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3 Categories of Savers

MoneyWise / Rob West and Steve Moore
The Truth Network Radio
May 6, 2021 8:03 am

3 Categories of Savers

MoneyWise / Rob West and Steve Moore

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May 6, 2021 8:03 am

A key finding from recent studies on people’s savings habits reveals that how much money you save has little to do with the amount of money you earn. On the next MoneyWise Live, host Rob West talks about why some people, despite their income level, are successful at saving money, while others find it more of a challenge to save. Then he’ll answer your financial questions from a biblical perspective. That’s on MoneyWise Live, where biblical wisdom meets today’s finances, weekdays at 4pm Eastern/3pm Central on Moody Radio.

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This is Doug Hastings, VP of Moody radio and were thankful for support from our listeners, and businesses like United faith mortgage heading into spring. I've been spending a lot of time pondering, analyzing and debating something extremely important to men and even many women and that's whether a new driver would improve my golf game I would see them somewhere between embarrassing and appalling at golf man do I love it and all my buddies show up with these epic/big maverick Bertha drivers and I can't help but feel like they've got this massive advantage on me and my persimmons.

It's right that our family mortgage team were proud to have a pretty special advantage ourselves and one that can be a big deal for you.

Our team is an arm of the company who is a direct lender, which means our company uses its own money and make its own decisions within its own walls. There's no middleman in this advantage often allows us to get you a better rate, saving monthly and lifelong money on a refinance or new home purchase were much better in mortgages than I am at golf. We are United faith mortgage United faith mortgage is a DBA of United mortgage Corp. 25 Belleville Park Rd., Melville, NY. Licensed mortgage banker for all licensing information, go to an MLS consumer access.org corporate MLS number 1330. Equal housing lender not licensed in Alaska, Hawaii, Georgia, Massachusetts, North Dakota, South Dakota and Utah and thought if I made just a little more money I could probably save more to you might be surprised to learn that how much you save really doesn't have much to do with your salary, Rob West, that's one of the key findings from some recent studies on people's saving habits and why some folks are successful at it, and others. Well, not so much. We'll talk about that, then I'll take your calls at 800-525-7000 800-525-7000.

This is moneywise live to then J.P. Morgan first defined three different types or levels of sabers what they called low savers managed to put away about 2 to 3% of their salary. The next category middle Sabres bank to 5 to 6% of their income and finally high sabers were consistently saving about 9% of their salary that you'll notice that middle Sabres put away about 3% more than low savers in high sabers while 3% more than middle Sabres belt. It might seem logical, but it's a misconception that low income people save less on a percentage basis than those earning more money, but the research showed clearly that people often with identical incomes saved at different rates and not necessarily more than folks are earning less. Simply put, there is no link between income and savings that this helps explain what financial author Ron blue describes as a consumptive lifestyle. The more you earn, the more you spend, instead of banking all or at least part of arrays you tend to just increase your lifestyle and your spending. It also may explain why savings rates tended to go up during the recent coded shutdowns as people saw their income threatened they were galvanized to cut back on spending and save more. Of course, the Bible says we should be doing that all the time because we never know what the future may bring in Proverbs 6 we find go to the ant to sluggard consider her ways and be wise without having any chief officer or ruler.

She prepares her bread in summer and gathers her food and harvest.

Today we might define sluggard as a lazybones and the message there is that saving isn't difficult.

You just can't be lazy about it.

It's easy to let your spending creep up as you earn more money. It takes discipline to prevent that. So try this pledge to bank any type of future increase you received.

Whether it's a raise tax refund or even a gift card.

Go ahead and use the gift card on budgeted purchases but move an equivalent amount in the savings and in the meantime, how do you move from being a low saver to a middle saver or middle to high sabers. While the research showed that you can get the most bang for your buck. By concentrating on three key areas first hire savers tended to focus their saving efforts on housing that includes a mortgage or rent, taxes, utilities and home furnishing the second saving priority was food, both eating out and groceries and finally transportation which includes vehicle purchases, fuel and maintenance of being consistently on the lookout for ways to cut costs in those categories could move you into the next higher bracket of savers that 3% increase will have a huge impact over time of the research showed that retirement account balances of middle Sabres were twice as large as those of low savers.

Now here's something else that the research turned up actually let me pose. This is a question what would you rather do save $150 a month 35 a week or five dollars a day while the researchers found that four times as many people chose to save five dollars a day rather than $150 a month.

Even though it's the same amount and that was consistent across the various income ranges.

The bottom line. Psychologically, it seems easier to give up something that cost five dollars a day that keep that in mind when you're looking for ways to cut spending. It's helpful to write down every penny you spend for at least a month three would be better as you do that. Look for small repeat purchases that you can live without. You'll probably find that saving five dollars a day is pretty easy. Just don't tell yourself that you're actually saving hundred and 50 a month that if you need help with this. Why not take advantage of our trained volunteer coaches just graduated a whole new class of folks who are ready and eager to help you get out of budget and they're all experienced in ways to save money.

Just go to moneywise live.org and click connect with the coach. The service is free except the cost of a small workbook you will need to get started.

Well, that wraps up our topic today. Three categories of savers. We hope it helps you move up to the higher category. Your calls or next. Here's the number 800-525-7000 800-525-7000. This is moneywise live biblical truths shapes our financial decision. Back to moneywise live on Rob West. So glad to have you along with us today. Just a moment were to begin taking your calls and questions on anything financial. Applying the truth of God's word to what's going on in your financial life. Here's how you can be a part of today's broadcast just call 800-525-7000. That's 800-525-7000.

You can also email us here at questions@moneywise.org we try to take one or two of those questions each day.

You can also jump into our moneywise community it's inside the moneywise that happened. You can post your questions.

I'm in there periodically, or moneywise coaches are in their answering and responding to your questions. You can also share something that might be an encouragement to the rest of the moneywise community. Again, it's in the moneywise app just downloaded in your app store today, when you search for moneywise biblical finance again. Phone lines open 800-525-7000.

We started today talking about three categories of savers based on some new research that was just out from J.P. Morgan in the employee benefit research Institute know that always brings up the question why are we saving to what end you know if we recognize that we are managers of God's money at all belongs to him and therefore were stewards and money is a tool to accomplish his purposes, and by the way, money, or in the things that money can buy, has the propensity has the ability to compete for our devotion to the Lord.

So we need to be careful here.

We have to ask the question how much is enough and I think that's really key to any conversation about saving what is our finish line and so I think for each of us.

We need to start on our knees and say, Lord, what would you have me to do.

I think we need to start with our getting because that's gonna break the grip of money and then we need to think about provision for our family and the lifestyle that God's called us to. We want to live simply so we can in fact live generously and I think we need to establish a Book a lifestyle And an income That says you know what beyond this, we have enough, and I can't define that for you. I think you have to do that prayerfully, but both for income as well as your balance sheet. I think really challenging yourself through prayer and if you're married as husband and wife to signing what is our financial finish line for both of those income and net worth or balance sheet. That's a critical step to say you know what beyond this Lord we can give it all away and our friends the national first Christian foundation can help you with that, both in terms of giving but also defining what that number is, I think also having a certified kingdom advisors critical to that because this would be somebody who understands God's word and can walk alongside you as you not only make wise investments in planning decisions. But as you think about things like tapping your lifestyle and moving to greater and greater levels of generosity and if you want to connect with a certified kingdom advisor in your area. You can do that on our website moneywise live.org just click find CK hard.

Let's dive into your calls again lines open today 800 not enough to try that again.

800-525-7000.

Let started Pennsylvania Marie you're going to be our first color today. How can I help you all this question regarding starting a mortgage and background in my head and had the opportunity to take his dream job and became the Executive Director of the Christian camp and retreat facility and Lee took the job knowing that he'd significantly less then corporate job leaving and that we agreed to it because they offered on housing resident or at and we would not have done an and you queue the pandemic and her lack of earth and retreat.

The board last year made the test that they can heal him in any position and all of the last year looking, or how moving to Newtown this kind of we started renting in this new area and $1000 a month and that when I talked to Brandon current homeowners in the area. It seemed like mortgage rates in our area between my country and each young man and because we didn't have time actively researching. We didn't have a lot a doubt, we didn't have utility and we didn't really build up our credit.

I think I'm he'd currently like kind of worse than we are.

When we can afford $1000 in rent each month and wondering what her options might be allowing or we keep renting and build this thing that yes well it's a great question Maria, I'm sorry to hear about the way that things worked. I know being able to downsize your lifestyle to do something that you really are passionate about, especially when you're doing that in service to the Lord in Christian ministry is a wonderful thing and yet obviously, the Lord had other plans last year and so he's redirected you and you guys are somewhat starting over and and and that's in a difficult environment not only with the continuation of the pandemic. Although things are looking up.

But just the real estate market that we find ourselves in. So the key is, is to make a smart decision. I don't think buying a home is out of the question even in the midst of the housing market that were in right now but we gotta put all the pieces together and make sure that makes sense because even though I prefer you to be a homeowner and rent prices are high right now in the same way that the home prices are so you know I don't want you to rent any longer than you have to.

But I also don't want to get you into a situation where you're buying a home you can afford or you don't have the right, down payment, or you're not settled in your trying to buy it you know top dollar. And then if a year or two later you were trying to get out of that because the Lord has other things in mind and you know you're still kind of working through that. Then you could, you'll be upside down, depending upon how much should you go into this home with so let's try to put all those pieces and parts together. The first question I guess would be do you really have a good sense apart from something unforeseen that this is in fact where you would stay for the foreseeable future for any and that that long term right now and that led the black ash and you let me live on that right now think I focused on on really battling and maintaining that foundation somewhere and we like.

Whereat okay what about the savings that you could use for a down payment and that we are looking at it now 13,000 available and would like to get the Christ in our home under 150,000, and we invite you about a 10% down our rates and with dad to eat up all of your savings or would you have a little bit left over. Once you put that $50,000 down that would like and that and in your current situation with the rent that you're paying the expenses you have based on your current income. Do you have any margin or you live in, right up to the edge each month in rent only are running much okay well ideally, what I would like for you to do is to go into this home with 20% down, so you'd essentially have to double what you have. I'd also love for you to have at least a months worth of expenses saved up beyond that and then have some margin so that you could continue adding to that into you get to a goal of 3 to 6 months expenses with no margin right now in your situation. Given that you spent in a thousand a month. Obviously that's can be hard to do to save. Additionally, so ill, it's not ideal because it would got housing market that nationwide is probably about 5 1/2% overvalued based on the latest data were not in a bubble situation. I don't believe like we were in a way to know nine because we don't have the same lax lending standards that we had back then we don't have no speculative construction of homes. In fact, we have not enough inventory in this country and we got significant demand with the millennial's incredibly low interest rates and all of that is really driven. This housing market to higher levels. I don't think the growth rates are sustainable, but I think you were to see a cooling-off as opposed to a bubble bursting. The reason we like to go in with 20% down as it's gonna miss the PMI which is good to be an added cost that does you no good. And secondly, if we were to see a downturn in the housing market. If you are a good bit of cushion so that should never be in a situation why well to where your upside down. Could you go in with 10% down, I'd at least want you to have a couple of months worth of emergency saving. So I think the starting point is to say what can we do to dial back our expenses as much as possible right now so we could build up that minimum 15,000 or 10% down and still have a couple of months worth of emergency savings to fall back on the benefit here is that you would actually if you can accomplish this and get approved for a loan program that would do this you can actually save some money each month.

Just make sure you add in the true cost of ownership, though, because you need to start putting some things away for maintenance. You need to factor in any added cost that you're not currently picking up that might be built into your rent like you know picking up the trash and any other utilities you gotta maintain the yard that's probably covered for you so you just got a really take your time to understand what all those additional costs would be and make sure you will in fact be saving money. You're also been want to get a real accurate estimate of one of the the taxes and insurance. Not to mention the utilities just to see if there might be some increases over what you're paying now when you buy this home so I want you to do a good bit of that due diligence and figure out if you can dial back your spending or increase income to get that emergency savings up. I certainly would want you to go any less than 10% down and again.

My preference is for you to wait and get to 20% if you can figure out a path to do that in terms of getting qualified. I think the key is being able to demonstrate income. I realize it's not income that you had a long time, but being able to demonstrate that you have a good reliable income and if the ratios work in your credit scores. There you should be able to get a loan of the key would be to get at least three offers I go to bank rate.com to look for the soap I think of the end of the day Marie if you can wait and really work on that spending plan.

Get this assured up so you have more savings. I would prefer that, but if you want to move ahead. Just make sure you really count the cost and don't just assume you to be of the save money to come in moneywise and moneywise live. So glad to have you along with us today taking your calls and questions at 800-525-7000 at the intersection of faith and finance we want to help you apply God's principles to your financial life again. The number 800-525-7000.

Reginald is in Chicago, Illinois Reginald, I understand you had an accident, is that right he met me in particular with my mom thank you for taking my call. Sure and you know I was awarded awarded settlement on her behalf because of her injury and told by the attorney and I've asked him several times do I have to pay taxes on this money and repeated in the they have said no it's tax-free money and I guess that I still have that? In my mind and they said it's tax-free.

Yeah well typically that is the case a minute be worth checking with your tax preparer. It's a little different because you're getting the award based on an event that took place related to your mom, but generally here's the way this works exactly. It's as it's been described to you money that you receive as a part of an insurance claim or settlement is typically not taxed. The iris only levies taxes on income, meaning more wealth than you had prior so because at the idea of a settlement is to make you whole. You generally only receive enough payment to recoup losses. So any kind of medical claim you make to insurance, whether it's a part of the settlement you make after an accident or you claim for a medical appointment won't be taxed where you could have taxes involved is when it involves a lawsuit gets more complicated. You might see different forms of compensation.

So for example if your awarded punitive damages or lost wages or pain-and-suffering, you would generally have to pay tax on those and you likely receive a 1099 form to use when filing your taxes so I think that's where you just need to perhaps check with the tax preparer to understand exactly what you've received, how it was paid out and treated again. Typically, if it's a settlement based on give damages or in this case when injury tried to make you whole for the accident and those are generally not taxable, so I'd look a little bit further into it just to make sure in your specific situation that holds true, but I would say that's probably going to be the outcome and hope your mom's okay. We appreciate you checking in with us today.

God bless you, sir. Let's head to Shreveport, Louisiana Edward what's on your mind today. Question the middle of the case of both. Also part of the annuity, but Bob let me pass away about five years ago followed the sale part of it. Take care of each lead like an automobile that work about all looks longer whenever would be about 2025, 40,000 felt like that would update tackle that well. It just depends. Unfortunately, so if the if there's any tax-deferred portion in their you a lot of time. See what you will pay taxes on that. I think what's different here is that the others generally going to be a stepped up basis involved when you're receiving this as an inheritance. So this came to you as a beneficiary and so we're going to have to your tax preparer, CPA will have to look at what came to you, what is it done since then and then what portion of that may be taxable to you along the way so I get a bit more information just based on the moving parts.

Describing just a few seconds left. Did you have a something else you want to share it with you in order to protect okay good will, then it sounds like you're all set. You've Artie looked into it. So listen I know you had a part to someone that you stay on the line will talk off the air. We got ahead and will greatly appreciate your call today. Looking forward to hearing from you folks. 800-9525 7000. That's 800-525-7000 on Rob West.

This is moneywise live sexually along with butter back to moneywise live. So glad you along with us today range of questions coming up the pensions college how to take care of needs out of an inheritance, but just before the break we were talking with Edward and Shreveport, Louisiana. Edward does mom passed away. Unfortunately, several years ago left him with an annuity. Edward was trying to decide to see all the money out to them to take care of some immediate needs medically for some dental work and transportation for a car or does he leave that there take that money out systematically over the rest of his life which would W significant monthly income stream plus a bit of an inheritance he could pass on depending upon how long he lives, and Edward what I was saying was during the break, you know, you think about this as a real blessing from the Lord in terms of this provision that the Lord has led you to come into that could be there to help you really offset to real needs that you have for the rest of your life even provide a bit of an inheritance and what if you really gotta tighten the strings if you will, on that to monthly spending and funded some of these more immediate needs.

To the extent you have the ability to do so out of current cash flow and not pull this out.

Tell me your thoughts right feeling old, but quickly get you where it worth it.

Laban accordingly. Because on NovoLog she was standing right here she could clear. Like I told you that you will board you learn market yourself and select delete. But don't call Crystal Craig figured out later that will enable lately to be equipment such as spendthrift in the time my church and pray about. You will absolutely and when I want to stand the line working to get your information, I want to give you six months is a pro subscription or moneywise app which could actually help you start to track your spending.

Use the envelope system and really have control over what's coming in and going out to make sure you don't go over budget in any one of these categories whether it's eating out or in other discretionary or even some of the fixed expenses that you have so stay on the line, but I'm encouraged to hear that you're following what you believe your mom would have had you to do, and clearly wanting to honor the Lord in your giving that some delighted to hear you say that and just in managing God's money. Well that's so, what we all need to be doing in appreciate that you share in that with us and I know our listeners have been encouraged by that's us down the line will get you a pro subscription of the moneywise app and I think that will help you as well. But, let's head to Missouri Gary are next on the program go answer about taking it when I decide to retire it. I have some options on taking a lapse monthly payout on what you thought about that. Yeah, you know, there's a couple sides of this to me in the first is just the calculation. The internal rate of return that would be based on the.

The present value of that future income stream on the monthly payout to determine what that actually is and then comparing that amount to what they are willing to give you as a lump sum just to figure out from a math equation standpoint, which is feel better financially which is going to lie to come out ahead. And if you don't don't want to do that yourself. You can certainly seek out a certified kingdom advisor that would help you to do that analysis just to look at what are they offering you for the rest of your life and would that pass on to a spouse or heirs. If you died in a certain period of time and then versus you what they're willing to give you as a lump sum check so that's the kind of math sided within the nonfinancial side is just to the peace of mind. You know, are you more comfortable knowing that you've got this check for life, and does that really match up with what your shortfall is on a monthly basis, so at least you know your expenses are covered to maintain your lifestyle or is this money that would kinda be extra over and above other income sources covering your lifestyle and therefore it's not as much of a concern because for some folks they don't like taking on even a minimal rent amount of risk based on investing that lump sum on a conservative basis, and if we were to get on the recession, and a portion of the portfolio is down a good bit for in a couple years you would you be able to weather that is negative because you some concern and if not then I think that's great. And the benefit of taking the lump sum is you have access to the money, because if you had a major expense and in the retirement season of life which would probably be medically related or long-term care related, you could actually tap those funds as opposed to the monthly payout unit, which obviously is is not available because you can't touch the principal so I think you've got a just kinda think through both the financial side, the calculation as well as the nonfinancial side, the peace of mind your willingness to take a little bit of risk and your desire to be able to access the and of the principal. If you need it and then put all that together make it a matter of prayer in and see what the Lord would have you to do but tell me your thoughts on what I just shared protection.

If you do take a monthly pay out if the company goes bankrupt or anything is protected anyway yeah I mean that's that's one of the concerns you know with the with the pension obvious that there is the pension protection act, which protects retirement accounts and no holds companies that are underfunded accountable and you know there is some protection there. But depending upon what the outcome of the company as it may not be completely protected. So you'd want to understand that you before you go into it so I got encouraged Gary to reach out to a certified kingdom advisor there in Missouri who could perhaps help you as just 1/3 party. You make this decision in light of your overall financial situation by looking at what else you have in terms of assets, which are income needs are what's being offered to you and you help you really work through it and make a decision.

You can feel good about. You can find someone in your area on our website moneywise live.org. We appreciate your call today sir, let's head to Columbia Illinois Bonnie next on the program. How can we help you get on my leg comfortably on my so security get into my retirement money occasionally yell barely what I like to do that out of my retirement completely. I would pay taxes on put it into us about I get I would get that because at the end of the year at tax time. I usually get most of that back because of my income so that way when my when I think on my daughter who is my beneficiary if I wait and she takes that she is going to be charged taxes on herself that they will use that as income sign was just wondering if I'm able to get that taken out but it is saving both earnings on that way if I didn't need it I can get it quickly, taking a trip or something that all our time, it will automatically be hers sure in and Bonnie how much is it that you be looking to take out 61,000. Yet the problem is that that's all good to be taxable to you in one year or if you took in over two years two years. That's a split in half, which means that you know your low income that has allowed you to get to refunds each year's probably gonna disappear and you will be paying some tax on it that potentially at a lower rate overall than your daughter would be down the road but I don't think generating that kind of tax bill right now makes sense. I'd probably just leave it there and take it out as you need it. Closure listed hers. The beneficiary then she'll get it and shall be able to convert it to an inherited IRA and take it out over a long period of time, or even make it her own and let it grow. I think that's gonna be your best bet.

Talk to your CPA just to get a second opinion. We appreciate your call. Stay with us will be right back to back to moneywise live Thanksgiving along with us today to head back to the phone Oklahoma's Oklahoma City home of Bethany. Your next on the program. How can we help for your college and I money in my account that burning a hole in my pocket and I don't but I'm trying to figure out what I should save it for when I got my four year or what I had about 40,000 okay great.

I love the fact that you've got a plan. You've obviously been diligent in saving some money so Bethany you're really setting yourself up in establishing some disciplines that I think will serve you really well throughout the rest of your life and congratulations on the transferring to a four-year college tell me of what you're going to need to spend to fund this education to get you through to graduation. When I get to college and I had a full-time job right now and I don't have any art or and I have not already in.

That's in addition to the 40,000 yet. Okay.

And how many semesters do you have left out five year okay yeah so that's about 30,000 years at right now any year in get okay times five okay yeah so you got about 75,000 and how much are you since your cars paid for and you know you have six months of emergency funds, which by the way, again phenomenal job how much of your paycheck. Do you use just for food and gas in your expenses versus what you might be able to use to contribute to this 15,000 year I make about 2500 a month after taxes and I unit about 100 okay. Great. All right, so if you've got to about 900 a month left over bill that obviously goes a long way toward this 15,000 but we'll keep in mind we still have a gap between the 40 you have saved in the 75 so I really be looking to make sure you can graduate completely debt-free when you've really position yourself well in terms of not taking on any debt having a car job you're going on to get your masters.

You're obviously busy but you're managing all of this really well so I'd hate to see you graduate college and and take on a lot of debt now if you continue on this track, and you're able to cover it. A let's say 10,000 a year of the Synod just based on your current cash flow and some of the surpluses you have and you know you only are using 5000 a year.

Then I think the next option would be for you to take in and fund at least partially a Roth IRA. Ill put away a couple thousand dollars a year. That would really, you know, set you up to where if you could graduate with the no dad including your addict college education, including your masters, you're ready to start your working career with your masters and you got some money already started growing for you Roth IRA that would be awesome, but that would be the lowest priority for me. Apart from you.

Continuing on this track, and being able to graduate completely debt-free.

If you did find though that you have some surplus at the end of each year as you project this out and you wanted to do that. I probably look at the Schwab intelligent portfolios or better mentor well from one of the Robo advisors were you could set up that Roth IRA start systematically contributing or once a year at tax time. Get that invested in low-cost ETF switcher would be a diversified indexed approach to investing.

You have a long time horizon and were looking in over 40+ years down the road. But this money as you start to put it away now is going to be really be able to grow for your button nicely, but again that's gonna be at the bottom of my list of priorities and I want you to stay on this track of living within your means and and remaining debt free with a good emergency fund to fall back on, so that make sense yet not at school and at that point I need to get it back that many air are not getting a lot of hacking like that after I get to get cold and talk about investing in our Roth IRA. Yeah the only exception to that which you just describe which I think is exactly a good summary of what I'd shared. The only exception that would be. I think each year you could look at it and say how much of the 15,000 was able to cover through my own cash flow, and depending upon what you're then projecting it's going to take for you to get through and get that Masters if you wanted to take an extra couple hundred that are couple of thousand dollars and go ahead and make that annual contribution to the Roth IRA than do it but if you don't have a real high confidence that that that's going to continue or that you be able to get through college without borrowing that I would skip it and I'll wait and reevaluate again the next year. Does that make sense okay yeah I have one question on that bill on the Roth IRA you that you have to click contribution that every year to like it might've started it this year and then if I did not delay next year that a problem, not at all know you. You just make the contributions for the taxable year at your discretion so you could put in zero or you could go up to the max of $6000 and you can fund the current year up until when you file that year's tax return. So for instance you when you file your 2021 tax return in April 2022.

You could still make your 2021 contribution but just because you started doesn't mean you need to stick with it you make that decision each year.

Whether you want to put it in monthly or one time and someone I might help me with matter that I think I need yeah really no shot or a couple of thoughts there. One would be visit with her friends@soundmindinvesting.org and just begin reading some of those great articles, but I think in terms of where you'd want to get some investment counsel. I would use some of the Robo advisors there really easy to work with so betterment for the Schwab intelligent portfolios. It's real simple to do in terms of setting up the account you'll answer a series of questions about your age and risk tolerance and what you're saving for. And they'll build the portfolio for you using an algorithm. This can be really well diversified very low cost and it's real simple. So if you start reading, sound mind, and.org and you use one of those Robo advisors again. If you decide each year you want to put something in and that will vary year to year, then I don't think you have any trouble with that. Hey, we appreciate your call today.

I do want to do one thing for you stand the Weinberg to get your information, I want to give you a six month of Pro subscription of the moneywise app which may be a great tool and just helping you to track your spending so you can set up your budget using the envelope system. Download your transactions and just make sure you stay on budget every month so you can really prioritize that surplus and get that going toward your schooling and we appreciate your call today. Bethany got bless you. But let's head to Oklahoma Julius, you're next on the program. How can we help you. I did all right.

I had a question about what what were your thoughts on investing in.

What are your thoughts on the recent rise of affordable crypto currency regular at that. Just every day people can get a hold of what your thoughts on that and also you would you think it would be wise to speculate on some affordable crypto currency.Mike obviously going in thousands and thousands of dollars on something that could fall through.

But you know if you had some extra money putting some into Yosemite's more attainable crypto currencies that are bringing about returns for people yes I'm not a big stand Julius for a couple reasons. I think the crypto currencies are here to stay there. Kind of a sign of the times and very consistent. I think with where we're headed in our global digital economy.

And I think the technology behind them is here to stay but not as an investment, perhaps as a means of exchange and will see you know, just, what role they play in our monetary system and economy moving forward. Given that there unregulated. No central bank. You know they do have a number of issues just in terms of cybersecurity and a whole host of other issues, but as an investment. I'd stay away. Number one is a rule of thumb I I tend to say let's only invest in things that we can explain number two. This is way too much volatility. I realize they been in just especially certain ones like those coins have just gone incredibly up, you know, in terms of the returns in a very short period of time, but as a manager of God's money, because it all belongs to him.

I think the best way to describe a biblical approach to investing is through the words steady plodding and investing in crypto currencies is anything but steady plodding, so I just would stay away from the speculative category altogether, and that's clearly where this would go. So even though it's not as exciting to go take a more tried-and-true long-term approach. I think that's the biblical model again as we manage God's money field.

All of our money should be used against God-given goals and objectives and priorities, and so we need a printed word. Would you have me to do, starting with or giving in their provision and saving for the future and paying down debt and I just don't think speculation with highflying extremely volatile investments has a place in the stewards portfolio. That's just my perspective on it so I appreciate you checking in with us and I realize it can be quite tempting, especially when you read all the press about what's going on but I'd watch it from afar, and I certainly wouldn't get into. As we appreciate you checking in with us today sir. Well that's good to do it for us today. So glad you were along with us today as we apply God's truth.

The what's going on in your financial life and to say thank you to my team today, producing Deb Solomon engineering Amy Rios on research Jim Henry call screener today was Aaron Hooley and he reminded the moneywise life is a partnership between Moody radio and moneywise media were also listener supported. Prayerfully consider a gift.

Just go to moneywise live.org and click donate will be back tomorrow to do it all over again will be talking about faith-based investing Chad Horning to join us tomorrow


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