Most budgeting tools help you build a budget, but they rarely help you live it out. That's where the FaithFi app comes in. Every year, families begin with good intentions. But when life gets busy and motivation fades, the plan falls apart. That's why we built financial rhythms into the all-new FaithFi app.
Each day begins with a three-minute check-in. Review your spending, reflect on God's word, and listen to a short devotional that keeps your heart anchored in Christ. Each week gives you a snapshot of progress and one wise next step. And each month helps you look back, celebrate growth, realign your goals, and acknowledge God's provision. With FaithFi Pro, smart automation learns your spending habits, categorizes transactions, and saves you time while keeping you in control.
Try it free for 30 days and lock in 25% off by downloading the FaithFi app or visiting faithfy.com/slash app. Proverbs 27, 23 says, Know well the condition of your flocks and give attention to your herds. Hi, I'm Rob West. We may not be in an agrarian society, but that proverb still applies today. Faithful stewardship requires attention.
If we don't know what we have and where it's going, we can't manage it with biblical wisdom. Today we'll look at the best practices of budgeting and why it's about far more than numbers. Then we'll take your calls at 800-525-7000. This is Faith in Finance, biblical wisdom for your financial journey. A budget is simply a plan for managing what God has entrusted to you.
It's not meant to be a burden or a source of shame. It's a tool for faithfulness. As stewards, we recognize that everything belongs to the Lord. That means our income, our savings, our spending, and our giving all fall under His care and purposes.
So budgeting begins with a spiritual question before it becomes a financial one. Lord, how would you have me manage what you've provided? That question changes the purpose of a budget. We're not just trying to make the numbers work. We're asking whether our financial decisions reflect what we truly value.
A budget helps reveal patterns. It shows whether our money is drifting toward impulse, comfort, and accumulation, or whether it's being directed toward generosity, provision, responsibility, and contentment.
So, what are some best practices?
Well, first, start with giving. Scripture never treats generosity as an afterthought. In 2 Corinthians 9:7, Paul writes, Each one must give as he has decided in his heart, not reluctantly or under compulsion, for God loves a cheerful giver. A budget allows us to be intentional rather than reactive. Instead of giving only if something is left over, we prayerfully decide in advance how we want to participate in God's work.
Second, know your true income. For someone with a fixed paycheck, that may be fairly simple. You can build your monthly plan around predictable take-home pay. But for those with variable income, business owners, commission workers, freelancers, seasonal workers, or hourly employees, the process takes a little more care. If your income changes month to month, build your budget around a conservative baseline.
Look back over the last 6 to 12 months and identify your lower income months. Then build your core expenses around that number, not your best month, but a realistic minimum. when higher income months come, intentionally allocate the extra dollars, build savings, pay down debt, catch up on future expenses, or increase generosity. Third, give every dollar a job. That doesn't mean every dollar is spent.
Saving is a job. Giving is a job. Paying bills is a job. Preparing for future car repairs, insurance premiums, school expenses, medical needs, or Christmas is a job. The goal is not restriction.
The goal is direction. Fourth, plan for irregular expenses. Many budgets fail because they only include monthly bills. But life includes non-monthly expenses, such as car maintenance, home repairs, gifts, travel, school costs, medical needs, and annual renewals. These are not emergencies if we know they're coming.
A wise budget sets aside small amounts over time so that predictable expenses don't become financial surprises. Fifth, build margin. Margin is the space between income and outgo. Without it, even a small disruption can create stress. With it, we're better positioned to respond with wisdom when needs arise.
Margin can also create room for generosity. Ephesians 4:28 says, We are to work honestly so that we may have something to share with anyone in need. Budgeting helps us live with that kind of readiness. Sixth, review and adjust. A budget is not a one-time document.
It's a regular conversation with the Lord, with your spouse if you're married, and with reality.
Some months need adjustment.
Some categories may be unrealistic. The goal isn't perfection. The goal is faithfulness. And that's where budgeting becomes part of our spiritual formation. It teaches us to see continually how God has provided.
It trains us to say no for the sake of a greater yes. It helps us practice contentment in a culture of constant comparison. It gives us a framework for generosity before money gets absorbed by lesser things.
So if you're ready to take that next step, we'd love to help. The FaithFi app is the leading Christian budgeting app that integrates your faith with practical financial management, helping you steward God's money God's way. It's more than a budgeting tool. It's a biblical stewardship ecosystem that addresses not only the numbers, but also the heart behind them. Join 80,000 believers pursuing faithful stewardship and start your 30-day free trial today at faithfi.com slash app.
That's faithfi.com slash app. All right, back with your questions after this. Stick around. Are you a financial professional looking to grow your practice while offering advice that aligns with your Christian values? By becoming a certified kingdom advisor, you'll gain the biblical wisdom and professional credibility to serve clients who are seeking faith-based financial guidance.
Each year, more than 75,000 people search for a certified kingdom advisor. Join our community and share your expertise with clients looking for someone who shares their faith and values. Start your journey today by going to kingdomadvisors.com/slash get certified. Wondering who Faith and Finance recommends as a banking partner that aligns with Christian values? It's Adelphi Christian Banking, the trusted team you've known as Christian Community Credit Union.
With high-yield checking, savings, VisaCash back cards, and a competitive money market account, your everyday banking helps advance the gospel. Visit faithfy.com slash banking and use the code FaithFy. Membership eligibility required. Accounts are privately insured up to $250,000. This institution is not federally insured.
Mm-hmm So glad to have you with us today on Faith and Finance. I'm Rob West. It's time for your calls and questions. We're ready for you, the lines are open. We just need you, 800-525-7,000.
With any financial question today, whether it's your lifestyle, maybe it's your spending plan, how to stay on budget in light of these sky-high expenses. Perhaps you're struggling with how to navigate this market or paying down debt. Maybe it's giving wisely. Whatever you're thinking about today, we'd love to hear from you. The number is 800-525-7,000.
That's 800-525-7,000. You can call right now. We'll head down to Louisiana. Ann, how can I help? I have a problem that I've been trying to look into.
I needed some more Social Security quarters to start withdrawing my Social Security. I need twelve more quarters So I got a little job as a household manager.
Now, my problem is I'm trying to figure out. Should I Be hired as an hourly employee, a household employee, or an independent contractor with hourly pay? And I know there's such thing as nanny taxes and How would the IRS look at this position and what should I do? Yeah, great question. Yeah.
So as you look at this, the key issue is that the job classification should reflect the actual working relationship, not which choice produces more Social Security credits.
So if your goal is to earn credits, You need to make sure your wages are properly reported and that Social Security and Medicare taxes are paid. Whether you're an employee or an independent contractor really depends on the nature of the job.
So, you know, if you are, you know, just working for one employer and they're controlling what work is done and how it's done, then that's going to be a household employee. They would need to withhold and pay the Social Security and Medicare, and those wages would count. If you're truly operating independently and you set your own methods, you serve multiple clients, you're controlling how the work is performed, well, then that would be in line with an independent contractor relationship, but you'd have to pay the self-employment tax. But that would then also earn Social Security credit.
So, you know, the relationship you have and some of those key factors, you know, like one or multiple relationships and whether you're going to be able to do that Whether you control what you do and your hours and so forth, or they do, is ultimately what's going to determine the relationship that you have. But does that all make sense? Yes, the thing is, I will only have, I want to work as an independent contractor, but I only have one client. Yeah.
catapult me into the employee category. Yeah, so that's going to be a challenge there because I certainly understand that you want to be independent because then you can take advantage of the deductions and so forth of being self-employed, although you would have both sides of Social Security. One client doesn't automatically disqualify you. I would just say you can have one client and still be an independent contractor, but the IRS is primarily going to look at who controls the work.
So, if you decide how the work is done, you provide your own tools, you set your own schedule, you operate independently, you may qualify as an independent contractor. If, on the other hand, the family directs your work and your hours and your methods, you're more likely a household employee.
So I would get with a CPA who can really just evaluate your situation here and advise you on how to set it up. If you decide to go, and the CPA believes you can be recognized as an independent contractor based on your working relationship, then you're going to want to make sure you keep separate books and that there's a clear line between your personal finances and your business. That's going to ensure that you are able to deduct business expenses without being challenged by the IRS. But you've got to be able to document things separately between your personal and your business activities.
Okay, well, that sounds good. Do you know any, maybe off the air, you all can recommend a certified kingdom advisor here in the Louisiana area for me? Yeah, if you go to findacka.com, you could find a certified kingdom advisor, and then you could ask for a referral to a small business accountant or CPA. They would all have one that they typically work with.
So just go to findacka.com. You can do a zip code search. And thanks for your call today. Lord bless you. We'll go out to Texas, Virginia.
How can I help? Hi, thank you so much for taking my call. You're such a wonderful blessing. Thank you. I have a student loan that I did not pay on for a while, so it has gain has some unpaid interest.
And but I have um Now I've been making payments and I've been putting scrolling money away, and I'm able to pay off that interest. the outstanding interest so that Because I need to do that, right, before I can it'll even my payments will even touch the principal. Is that correct? Yeah, I mean, so if you have the opportunity to pay down accrued interest, that can definitely be a wise move because it reduces the amount of interest that may continue to accumulate. I would say that's generally a good idea.
Are these federal or private student loans? Federal.
Okay. All right. Um yeah, and so is your plan to pay off the accumulated interest and then just keep paying on them, you know, monthly or or what are you thinking moving forward? Yes, so now that the deferments have been been lifted I mean, I was going to make payments anyway, but definitely start making payments. continue to make payments monthly.
But I noticed when I called them also Um They had said that you know, if I just make say two hundred dollars a month it's not really going to, because I have so much interest accrued. It's not even going to bring down any of the principal. I'm really just paying off the interest because that's where. When I send in a payment, they first send it to the interest. Yes, yes.
And that's why you want to do this. And so I think going ahead and paying off that accrued interest, well done on putting that money aside and having the ability to do that. And now I think from here, you know, once you get that down, obviously if you can send a little extra every month, great. But at the very least, let's get that accrued interest from the deferment out of the way and then get you paying on a monthly basis. And again, if we can add something to it, that would be excellent.
Okay. And then one other quick question.
Someone had told me that. They what they did for with their child had a student loan is they refinanced it through a through sofi Uh is a personal loan? Um And they were telling me that I should do that. But I I don't I feel safer to have it as a federal, I don't know, just kind of feel like it's. Just to keep it as a federal loan, they're at 6% and 7%, because I have two different loans that have been.
federal loans that are consolidated So one's at six percent and one's at seven. And then when I went onto the sofa, just to check it out, they don't even let you see any sort of percentages. You have to give them all your information, date of birth, and all that. And I didn't want to do that.
So, yeah.
Well, here's the thing. I'd be very cautious about that because, you know, you're going to give up those valuable federal benefits if you need them down the road, like income-driven repayment for deferment, forbearance. You've already taken advantage of it. If you needed it again in the future, you'd lose that. And you're likely not going to get a meaningfully lower interest rate on a personal loan without any kind of collateral that would justify it.
So I would just stick tight with what you've got on the federal side. Thank you. Yes, a confirmation. God bless you, Rob. All right.
Thank you, Virginia. I appreciate it.
Well, folks, we're going to take a quick break. We come back more of your questions. And we've got some lines open.
So, if you have a question, we'll try to give you an answer: 800-525-7000. You can call right now. This is Faith and Finance. We'll be right back. We are grateful for support from Praxis Investment Management.
Since 1994, Praxis has offered investment products designed to meet practical needs for everyday investors seeking to steward their assets consistent with their desire to promote positive social and environmental impacts. Praxis aims to bring a faith-based approach to ETFs, mutual funds, multi-fund portfolio solutions, and money market accounts, reflecting their 500-year-old Anabaptist Christian faith tradition. More information is available at PraxisInvest.com. We are grateful for support from Movement Mortgage, who provides residential home loans and reverse mortgage options in all 50 states. Guided by a mission to love and value people, Movement seeks to help individuals and families make informed financial decisions from buying a home to planning for retirement.
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Great to have you with us today on Faith and Finance. We're taking your calls at 800-525-7000. Let's go back to the phone. Chicago is where we're headed next. Bernie, go ahead.
Oh, thank you, Rob. Love your show. Thanks for taking my call. Thanks. My question is, I was thinking of buying these two single-family homes.
They're both $250,000 each. I have property that's worth seven or eight. what is the implications if I want to sell a multi level and buy homes? Is there something I need to know Other than the standard, you know, closing costs and all that. Uh the multi is a is a a mortgage free.
So nothing nothing owed on it.
Okay, yeah.
Well, you can do a 1031 exchange, which is also known as a like-kind exchange, and you can exchange an apartment building for rental single-family homes because both. Types of property qualify as like kind under the IRS Section Code 1031.
So it defines that term like kind pretty broadly. And that's why both of those, because they're used for investment or business purposes as opposed to personal use, can be factored into the 1031 exchange.
So that just simply means you'd be able to sell the apartment building so long as you follow the timing of identifying the next properties within 45 days, closing on them within 180 days. You essentially kick the can down the road with respect to the capital gains tax on that multifamily property, which is a good thing because you don't have to pay that now. You could pay it later and get full use of this money moving forward. I think the key would just be that you find those properties that make sense, don't get over-levered, because we don't want you to be in a situation where, let's say, the economy were to take a pretty significant downturn. And you went for a longer period of time than you expected without a renter.
I just don't want you to put yourself in a difficult spot. But assuming you go in with enough equity, you can take advantage of the 1031. You clearly are going to have those costs on the sale of the property. And so you need to factor that in because that's going to come out of the proceeds of the sale. But assuming you account for all of that and you like the idea of switching the multifamily for the multiple single families, then it certainly can be done.
Thank you so much. I appreciate you taking time to answer my question. Thank you so much. All right. God bless you, Bernie.
Thanks for calling today. Let's go to Texas. Amy, how can I help? Hey, Rob, thanks so much for your ministry. We really appreciate it.
My husband and I have been blessed beyond measure. I mean, we're not Uh I guess from the world standard, have a lot from a financial point of view, but we have more than we'll ever use. And we want to bless the Lord with that. And we stand to inherit from both sides of the family financially. And we want to do right by God.
We are currently totally out of debt. We have, throughout our marriage, learned to live within our means as hard as that can be. We have two grown sons, and one is married, and we have two grandchildren. We tend to get paralysis and the analysis. We have been to several different classes.
We know what we need to do. We just need somebody to come alongside of us and view where we are right now and what we want to do with it in the name of Jesus. How can we get help with that? I know we've talked to different we moved to Texas about ten years ago, so we're still getting somewhat delay of the land. My dad passed away in November.
And we have not fully received all of that inheritance. And again, we want to know. You know, so often when people look at us, look at our financial numbers, you know, they want us to go straight to investing kind of thing. And we need to understand that part of it, but we also need to plan for our future and for our children and grandchildren's future. Yeah.
Wow, Amy, what an incredible place to be. I love this question because you start by saying, I want to just acknowledge God's faithfulness and his provision and his abundance. And we want to be good stewards. We want to be faithful in how we manage this for God's glory. And that can include giving, that can include investing, which is a part of God's plan for human flourishing and for promoting the common good, even participating in God's redemptive purposes.
We want to be well planned for the future and think about what might come down the road. And we want to surrender all of that to the Lord. And that's exactly the right posture, I think, for all of us. And you need a partner in that, somebody who understands the power of money as a tool to accomplish God's purposes, both in terms of for the future, but also to be given away and to be invested and held loosely for God's purposes as well. And nothing, you know, in any part of that, nothing is better than another.
It's all a part of a virtuous cycle, I think, of using God's money in a way that brings God glory. Where are you guys, as you think and pray right now? Kind of, what is the thing that really trips you up? You mentioned analysis, paralysis. Is it not understanding?
the investment markets and investment strategy? Is it how much you should keep versus how much you should give away? Is it where to give? Like, is it all of it? Like what are the issues that typically trip you guys up for making decisions?
I think it's the investment strategies. It's also like As you age, when you take Medicare, Medicaid, should you do Social Security, when should you take that?
So it's very much the investment strategies. And also, when we Speak to people about it, it's kind of they're looking at the lump sums and they give good information, but My husband, too, we're both very hands-on. We love to serve.
So, for us just to write the check, it kind of has to come with the serving alongside of it.
So, in some ways, that helps narrow down for us what ministries we want to give to.
So that's kind of, you know, being the hands-on kind of thing. Yeah.
Excellent. It's a beautiful predicament. We like to say it's our blessing to be a blessing. But you and I both know that as you increase in your wealth Somehow that word gets out there, and people want you to give to their legitimate causes. Yeah.
You know, okay, what direction can we go? You know, we're looking at, you know, how can we help our family at this point? We have one son married, one son not. And they're around the same ages and, you know, trying to decipher, okay, what's best for either one of them at any given time. Yeah, this is so good.
Well, this is perfect for a certified kingdom advisor. And I don't know whether you've reached out to a CKA in the past, but I'd love to personally connect you with somebody who can just walk alongside you because what you need is the comprehensive financial planning, which would then cover how much you need for the future, how to invest it appropriately, how to plan for long-term care if you need it, inheritance, but also your giving. And an advisor who understands that in light of biblical wisdom could be just absolutely essential. I'm going to have my team get your information and I'll personally connect you with a few people that could serve you really well. Big thanks to my team today, Sandy, Devin, Taylor, and everybody here at Faith By.
Come back and join us tomorrow. We'll see you then. Bye-bye. Faith in Finance is provided by FaithFy and listeners like you.
