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More Money, Less Joy?

MoneyWise / Rob West and Steve Moore
The Truth Network Radio
January 5, 2021 7:03 am

More Money, Less Joy?

MoneyWise / Rob West and Steve Moore

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January 5, 2021 7:03 am

How often have you thought, if I had just a little more money, it would solve this or that problem? It’s likely that thought has occasionally crossed all of our minds, but the trouble is more money rarely does the job to solve our problems. On the next MoneyWise Live, hosts Rob West and Steve Moore explore the role that money plays in our happiness. Does more money equal more or less joy? That’s on the next MoneyWise Live at 4pm Eastern/3pm Central on Moody Radio.

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The 18th century Irish statesman Edmund Burke once we command our wealth, we shall be written free Farwell commands us. We are more so. How often have you thought if I just had a cell sword that trouble is the advisors Pres. Rob West explores the role money is in our happiness or does your calls at 805 five 7800 525-7000, more more money, less joy next on one will route we don't get the cool quote. Many 18th-century politicians on this program so I just couldn't resist. We don't really know how much Edmund Burke studied the Bible.

He was however a staunch defender of Christianity in his day, but it seems that this quote is based on the familiar biblical principle does I think so.

Steve generally on the idea that money can't buy happiness and may even make matters worse.

If you're not careful.

First Timothy 610 reads for the love of money is a root of all sorts of evil and some by longing for it have wandered away from the faith and pierced themselves with many griefs now expecting that more money will always make your life better is a recipe for disappointment or even worse, that's for certain. And will dive into that further. But first, a tip of the hat to the Ronald blue trust for their article on this topic. Based on Ron's book generous living in will put a link for it in today show notes. So where do we start here. Well Steve first by recognizing that there is a disconnect between what the world says and what the world does. You often hear the phrase that money can't buy happiness, but then everything around us tries to convince us that it can TV commercials are notorious for conveying the message that buying the latest car closer even gadgets will make your life better. Of course you need money to buy those things.

So what is the commercial really saying that more money will make your life more enjoyable.

But often the reverse is true. More money can actually lead to less joy in your life, the greater your wealth, the greater the burden inputs on your life when things begin to own you. Instead of the other way around. Indeed, a bold statement, but we know it's really true. Well, we can simply look at some of the rich folks quoted in the article, John D. Rockefeller, who earned about 420 billion through the standard oil company said plainly. I've made many millions but they have brought me know happiness Henry Ford founded the Ford Motor Company, and his death in 1947 he was worth around 200 billion in today's dollars. What if you say about having vast wealth he said and I quote, I was happier when I was doing a mechanics job" and will throw in one of our own from King Solomon, from whom the Bible tells us was the richest man who ever lived in Ecclesiastes 510, Solomon writes, he who loves money will not be satisfied with money nor he who loves wealth with his income. This also is vanity so those Steve are all the people who experienced great wealth, but none of the joy that we expect to come with it.

In the book you reference them only go generous living. Ron blue says this is based on two wrong assumptions of first that more money will give you more freedom and satisfaction and that more money will take away your fear of not having enough in reality, more money often just creates new problems in my opinion, and how is that well arrived, put it like this. He says and I quote since there are always unlimited ways to spend limited dollars. It doesn't matter whether you make 20,000 or 200,000 a year.

You will always have choices to make more money simply means more choices and more choices means more complex and more complexity, more confusion, more time spent mulling over options. Taken together, all of these things add up to less freedom." You know it. Instead of reducing fear Steve and having more assets can actually increase it. In my view there. So the more you have in your home or investment accounts more you have to lose potential in we see that panic every time the stock market takes a dive like that.

That's for certain nights or what's the solution. Well, it's what we say. Time and time again. The only way to get rid of your financial fears is to acknowledge that it's not your money when you fully take on your correct role as steward of the resources he entrusted to you while you begin to put your trust in God not money see the Lord will always provide for your needs for what he expects in return is honor him with the way you use it, and that includes managing it wisely and being generous. Thanks again will have a link to the article wealth paradox today show your calls spread ahead and minimize line 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 button at money wise live out of work if you're investing for retirement or any other goal you may be wondering if it's possible to enjoy both profit and peace of mind the matter what's happening in the market. Sound mind investing is a short video webinar on that topic. Sound mind SMI has helped tens of thousands of Christians learn to be wise and faithful stewards in the area of investing profit and peace of mind matter what's happening in the market. Sound mind three ways that you can pray for Moody radio we would be faithful to the word pray that we would present a simple gospel simply would be drawn right. Three important prayer request were serious about showing in omniscient making right now your commitment and being a part of our island try hard parents rising for real problems. I need some advice questions about planning for retirement.

Long-term care insurance. I don't know where to start.

It sounds like you need the money might help you find answers and you can ask your questions and access helpful articles and minimize podcasts.

Sounds great money. Okay, searching for moneywise and glad you're out there today listening. We know you have many options on your link.

Almost things Rob radio yeah you look you look you looking for the heavy-metal station.

This ain't it, but as long as you're there you might as well keep listening to Rob West taking your calls today. I'm Steve Moore it's moneywise live and arrive one allele what we just jump in and take a call okay that sounds great.

I Livingston, Texas hey Michael, good to have you with us today your caller number one.

How can we help you, thank you so much appreciate your program and thank you Michael Mike McAuliffe about mortgage refi and basically I just went through construction loan process with my bank and that rolled into mortgage at a 4.25% interest rate and that was in December of last year. So now gone to the construction process just started paying the mortgage in September and October, so pay just a couple payments but because of where the interest rate is I want to go ahead and lower that refinance and I've been talking to Quicken loans and sold the options there given me a 30 year or 20 year and the thirty-year is sick.

The payment is 6.25% 2.75% interest okay and then the 20 year is the payment 647 so just a little bit more at the 2.87% interest. The question I have is the person mortgage banker is basically telling me that with the thirty-year mortgage that I'm going to pay because of the interest rate and the amortization that I got paid less in the long run, and that the actual mortgage won't run the full 30 year term because of the amber to amortization and percentage rate and I don't understand Hamburg nation and percentage rate but I just wanted to find out that, do you not have to pay a 30 year mortgage out over that entire 30 year ability Michael to accelerate the payoff of the thirty-year mortgage is amortized to 30 years and so the interest is going to be spread over that thirty-year. Now the interest is sets, meaning you know exactly what you're going to pay in interest over the life of the loan and yell as long as you paid based on the schedule that's presented to you which would be a 30 year payback on a 30 year fixed rate term, then you'll pay that set them out the way you reduce that is by adding principal reduction meaning paying above your monthly payment to accelerate the payoff of the mortgage because as you pay toward principal. That's principle that you're no longer going to pay interest on for the remaining years on the term but that's gonna require that you send something over and above the scheduled monthly payment now. Did I hear you say that the interest rate is actually lower on what's been quoted to you for the thirty-year versus the 20 year corrective thirty-year is a 2.75% interest rate and a 20 year 2.87%.

That doesn't make sense to me, that number should be lower. Have you only gotten one quote from one mortgage lender that are yeah yeah okay I get a couple more you know, this is the largest financial transaction you'll ever make in most phones actually only bid this one time and that's just not in your best interest because even if the rate was where it should be in.

I would really only want you to do a 20 year mortgage of your being incentive for that with the in the form of a lower rate. But even if those rates were exactly where we wanted them to be. Yeah, we want to be able to compare the closing cost because not all loans are created equal. With regard to origination costs and whether or not there, including discount points the appraisal. Other fees that you know again can vary from loan to loan and so in addition to this loan from Quicken and they get a lot of business because they do a lot of advertising under the name of rocket mortgage.

I would also love for you to go to bank and look for the lenders.

Perhaps some online banks that have the most competitive loan rates right now and it does vary based on how much they have to. Landon know how aggressive their being with the rates you could also check with your local brick-and-mortar bank you want to put that in the mix. The good news is any inquiries that you initiate for lender to pull your credit within a two-week period for the same type of transaction are to be seen as one and so there's not any disadvantage do you shopping this around just to get some good faith estimate so you can lock in on the one that's the best rate in terms of what to go with. I'd prefer you to go with the 20 year payback because you to save a boatload in interest because of that shorter-term and what should be coupled with that a lower interest rate as long as the payment fits well within your budget and as a guideline for that I typically use at least 25% or less for principal, interest, taxes and insurance, 25% or less of your take-home pay just to make sure you have enough left for all of your other obligations. So if it were me, I'd shop this around a bit more and then the shorter is always better.

One of the thing, Michael. Just make sure I assume this is true since you just built the home but make sure you plan to stay in the home for at least 5 to 7 years if not longer to recoup the cost of that refi so that you can actually enjoy the benefit of that lower rate.

For a long period of time. Michael glad that you got through today. We wish you guys the best. Thank you so much. Let's move along Bonners ferry, Idaho can be a higher station there and all I think we yeah she IWW there okay so I thought we lost you there for a second, but thanks for calling and how can we help you search here and about $5000 in our land. The highway that they want to widen and we want to maximize going to get some interest from that ally and market Of freethinking, but it turns out they don't lightly ally nonprofit organization.

No many that we get the maximum amount of interest. Yeah, that's a great question, Debbie, and you need to shop around because you write the typical online bank that we talk about is going to be for consumer accounts only those are typically not available for corporate accounts including nonprofits, but there are some banks out there that are online. They do offer business accounts. I know Chase is one of them. Although Chase has brick-and-mortar operations but a few that you probably haven't heard of as Lowe's one ask José X OS, so I would do a search online and I could encourage you to start a bank but didn't do some other searches as long as you find online banks that have FDIC insurance that's gonna be the key for you to be able to maximize the interest rate that's attached to it. You could also look at some credit unions in particular might want to check the thriving credit union and the ECC you that's evangelical Christian credit union. I think either of those could be great options and just see who has the most attractive rates but specifically to your point that also includes Corporation so you have to do a bit more digging.

I wish I had a few I just to send you off-the-cuff, but it will vary from what we typically recommend on the consumer side. Were you able to jot those down Debbie I yeah it's AZ hello and then ask those blueline a X OS but then also check Chase because they typically have some more competitive rates on the business side as well Debbie, thank you very much great question and we trust that you and your church will find the right thing to do with that a greater amount of money.

Bless you. Thanks so much Rob just before we had a break here.

I got a brief email from a gentleman named Bobby says dear Rob, I'm interested in becoming one of your see no I'm sorry I'm reading the wrong one Rob it's is this one from Alex, he says, how do we know if my money advisor is good or not. How can I tell if he's looking out for my best interest or just charging me a bunch of fees to make money off of you know I think the key there were talking about financial advisors is to make sure you have a lengthy interview you understand their experience there competencies you want to know how they're getting paid.

Encourage you to search up for someone that has a CK designation do that on the website moneywise. I okay this is my lifeline buying a home is the largest most nerve-racking purchase.

Most of us ever make. It doesn't help that you're entering a maze of unfamiliar words and confusing options that can lead you intimidated frustrated and afraid. You can take advantage of navigating the mortgage mates 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 maze available when you click the start button moneywise that is robbing you of freedom and peace of mind. Christian credit counselors can help where nationwide nonprofit counseling organization has helped over 3000 individuals in the last 27 years get out of credit card debt 80% faster while honoring that data and phone to learn how Christian credit counselors can help you visit Christian credit Christian credit counselors.or call 800-557-1985. God is quick, and powerful, and sharper than any two-edged doing. Here's a quick way water we will pass the rivers.

We will fire us. The flame will not stick to a place as it is on you and I were you when you're way over here says it sanctity. I'm also the one who sat because I am with you and will try to sweep over you, but they will be unable to take you ablaze, but they cannot because I am the Lord your God and I am holy and the wine he was with you want to look further with me now into .3 Jehovah can conveys holiness both in position practice words because God is holy. We are holding two sides to it. We hardly Christ position holiness Melissa this morning on the way to who we are, sitting trying to teach holiness is excited to announce the addition like this, you'll soon find Facebook also twitter and Instagram and all the rest of the main social media sites find us there under moneywise live war moneywise media back to our phones 800-525-7000 and Ron in St. Louis.

Good to have you there buddy. What's on your mind today that I'm not the education all paid for their God-fearing people got good news 300,000 come across the wrong way because Lord knows I'm thankful I am that I can 141K because I work at different jobs but I understand why, but I situation where the hundred thousand eight, so I didn't really have time to research and manage it. I moved into Schwab account that you kept it into a pocket where there was that type of thing dollars.

About 25 $26 and at that time. I think he meant no T-bills and I think that you came up got 2.4% return like I can't afford this money and I might CPA I heard she say me 800,000 and K and you know it do something with it, but I don't know what my question better understanding the breakdown here is 300,000 total in retirement savings is a right yet. Okay. And how does that break down the different account types and amounts.

I would and I have an account where you know when I retire to risk your hundred dollars and net Schwab account that I just put it ended T-bills because I had to do something that you think okay so yeah that makes sense and you said you're about five years out from retirement or more 70. I think that that's what I'm using right now in my arithmetic that I'm 5 to 5 to 10 years and have you run a budget. Ron just to say okay when I get to that point. Regardless of what the Lord is going to redirect you to be doing with your time and energy in service to him what would your budget look like you know, given whether or not you'll be completely debt-free at that point, given what kind of lifestyle. You're living in, where you can what are you going to move in downsizing and all of those things. Do you have a sense of what that budget will look like and you know how much you'll need to draw from this 300,000 and whatever it grows to over the next five years to supplement whatever guaranteed income sources you have done that, and I would like you know how I felt among maintain the lifestyle that we live right now and how much would you be bringing in from Social Security and any other guaranteed income sources before you start to draw from this this retirement savings. I guess it would be equally important. Keep working will be the key because if I say okay this 300,000 can grow to 400,000. Let's say, and we look at a 4% rate of return which would be a conservative income generating portfolio where the goal would be over time not to impact the principal and just draw off the yield or the dividends and so forth that would throw off about 16,000 a year which would be about 1300 month before you pay taxes or ties everything like that so that's good to be tight. Given probably what you're expecting for from Social Security. If you're looking for 4 to 5000. So I think what that says is a couple of things you number one is let's try to stay working as long as you can so you can delay. First of all, having to draw from the retirement assets number two so it can continue to grow over longer period of time and if you can avoid taking Social Security every year you wait past full retirement age that monthly check will increase 8% and so that obviously would be helpful to to get that number up as high as you can before you start drawing it and obviously staying employed will help with that. In terms of what you need to do for the investment mix. I think it'll because were talking 5 to 10 years and keep in mind even then were still going to need some sort of growth component for this of the Lord to reason you have good health for perhaps decades right so at that point, I think you need an equity mix at age 60 would be somewhere between 40 to 50% in equities for the average person somewhere between 50 and 60% bonds. That's probably what your target date fund has right now and that's what I'd suggest for the Schwab account.

You can either hire an investment advisor to do that you find a CK moneywise you can use the Schwab intelligent portfolios to build a similar target date fund using ETF's run sounds a great job because this is why 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.

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I need some help will sometimes if you like I can't get a handle on my money. I mean, where does it all go. It sounds like you need to moneywise help you plan your content and track your spending three dollars you spend every morning on coffee every morning access to fame difficult financially nice sounds awesome.

Let's do it. Okay, searching for moneywise any abstract reviews under Georgia elected officials. A building is going smoothly across the state.

The outcome of the election will determine whether Democrats or Republicans control the Senate and Illinois teenager who fatally shot two people and wounded 1/3 of it sometimes violent summer protest in the streets of Kenosha, Wisconsin has pleaded not guilty to charges including intentional homicide, 18-year-old Kyle Rittenhouse entered the plea in a brief hearing conducted by teleconference. When will the Wisconsin prosecutor has announced that he will not file criminal charges against the white police officer shot a black man in the back in Kenosha last summer, leaving him paralyzed and setting off a sometimes violent protest in the city on Wall Street, but I'll gain 167 points today. The NASDAQ was up 120. This is SRN news today something financial. Wondering about thinking about maybe something just trying to wade through lecture. Which way is the best way to go help that Rob was taking your calls today and questions on anything 800-525-7000 Akron, Ohio Ellen, thanks for your patience. What's in your mind… Your opinion on cards that would give you 80 miles or money bonus.

If you spend that much within within a month.

Well Ellen, I'm not against credit cards, credit cards are the problem. It's the way we use them not realize there's a temptation there.

So we need to know ourselves. We need to know our propensity how we handle money, you have we gotten into trouble with spending beyond their means and certainly having access to ready credit to spend beyond what God is provided for unbudgeted items can be problematic for some and if that's the case you gotta get rid of them. But apart from that, I'm okay with using a credit card to buy and sell.

Assuming it's for budgeted items.

We pay it off every month. Now there are some very tempting new cards that come along with all kinds of perks, whether it's cash back or if you're a traveler giving you certain bonuses there some that have, you know, as they're coming out new, entry-level bonuses that tend to be higher at the outside and then over time they can get back in line with everybody else are trying to attract a lot of business in the early stages. I realize that can be tempting. I would refrain from trying to do that too often for a couple reasons. Number one. Every time you go out and seek approval for a new card that's going to put another hard inquiry on your credit report which over time is going to drag your score down number two that's more credit that's available and you just have the temptation to use it.

Number three gets one more card that's now susceptible for fraud or to be compromised in some way. And so it's one more account you gotta keep track of. Even if you're not actively using it.

You still need to monitor it to make sure there's not any unauthorized transaction so you know I think you perhaps once a year evaluating your situation.

If you use one primary card another one comes along that makes some sense. And there's no annual fee and you can improve your situation and again you're using cards responsibly.

Sure you could go and switch to another and there some great websites out there to find those deals nerd would be one bank would be another, but to go ahead. Make it a practice of trying new cards regularly and moving from one to another.

Frequently I think is just to be counterproductive for the reasons I mentioned. So I would do that in great moderation. Ellen if you do it all.

I am not okay. Thanks for listening for going to appreciate you out to Chandler Oklahoma and Jeff which your question today for Rob phone call. Sure, I've got older vehicles, but I was wondering if there was a generalized school of thought about how much money buying another vehicle were lying.

Yeah, that's a great question and that's when you're driving older cars and we certainly recommend that our last car we drove until about 250,000 miles on it got a lot of great mileage out of it, but there does come that point were you gotta decide between a fairly expensive repair or series of repairs that we put them all together are getting expensive and parting with that car and buying another reliable vehicle. You know, if you look at the rules of thumb from sites like Edmunds or even consumer reports. Some will tell you that when the repair or series of repairs together exceeds half of the cars value that's time to start thinking about a parting with your car and Consumer Reports is said if you total up one years worth of car payments on a replacement. Although I'd rather you buy for cash. If the repairs can be more than that one year of of car payments than that would be the time to do it. You know, typically you know we have always said in a letter Burket said Steve the cheapest car.

He alone is the car you own.

Right now, so sticking with wanting continuing to repair.

Makes sense. In many cases, perhaps in many cases beyond what we might think, but there does come that breaking point, and I think that's when we need to look at over the last 12 months. What we spent and are we getting to the place where we're beginning to exceed the cars value because it's just not worth very much and that we need to move on. Steve anything about what other think you really hit all the high points I you know I would say if your car has ever left you stranded more than once. That might be a sign that it's time to start thinking about to moving into something else. If your mechanic suggest to you that maybe the upcoming repair isn't worth it or if you have an upcoming motor or transmission repair this very expensive and the car has over 100 hundred and 50,000 miles on it that might be a time to take a real hard look at what you're driving.

But me.

I really like that basic rule of thumb if the repair is going to cost you more than half the value of the car. It's probably time to start giving serious consideration to your budget and buying something else for cash.

How old are these cars. Jeff, 1056 while they are older cars well were impressed.

She was changeable. Are you the kind of guy who changes your own oil only if I work well logs all my heart. Yeah. How about your condition house air-conditioning system in both those older cars. The air conditioning is fine have a problem blowing out the feet, the heater but the heater does work – whatever, but the usual, yeah, left alone. Well that's I think we give you our best thoughts in that regard. By now they must both be over hundred and 50 K hundred 94 on almost 350.

On the other. Jeff, are you married yet. What is your wife is is your wife sing Jeff.

Jeff grandchildren. Why are we driving around in these rattletrap's actually longer like you want me Jeff. I don't believe a word you're saying you think your name is thought probably isn't even Jeff visit but hey listen, we wish you the best with that and I love a guy like you to keep some running. I'm impressed that you have listed. Thanks very much. I love that I grew up Rob and I'm a bit older than you are a winner car I carbonated 200,000 miles got little crazy hundred thousand miles was like a neon red sign saying this car was going to explode any moment sell it, sell it, give it away. You know something like that.

Well, those days are long gone. And these days. If the card doesn't make it 200,000 miles. There's some issues so if don't let the hundred thousand mile sticker on your on your car, make it mandatory to replace it, but your best option is we always say is to save it as soon as you buy that for that new car so that 10 years down the road. 1215 years down the road you can pay cash for the next one that's probably our best advice that's exactly right stable. I'll tell you not having that monthly payment is wonderful name and that they would have to pause here for a brief break so grab coffee and maybe a bagel and warm it up back and join us again for the final segment of today's you probably find your career even your teeth for your getting a Christian foundation and your family to learn how many lines that work is a great deal more about our money than most of us imagine Jesus says more about our use of money and possessions and about anything else, including both heaven and hell in managing God's money on the radio and breaks it all down in a simple, easy to follow format that makes it the perfect reference to 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 is here to help me understand God's purpose for your life to the eyes of a layman, when I ask people what their ministry is mostly with a worthwhile organization to support or tacitly perform the church for a volunteer project is meaningful and thank God that their supporting ministries performing test church. But here's the bigger question what's got you your life when you're not supporting that Mr. performing the task, which represents about 95% of your life. When I asked that question. I usually get you right now you're missing out on 95% of your Christian experience stuff that makes every day that your work will start happening in the blessing start flowing when you seize every guy's lead people closer to this will revolutionize your life.

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Ocala, Florida hello Sue, how can we help I'm sorry didn't file you Sue try one more time. What is your question much to ask that I see okay so I think the key there is what you have to recognize Sue is that you don't pay taxes until you make money so you know whether it's paying income tax you don't pay any income tax unless you have income to report in the same way you wouldn't pay tax on your investments either as a long-term or short-term capital gain until you realize that game and it is going to vary based on whether or not you've held the investment for a year or whether you've held it longer than a year, but depending upon what kind of investment you're talking about whether it's interest income or dividends or it's actually the sale of an appreciated stock or piece of real estate you that will determine what type of fun again you have and then what the corresponding tax rate is that you will have to pay and it's going to come down to the type of investment that you had the type of income that you God or or appreciation, and then ultimately how long you held onto the asset. Do you have a CPA or an accountant that could help you with that. I need like a year okay and are you setting aside for the taxes on that right now. Are you setting aside some of what you're taking out for taxes now okay but I think you just need to understand what type of annuity is is it was the did the money go in pretax and therefore you pay the taxes it comes out. Are you paying tax on just the game and are you paying in the appropriate amount. So I recommend there in Ocala you find a certified kingdom advisor who's in the tax and accounting area. You can go to our website.

If you use the Internet moneywise just click find a CK and probably just want to run by this professional what exactly it is you're doing and make sure that the taxes are being handled appropriately and we appreciate so much a call today if you have any other questions at any point, give us a call back soon if you're struggling a bit and maybe you have someone in your church that can help you walk through this process in part. If you have some issues finding a CK in the area, but we wish you the best. I thank you very much for calling in today, let's go to Missouri next Rob and say hi to Jacob. Jacob were so glad you called today how can we help user: about buying a home situation where my mother is disabled and she's going to need a place to be here very soon and there is a house that I have an agreement with somebody with that I can buy it I have to do it now and my credit is fair, around six 2640 dependent on where I look and I need to also do some work on the home I would. I'm trying my gay loan and they told me that I cannot be home is needs repair. So let's do this to good working have to hit a break here, but you would love to actually we got a bit more time than I thought. I'm I'm looking at the clock ranks of you go right ahead. My apologies. All right. Well yeah I'm trying to figure how to buy the house and she counseled a few people and some people yesterday. Have you thought about taking out a private loan or trying to to cover the repair cost when using your gay loan to buy the home, and I'm really not sure where to go with this well because you have the VA option. It is something you certainly need to consider. There's also something called an FHA 203K loan. It's a government issued loan it's geared toward borrowers who want to do just what you want to do and that is begin renovations right after closing on a home so it combines the cost of the mortgage with the renovation funds. The funds for the home purchase and the renovation are separated out in the renovation funds are put into an escrow account and then the contractors are paid directly from that account as the renovation proceeds which prevents any kind of you know, financial, or contractual mishaps, and makes it ideal for people who are doing fixer-upper situation. It allows you to put down a lot less. Although I don't recommend that. But you have to complete the renovations in a six month timeline typically are, you heard about that type of loan I have. I've actually got an architect and a general contractor in preparation for that but that I was cautioned that the amount of money that I need to get the homework need to be may not be available due to a 3K as well as credit issues, which I really failing to understand the home is the purchase price is 20 5K and its value as is sitting somewhere around 50 homes in the area of aftermarket research showing that the final thing next to bathroom in and doing the work that I should be in the mid I choose for value on the home so I was hoping that it's a really good turnaround for equity and just I don't know how to quite get there yeah checklist of lenders on whether you might qualify because you know the credit scores can require at least a 620 depending on the lender. There was some other submittal go down that low on the 203K you got have a maximum debt to income ratio think around 41 to 45%. The down payment requirements are very low so you may in fact qualify given your situation but just keep in mind. Not all lenders are to have the same guidelines that you may benefit Jacob from having a mortgage broker who can actually shop this with multiple lenders to get you the right program that can fit your needs and situation. So if you don't have a mortgage broker you're working with. I probably if you have a realtor friend in the area, something someone you know. Ask for a recommendation. You could also call your local church and to say, can you recommend a couple of mortgage brokers that are in the church that I could give a call to you can also check with a CK there in Missouri and asked for referral as well, but I think you can find what you're looking for.

I think you're on the right track. You just got to keep the keep looking S Jacob Celica, a great son and we trust that that the Lord will help work this out for you.

Thank you very much and I think we have time for Shannon's call. She's in Chicago and what's on your mind today. Sharon my credit without letting show that working on a smile or get paid my credit increasing so wanted to know you like one of credit credit site that you get your free credit report once a year. Whatever the court according to their like if you pay the collection court supposed to go up like 20 point but I'm not that far yeah there is not. It's really going to be first of all, the information is still going to remain on the report for seven years. The further it gets. In the past, the better that's going to impact your score. The fact that you have paid in full does help, but it's not automatic that you'll see a certain increase in the number of points just simply because there are so many different credit scoring models out there. There's literally dozens of them. And depending upon which one you use in which Bureau you're pulling from it is going to vary slightly and so you really can't take those as science. I think the key is just to continue to do the right thing in terms of paying down that debt systematically continue being on time, pay her with anything you have currently. Do you have any open accounts that you're using for budgeted items that you're paying on time every month it's building positive credit right now. Shannon back on for okay you probably also want to have either secured or unsecured credit card where you just have a small monthly recurring charge on their course of budgeted items that you can pay off in full every month.

This just showing some active positive credit that's replacing that older negative credit you know with something that is going to reflect positively toward your score. In terms of where to go to check that score and stay on top of that I recommend. In addition to annual credit which you can pull once a year.

I'd look at credit karma or nerd wallet. They both offer free credit score checks as does Trans Union, so any of those could allow you to stay on top of that, but you just continue following these biblical principles doing what you're doing and you'll see that score begin you to begin to take up over time. Shannon got bless you, thank you very much for calling in today. We've had a lot of calls and questions today about the credit and credit scores in particular is a believer. How should we see credit scores seems like some people that that's high on their list other people seldom ever even look at their scores. So what, what's the best approach. Well were in the world, certainly not that. But because we are in the world. We need to recognize be wise about how we manage God's money. The good news is, if we follow these principles will be rewarded over time with a good credit score.

The only potential negative defunct coding for biblical principles in terms your credit scores in less you have active accounts, meaning you owe some money you're not building credit. So that's why we would say there get a secured card. If you have challenges using credit or an unsecured card and have a budgeted recurring items you can build some positive credit. Otherwise let's just stay focused on getting out of debt. Being generous givers and living well within our means, let the rest take care of itself. Thanks for this program moneywise moneywise live as a part ship between Moody radio and moneywise media thanks to Amy Deb, Courtney and Jim for their technical expertise and thanks to you for tuning in and for listening Rob less times more. Join us again next

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