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Debit Card Dangers

MoneyWise / Rob West and Steve Moore
The Truth Network Radio
July 28, 2020 8:03 am

Debit Card Dangers

MoneyWise / Rob West and Steve Moore

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July 28, 2020 8:03 am

For many people, debit cards have replaced checks or credit cards. Despite their ease of use, debit cards pose several risks that can impact your bank account balance, credit score or even identity fraud. On the next MoneyWise Live, hosts Rob West and Steve Moore discuss the dangers of debit cards. Listen here before you swipe on MoneyWise Live at 4pm Eastern/3pm Central on Moody Radio.

Rob West and Steve Moore
Rob West and Steve Moore
Rob West and Steve Moore
Rob West and Steve Moore
Rob West and Steve Moore
Rob West and Steve Moore

Who doesn't love a debit card they make buying things easy and you can't because you're limited to what's in your checking account and there just to save his credit cards right.

Well the truth is, the law doesn't cost money and air hose financial planner and teacher Rob West is exactly what you need to know about when it comes to your debit card. I'm more debit card dangers program is recorded try to call in Iran we have a number of very polished all my money wise life menagerie. So Rob, why are debit cards will pop these days lots of people don't even carry their checkbooks with them anymore.

Well like you midget Steve you can't run up debt with them so you avoid that, but also the interest charges you might be hit with. If you use a credit card and don't pay it off and banks like to promote them because it's cheaper for them to process digital transactions than paper checks.

But there are some inherent flaws that lots of folks aren't aware of.

I think if the if crooks get a hold of your debit card or your number that could be a situation. So what else here. Well, the best way to explain this is to compare the protections you have under the law between debit and credit cards. If you're a victim of credit card fraud, you won't be held liable for more than $50. If your actual card is stolen and the charges go through and you're not responsible for unauthorized charges at all. If your credit card number is stolen. Okay, that will that would seem to make credit cards pretty safe in case of fraud, yet does. And those are great protections.

Unfortunately the same can be said for debit cards. For example, with your debit card.

You're also responsible for only up to $50 of unauthorized transactions, but that's only if you report the card lost or stolen within two business days and the onus is on you if you don't report the fraud in that time you could be out as much as $500 and that's as long as you report the unauthorized use within 60 days of when your statement is mailed to you by the way, another good reason to balance your account every month $500 nor talking real money or yeah but it gets worse. If you don't report the debit card fraud within those 60 days, you're liable for the full amount of the money you had in your account and as a final sting. Your bank may not waive any overdraft charges that result from debit card fraud. So that's how the law differs between the two credit and debit cards are some places more dangerous than others. As far as using your debit card. Now there are places that experts tell you to never use a debit card most obvious is an independent ATM not connected to your bank that not only do you get hit with fees, which are more likely to be the victim of skimmers who steal your number and use it for unauthorized purchases who are skimmers or what is humor what hours you workers while skimming is when criminals put a device on the face of the ATM.

You may not notice it because it looks like it's a part of the machine, but the crooks can then capture the card numbers from anyone using that machine. That sounds pretty scary. Where else might debit cards be a concern. Yeah, believe it or not Steve restaurants. If you pay your bill with a debit card you're putting a lot of trust in the waiter or waitress who takes your card away for several minutes and nothing prevents that person from copying your number to use it later, or perhaps even sell it to crooks. But here's another one you think might be the last place you have trouble with a debit card and that's buying airline tickets. This example isn't fraud, but you could still be out the cost of your ticket. If the airline goes fast.

It happened recently to people who booked flights on WoW air. They had no way to get their money back.

The company has new investors and will reportedly resume flights. Maybe they'll give vouchers to folks who were stranded while air can missed those guys. Oh what about buying things online. Lots of us use cards for that.

Whether it's a debit or credit can that be a concern well with a debit card you won't have the same protections you have with a credit card.

Steve, if your merchandise doesn't show up or there's some other problem with the transaction.

You may not get your money back with a debit card. On the other hand, with a credit card. You have 60 days to file a complaint and be reimbursed by the card issuer arts and credit cards are safer than debit cards. But what if I don't trust myself using the credit card very good question. We don't want to encourage anyone to use credit if they can't pay off the full balance every month but you still have three alternatives to using a debit card. Obviously, you can write checks, you can go cash only. As we talked about before. The third option would be what's called a secured credit card. It'll limit your spending.

Even if you can't because you have to keep cash on deposit and you can only spend up to that amount listening to moneywise live what you like your life to be infused with joy.

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So much for being there to.

But this reminder of today's broadcast is recorded, we will be able to take any live calls but we knew in advance we were going to be doing this so we've lined up some interesting colors and questions for you. So please stick around with that in mind it's go up north to State College, Pennsylvania, and Jason what's going on in your life, sir, thanks for all my life and I got my wife and I recently purchased a new home and was unexpected and it took up a large chunk of our savings while we wait for our other home to sell, which is very well and I had to purchase my life a new car recently and because it was an older car with a 10% interest rate and the loan right now is just over $5000 and I saw an option to maybe do a balance transfer for on 20% APR card with a 0% balance transfer. That's good for 18 months and so I just wanted your thoughts on doing something like that. Knowing that I can pay it off in an 18 month what is your plan to pay this back. Jason given what you know today, the plan is to make use almost every available dollar back. You know something north of $600 per month is what were looking at the idea have that margin available right now I do. Yes, if the house sells.

You could do that even quicker if the house sells. We can pay it off immediately. Okay well I don't like the 10% interest rate and I'm not typically a big fan of hay opening up a new card and beginning to play the balance transfer game because so often when the zero balances serve 0% interest is in play. The others just not as much intentionality with regard to paying it off because I will get to that later were not even paying any interest on it and we find other places to use the money. So unless somebody is really discipline living on a budget, demonstrating that they can feel have margin on a monthly basis and be disciplined to apply it to the credit card. There's a reason they do that because they realize most people don't pay it often end up paying a lot of interest on the backend. There's also going to be a fee on the front end that could be as much as 3% in some cases even more severe to pay hundred $50 you upfront which you know that is obviously going to offset the savings that you would have by the 0% so I think you have a couple choices airmen given that you're saying you've demonstrated you got this money available each month and you're committed to paying off is anything inherently wrong with opening a new card for this purpose.

No, I don't think there is, I'd probably rather keep you keep it right where it is and if you can't refinance and I realize because of the age of the car.

That may not be possible know even though right now the prevailing rates are much lower in percent maybe just over five depending on the four used car you know I think keeping it right where it isn't just really being diligent about paying it off would probably be my first option, but if you're really not concerned about that interest, and I understand why, then, is long as you really are committed to it.

Both you and your wife and you makes a meaningful progress and we set a date and we stick to it and we paid off by the time it's done then you know I think you could obviously proceed with that and and I don't think there's anything inherently wrong with that. I would just be really committed when you think Jason I really good advice.

I didn't know there were like other thing that I had to work out for long. I made sure I paid it off 18 month I will pay off in 12 yeah yeah will you will have that upfront to balance transfer fee which you need to understand what that is and you need to factor that into what you're thinking.

You're going to save over the next 18 months. So I run the numbers and make sure that with that figure still go save some money which you probably will in an interest rate of 10% but and then also look at that whether there's any prepayment penalties. Hopefully there's not but if there is you'd want to understand that as well.

Those are probably the two charges that would factor into this Jason, thank you very much. And speaking of used cars. Here's an email from Rob or from May Rob she says we called a few years ago when my husband and I were in bankruptcy were no longer there. We need a new car, so we sold our two vehicles to raise some money. How do we tie off the sale of the cars that they sold okay. What made the principal of the tithe is based on the increase in unless these vehicles appreciated while you had them and you were able to sell them for more than you bought them for, and therefore generated an increase then there is no tie that applies here to this sale because the cars are depreciating assets, you buy them. They depreciate and then eventually if you use that you pay them off and then and then you sell them but you don't have any increase there unless it appreciates in value and that would be a whole different category of car then were probably talking about here, so the tithe is not in play in this. This equation thank you for that man again.

If you have a question you'd like to send along the Rob a brief question. Just a few lines the. The address is email questions go to questions that moneywise.O RG well speaking of tithing will stay right there. Philadelphia Amy. What's your typing question, I am and is not a believer about number.

I found an increasing burden cute nights). I am torturing care that came to fire conflict going on because while the Bible called patient 522 up the Atlantic to tell really know what you doing I love. I yeah well I think this is definitely something to really think through and pray through and I would agree with you. God does call us to give.

But he does also call wives to submit to their husbands. He also calls husbands to love their wives as Christ loved the church and you know I I would go to first Peter three in this and that word says wives in the same way, submit yourselves to your own husbands, if any of them do not believe the word they beat may be one over without words. By the by their wives and so your life is a living testimony to your husband and your submission to him is also a testimony. And so what I would say to you, Amy, is that God knows your heart. And he doesn't need your money and I think you praying for your husband, but acknowledging that he is, is not somebody who wants to be tithing right now letting him make that decision and if he disagrees about it don't proceed, and God knows what you're trying to do there and let's pray that by you honoring your husband in that way that that would be a testimony to him.

I think the only thing else you could do is to at some point say to him you know what is. I read Scripture it says that this is the one area we can test God. So perhaps this is an area where you say the next six months we just agree to tithe and will stop at the end of that six months of work you look back and reflect on what God has done and see what's happened and perhaps allow God to do something there that would in some way draw your husband to him ultimately and perhaps allow him to see God's faithfulness and who knows what way that could show up financially or otherwise, and then see if if that's not something that becomes really a testimony to him as well but at the end of the day. I would just say, given his not knowing the Lord, and given that he's got a problem with this I would just say let's pass on it. Submit to him in that way and just trust that God is good to grab hold of his heart and will join you in praying that the Holy Spirit just opens his eyes and his heart to the saving knowledge of Jesus, knowing that that's ultimately what we are all working for here and that is that he comes to out to know Jesus in that way and Amy, if I may go out on this limb because your motivation is not to not tied because your motivation is to see your husband ultimately saved. I believe that once you've typed in your heart once you spoken to God about this he knows your motivation you're more concerned about eternity than the amount of time you giving right now because God owns it all.

I believe once you done this in your heart that God sees it that way and sees that time and again I'm going out on a limb. Send me an email seeing lots of husband see his way over the decades we've been doing this kind of counseling. We wish you the very best you listening to moneywise live Rob West, I'm more gone. Here's a great deal more about our money than most of us imagine Jesus is more about our use of money and possessions and about anything else, including both heaven and hell in managing God's money, author Randy Elmore and breaks it all down in a simple, easy to follow format that makes it the perfect reference tool if you're interested in gaining a solid biblical understanding of money, possessions and eternity managing God's money is available in the store moneywise forget it. You can tell me when you forget I can tell you. Are you certain into Dearborn that we now we know how much a wonderful word is one think it's one word in the Greek language exception. You are not going to the one thing this is not going again friend who lost both of her parents.

Frankly, I believe he thinks here's out pain all know my way buying a home is the largest most nerve-racking perches.

Most of his ever make. It doesn't help that you're entering a maze of unfamiliar words and confusing options that can leave you intimidated frustrated and afraid you been taken advantage of navigating the mortgage made by Dale Vermillion help you clear up the confusion on rack your nerves and make the best mortgage decisions possible with confidence navigating the mortgage made available when you click the start button that moneywise they don't check us out online.

You'll find is that moneywise you will find links to lots of free resources budget templates radio archives by the certified kingdom advisor in your area and how to give if you'd like to send a gift we'd certainly appreciate that it's tax-deductible. Of course we hope that that's not your primary reason for giving if you'd like to be a part of this ministry. I give online when you click the donate tab that moneywise live.ORG fishers, Indiana hi Tyler what you question for Rob. Thank you for taking my call Cheryl on her quick question.

My wife has a 401(k) and an employer no longer work and there's a decent amount of money in our electoral roll over into the regular retirement account. I wasn't sure how to practically go about doing that I would prefer to do it online myself instead of going to advisor. Are there sites that you would recommend or where working to do that. Yeah well there's a couple steps involved here. Tyler, the first thing you need to do is open that IRA. Unless you're planning to roll it into an IRA that's already been open. Do you have an IRA traditional no not not not within a 401(k) okay well you so the next step would be to decide who your custodian is going to be and a lot of that has to do with how you wanted to be invested. Whether you want to do this yourself or you want to have somebody else if you don't want to involve an advisor or you can use ETF's with like an indexed approach or how do you want to go about investing this money?

I'm not.

I will not like not an ETF. Okay yeah that's fine so you're going to select those funds yourself though as opposed to hiring somebody to select them for you. Yes you plan on getting advisor and having some money there may be looking to stay some on my own as well, okay, very good. Well, couple of things that I would probably consider either Charles Schwab you could look at TD Ameritrade. You can even look at Vanguard. All three of those would be very low cost. You can open the rollover IRA online. It would have nothing in it and then once the money is moved over will talk about how to do that in a moment. Then you could invest in anything you'd like with Schwab and TD Ameritrade. You have the full gamut of high quality, low cost, even no transaction fee and no-load mutual funds available to you with Vanguard, you have the Vanguard family of funds which are very high quality as well. Once the accounts open. You want to contact your HR department or plan administrator for that 401(k) or your wife will and you want to say I need the rollover paperwork and they'll send her probably electronically the paperwork will she'll fill in the account number to the new IRA that you've opened and the information probably the a cat number or for the automatic transfer and you can get all of that from the other institution and then literally the funds will just transfer without coming you. You will get a check or anything and you will be notified once there deposited into that other account in the form of cash at that point you'll be free to then begin investing and I would visit with our for some great ideas on mutual funds and I'd love even send you copy the soundbite investing handbook which could help you as well. All that you can do yourself. But that would be a great resource for you as you're making those mutual fund selections so I love this idea, it'll be you'll be surprised at how easy it is and at that point you're cut off to the races. I think the key point here, though, is don't miss the opportunity to get some wise counsel even though there's a cost involved. I still think your benefit in the long run. By having somebody help you make these decisions, but is clear to you where you plan on getting advisor, but I THINK I want to do a law well lit it up both ways. I like well I think that's that sounds like a good plan and will be quick and easy for you to do so for any other questions along the way.

Just let us know. Tyler would let you call. Thank you very much, buddy. We appreciate it. Robbie said we think an email or I that sounds great. This is from Melissa she says dear Rob I'm trying to find a starting point to get myself debt-free is consolidation a good option for me. I'm struggling and barely able to make my minimum payments. I don't know where to start a please can you help yeah well Melissa, I'm delighted to hear that you purposed yourself to get to a place where you are debt-free and really the beginning point I think is recognizing your steward as we all are were managers of God's resources we want to be found faithful in God's word is a lot to say about how we manage money wisely. Second thing is you've got to have a spending plan really the key to staying out of debt and creating margin to pay off debt is living within God's provision and spending less than you earn so you can free up Access to be able to fund an emergency fund or pay down debt. That's really key in terms of the strategy. I really don't like a consolidation loan where you're taking on new debt to pay off old that often times it takes the pressure off. Even if the interest rate comes down.

We often see a year or two later the debt is back and we have the consolidation loan on top of it because we didn't solve the ultimate problem which was spending less than we earned we can also spread out the repayment.

Too long and therefore even the lower interest rate is going to end up costing us more in the long run.

So here's what I do, I'd consider a debt management program, you will have to close any of the cards that go in, but you'll find you'll pay it off 80% faster because you have lower interest rates and one payment. Visit with our to learn more. Okay good good information rep.

Christian great organization you like to send Rob a brief email question to be read on the year.

Here's the address it's back with more, how should we as Christians think about investing. What if we could invest our money in a way that aligns with what we believe that Eventide we believe it is possible to love God and love our neighbor in the very practice of investing redesign investments for performance and a better world so you can invest for the future with a sense of wholeness and purpose.

We call this investing that makes the world rejoice. More information is Christian healthcare ministries enables believers to show love for one another by sharing each other's health costs through CHN's voluntary health cost-sharing programs members uplift each other spiritually and financially. CHN was an eligible option under the affordable care act and a Better Business Bureau accredited charity interested. Learn more by calling 800-791-6225 or online at CH ministries.more hi my name is Aaron production assistant at Moody radio Moody radio first of the week is found in Mark 1124 25 therefore I tell you whatever you ask for in prayer, believe that you have received yours and when you stand praying, if you hold anything against anyone father in heaven give you your 1120 radio first week how one person described Scott to focus on Christ, starting with word that also carries over into father is there for somebody that might seek like this. The word call one 800 DL Moody is oh money and life run on the same track.

Unfortunately, sometimes it seems like your money is heading in a different direction from your goal, and never enough three keys to financial contentment.

Author Ron blue helps you to break down all your financial options to a basic floor and then shows you how to keep it all chugging along in the right direction on the same track never enough three keys to financial contentment available when you click the store very different foods in Washington over the next coronavirus aid package are biased Democrats proposing $3 trillion in relief. Republicans have a $1 trillion counteroffer attorney general William Barr on Capitol Hill testifying before the House Judiciary Committee earlier. He is defending the federal law enforcement response to civil unrest in America.

March all the members of the committee at a much-anticipated hearing that the Violence Taking Pl. in Portland, OR and other cities is disconnected from George Boyd's going major league baseball temporarily suspended the Mira Miami Marlins season through Sunday because of their worsening coronavirus outbreak like slump left stocks probably lower on Wall Street that all fell 205 points today. The NASDAQ was off 134 Mrs. SRN use time and we hope you having a great day of atonement, Florida Michelle think your patients and what you question that are hard working full-time employee would like to health insurance, you know, like to pay for their health insurance.

Can you tell me the best way to go about doing yeah you want to find a health insurance broker who could look at your particular company and go out and shop and on the open market. With all of the healthcare providers and based on the size of the company and based on the benefit you're looking to provide. Obviously the give you a menu of choices.

If you don't know a good health insurance broker, perhaps at your local church as somebody who has a small business perhaps maybe even a little bit bigger than your own who they use most often, people will use a broker for this purpose so that they can each year bid the particular health insurance plan against other companies to make sure that year to year as the increases come in and they always do that.

They have the very best option for their employees and themselves to keep costs down and provide as much coverage as possible. Now those premiums are going to be deductible, Michelle yell in the sense that any health insurance for employees or for dependents are hundred percent tax deductible as ordinary business expenses on the state and federal level, but are still expensive, so one other option to consider, which I think a lot of small businesses and even churches are doing is to look at a health medical sharing ministry as an option. Now it's not traditional health insurance. It's not insurance at all.

It's Christians coming together to share each other's medical bills, and you would.

Although there's if it's a fraction of the cost, you would have obviously more in the way of out-of-pocket expenses for routine care in office visits and so forth.

But beyond those levels. Once you reach a certain threshold. I think around $450. Everything is then covered through the sharing ministry very cost-effective, but again they did in order to attract and retain competent workers that they are often going to be looking for benefits and namely health insurance just because of how expensive it is and if they have smaller children and so forth.

They may be looking for traditional insurance, but I would at least look at it as an option. So I think your next step is to find that health insurance agent or broker who can go out and bid several plans come back to you and you and your husband can look at data and factor it in into your business plan. Make sure you've got to the ability to do it, but no doubt it'll be a great benefit to your employees okay and you're welcome. Yeah, you're very welcome.

I'm from Fort Lauderdale so I know your neck of the woods well and hope it's a beautiful day down there and tell for thinking thanks Michelle and let's stay in the beautiful state of Florida, Windemere, Florida. Lewis has some questions about some retirement choices will Lewis thank you for your patience into your own money wise. I go ahead thank you and my call yes or I have been I have been what your program all along, and I do have a question for myself. I am seven years ago and I have my home that I owe about hundred and 15 Kyle and I have a 401(k).

I have no amount of money and the IRA. My question is my age, should I work towards pain in my house or should I continue to live by. I have a 15 year mortgage and I have an my 15 years so I think that my interest rate report. What is the benefit will be paid to how all will put more money towards my full okay yeah you know roughly what percentage of your income you're putting toward your 401(k) now year workflow process I created for go a few well so 18% of your pay is going into 401(k) each year year.

That's great okay in terms of your home and in just your overall budget your IVC paying your monthly payment do you have any margin at the end of the month in a given month. I do have my but I do have a market that is well. I think the key here. Lewis is we want to do both things at the same time we want to be working toward being debt-free and I love that you have a 15 year mortgage and you only got 10 years left. We also have a great interest rate on that mortgage at a low 3 1/4%.

You're also saving aggressively.

I would consider 18% going toward a 401(k) pretty aggressive.

That's a good thing especially if you're trying to get your point, trying to play catch-up maybe didn't do quite as much in the past. I think the key with your margin. Moving forward is as long as you've defined your finish line.

Meaning, you know what your goal is for retirement and if you don't, I'd engage a financial planner there and in Florida to help you do some retirement planning so you know what your finish line is that's number one number two you're an active and regular giver. That's gonna break the power of money over your life and allow you to experience the joy that Jesus was talking about when he said it's better to give than to receive.

So we want to be active and systematic givers.

We also want to be moving toward being debt-free and that you're doing that as well. Now, if you have margin over and above 18% B retirement plan covering your bills and you got your emergency fund, you're actively giving yeah is sending an extra payment or two a year to your mortgage company is going to cut that 10 years down and I'd love for you to get to retirement, whatever that is where you have no debt, including your home, so perhaps that's a way for you to say okay if I'm planning to retire at 65 and that's not a there's no magic age.

Here we need to ask God what he has force in that new season, but you may be redirecting your time and energy elsewhere, whatever that date is perhaps get your mortgage company to run the amortization schedule to tell you how much extra you need to send per year so that your mortgage is paid in full by the time you get there.

And guess what that's gonna do it can reduce the amount that you need. Every month in order to cover your lifestyle from Social Security and your investment. So I think you're on the right track. I'd stay at your long-term savings.

I do some retirement planning with a financial planner and I would try to figure out how you can sync up the payoff of your mortgage to your retirement. Expected retirement and what that would mean in terms of extra principal payments each year and without Lewis were going to have to wrap it up, put a bow on it as they say were out of time, but thank you very much for being a regular listener. Thanks so much for calling and sounds like you're really moving and heading in the right direction of the last thing and I believe Rob may have mentioned that at some point you need to decide you will. How does God want me to live what should be my standard of living and obviously Rob that's not the same for everybody. In fact, it's very seldom the same for everybody right.

That's exactly right. You know, we need to all be asking Lord, what if you called me to do what is the lifestyle you want me to live and then respond accordingly. Nobody else can find that force.


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Do you know if you have enough enough money of house. Do you know how much is enough. If not, one blue can help with this book. Master your money a step-by-step plan for experiencing financial contentment. Learn how to save and invest and give wisely, how to create a long-term financial plan and how to get out of debt. Find it all in master your money by Ron blue available when you click the start button moneywise to work where I'm a car guy here to help you understand the urgency and how fun it is to share your faith at every opportunity. It's our human nature to want to do more.

Whatever it is that makes us most happy. That's why monks all the wonderful things I get to enjoy life. I really have a great conversation about God than anything else. The more you know God, the more you want to know God and the more you know God, the more you want to share God and the more you share God, the more becomes like because it brings eternal life in you actually that's fun.

As much as I love my business in cars and great food experience is also easily meaningless.

100 years from now. For those of us who are Christians. The only thing that will matter in heaven is how many of you will be in heaven because our influence. There's nothing more exciting. Knowing God just use you to lead somebody to join us and ignite is something that most people only really tuned to seriously. When the chips are down. You and I can be sure that there are a lot more people praying to the wound before the coronavirus break and get this whole crazy thing was meant to be merely last resort under any diamond from Christianity

The startling thing is that when you have goals would you discover that the only sort of.

The Bible teaches about is the sort that has powerful results.

I want to encourage you and gain with these truths. Listen carefully. The only sort of prayer that the Bible teaches about the sort that has powerful results. In fact, we told to come boldly boldly before the throne of grace to receive mercy and find grace to help time of need. Second, I encourage you to die. Pray boldly and let go on space rule in your heart. The financial wealth you leave behind could be the best thing that ever happened to your love, what's or the worst, and it splitting hairs, giving your money and things to your children without ruining their lives. Ron blue explains why it's important to make these decisions now, instead of forcing your heirs to do it later. Splitting hairs will foster a real appreciation for the precious resources that God has entrusted to you, and it's available. Click the start button moneywise. moneywise live with Rob last time Steve Moore this is a place where your checkbook and God have an impact on your life and the lives around you and let's go back to their phones somewhere in southern Illinois. Aaron, you've been very patient, thank you very much, well, what's on your mind today, nearly 3 how part 35 and 30. I have a six-year-old network building up our savings for rainy day fund.

I get how do we incorporate make sure that our son take care of. Make sure all the bills are paid, they fluctuate. Sometimes there $400 month. Sometimes they can be 1500 depending on what type of therapy he had and things like that. So how do you incorporate a chronic illness or something that won't go away when our financial plan. You know I is a great question and is your thinking about your spending plan you wanted first to think with something that is unknown and variable you want to start by looking back and so you would say okay let's look back over the last 12 months and you know if this is something that's been around for much longer than that.

Maybe even the last 24 months. Just to say what's been the amount we've spent over this 12 or 24 month period and then take that total and divide by 12 or 24 to get more of an average and then once you have that number. I would then look forward and say okay now I know what the historical average is now what do we know about this situation medically. That could result in changes in the future.

And then you want to make sure that's reflected to the extent you have information or knowledge that something will change with regard to the cost structure and then settle into an amount that you think is reasonable. Well then like you with anything, whether it's medical or otherwise, we can go back to the spending plans that can I do this I can. I put away 400 a month or 500.

Whatever it is, and what I need to do to bring my spending in line with my income and what changes do we need to make, if any, then perhaps you set up a savings account specifically for that purpose, and the great thing is now with online savings at something like outlier markets or capital one 360. There's no fees for those you can set up one specifically for medical expenses and by the way, if you have the access to a high deductible health insurance option you may want to consider an HSA health savings account.

But either way I think you having that fund available to be able to put that money into its earmarked for that purpose. Maybe it's an automatic transfer every month coming portion out of every paycheck, so you don't even see it and then it's linked to your checking account so you can move the money back as needed. That's just about the best way to go about trying to plan and as you get more information over time. You would of course have to adjusted periodically. Do you follow that there you're welcome. There was another piece to this in our building.

I don't have 35 so I've got quite a bit to go on a 30 year average to go to work so I mean I'm probably incorporating some type of brought retirement. I haven't gotten to that point yet but have at retirement moving forward on to think you don't have any debt anymore yeah well let's celebrate that and take a moment to say, Lord, thank you for your provision that's allowing us to live completely debt-free except for the mortgage and were working on that we want to honor you.

We want to be givers you want to take care of all these medical expenses we want to manage your money wisely and we want to save for the future. And so what is the right amount to be doing there in your husband's got one plan started and you got a Roth and you know if you have some matching at work.

If you're working, you know, that we may want to I think that's probably a great thing for you to take advantage of because it's free money.

If not, I think the Roth is a great choice. So you got competing priorities here, Aaron.

You guys are trying to work it all out, and I'm confident the Lord will honor your your diligence.

There sure sounds like you're making great headway. We wish you the best Aaron thanks much for calling Tuscaloosa, Alabama, and Stan what your question today for Rob West high stimulus okay were having trouble. Stan will go to adding Kansas and come back to stand and what your situation, how can we help you. You guys to hear.

You kinda pretty much anti-and not my question for you. I'm a farmer and court when you farm the number one thing you have to have a plan though that is something that you'll never have enough to make urge so can a Christian man farmer because you're going to farm you're going to hear. So are you guys your program. Are you concentrating on personal data or are you also talking about we talk about both said just clarify what you're talking about here because you are right you know we we talk a good bit about the Bible's warnings related to debt in their clear starting with this idea that the borrower is servant to the lender. There's a change in relationship there and no debt was considered a curse in the Old Testament.

In some cases, and so we see just all of these warnings. However, we also talk very clearly about the fact that a borrowing is not a sin be theirs permissible dad and what we would call permissible debt is where debt is taken out. Not for a depreciating asset like borrowing from a car we would try not to do that where you're funding your lifestyle with credit cards things like that but where you're borrowing for things that are appreciating so a home would be permissible debt. That makes sense from an economic standpoint allows you to make a major purchase. It's also your place to live, but it should be a someplace is going to increase in value and businesses would be in the same situation where you're borrowing to conduct your business and so it allows you the ability to do what you do in your case said Aaron Kansas that's farming. Why would say that's a perfectly permissible use of debt, but we don't do that blindly we do that heeding the warnings in Scripture and recognizing that change in relationship monitoring or debt levels, and making sure it doesn't become something for a personal family or a business that can create a real financial challenge because just the servicing of the debt becomes something that puts a major strain on the business or the family. So even though it's permissible and and can make a lot of sense in both situations, we still need to understand the nature of debt and be on our guard and we also enjoy the benefit of being debt-free over time in both a personal situation as well as a business situation. I remember years ago a friend of mine who was in the heavy equipment business and decided that he was going to pay off all the equipment and get completely debt-free will. That's is unheard of in that business because you have all this equipment and you're constantly leasing and buying when he decided he was going to just pay it all off. Well it ended up being a major earthquake in a downturn. Everybody went out of business in California and his equipment was the only one on the scene because he had the ability being debt-free to continue to operate the business during a difficult economic season and he had the ability to respond to a really tragic situation. So I think there's also some benefits to being debt-free, but not don't hear us said that there is something wrong with using debt, especially when it involves an asset or in the case of a business using debt for permissible and positive purposes.

You follow all that my monitor that makes her manageable. You I went through the 80s. I never got 18 but I think I think you're right on there and then hopefully that clarifies our our position on that and we appreciate your listening and then for calling today. Thank you and God bless your brother we appreciate your efforts on behalf of all of us to take advantage of your hard work.

Thanks again. Now Tuscaloosa, Alabama Stan, I hate to do this to you buddy. We have like two minutes at the most.

I'm to summarize your question and then you jump in your 63. You can't retire for another 3 1/2 years. Thinking about taking money out of your 401(k) you're wondering if this is a good idea is that pretty much it will fall 181 at about you withdraw thousand dollars for the next 40 okay. Over time yeah and soon Stan, this would be to supplement your income so hard government job to play a lot so I did stop parklike about market taxes on the take it out. I don't need it but I did not okay yeah I guess it when I'm wondering unless you were going to give it away and wonder why you taken out I might rather you just leave it right there. Continue to invest it, let it grow.

You can then roll it out to the RM you can take it out. It is gonna be a taxable event. There is no penalty because you're over 59 1/2 in and but if you wanted to do some giving and the Lord was leading you to do some giving that I'd say don't think twice just do it. That's great, especially he's blessed you, you, your bills are covered. You got this extra money, but if it's just to take it and move it from one account to another account.

I don't know that I would go and pay the tax on it now I just keep it invested in whatever it's invested in assuming it's appropriate for your age risk tolerance goals and objectives and then when the time comes to roll it out over to an IRA.

Then you can move it out from there and stand you have to let you go but I hope that information helps you. Thanks very much for holding for your patience and for bearing with us today even listening to moneywise. The last time Steve Moore we hear each day, Monday through Friday taking your calls about anything financial but I'm sure you figured out by now that our wisdom is not wisdom, that we gained over the years difficult with the best of our ability you'd like to know more about God and his word. Check out the financial stewardship Bible. It's available when you visit our website moneywise live.moneywise live is a partnership between radio and moneywise media.

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