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. Well, it's day two for your New Year's resolution, so how are you doing so far? Hi, I'm Rob West. You know, most of these resolutions are history by Groundhog Day. But what folks need to help them keep their resolutions is accountability.
If only there was a tool to help with that. Wait, there is! And Chad Clark joins us today to talk about it. Then it's on New Year calls at 800-525-7000.
That's 800-525-7000. This is Faith and Finance, biblical wisdom for your financial decision. Well, I can't think of a better way to start the New Year here on the show than by having Chad Clark with us. Chad is, of course, the executive director here at FaithFi. And Chad, it's great to have you with us, and happy New Year to you. Yeah, happy New Year to you as well. 2024, here we come.
It's amazing to think that it's already here. And Chad, as is so often the case during a New Year, many people are busy setting New Year's resolutions, whether it's for losing weight or eating healthier. But one thing many people want to reset in the New Year is, of course, their budget.
That's right. This is the time of year people tend to either refresh or restart their budgets. Now, here at FaithFi, we have a team of developers that you lead that have developed budgeting software that helps people manage their money.
We've been doing that for years. So what have you learned from all these years of experience in this area? Well, I think one of the things I've learned is that I'm still learning. But an observation I've noticed over the years is how critically important our perspective is when it comes to creating and sticking to a budget. As you know, many people view a budget similar to a diet. It's something we know we need to do, but sometimes it's just easier not to do it.
Well, let's unpack that a bit. So how does our perspective then play into our ability to budget? Well, from my experience, the single most important factor I've found to help people follow through with their budget is they've defined why they're doing it. That's very different than knowing what you're trying to do. You may want to get out of debt or save more or even be more generous. But if you don't have a clear understanding of why, you'll likely not stick with it.
That's really helpful. We need to, of course, start with the why. And as believers, what should our why be? Well, I think it's important for us to work out our own why statements, but hopefully we can look to Scripture and determine what that looks like. When we look at Scripture, we see that God is the owner of everything, and our role is to steward or manage what he's entrusted to us.
And I think understanding this first level concept plays an important part in answering the why question. Yeah, this is the central idea of our money management, that God is the owner of everything. We see that clearly in Psalm 24 one.
The earth is the Lord's and everything in it. So then, Chad, why is it important for us to start with God as owner as we think about our budgeting and money management? Well, I think that that's a critical place for us to start, because when we recognize God's ownership, it helps clarify our role as stewards or managers. You see, if we see ourselves as the owner, we get to do whatever we want. If we view God as the owner, then our role as a steward changes. But I think that the type of owner we believe God to be is really important. For instance, in a business, you can have a passive or an active ownership structure. Passive owners turn the management responsibilities over to the managers and aren't involved in the day-to-day decisions. I think this is how we tend to view God when we refer to him as an owner.
At least that's the way I used to view him. Yeah, this would be like you managing a coffee shop that someone else owns, but the owner isn't involved at all. He simply gave you the keys and said, good luck.
Yeah, I think so. And again, in this kind of structure, it seems as if we are the owners in many ways, because we get to make all the decisions. We're not really consulting with the owner. We're the manager slash owner of the coffee shop, and I think that greatly influences the way that we make money decisions. So then compare and contrast that with an active owner.
Yeah, so active owners, on the other hand, work closely with the managers to help them with decisions. And I believe the Holy Spirit wants to be an active owner of our finances. God's entrusted us with his money, and he's willing to help guide us and direct us when we seek his help.
This takes a big burden off of us from having to figure out things all on our own. This is really helpful, Chad, and perhaps a different idea than we've considered in the past as we think about our role as a steward and God as the owner. When we come back after the break, we're going to talk about the implications of God being an active owner as we manage money. We'll talk about how all of this relates to budgeting and how the Faithfi app can help you in your stewardship journey.
If one of your New Year's resolutions is to get your money back on track in your budget, well, we want to help. Chad Clark here today. He's executive director at Faithfi, and we'll be right back after this. Stay with us.
We'll be right back. By connecting with a community of thousands of Christians driving to be good and faithful stewards at faithfi.com or by downloading the Faithfi app. Delighted to have you with us today on faith and finance here on the second day of the new year. I know you're still thinking about your resolutions, trying to make good on those plans that you made to get 2024 headed in the right direction. And I'm sure at least some of you, perhaps a majority of you, are thinking about that as it relates to your finances.
How do you get back on track with your money? Well, with God's money. And we know that budgeting is a part of that.
And Chad Clark joins us today to talk about how you can do that. But he said before the break that perspective is everything. And we started with this central idea as stewards, recognizing that God is the owner of everything. And Chad, you introduced a concept to us around God's ownership in terms of determining whether God is more like an active or a passive owner.
Frame that back up with us. Yeah, I think that understanding kind of God's role as an owner helps influence the way that we steward his resources. A passive owner is somebody who isn't actively involved in the day-to-day decisions, whereas an active owner actually wants to participate, that wants to help and be involved in those daily financial decisions. And I think that's really important when we think about God as an owner to understand, is he a passive or an active owner in our financial decisions? Yeah, exactly right.
And we shared this analogy. It's kind of like managing a coffee shop that someone else owns, and a passive owner would simply say, here are the keys, good luck, and then walk away. An active owner would handle that differently. So continuing our coffee shop analogy, when we look at an active owner, it would be like the owner handing you the keys and saying, call me anytime you need help. I'm here for you. You don't need to go this alone.
Yeah, I think so. And I think like we said before, I believe the Holy Spirit wants to be that active owner who is helping us, like he is the helper if we're willing to reach out and contact him, just like the coffee shop owner. He's not overbearing, but he's there and available for when you need him. And so we just recognize God's role as an active owner that we can go to, that we can bring our struggles, that we can bring our opportunities to, and trust that he will give us some clarity and direction on how we're to proceed with managing his resources. All right, now at the core of our topic today is about budgeting, getting on track and managing God's money wisely.
So how does all of this that we've been discussing relate to budgeting? Well, I think that, again, we go back to this idea of God is a passive owner, I don't think he really wants to be involved in my decisions, I might be tempted to think I can do whatever I want, although one day we will ultimately give an account. Or I might feel this heavy burden of having to make decisions on my own. And I'm left having to guess what the owner expects me to do. However, if I view God as an active owner, I may view my role as a manager differently, I know that I can go to him in confidence, knowing he wants to help.
And our relationship to the owner directly impacts our role as a steward. But I think the key idea when it comes to budgeting is to understand our role as a steward of God's resources. Yeah, so the budget is a tool that helps us wisely manage the king's resources on a practical level on a day to day basis. It is and I think this goes back to what we were talking about originally, which is defining why you have a budget. If you see God as an active owner of your finances, the answer to why you have a budget is because you take the role of stewarding the king's resources seriously. You desire to glorify God in your financial decisions, and a budget simply becomes a tool to do this. It's a means to an end, not an end in and of itself, which is I think a lot of people tend to view a budget of I just need to set up a budget. But if you don't understand that that's just a tool as part of your stewardship role, you're going to miss you're going to miss the boat, you're going to probably not be successful in budgeting because you haven't clearly identified your why.
All right, so it starts with the why. Now, we understand why we're doing it, we realize this is a high calling that we've been given as stewards. So how can the FaithFi app practically help me manage my money? We built the FaithFi app recognizing the need for a tool to help people be good stewards, but we also recognize that not everybody is the same. So when we refer to this idea of a budget, what we really mean is a system for making financial decisions.
The FaithFi app was designed with multiple systems to help fit your unique money management style. At the end of the day, it's not really about how you're managing the money entrusted to you. It's knowing that you have a system in place to help you manage it well. Yeah, and if you're going to do this effectively, it has to become a part of your daily routine, right?
It does. I like to tell people it's like, if you're a coffee drinker, I'm a coffee drinker, Rob, I know you're a coffee drinker. If you don't have your coffee in the morning, you notice it, you're just like, something's off a little bit, my routines off a little bit. Well, when you have a budget, and it becomes a part of your toolkit, you just know that if you're not looking at it, if you're not operating off of it, something's off. And so it just becomes a part of just how you operate. And I think that's a really important perspective to have when you go into budgeting. It's not just, again, I'm going to have a budget, but it really becomes a part of my toolkit to live day to day. Yeah, no question about it.
Now, Chad, for those out there listening to you right now that are saying, I've been down this road before, I've tried to budget, it's too much work, what would you say to them? Well, I would say obviously, I'd encourage you to check out the faith by app. And here's why. Because like I said before, we've got three unique systems built into this application. And when you come into the app, we're going to help you find a system that fits your personality uniquely. And that's different than we see in a lot of different apps out there.
A lot of other apps are very rigid, they want you to follow a certain set of steps and rules. And those are fine. And those are great. And we celebrate people that are successful with those. But for us, we recognize that you're unique and that you have unique characteristics. And so we try to meet you where you are in your journey. And the tool will help you set up a system that's going to set you up for success. And we also love to support you along the way. We've got certified Christian financial counselors standing by ready to help you overcome some of the barriers that may have tripped you up in the past.
We've got webinars and other resources that we're making available this year to just help you be successful and start the year off strong. And what about those that are married that want to stay on the same page in their budget together? Is there a way that they can do that through the app?
Yeah, absolutely. And we encourage you if you are married, that you use this together. I know that in a lot of households, one person manages the money and the other one sometimes isn't overly involved.
For my wife and I, when we first got married, that was our story. I was the finance guy. She didn't really have a whole lot of insight or say into what was going on financially. But when we got on a system and we started using a budgeting tool, it changed everything.
And for us specifically, we use the Faith Buy app, obviously. It's changed the way that we talk about money. I can't tell you, Rob, how many times we got in fights as an early married couple about money.
It was the number one source of conflict. I know you say that on this show. But for my wife and I, it really was an ironic piece was I was the finance guy. And we could not get on the same page. But the budgeting tool allowed us to see where we're at, to have really constructive conversations about how we're stewarding God's resources. And it's helped our relationship just tremendously. And so we're grateful for this tool.
And I know that a lot of people, a lot of couples have similar testimonies. Now, a lot of folks have been listening to this program go all the way back to Larry Burkett. Larry obviously made the envelope system popular. And there's actually one of the three approaches that uses that system in a digital format, right? It does.
Yeah. If you are looking for an envelope style of money management, the Faith Buy app does this, from what we've heard, better than many of the tools out there. So we'd love for you to check that out. And this system is really great because it allows you to carry balances in your categories forward so you can accumulate funds in that auto repair or that vacation envelope.
And so we'd love for you to check that system out. All right, Chad. Great to have you here today. Thanks for stopping by. Thanks so much.
All right, folks, go get it. You can download the Faith Buy app when you check it out at faithbuy.com. That's faithfi.com or go to your app store and download Faith Buy, Faith and Finance. Back with your questions just after this.
Stick around. 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. Many in the Middle East are going through horrific circumstances and are seeking refuge in Lebanon. Heart for Lebanon is bringing them hope. And now you can help. We endured shelling and hunger.
We witnessed death everywhere. One hundred sixteen dollars brings emergency supplies and the hope that only comes through the gospel. I want to spend the rest of my life telling people about Jesus and his salvation. Give now at faithfi.com slash Lebanon or call 888-201-5577. Welcome back to Faith and Finance. I'm Rob West. This is the program where the 2300 verses on money and possessions found in God's word intersect with today's financial decisions and choices. The number to get in on the conversation, 800-525-7000. That's 800-525-7000. Let's head back to the phones to Madison, Ohio. Denise, go right ahead.
Yeah, I just had a question. My husband retired early. He retired at fifty-nine and a half. And right after he retired, they told us to put everything into a 401K and then keep a couple of years out to live off of. But then the stock market went down and we lost quite a bit of money. So I'm challenged because everybody says, and I know you say to keep it in there, but I just don't know how much to keep losing. Because I feel at our age of 60s now, I don't know if we should put it somewhere safe because I don't know how fast it's going to rebound.
Yeah, well it's a great question, Denise, and I can certainly understand your concern and why you've called. When you said you put it in the stock market, I think the first question is, what is the right allocation? What is the right portfolio for you given you and your husband, your season of life, your need for income, and your age and risk tolerance? And when we say take the long view and stay invested, that's true. Whenever we're investing, we need to take the long view.
But it also assumes that we've got our assets positioned in a way that's appropriate just given where we at, stage of life, and so forth. So I think to that end, typically for somebody who's at age 60, we would say you probably need, just as a rule of thumb, and that's all it is, this doesn't replace really thorough planning for each person's unique situation, but as a rule of thumb at age 60, just based on life expectancies, we'd say you probably want your assets maybe 50-50. And this is separate from that 6-12 months that you want in liquid reserves, but for that that's invested, 50% in stocks, 50% in bonds. Now, there's a lot more questions that come behind that around, okay, 50% in stocks, which stocks? And you'd have to work through that probably with an advisor in terms of are you in large cap or small cap, are you in dividend or growth, are you using faith-based investments that are aligned to your values and screened out for those that are misaligned or using traditional investments. And then the same thing in the bond fixed income category, short-term or long-term durations, corporates or governments, all of those questions. And so there's obviously a process, but at a high level, probably a 50-50 allocation is right, and here's why.
You know, when you reach age 65, your life expectancy is 86, his is 83. So if the Lord tarries and you're in good health, you need this money to last two, three decades or more. And the way we do that, especially in light of inflation, is we invest it with the appropriate allocation, as I said, at age 60, maybe 50-50, or if you want to put 10% in bonds, or not bonds, but precious metals, maybe 45-45-10, that gives you a less risky, less volatile portfolio than somebody who said 100% invested in stocks and allows you to have some potential for growth that offsets inflation and that loss of purchasing power that occurs just because things get more expensive over time. And stocks and stock investments are one of the ways we offset that. So given all of that as a backdrop, tell me, do you know how you're currently positioned? Did you pull that money out of the 401k and put it 100% in stocks, or is there a mix of stocks and bonds? It's all diversified, but we're 60-40, and we're 60 on the stock side of it. I just didn't know if I should pull some out and put it in a CD where it's safe.
Yeah, I probably wouldn't do the CD. I would probably take the long view on this. Who's selecting the actual investments, you or somebody else?
Someone else thought it was going to change because I had that question. We go through Ameriprise Financial, but it's with a regular investor, and I wanted to do the integrity people you talk about. Would that be a tax implication if it's through the same bank and they just transfer over if I talk to someone over there? No, there wouldn't be because as long as you're keeping it inside that retirement account, so typically a 401k is rolled to an IRA, so they're likely in an IRA. If you moved from one advisor to the next, you'd keep it in the IRA, so there's no distribution there.
Therefore, there's no tax consequence. There are some wonderful certified kingdom advisors at Ameriprise, so you could find one and stay right there, or you could transfer it to someone else. We usually recommend the CKA designation as a great starting place, and then you'd want to interview two or three advisors. I think if anything, maybe you're a little heavy in stocks, but somewhere in that 40 to 60%, you're at the upper end of that range is probably where you want to be. If you want to be more conservative as the allocation changes over time, maybe you back that down closer to 50%, but I think the big idea here is taking the long view. The bonds have been under pressure because interest rates have been rising.
That's going to change as interest rates come back down. That was an unusual period you experienced there that really is unprecedented, so I think over time you're going to do well here. You just need wise counsel and stay the course. You can find a CKA on our website at faithfi.com. Denise, thanks for your call. Let's go to Kansas City.
Hi Joe, go ahead. Yes sir, my question is I'm looking at trying to consolidate or trying to get out of debt with some credit card issues. I have contacted the Christian credit counselors, but they don't service Kansas.
Trinity doesn't service Kansas. The one I was talking to is another company, I'm not going to name it now, but they're talking about paying back less than what I owe. I know they're going to negotiate with the companies to get that paid off, but I think they're going to let something go. They're not going to pay them off succinctly. They're going to let something go into default, so I quit paying the payments and pay them instead.
I wouldn't touch that, Joe. That's called debt settlement where they basically stop paying your debts, they get into arrears. You're going to get hounded by collection agents.
That's not the way to go in my opinion. I understand Christian credit counselors and Trinity, not every credit counseling agency is able to work in all 50 states. What you may want to do, even though those would be my preference in terms of who you work with because they're organizations that really are created to serve believers, I'd look for another debt management company or credit counseling company and you want a not-for-profit credit counseling agency that can get you access to those lower interest rates so you can pay through them. I would love for you to work with one of the Christian companies. It sounds like that's not an option here, but I definitely don't want you to do debt settlement and I'd rather you not do credit consolidation.
I would stay away from that company you're looking at and maybe search for consumer credit counselors and see if they can help you. Thanks for your call, Joe. Well, we're out of time once again, but we'll come back and do it all again next time. I appreciate your carving some time out of your busy day to join us here on the program. Remember, if you like today's program, why not share it with a friend? And while you're at it, share the FaithFi app with them as well. It'll help us get the word out. Thanks for listening and sharing, and I hope you'll come back and join us again next time for another edition of Faith and Finance. Faith and Finance is provided by FaithFi and listeners like you.
