we'll see some combination of these things that were talked about today: pushing out FRA, raising FICA taxes, maybe somewhere in the middle, maybe lifting that cap or raising it slightly.
Also, a growing economy will help here as well. That's, of course, President Trump's focus and why he's so focused on shrinking the size of government, deregulating energy policy, all of that to stimulate our economy, which can help solve the problem as well. We'll continue to watch it and certainly bring you updates along the way. All right, let's head to the phones. Lines are filling up, but we've got a few left.
If you've got a question today, you can call right now at 800-525-7000. We're going to begin in Pennsylvania today. Donna, thanks for calling. Go ahead. Hi, um Rob.
I would value your input on a couple of questions. I have one of them you were kind of already addressing. Um I'm old I'm sixty seven, I'm single. Um I'm old enough to get Social Security, but I've kind of been putting it off because I understood that if I wait until I'm seventy, I'll get a bigger check. Is that not true?
It is absolutely true. Yeah, so that is the way that it works. You will not see increases beyond age 70, but if you wait past full retirement age, 67, you will see those benefits continue to increase up to well, about 8% a year.
So, you know, you could be looking at somewhere around 25% of a higher check.
Now, you will, of course, have given up. The checks you would have been earning between 67 and 70. And so the math says that you need to live. about another 12 years at a minimum into your early 80s before you would have been paid back by way of that higher check, about 25% higher, for all the money you gave up between 67 and 70. And then from that point forward, you would enjoy that higher payout for the rest of your life.
So that's why if you don't need the money, it's not a bad idea. You're getting that guaranteed 8% increase per year, which you're not going to get that in the market guaranteed. But you do have the risk that you don't outlive that period of time that I'm describing. And then obviously you would not collect what you gave up. The nice thing about it is, you know, when we get into our late 80s and 90s, if the lair tarries and you're in good health, people are living longer, having that substantially higher check can be really helpful, especially if you have needs for long-term care and things like that down the road.
But you have to be in a position to be able to give it up and wait to take it.
Okay. And and then but you were saying on uh earlier That money might not be there. Is that a good reason to just start taking it now? Or is it a better idea just to wait? You know, it's certainly a factor, and no one knows the answer to that.
You know, if Congress were to not act and the trust fund were to run dry, and again, the projection is 2035, so we're still 10 years away from that, then you're right. They would not be able to pay benefits, and so we would see benefits cut at that point. Is Congress going to allow that to happen? I just can't imagine they would. It would be incredibly unpopular politically from their constituents.
And so I think, you know, although we need to deal with it sooner than later and we keep kicking the can down the road, I believe Congress is going to take this matter up and address it, either in the form of higher taxes or continuing to push out the full retirement age. And, you know, we'll just have to see how that's going to work. But I think all things being equal, I kind of like you getting that check up as high as you can.
Okay. Another reason I wanted to wait was because I worked For a non-profit for 38 years, and I got free housing. On paper, it doesn't look like I made much. And now that I'm working someplace else, I'm making substantially more. And I wanted to bump up my Social Security amount.
Yeah.
Well, keep in mind that's going to happen regardless.
So, the only two ways to get your checkup after you start taking benefits is a cost of living adjustment. That's up to Congress based on inflation. The second is replacing your high 35.
So, even if you're taking benefits, if you're still working and you knock out one of those high 35 years and replace it with higher income, they'll automatically see that at the end of the year and bump your checkup.
So, that's something to keep in mind. Donna, thanks for your call. Let's head to Mississippi. Hi, Dan. Go ahead.
Five. I'm retired at the age 6. 62. I just turned 65. My retirement age is 65.
66 in 10 months, and I'm drawing Social Security. I pastor two rural churches. And they are paying into a retirement plan about a total of $300 a month. And I was considering. Maybe see.
it's okay to give money into a Roth IRA. or some other type retirement plan. And also, even though we're drawing so. Oh, no doubt. Yeah, as long as you have earned income, Dan, up to the amount you contribute and not beyond the annual contribution limit, you absolutely could continue to contribute to an IRA.
There is no age limit so long as you have earned income up to the amount you're contributing.
Okay, that's great. All right, that's what I need you to know. Excellent.
Well, thank you for your service to the Lord. I'm sure you're a real blessing to those rural churches, and we appreciate you being on the program today. May the Lord bless you. All the lines are filling up.
So we've got a lot of great questions coming your way just around the corner. 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. OneAcent's goal is to provide solutions designed for every need and invest in businesses that bless the people and places God has made.
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Great to have you with us today on Faith and Finance. We're taking your calls and questions today, 800-525-7000. St. Charles, Illinois, is where we're headed next. Samantha, go right ahead.
Yes, hi. Um, I was curious, um, my husband and I don't have much debt except for basically our mortgage. And a year ago we financed we had to replace our air conditioner with a heat pump. But we have zero percent interest on that.
So we've just been making monthly payments, zero percent interest in that. will be paid off at the end of the year. And we've also been working to build up our emergency fund with a high yield savings account Um we're trying to figure out if it's better pay off the heat pump, even though it's 0% interest. Or to put Extra money in toward the emergency fund or even toward our mortgage. I know it's kind of long-term debt, but since the heat pump was zero percent interest, we're just trying to wonder.
when we have extra money every month, where to put that? I love that, Samantha. That's great. And I love that you're living below your means. And so you've got even the ability to think about how to use that surplus on a monthly basis.
Are you on track if you do nothing other than what you're doing right now, you don't add any extra money to it, are you on track to pay off the heat pump before that zero percent expires? Yes, I mean the way they set up the payments, when we make the payments, it will be paid off uh by the maturity date.
So any extra we put toward it will just mean we'll pay it off sooner, but we won't go past. And your percent interest deadline. Perfect.
So, from my perspective, unless you all have a conviction otherwise, and if you do disregard my opinion altogether, there's no reason to accelerate that heat pump payoff. Let's take full advantage of that zero percent. If there was any kind of extra charge that you had to pay, a surplus or a percentage of the total amount they gave you for the benefit of getting it, that's already been spent. And so, at this point, let's just take full advantage of that zero percent. I would say, in terms of the order, priority order, it would be first that emergency fund.
Let's get to that three to six months' expenses, whatever you and your husband decide. You know, I'd be comfortable with three if you feel like things are pretty stable and we're not. Seeing things that, even though it's really for the unexpected and we can't foresee those, you know, I think you have a sense of whether you need, you know, something on the lower end or the higher end, but that would be my priority. And then I think beyond that, it's you know, probably even before paying off the mortgage, just making sure you guys are putting, you know, enough away for the future and taking full advantage of the power of compounding through maybe some automatic salary deferral or automatic contributions to a retirement plan. That would probably be my next priority, certainly up to any matching that you have, but then ultimately with a goal to get to 10 to 15%.
Okay, yeah, my husband has. Has a 401k through his work, and he does that with, he pays the, contributes the full amount that they match, I believe, is 6%.
So yeah, so that's already set.
So yeah, he does that.
Okay, good. And then if you had more than that, then boy, that's a great place to be. You could look at, hey, do we want to do any additional giving? Do we want to go ahead and send an extra payment or two or more to the mortgage payment? That's even better.
You know, just because if you guys could get that paid off, man, you'd really be in a great shape with lots of disposable income. And that gives you another opportunity to take a step back and say, Lord, what would you have us to do?
Okay, no, that sounds great. Awesome. Thanks for calling today. Let's go out to Texas. Hi, Paula.
Go ahead. Thank you so much for taking my call. Trying to keep it concise. Recently, my online savings account was compromised. And I found out about it through a they were trying to do a wire transfer out of it.
But prior to that, They were doing just a transfer from my account to JP Morgan. And The only way I found out about it was I had had an email. with a letter from my online savings account company. And they had done that. $5,000 wire transfer five times already.
I don't know how I can protect myself. Sense. I didn't get an alert. about it just being a transfer.
So now I'm having to go through, you know, the fraud dispute and try to get my money back.
So do you have any recommendations on being able to protect yourself with these online accounts? Uh are we have heard that they're safe, but Yeah.
Well, it's a good question. And it's not isolated, of course, to online banks because any financial account, whether it's attached to a brick-and-mortar bank that just gives you an online access point like they all do these days, or it's purely an online bank where you're still accessing the account largely through a smartphone app or the Internet, but they just don't happen to have brick and mortar locations. They all present the same challenges, which is just how do you protect yourself? And I think the key is, number one, following those best practices to make sure you have a long string password that you're updating probably, if not more often, at least quarterly. Maybe use a password keeper that's going to generate the password for you so you have a different password for each account.
That's a best practice. And then, secondly, I think, you know, just talking to the company, making sure that they, you know, had good customer service and they're willing to, you know, identify these issues when they happen. You may even need to change your account number. Typically, just changing the password will cover it. But are they quick to resolve these disputes and get your money back into the account?
Are they big national or institutions that have all the latest and greatest safeguards and protections? Nobody's foolproof. The U.S. government, the big credit reporting agencies, they've all been compromised. I mean, the biggest companies and governments in the world have had accounts compromised.
So we're not going to stop that. The key is just, are you doing everything you can do? And do you have a trusted partner in your financial institution that's going to work on your behalf in an expedient fashion and get you made whole? Have you changed your information and passwords and so forth? And do you believe this has been kind of rectified, at least for the time being?
Yes, they did change my account number. I've changed my password. What is the password keeper that you're talking about? Yes, so there's several of them out there. I use one called OnePassword, the number one password.
There's another one called Last Pass. Last PASS, but essentially, it's an encrypted software application that you'd keep on your computer or your phone, and it stores all of your passwords. But what it will do is generate passwords for you. And some of these are built in now in your operating system, like Apple has these now in the Apple operating system. But essentially what it does is rather than you having the same password across all of your logins that can, once it's compromised, get out there on the dark web and now it's more easy for people to access your accounts, it essentially would allow you to have a long string, unique password for every login.
Well, you'd never want to type those in or try to memorize them. You couldn't. And that's where a password keeper comes in because you're able at that point to just generate that password from that.
software package and it's all encrypted.
So you may want to check those out. But we appreciate your call today, Paula. I'm sorry you're having to go through this, but we'd love to be able to help you. And hopefully that advice is giving you some things to go on. God bless you.
Big thanks to my team today. Devin Patrick, Sandy Dickinson, Jim Henry, and everybody here at FaithFi. Have a great weekend. We'll see you next time. Bye-bye.
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