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Making Better Decisions

MoneyWise / Rob West and Steve Moore
The Truth Network Radio
November 2, 2020 7:03 am

Making Better Decisions

MoneyWise / Rob West and Steve Moore

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November 2, 2020 7:03 am

The Bible tells us to take counsel from others so we can make better decisions. And asking good questions every time you make decisions can help you determine the direction and the quality of your life. On the next MoneyWise Live, hosts Rob West and Steve Moore sit down with pastor and author, Andy Stanley, to find out how we can avoid mistakes in life. Making better decisions on the next MoneyWise Live at 4pm Eastern/3pm Central on Moody Radio. 

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Rob West and Steve Moore
Destined for Victory
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Rob West and Steve Moore
Rob West and Steve Moore

Proverbs 1215 says the way of a fool is right in his own eyes, but a wise man listens to advice that's right, the Bible tells us to take counsel from others and make better decisions. That's the title of a new book by Andy Stanley today host Rob last six down the offer to find out how we can avoid mistakes in life, especially with our money at your calls and questions on any financial topic at 800-525-7000 800-525-7000 times more making decisions that snacks right here on moneywise pastor and founder of Northpoint ministries, based in Atlanta. He's the author of more than 20 books. His latest coming out this month titled better decisions, fewer regrets five questions to help you determine your next move.

But exactly right Stephen, who wouldn't like to have fewer regrets. Andy, a true delight to have you with us on the program today. I appreciate the invitation and this can be a lot of fun to think absolutely well were thrilled to do it before we dive in today because I'm excited to unpack these questions make the connection for us at a high level. How do our decisions shape our lives. Well, really, our decisions determine the direction and quality of our life. We are really in some ways nothing more than the result or the sum total of the decisions we made, and you know all of us have had people make decisions that have affected us. But then we respond to those decisions which those are also decision so, are decisions like the steering wheel of our life and so you get decision-making right you get life right for the most part, so this is a really really big deal. Well it is and as you said, we are writing our story, whether we realize it or not and that is the sum total of the decisions that we made and, as you point out in the book really good questions lead to good decisions. Whether you're dealing with money decisions or any decision for that matter.

So let's talk about the questions were asking why that's so important yeah and distant backup and make one comment about that this is something that is easily overlooked that really our decisions are no better than the questions that we ask and everybody all of your listeners have some sort of decision-making template some sort of filter they used to make decisions and we ask questions we don't ask them out loud but subconsciously ask questions like this make me happy. Will this hurt me. Will anyone find out is habit-forming. The note, as this let other people to a good place or bad place, and especially when it comes to money. So since were asking questions. Anyway, the point of the book is hate. Here are five questions you should add to your decision-making filter on.

Here's five questions you should add to the other questions. Perhaps you ask when you're making any kind of decision but particularly when it comes to money, so the questions are limited, just hit, but stood at the questions are verse five. Why am I doing this really why am I doing this really why my leasing the scar really, really, my darling money really the second question is, what story do I want to tell when this incident when this situation when the circumstances are nothing more than a story I tell what story do I want to tell the third question is is there attention that deserves my attention in this question really intersects in a big way with our financial decisions because when we say is there attention that deserves my attention and our culture culture so confirms a specific way of handling and managing money, especially debt onset if were not careful, just because everybody else does it.

Just because it's the way things are done. There's going to be at a tendency to just, you know, follow along with everybody else. But as we allow God to you know invade our and shape our conscience. Often times when were making a decision their skin to be attention, there's gonna be what my dad called a red flag. Their skin has an inner hesitation. So the question is, is there attention that deserves my attention then the fourth one is what is the wise thing to do. This is the maturity question in light of my past experience in light of my current circumstances. In light of my future hopes and dreams. What is the wise thing to do and in the fifth question is the relationship question, what does love require of me.

Those are obviously critical decisions and as you said, we all have a filter of the question is our decision can only be as good as the questions that were asking, and so perhaps by rethinking that reframing each of these decisions, and understanding the implications both now and in the future we can make better decisions and live a life with fewer regrets the right around the corner will unpack each of these for a moment and see if we can help our listeners make some better decisions, author, teacher, pastor, Andy Stanley with us today were discussing his brand-new work, better decisions, fewer regrets. Let's hope so. This is moneywise live will be right back to have you with us today on moneywise live from West your host. I'm Steve Moore and were pleased to say that I guess today is author pastor teacher Andy Stanley were discussing his book, new book, better decisions, fewer regrets. It applies to lots of areas of life, including our finances well it sure does what questions you're asking yourself is your making decisions you know your life is determined by the decisions you make, and perhaps with this brand-new resource you can ask yourself a different set of questions. Andy just before the break you unpacked these five questions starting with am I being honest with myself.

Really, you know we are experts at perhaps convincing ourselves to do the wrong thing or arguing the case for why we should do something.

Perhaps we know we shouldn't talk to us about this question why it's so important. Well, we are all sales men in sales when we are all salespeople when it comes to selling ourselves on really bad ideas and you know the people in your audience.

They may not feel they can sell anything to anybody else, but they have spent a life selling themselves or on ideas and here's what I say in the book and this is important when we catch ourselves when we catch ourselves selling ourselves on an idea we should hit the brakes because you rarely have to sell yourself on a good idea.

We sell ourselves on bad ideas in the way this works is you know we get our hearts wrapped around something, especially when it comes to our money because you guys know you talk about all the time, money is so emotional because stuff is so emotional, so we get our sights set on something we want and then our hearts say to our brains. Hey, come up with some reasons for this because I need some reasons and basically they're not reasons there just justifications will you believe the justifications next thing we know we think we have a rational argument for purchasing something we have no business purchasing so we basically lie to ourselves because we sell ourselves so I say to folks all the time. This is this is why when you catch yourself selling yourself. You should tap the brakes because you rarely have to sell yourself on a good idea.

The of the other exercise I take people through in the book is this, I see. Imagine going into a retail outlet and the salesperson saying to you the same sales pitch on you that you use on yourself.

If an actual salesperson were to say those things to you, you would be so offended you would walk out of the store right. I mean imagine year in a store of any kind in the salesperson says to you, as they try to sell you on something. Hey if you get home and don't like this, you can always just donate it. I merely said I would say that they may say to you what you know what you already have one of these, but this one's newer what kind of sales pitches that but these are the kinds of things we tell ourselves all the time so am I being honest with myself and my being honest with myself really that puts the brakes on a lot of really bad spending decisions and again you know if you have employees, and if you run a company or of division or department, you know, it's impossible to lead a liar have to fire the liar look I say hey it's time that we fired a liar inside of us in tell ourselves the truth because if we can't lead ourselves we can have a really hard time leaving anybody else. Well it's so true. And as you said it really intersects appropriately with the money conversation that if we would just as you say in the book say what were trying to convince ourselves up out loud, perhaps from time to time we may make a different decision are the next when you call the legacy question and you said it's what story do I want to tell. Now I forget to think about the bigger story that were writing with our lives. We need to lift our sites up from the here and now you know why is this question so important well because we don't think about the art of our lives is the story we just think about the situation we're in right now but every single circumstance we face and maybes for some of your listeners there in a difficult season during a difficult season. When their marriage there a difficult season financially. Eventually this season is always going to be is a story that you tell to the question to ask in the midst of a difficult season really any season is when I'm looking back on this season and it's nothing more than a story I tell what story what I like to tell and what story what I want to tell my children one day when I'm explaining this when they're old enough to understand or my grandchildren.

So when we realize that were writing the story of our life, one decision at a time and we get to write the future of our lives one decision at a time. It helps to stop and say hey what story do I want to tell do I want to tell the story that I racked up so much credit card debt that I had to Dino. We lost our home or I you know I lost other opportunities or I wasn't able to send my kids to the school. I ultimately want to send them to me. Nobody wants to tell that story soon. Let story do I want to tell and I want to make sure I have a story I'm proud to tell and a story that we know. I don't mind my kids telling about me someday. So what story do I want to tell the book is called better decisions, fewer regrets. Delighted to have Andy Stanley with us today talking about five questions to help you determine your next move. We talked about the first couple of questions that are really key in my being honest with myself. Really, what story do I want to tell. Next up Indian you touched on this a bit before the break in those red flag moments. The question is, is there attention that deserves my attention.

But what else would you share with us here in this question well again.

Oftentimes in the decision-making environment. Everybody says hey this is what everybody else is doing. This is industry-standard. This is how people buy cars you know this is what have everybody who buys a house does. This is happening. This is just how it's done and as we allow our heavenly father and our faith in Christ to shape our conscience. There can be times when what's fine for every body else just doesn't sit well with us, and in those moments we have to pay attention to that tension in the problem is there's generally very little reasoning to support the tension and initially but if we refuse to brush by the tension rush by the tension and just sit on it then eventually what does it make sense and initially makes sense eventually and we make better decisions. So the question is, as I making this decision, especially as we talk about finances as I consider this home as I consider this rental property. As I consider whatever it might be is you know everybody says it's fine my financial advisor says it's fine but is there anything inside of me that is hesitant and if so pay attention to that tension until it goes away, or until it makes so much since you realize this really isn't the thing to do and you know what the three of us to live long enough to be able to look back on some financial decisions we've made and isn't it true that we kind new. This is not the thing to do with just his new and nobody else was saying anything. We just kind of knew, but we just did it anyway. So is there attention that deserves your attention. While that leaves right NAND to the next question which you call the maturity question, which is what is the wise thing to do. He knows we think about. Again, this story were writing with our lives and where we want to be financially perhaps 10 years from now. This wisdom question is pretty important as it yeah the apostle Paul says don't live as unwise but as wise, making the most of your time, because the days are evil. We live in a dangerous culture. Just pick up your feet allow culture to sweep you away and you will have so many financial problems that you may think you may never come out on the other and so I tease this question out in three dimensions. In light of my past experience in light of my current circumstances. In light of my future hopes and dreams. What is the wise thing.

And here's the kicker. What is the wise thing for me to do because my past is unlike everybody else's past my current state of mind. Is it like everybody else's and my future hopes and dreams are like everybody else is so especially when it comes to money. In light of my past experience. My current circumstances. My future hopes and dreams.

What is the wise thing for me to do well you write the story of your life. One decision at a time. This book will help you make better decisions and live a better life and so and they were so glad you joined us today. Thanks for stopping by. Absolutely. Thank you and will be right back with your calls and questions at 800-525-7000. This is money wise life right at you with us today. It's money was live last time Steve Moore this is a program where God's timeless wisdom meets today's financial choices and decisions and if we can help you with that again. Our phone number 800-525-7000: about anything 800-525-7000. Anything financial, including making better decisions and better choices and always a great thing when Andy Stanley joins us, which is not all that often needs. One of my favorite pastors and officers were about you all is no question about it.

I've been a big fan of that and he's teaching for a long time and putting his leadership materials that have just been a real influence on my life. So a joy to have him in working to make better decisions today. Steve is a result of spending some time with Andy Stanley super grateful amen to that again. Here's the phone number 800-525-7000 Rob a bit. Rather than jumping in with a phone call. If you don't mind, you know, every day I sit here with kind of a small pile of emails that we eventually get to but I thought maybe today we could take a deep plunge little deeper plunge into them than we normally do is okay yeah maybe a couple.

It sounds good.

Let's see, let's begin with Larry he writes dear Rob, we listen to your programs and heard you offer help with budgeting. We own our own business. Our income fluctuates each month as a result were having a hard time putting a budget together.

Thank you. So I think he wants help with absolutely no this is one of the challenges Larry when it comes to putting a splinting spending plan together and that is income that fluctuates here's what you want to do. The first key to this beyond recognizing that God owns it all in your steward which changes your thinking is practically capturing all of your expenses over a 30 day period, preferably even 60 days so perhaps get a little notebook out or something that's going to allow you to capture every expensive talk about those things you get a bill for and what we call discretionary spending those things, like eating out or go just shopping that you do, were you and I can get a bill in the mail and those nonrecurring expenses try to capture those things you need to be saving for. So when they come around twice a year. You have them in the budget.

Once you know the minimum that you need in order to cover all of your abs obligations.

That's the starting point. Now for the income side. Let's look back Larry over the last 12 months, and take an average of what you've received. The key will be to build your income off of that recognizing and some months you may have a lot of income, and other months lower. But if you build it off of a conservative average and you know you have some margin there. Then as you get those high months. It goes into savings in the lean months you draw from savings, but it should smooth everything out last thing I would tell you where is our brand-new money wise app should be a big help to you. If you go to your app store type and money wise biblical finance. It'll allow you to build your plan right there in the afternoon when you're ready, you can start tracking those envelopes.

I love it. The money wise app as long as were there Rob again other people find out more about is where they get yeah just go to your app store. Whether that's the Apple App Store the Google play store type and money wise biblical finance. It's everything I ever wanted in a digital envelope system. Our team spent eight months building it and it is phenomenal is getting rave reviews. Go check it out.

Is your picture there Rob for the tsunami which makes it a little bit better than gracious. Okay Larry, thanks for that email. Here's another one.

It's from Gloria. She says dear Steve and Rob I'm a regular tither. I've put my house up for sale.

I'm wondering now how do I tithe on the sale. Do I tithe on the asking price.

The price that I bring home after realtors, taxes, closing title, etc. or what why love this question Gloria because you obviously are a faithful giver you want to clearly honor the Lord with what you're doing and times in terms of your tithes and offerings and we want to help with that. But let's go back to the principle of the tide which is really 1/10 that's what the word means and it's based on your increase. So the question is after you sell your home. What is your increase. Well, you could equate that to essentially your capital gain. Whether or not it's taxable or not doesn't matter, but essentially it's the selling price minus the original investment. The purchase price plus any additional improvements that stayed with the property and subtracting any expenses that it took to actually sell it so your true profit after expenses, after deducting the per purchase price, after deducting any improvements is really your increase so if you wanted to apply the principle of the type to your increase that would be the number. Figure out what it is and then give generously to the Lord okay and Rob think we have time for one more email then we'll get to our phones after the break again. Her phone number 800-525-7000. Rob is asking. I have two or three credit cards I'd like to close. Is it better to close the oldest one first. Also, I was told I should have a time interval between closing the accounts and not to do them all at the same time. Do they have different limits, does this really matter.

Yeah well Bob, here's the thing you know if you want to close credit cards. I would say absolutely do it because every time you close a card that you're not using that's one more account you don't need to track what I mean by that is if it's open, it can be compromised, and there can be fraudulent charges. Therefore, any open account. You need to monitor. Even if you're not using them regularly. That means checking those statements are online balances every month. As soon as it's closed.

You no longer have to do that.

How do you close them. Well, I'd call them up perhaps in something in writing so you have documentation and yes I would close well if you only have two or three I'd see you going close all three at once. If you had five or six. I'd probably space it out over six months and by the way, if you have a choice close the newest one before the oldest.

The older accounts are actually serving you well in terms of your credit score and I must talk a bit. If you don't mind about credit cards, particularly for some younger folks who may be just getting into the world of credit cards maybe college students. We know for a fact that on college campuses credit card company show up. They know that the first credit card you get is the will that you get is likely to be the one you keep for a long time. So what you think kinds of credit will know maple get a run of time and this will become back find it will Rob thinks about credit card get credit card, debit card, pros and cons your calls to its 800-525-7000 give us a call right now it is good to have you with us today worth taking a look at well whatever interest you will try to apply God's wisdom to his wisdom and God's financial all through the Bible Genesis to Revelation. And here's our phone number 800-525-7000 before the break we were just chatting for a moment about credit cards.

The whole deal with credit cards, particularly for young person maybe going off to college for the first time and Rob are credit card companies there giving out hats, T-shirts and hoping to sign you up for their credit card what we tell a 19-year-old you want to credit card when a debit card. Do you want a black or titanium credit card you probably have to wait to your little older to get one of those.

I don't know much about those but the other three probably true yet. So here's what I would say Stephen, it depends. Here's why know if you have been training these high school students while they're under your roof, which by the way, is what I recommend how they set up a spending plan. The dangers of credit and the resulting debt that can come when you live beyond your means. If you've been working through all of that and they've had a debit card and the understand how it works and perhaps a secured credit card then I would say that perhaps there ready for a credit card at that point because they need to be able to use that wisely. However, if that training has not been occurring. Then we certainly don't want to turn a brand-new college student at 18 years old is not prepared we don't want to allow them to have unsecured credit and so I would say let's start with a secured card essentially where you put an amount on deposit.

Let's say two or $300 that the student has saved up. They will then get a credit limit up to that amount on deposit that they can begin using that for yes budgeted items and then paying it off in full at the end of each month that's going to establish their credit file. It's also going to teach them that they don't need to use that beyond what's available. Once they demonstrate that they can handle that, then perhaps there off to the races at that point, but it all has to begin with some proper training. Whether that happens on your roof or as a college student, I wouldn't start with unsecured credit all right real wisdom there Rob. It really pays in the long run to make sure your children are up to speed that there's been good instruction effect. Speaking of instruction. Proverbs 810 reminds us a choose my instruction instead of silver knowledge rather than choice gold.

I love that verse because God's instruction through us to our children. God's knowledge and wisdom again through us to your children is just the very best thing you could do as long as they're under your roof. So take advantage of that time. 800-525-7000 take advantage of that phone number if you'd like to speak with Rob West today about anything financial, Bristol, Tennessee hello Mike, thanks for your patience. How can we help user will will American We just got married really.

At first the year were all retired at the retirement age and she is also she returned from her business and the business that I've got going. She wants me to really get out of debt and I understandably agree with the hundred percent but with my business the way that I'm make money is actually actually have to go into it make the money you know and I'm this feel I want him to do what's right in God and I wanted get to the point where she don't have to worry about actually quotes with my business whatever and that it does cause a little problem not just I'm just trying to figure out basically what God want me to do.

Yeah well Mike, I appreciate this call, and I appreciate what you're describing. Because this is really where the rubber meets the road in terms of honoring God's intent for the marriage which clearly is oneness right he desires for us to be one as husband and wife coming together under his Lordship and to recognize that what we have in the way of financial resources belongs to him.

So we, as a couple are stewards of those resources. So how do we move forward with oneness even in this area of financial management and I think we have to recognize we come to the marriage with different backgrounds where parents handled money, whether or not we had the surplus or we were in need. Growing up, the personality that we have are we more bent toward being a saver or spender our views on debt and giving all of that needs to be worked through in prayer, but also in lots of dialogue and conversation and I think a couple of things that can help you all would be number one. To begin, to sit down and really talk through this recognizing I think there are some principles we can apply when it comes to borrowing.

So, for instance, not all that is created equal. We want to make sure that we recognize borrowing mortgages the future but there must be an economic return greater than the economic cost while in the case of business debt. Even though we would purpose ourselves to be debt-free, even in business as quickly as possible. We realize that what you're talking about is debt. Where in fact we would hope that the economic return would in fact be greater than the economic cost will perhaps talking through that so she can understand how that works in your business would be key number two we don't want to presume upon the future, so there should be a guaranteed way to repay meeting all debt should be collateralized and therefore could be paid off through the collateral behind number three God gives you a spouse to complete you. Therefore, we should always be in complete agreement and I think this is a critical one where you all you need to wrestle through that so that you can move forward in agreement and then finally we want to make sure that were never denying God an opportunity to works of the principal there is we want to make sure there are no other alternatives.

Now once you begin talking through that and understand that yes debt-free is the goal, but there are uses of debt that I believe are permissible.

Following those guidelines, and then come to some agreement as husband and wife.

How then you should proceed with regard to your personal affairs and your business now. The last thing I would offer Mike is that if you all don't have a financial advisor of financial professional who's a godly person who understands God's word and can really speak into these matters. I would say that would be a key person for the two of you because this would then provide someone who could ask the hard questions and really bring some outside perspective that a professional level but also with biblical wisdom infused in that. So if you don't have a certified kingdom advisor in your life.

I would say that would be a critical piece to this because again you and your wife could come together as husband and wife but also in the context of a financial planning relationship where you could talk through these things she could have somebody else to bounce ideas off of. So she's not just taking your word for it, so to speak, but really having an outsiders perspective in the entire equation, so be prayed up.

I think talk through these principles with her, and then consider bringing 1/3 party, a godly professional into the equation the can provide some accountability to both of you, but also be willing to ask the hard questions deal when necessary and like because you guys are newlyweds a standalone. If you would mind will get your contact information to be like to send you a complimentary copy of the book money and marriage. We we hope that that helps you. Thanks for calling today. Wheaton, Illinois, Kristin, we have a little time before the break. What you question my call. Sure we were talking about your credit card long ago I actually have one of those $300 is the maximum limit per month and what I is put a revolving charge. I have a right great high ranking storage space. I just put that on and off in full every month, but it is $279 so I'm wondering if the ratio you put on the credit card matter because I'm trying to get anything in my being that you want to keep that to limit ratio under 30%, so you may want to for another charge. That's a much smaller amount.

I will talk more right on the thank you. Hang in there 1612 reminds us that if you have not been think that which is another's school that is your own. Something to think about and consider it is something else to consider. We have some open lines right now.

In fact, we have three open lines of this would be a great time for your call to get through almost guaranteed so call right now 800-525-7000. We love to chat with you today. 800-525-7000 rub just before the break was speaking to a caller who was concerned about her credit rating and her secured credit cord, but secured credit card and what was the bottom line. There well yeah she was trying to get her credit score up which by the way, a secured credit card is a great way to do that. If you need to establish credit. Perhaps a lack of credit is what's hurting you, but you don't want to have an open unsecured revolving account out there.

A secured credit card is a great way to go again.

You put a certain amount on deposit, you get a limit up to that amount.

You can charge against it.

It doesn't actually tap those funds. You do not use that line and pay it back each month. If though you ever didn't pay it. They have the ability to capture those funds. But it does prevent you from taking on debt because you can't charge beyond what's on deposit now, given that she her goal was to increase her credit score and she was charging a recurring charge every month that went right up to the limit. That's actually not helping her. So what we talked about was keeping that limit skews me the charge under 30% of the limit every month so she's gonna replace that recurring charge up to the limit with a small subscription that she has, which is going to be just a small percentage of that overall limit every month shall pay it off in full.

But she'll never get beyond that 30% threshold and I think that'll cause your credit score to rise so if they limit or the threshold was $300 to doing some quick math so ideally she would want to charge more than $270 that month. That makes sense is that social well yeah to so 30% of the limit would be 90 so she want to say under that that you every month.

Here I am doing a financial program that I can't add 30 and 90 and 10% in course it is 2020 and all sorts of things seem to be happening this year back your phone is 800-525-7000 Louis in California, my friend. We know you've been holding, thanks so much for that and how can we help while I got my uncle but elderly person and he I get told. The mechanic arrived and so I have that money and I and so I wanted to know about capital gain and also about William Beck that money so that it they in a bank account that my okay very good talking about the business that he had the CSO proprietor. Does he have a corporation. What does he have that event get out.

He had been retired and now I bet the garage. I told them because they have corrugated roof a lot of things that could be lived in hurricane alley and I was afraid that they would go down so I doubt that.

And it was so bad and now I wanted to reinvent that a portion of that money no more than 50%. He has and in the home he memory care and so it better.

The and so I just wanted to keep a few dollars coming in. Yeah sense and I'm so grateful that you he has you in his life to care for these things Louis does what type of business does he have is it a C Corp. is an S Corp. do you know that way. Incorporate okay.

That's right, salt. Yeah, here's what I'd like for you to do what you really need to get with the a tax professional can understand what what he has here because the type of business is going to be a factor if it's a C Corporation who pays regular corporate tax rates that would affect capital gains differently than if it's an S Corp. it flows through to him personally and whether or not you have even the ability to do a 1031 exchange into a like title property or whether he's gonna recognize this and it also has to do with how you want to redeploy it. You know, do you want to take this money and put it into a well diversified stock and bond portfolio where it can be a passive income generator and then obviously factoring in the taxes ahead of time to your question is key so you don't get surprised by the tax bill that's coming either personally or for the corporation. So here's what I would recommend if you don't already have a tax professional. Go to our website Louis moneywise click find a CK and what you're going be looking for is a certified kingdom advisor in the tax and accounting area looking to come alongside you, help you figure out exactly what he's got. And then you as his guardian help him redirect these funds for his benefit so you can create an income stream off of the proceeds again a real blessing for him to have you in his life and we appreciate your call today.

Louis, thank you very very much. Akron Ohio bond of what you question today for Rob my credit card and what happened at credit. How do I get I got it will bother thank you for calling. It's a great question and you know this is the more and more common and often a lack of credit is what's can keep you from getting credit. Remember that credit score is to determine how likely you are to repay as agreed. The problem is they don't have enough room information to determine your credit worthiness that can often prevent you from getting credit. So a great start for you bond it would be what we were talking about earlier and that is a secured credit card. Essentially you would go into your bank or another bank and say like to open a secured credit card you would put a certain amount on deposit. Let's say two or $300. They would then give you a credit card that you could use for charges up to that amount.

And when you spend on that each month. It is truly credit. It's not being pulled from that balance like a debit card but they use that as collateral.

The benefit is it allows you to qualify for that car very easily because essentially they have no risk and then what you want to do is establish an automatic recurring charge on their if you have one a budgeted item. Of course, so you can pay that off each month, but that every month is going to report you as an on-time pay or when you open that secured credit card and over time that will build your score and allow you to eventually convert that to unsecured or apply for another card somewhere else. So a secured credit card is what you want Banda if you need help with that are moneywise coaches would be happy to walk alongside you. Just go to moneywise and click connect with the coach bond. Thank you very much hope that help you, and I think we can squeeze in Karen's call. She's in West Palm Beach and Karen. I was going on in your life. First time I will know her know you know yes dear I know you are very good questions care number one are you renting currently offer okay when you own the student loan so much okay one other debt. Do you have okay and you have any credit card or great and you have some savings to put down on this house. I 10,000 will real looking to spend on affordable wide 125 I see okay you know I think the key here is you have good credit.

Obviously, you do have some debt. I'm glad to hear that you don't have credit card debt which means your living within your means, your student loans are under firm and the challenge you're going to have his ill income versus the credit obligations that Yorty have outstanding so I think really the key is making sure that you have the ability to absorb that monthly payment without putting strain on your financial life and often we will use 25% as really the threshold there so you want to make sure that your principal, interest, taxes and insurance payment typically considered your mortgage payment with escrows is no more than 25% of your take-home pay and that's gonna really help you determine how much you can actually afford to borrow after you put this 10,000 down skews me yelling.

I want to make sure is that you have some savings. Beyond that, so I want you to have an emergency fund of at least a couple of months worth of expenses and I don't want you to use all of that in the form of down payment so number one.

I would perhaps go to bank and look at some other lender options to apply there. All the applications you make, and within a two-week period of time are to be treated as one for your credit score. See you can actually check with a few more lenders number to make sure you don't. Even if you qualify, you don't take on a mortgage that's gonna push you up so high that you're going to go beyond that 25 or 30% at the most and put some extra strain on your spending plan. If you don't qualifier you can't feel you don't feel like you can afford the payment. Given those parameters. What I would do is just continue renting and continue saving she can put more down down the road and that's gonna be my best advice for you today. We appreciate your call reassured doing Karen again.

We wish you the best will pray that God gives you his direction.

As you work through this. Thanks so much and thank you for tuning in today.

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