Common Sense Spending Strategies

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Go to faithfi.com and click App to get started. From hats in the hall closet to bats in the belfry, we can help you save money on the basics. Hi, I'm Rob West. Today we'll offer you a few common-sense strategies for saving money on three of the basics, clothing, utilities, and home maintenance. Then we'll take your calls at 800-525-7000.

That's 800-525-7000. This is faith and finance, biblical wisdom for your financial journey. Well, managing your money wisely doesn't have to be complicated. A simple spending plan can help you keep track of what comes in and what goes out. But what about the necessary things like clothes, energy, and shelter?

If you feel like these expenses are out of control, we'd like to help you today. Let's start with clothing. In this category, the temptation is to buy whenever there's a sale, or to chase after the latest styles, or both. When you have kids, and especially teenagers, you have the added problem of sizes changing all the time, not to mention another set of opinions on what's cool. Well, here's how to keep your family's wardrobe looking sharp for less.

First, you don't have to buy new. Instead, visit local thrift stores, where you'll find deals on current styles as well as wardrobe basics. If you have kids, this is where you'll save. Teenagers might push back on this, but give them a budget and challenge them to find something they like.

They'll enjoy having a bit of freedom in the matter and seeing how far their money can go. If you do shop retail, use coupons and loyalty programs to get discounts. Consider consignment stores, too. You'll find stylish clothing there, and when you're done with your gently used items, you can trade them in for cash or a discount. That's money back in your clothing budget.

Next, try rethinking your closet. What I mean is, instead of filling it with clothes and shoes that you'll wear only once or twice, think multi-purpose. A good pair of slacks can take you to work or church. A neutral skirt can work for an interview or an evening out.

You get the idea. The goal is to have a few high-quality basics that can do double duty in your wardrobe. Focus your spending on that core wardrobe, and then let your accessories and thrift store add-ons provide color and variety. Okay, our next category for saving is utilities. The first strategy is to buy energy-efficient appliances. I'm not saying you should replace all your existing appliances at once, but when it's time to put in a new washing machine, choose one that costs less to run.

While you're at it, you may be able to find a deal on a scratch and dent appliance. Another way to save money on energy costs is by using LED lighting. When you need to replace a bulb, it's worth the extra cost upfront to buy LEDs. They'll pay for themselves over time with longer life and more energy efficiency. Next, check with your utility company about rebates for installing energy-efficient systems in your home. You might get money back for installing an electric hybrid water heater, for instance, or putting in a smart thermostat. Your power company will have details about rebates on their website.

A simple way to reduce your energy bill is by unplugging appliances, turning off electronics, and adjusting your thermostat, especially when you're not at home. Alright, our last money-saving category is home maintenance. If you own a home, you can't just assume all is well. Like a car, your home needs regular attention just to keep it functioning smoothly.

Ignoring this might not cause a breakdown on the highway, but it can result in very expensive repair or replacement costs. For instance, dirty filters can make your heating and air conditioning system work much harder, which makes it wear out sooner. For plumbing, be aware of possible pipe leaks or dripping faucets. Avoid overflow problems by having your septic tank pumped out regularly.

If you have one, you get the idea. Heating and air conditioning is one of your home's most important systems, so don't ignore that either. Have your HVAC system checked at least once a year to make sure it's operating at maximum efficiency when you need it most in summer and winter. Second, do an annual check of the caulking around your windows, doors, and light fixtures. Install new weather stripping around doors and windows if necessary. If your home feels too warm in the summer and too cold in the winter, even after you've sealed the air leaks, you may need more insulation.

Again, check with your power company about rebates for that. While I'm talking about home maintenance and insulation, let me ask you, when was the last time you checked under your roof? If you have an unused attic space, make sure it's not becoming a home for critters. If you've got wildlife guests in the attic, it'll take a professional to get them out and seal the space, but don't put that off.

Aside from the sanitation issues, rodents can chew on electrical wiring, which makes them a fire hazard. All right, I hope we've given you some practical ideas today. Your calls are next. Stay with us.

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Be an encouragement to you, be hopeful, but also give you some practical wisdom so you can move forward with confidence. The number to call today, 800-525-7000. Again, that number is 800-525-7000. Whatever your financial question is, this is a great time to get in.

The lines will fill during the program and you can get right through right now at 800-525-7000. Hey, our new study is out. That's right. It's our faithfi study called Rich Toward God. It's a four week look at the parable of the rich fool.

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Just click shop at the top of the page. All right. Got Patsy and Frank ready to go.

How can I serve you today? Well, I saved quite a bit of money. I'm in my 70s.

We both are. And we've only been married a little over two years. And I had money saved that I had in a lockbox. And of course, I sold my condo, so I put that money in a CD because it was paying the best rate.

So I figure with the money that's in the CD that I have a couple CD, the money that's in that, I'm going to make over $4,000 a year just in interest. And I still have another few thousand bucks that I didn't know what the best thing to do with. I know if I would walk into the bank with this big amount of money I have in cash that the government's going to say, hey, where'd you get that money at? I've been money laundering. You're right. If you have a deposit over $10,000, they are going to need to let the Treasury know just and supposedly that's to prevent money laundering.

But you are correct on that. Let's talk about the purpose of this money, Patsy. First of all, when are those CDs coming due?

There are ones due in September and ones due in October. Okay. And about how much do you have, if you don't mind me asking? I think the little one that I just added a little bit more to it out of my checking.

I'm keeping my checking down low now. Okay. Because I don't have a lot of expenses. I don't owe any bills. Sure.

And I just have a credit card and I pay that in full every month. Great. I have about $16,000 in one and then the big one where I sold the condo, I added some to that one. I have $135,000 in that one. All right.

Very good. And do you have this money, the $16,000 or the $135,000, do you have that earmarked for anything in particular, Patsy? No. If I die, you know, I'm 74, I'll be 75 this year. If I pass away, it just goes to my son. I put him on my bank account. So if anything happens to me, it goes to him. Yeah.

Very good. And your bills are covered, as you said, so this really is surplus. But are you wanting to keep it risk free for all intents and purposes? I mean, there's nothing that's risk free, but as close to it as possible. Or would you like to invest somewhere?

Sure. What do you mean by invest? Well, like, would you be interested in looking at stocks and bonds or do you really want to keep it in CDs and savings?

Yeah, I think I'd rather keep it in CDs and savings. Okay. Yeah, that's fair. That's me because, you know, the stock market, I don't trust it. Okay.

Yeah. I'm sorry, I just don't trust it. I certainly understand. You know, the only reason why you may at this season of life want to consider a portion of it is just because, you know, the one of the ways we offset inflation is by trying to grow this. But I understand you're wanting to focus on the return of your capital, not the return on it.

So the most important thing for you is to protect it and then try to grow it modestly. The good news is you can do that in CDs and even high yield savings right now. That won't be available forever, but it's going to be with us for a bit more because the Federal Reserve has said inflation is still a little too high. They're not ready to start lowering interest rates. They're still expecting three rate cuts this year. Certainly they're going to come in the back half of the year. But I think these elevated rates are going to be with us for a while.

Certainly in the fours, I mean, you can get in the fives right now, but I think you'll see things in the fours. So if you're looking to roll these over, one thing you may want to consider is what's called a CD ladder where you stack them on top of each other. So you could do one at six months, one at a year, one at 18 months and one at two years. And then every six months, you'd have a fourth of the money come and do and you roll it forward. And the way to find the banks with the very best rates, which many of them are going to be online, is bankrate.com.

Just click on CD and that'll ensure that every time you're investing in a new CD, you get the best rate. Let's continue to take your phone calls here. We'll head to Miami and welcome Tricia to the broadcast. Go ahead.

Hi. My dad passed away over a year ago and my mother is trying to get Social Security benefits. But the challenge is my dad did not have 40 credits and neither does my mom. So she's wondering if there is a way that they could combine my father's credits with hers so that she could get to that limit and start earning Social Security benefits. Oh yeah, Tricia.

Well, first of all, I'm so sorry to hear about your dad's passing and I can understand what you're saying. Wouldn't it be great if you could put those together in between the two of them, which they both paid into the system over a period of time. They just didn't reach the 10 year mark or 40 credits, one credit per quarter. Unfortunately, SSA does not allow the wife of a deceased husband to combine her credits with his to try to reach that threshold.

So that is not an option, unfortunately. But just to be sure you're clear and she's clear, 40 quarters is 10 years. So is it true he didn't have 10 years of paying into the system with FICA taxes?

That's correct. OK, so the only option she would have is to continue to work herself to get to 40 quarters or 10 years on her own record because there's no I mean even beyond full retirement age. If she's working and paying FICA taxes, that's going to count toward her ability to at some point collect a benefit.

So that would be the only option is that she continues to work longer to get to that minimum threshold on her own work record. Does that make sense? Yes, it does. OK. Yeah. And probably not the answer you were looking for.

But unfortunately, that is the way that it works. Tricia, I'd love to send you a copy of a book that I know has been helpful to a lot of widows. It was written by a widow, Miriam Neff Hogan and Valerie Neff.

Bob Neff was a part of Moody Radio. And when he passed away, Miriam and Valerie wrote this book for widows in addition to starting a ministry called Widows Connection. It's called Wise Women Managing Money, and I think it will be an encouragement to her as she navigates this season of life. So if you'd like to stay on the line, we'll send you a copy. But thank you for calling and for your kind remarks about the program.

I appreciate it. Folks, we have room for a few more questions before we round out the broadcast today. The number to call 800-525-7000. That's 800-525-7000. Give us a call right now. A quick break and back with much more right after this.

Stay with us. Faith Buy has created a way for you to explore and reflect on a well-known biblical parable about a very rich man with a very big problem. Request a copy of the Rich Toward God study today with your gift of $25 or more by going to faithbuy.com slash give. Do you feel like your hands are tied with debt, preventing you from serving God? If you have credit card debt, Christian credit counselors can help through our debt management program. Get you out of credit card debt about 80 percent faster while honoring your debt in full. For more information on how Christian credit counselors can help visit Christian credit counselors dot org.

That's Christian credit counselors dot org or call 800-557-1985 800-557-1985. Great to have you with us today on faith and finance. I'm Rob last for taking your calls and questions today on anything financial. Let's head back to the phones. We'll go to Ohio.

Welcome Mark to the broadcast. Go ahead, sir. Hi, how are you doing? Doing great.

Thanks. My question is an income property that I have, whether is it better to hang on to this during retirement or sell it? My concern is the capital gains that are probably going to be incurred when you sell it. Yeah. So you've got, uh, is this a residential property or is it commercial real estate? It's a commercial.

Okay. And are you just kind of wanting to get out of the business of being a commercial landlord or what are you thinking? Yeah, that's, that's the intent.

You know, at some point I'm going to want to just kind of hand those responsibilities off to somebody else. And you know, the concern is the capital gains bite, you know, after you've owned it for 20 some years, it's been depreciated. So is there any way to mitigate some of that?

Yeah, there really isn't. I mean, I think that the good news is that taxes are symptomatic of provision. So you don't have to make money if you don't have a profit.

But I realize, you know, it does eat away at what's available. And if it's throwing off cash right now, good cash flow because you've got, you know, fully occupied or close to it. And, you know, you've, you've got low debt, you know, you're giving up that cash flow and then you're going to have to redeploy that after tax proceed and try to at least match that. And hopefully with less overhead and involvement from you, maybe a more passive investment opportunity. I mean, really, the only way Mark to, you know, help with that tax bite would be number one to kind of stay in the real estate business and just push that forward into another similar property through a 1031 exchange.

But that doesn't solve for your goal of, you know, getting out of being a landlord. The other is if you wanted to do some charitable giving now or in the future or replace other giving you were doing after or through after tax giving, then you could give a portion of the property to a donor advised fund. You wouldn't have to give the whole thing. You could give a percentage of it to a donor advised fund. And then when it's sold, that portion would the cash portion of the proceeds of the sale equal to the percentage you gave to your donor advised fund would go in to the giving fund. And that portion would not be subject to capital gains tax. And then you could give that away. And so perhaps, you know, you do several years worth of giving if you didn't want to do any more giving than you're already doing.

You could do several years of the giving you were planning to do, but do it out of that portion of the property that's given to a donor advised fund. Does that make sense? Yeah, that's one option to kind of bring it down. But it is somewhere I guess you have to pay for all that depreciation. Yes.

Yeah, no question about it. So I think, you know, perhaps, I mean, do you have a CPA that you could kind of crank through those numbers with and just figure out, okay, what would my after tax proceeds be after I sell it? And then I think the next question is, okay, what am I going to do with it? And if I'm looking to exit, you know, the real estate business, at least in an active way, then you could compare kind of what you could generate through a more passive investment, let's say a properly diversified stock and bond portfolio or something like that, you know, to what you're receiving right now in the way of cash flow from this property, which hopefully is appreciating, although commercial real estate isn't doing quite as well as residential. And then just at least compare financially, how would I do now and in the future, you know, by redirecting the after tax proceeds versus just hanging on to this property. And the other option is you leave it right where it is and just hire a property manager and, you know, kind of get yourself out of some of the day to day if that's the burden you're trying to alleviate.

But, you know, apart from that, there really isn't any other tax mitigation opportunities. Okay. All right. Thank you very much for your input and enjoy the show. All right. Thanks, Mark.

Thanks for being on the program very much. Eight hundred five two five seven thousand is the number to call. Again, that's eight hundred five two five seven thousand. Let's go to Iowa. Hi, John.

How can I help? Well, first off, Rob, thank you for your ministry. Appreciate that. I was wondering if you've ever considered classic cars, for example, as a viable option for possibly a small part of our retirement portfolio, factoring in, of course, you know, having to insure them, shelter them and maintain them during the course of ownership, of course. Yeah. Yeah, no doubt. You know, the only challenge and I'm not necessarily the guy to ask on this just because this is not an area of expertise for me. I mean, I think that generally the challenge with collectibles is, you know, they're subject to trends and varying demand. And so, you know, with that, they obviously can lose value.

On the other hand, they're not making any more of them. And so, you know, many, as you probably know far better than I do, many makes and models do hold value and in fact increase over time. But you have to know what cars are likely to appreciate. And then obviously you mentioned this, but you've got to factor in the storage and the maintenance.

Obviously, even if you're not driving them because things like gaskets and hoses and wires age over time and need replacement. So I guess, you know, maybe the big picture is just think about your overall investable assets and think about what portion is appropriate. So you're not too highly concentrated in something that, you know, is a little bit more non-traditional in terms of both its ability to generate income, its liquidity. You know, it doesn't have maintenance associated with it and maybe doesn't have as wide a fluctuation in the appreciation or depreciation of the asset. And so I think, you know, if you said, well, of my total assets, this is, let's say, 10%, yeah, I mean, I think that could make some sense.

You might enjoy it. And so there's a non-financial element to this. And you obviously, you know, if you have some know-how and expertise in this area, that goes a long way. But maybe those are just some general thoughts. I don't know if that helps or not. Yeah, and I do have a lot of that stuff covered.

I have considerable experience at this throughout my whole life. And, you know, I also, I would say your 10% is right on, I guess, where I'm at right now, you know, as far as the market values go. So I guess I'm good there. I also think there may be some, you know, tax-free benefits to some of those sales, which is also a bonus, which obviously would give you more money to give.

That's right. Absolutely. Yeah, I think you just need to look at it objectively and just say, you know, am I running a hobby here or is this truly an investment or is it a little bit of both? And there's nothing wrong with it being a little bit of both or purely a hobby.

I think the question is just, you know, if it's truly an investment that you're looking for, then by definition, you know, we would sell it when it accomplishes its purpose or when we can, you know, do better somewhere else. And obviously there's a non-financial element, which is just your enjoyment and as an enthusiast and somebody who's kind of having some fun, you know, with things like that. And again, there's nothing wrong with that, just as long as, you know, you understand what is my ultimate objective here.

So I love it. I mean, I think you're not too highly concentrated or overweighted here. You obviously are skilled in this area, so I don't have any issue with this whatsoever. But John, thanks for raising it. It's a great question, one we don't talk about a whole lot here on the broadcast. I appreciate you bringing it up.

Hey, folks, our desire for you is that you would see God as your ultimate treasure and that money would be a tool to accomplish his purposes. I hope today's broadcast has been an encouragement to you. We're certainly grateful that you've been along with us today. Thanks to my team today, Robert Sutherland, Devin Patrick and Robert Youngblood. Couldn't do it without them. For those gentlemen, I'm Rob West. This has been Faith in Finance and we'll see you tomorrow. Bye bye. Faith in Finance is provided by FaithFi and listeners like you.