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Money Lessons for Kids

MoneyWise / Rob West and Steve Moore
The Truth Network Radio
September 2, 2021 5:02 pm

Money Lessons for Kids

MoneyWise / Rob West and Steve Moore

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September 2, 2021 5:02 pm

What are the most valuable things to teach children? Sharing the Gospel is obviously priceless. But teaching them to manage money God’s way is perhaps the next most valuable gift you can give them. On today's MoneyWise Live, host Rob West will talk about the importance of helping your kids learn what God’s Word has to say about money. Then he’ll answer your calls and questions about various financial matters.

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

One listener that stands out that work with recently. Was this older couple that was interested in refinancing eight reached out to a few different lenders in the other credit wasn't the best. I know some of these other bigger banks. You just won't hear back from that which I cannot stand not everybody has the 780 credit scores and never had any hardships in their life. I'll walk you through what you have to do. How can you end up being able to do this refinance. Whether it's 236 months from now back that older couple. We work with them for months and months to improve their credit and we were able to get the loan done. We were saving them hundreds each month thousands of dollars a year. Finally got themselves into a situation financially that they can handle and they could start saving money each month, saving for retirement at the end of the day they just could not be happier. Which just put a huge smile on my face. We like it's starting to six rings train a child in the way he should go and when he is old he will not turn from what exactly should the training until Rob was one of the most valuable things to teach children sharing the gospel is obviously priceless. But teaching them to manage money. God's way is perhaps the next most valuable gift you can give a talk about the first to your calls at 800-525-7000 24 700-525-7000.

This is moneywise live for your financial frustrated by this topic. Maybe no one taught you the wise use of money when you were young and now you're struggling so the idea of teaching biblical finance to your kids seems daunting, but let me encourage you. It's never too late to learn how God wants you to manage the resources he's entrusted to you. The first thing you need to grasp is that he owns everything where Stewart's second, you don't have to worry about money because God's promise to provide for your needs, then I'd recommend getting a copy of Howard Deaton's book, your money counts. It's a great primer on biblical finances and very readable. If your children are old enough, you can go through it together learning and talking about the lessons as you go by it. Wherever you buy your books if you need help setting up a budget that download the new moneywise app its free end uses the tried-and-true envelope system so it's easy to set up.

You can also sign up with one of our volunteer as you're doing these things.

Think of ways you can share your newfound knowledge with your children in a fun way. Now let's dive into those lessons for your kids and will keep things very practical. The first thing you want to teach them is a simple budgeting process. One third for saving one third, forgiving, and one third for spending.

The idea is to teach them to manage their own money and once they realize that money is limited to learn to spend it more carefully.

Encourage them to tie then to put their own money in the collection plate, encourage them to give something to missions and other ministries of their choosing.

The last part is very important.

Guide them, but let them make their own decisions. As for the saving will that can be for a larger goal like a videogame or clothing. Someday maybe for a car, or even college. Now let's address where that money is coming from birthday and Christmas gifts from grandparents and other relatives are one source but for the most part, it will have to come the old-fashioned way, by earning it. If you want to give them an allowance that's okay but attach some regular chores to it like making their bed or helping with the dishes reward them with money, but also praise them for keeping their part of the agreement if they fail to complete the assigned chores calmly tell them that some or all of their allowances withheld until the task is complete. That's real world experience. You can also set up a job list for the kids with dollar amount specified for certain tasks. This is above and beyond the allowance rake the yard for so many dollars that sort of thing. The harder the work, the more it pays then let them choose what to do. Before long, you just might have a very hard-working youngster on your hands. Now let's look at some things you shouldn't do never reward whining or begging. That's a tough habit to break.

Once a kid learns that it works. So if your child desperately want something set up a plan to earn and save for it. It'll be tough at first, but soon enough. Most kids learn the system and do well with it. Remember that praise is as important as money. Encourage them along the way. That takes care of the hands-on money lessons. Now let's turn to God's word for important lessons on managing moneywise the that you can share with your kids. Along the way because Isaiah 54 says all your children shall be taught by the Lord and great shall be the peace of your children. The first I mentioned at the top and it's from Philippians 419 and my God will supply every need of yours according to his riches in glory in Christ Jesus. God is our provider and he will provide our needs. He doesn't promise to give us everything we want the next involves faithfulness. First Corinthians .2 teaches.

Moreover, it is required of stewards that they be found trustworthy. It's often said that every financial decision is a spiritual use money wisely, to glorify God. Next is the lesson about work. Second Thessalonians 310 for even when we were with you, we gave you this command. Those unwilling to work will not get to obviously will feed our children no matter what. Teach them the value of work and all work is honorable Ari that's all we have time for today your calls and asked 800-525-7000. This is Rob Weston will be back. Thank you for doing it the moneywise live Western hosting moneywise family moneywise community will make sure you know about our digital community. That's right, there's an opportunity to post questions here encouragement, maybe even provide some answers to someone who has a question in our moneywise community. You'll find it on our website.

Just go to moneywise and click community. When you create a free user account and you can post your own questions and comments and now think of it as a community of stewards on a journey together to be found faithful managing God's money as we do it together. I think will be better stewards along the way others also our community in the moneywise app which you can download wherever you download apps. Just search for moneywise biblical finance. By the way our coaches are in monitoring those community forms all the time and so those trained volunteers are actually responding to your questions and they'll usually do it within a few hours so if you have a question you're not able to get through on the program considered checking out her moneywise community.

I think you'll be blessed again moneywise. and I were to begin taking some phone calls today. We got plenty of lines open in plenty of time to take your question whatever's on your mind today. Here's the number 800-525-7000. That's 800-525-7000 call right now were to begin today South in sunny Florida, and Loretta, thank you for calling today. How can I help care, California. Right now I can't lie, so roof repairs. Obviously these are necessary.

Loretta, do you have any savings that's liquid okay and tell me about your income situation you have enough to cover your bills and you have a little bit left over, such that if you were to take out a small home equity loan that you could cover that payment and try to get that paid off in five years or so and I think I got hands on a kyanite found it can count down. I like Sir you living off of Social Security alone) and I okay and at the end of the month do you usually have a couple hundred dollars left over to spend everything that comes in the mail so that would be my only concern me. Typically I love the fact that your home is paid off. It's good to keep your lifestyle as lean as possible, allowing you to live off of that limited fixed income and I would typically say yeah you could tap that home equity for needed repair. Probably home equity loan, not a line of credit getting a low fixed rate and get that payback is quickly as you can. The only thing I certainly don't want to do is put you in a situation where you're taking out a loan. The payment is beyond the resources you have on a monthly basis, and now all the sudden this paid off home is in jeopardy because if you can't make the payment near they'll come and foreclose on the home and we certainly don't want to go there so I would only look at that home equity loan option if you are confident that you have the ability to cover that payment every month with the resources you have. Apart from that, we need to start looking at some other assets, and you mentioned. I believe an annuity that you could borrow from is probably some cash value in there that's built up and that may be an option to look at.

It means we certainly want to make sure that you don't causing further damage to the home as a result of a leaky roof and certainly don't want to put you in harm's way by any means. So I think what needs to happen next. Loretta is for you to connect with a certified kingdom advisor there in Florida.

Somebody who could just look over your policy your annuity contract and to help you understand what the implications are and figure out based on the retirement assets that you have which one is best to pull from that given any kind of expenses or fees that would be generated and any tax consequences so you can get that roof repaired. They could also help you look at that budget as well just to see if it might make sense again.

If you have the margin to out to do this using a small home equity loan. One of those two options is going to be best, but if if you think there's any reason, you may not have enough to cover that that mortgage payment that I think were going to need to look toward the retirement accounts to make sure the roof gets repaired and you don't add any monthly expense beyond your means, but I want a professional to look that over before you make that decision. So do you use the Internet. Loretta Kelly okay, here's what I like to do that my producer Amy get your information and I were going to have one of our coaches reach out to you just to help you explore your options. If we need to connect you with somebody locally to review that the annuity contract. We can certainly do that as well. But you stand, the wine will get your phone number and have somebody get in touch with you okay well God bless you Loretta thank you for calling I appreciate so much your kind heart and in your gracious words and will see if we can help you get this squared away and you have a wonderful day. 800 525 7000s, and I recall we got some lines open today to head to Illinois or actually stay know we were in Florida where we were going North W MBI it's I guess LaShawn is that right very good. Go read it okay will cite 4% so I have like to. I was wondering if I should bump it up to make the 11 or 12%.

Yeah, tell me if you don't mind your age and, where you are in terms of your retirement savings. Do you have a pretty good understanding of what your ultimate goal is, and whether you're on track for that now. I don't know online tracker anything. I guess that is what is your age if you don't mind me asking for okay and what you have in that 401(k) today that I get started today like last year, so okay all 1500 okay so I think this is a great time for you.

Let's say over the next 10 years or if you plan to work longer than that great.

Get 10 to 15 years for you to put away as much as you can obviously want to max out LaShawn the matching portion because that's free money and I can get a guaranteed return like that anywhere else but I think getting that number up as high as perhaps even 15%.

If you can do it in your budget.

I think would be a good thing because were playing a little bit to catch up here were you trying to put away as much as you can. Hopefully these are your peak earning years so that over the next 15 years if you could be diligent in putting away somewhere between 12 and 15% even though it's not being matched.

The key would be that we've gotten as much as possible, working force, and here's the thing that LaShawn that even if we were to get into a situation where we hit a speed bump in the economy. Maybe we had a recession for a couple years that you know is the market comes down if you're systematic at continuing to can't contribute to that 401(k).

You're going to buy with the same contribution every month the same 15% euro to buy more shares of whatever those investments are for the same amount of money and, as the market recovers and least historically speaking, it always has. No matter what problems we've encountered and we've had some real significant problems along the way. Over the last euro hundred years then you will see those accounts moved to higher levels so I would actually try to bump that up is much is said to 15%. If you can do it. 12 would certainly be fine as well and I think you'll be glad you did what you get down the road and you're looking for this account to provide some income to supplement Social Security and whatever else you have to set make sense okay LaShawn thank you for going. I appreciated today. Well folks, so that's what it's all about. We want to find God's hearts and be good stewards of what he entrusted to us. However, little or however much we hear from folks that have an abundance there more than they need wanting to be found faithful and others in a desperate precarious spot wanting to just find a way to make ends meet. No matter where we are. We want to be content freedom trust the Lord, not our things and apply his phone lines are open 800-525-7000 now along with us today for moneywise line biblical wisdom for your financial decision.

Those who have a couple lines open if you'd like to get in today would love to have 525-7000 started today by talking about kids and the specifically money lessons for our kids. We covered some great ones. You know my heart is that as our kids leave the home as future adults that they would not only be financially literate to understand how a checking account works and how compound interest works for you as you invest in saving against you in the form of debt you just a whole host of issues why we should be hard workers and you really just how the financial system works. That's the financial literacy part. But even if we get back to them so often they're leaving the home without an understanding of God's heart related to money these biblical principles we talked about on moneywise live every day starting with the fact that God owns it all. Which makes them a steward manager of God's money and that money itself is a tool yesterday and the programmer good friend Ron blue said money is not stewardship monies. The tool of stewardship. It's how we work out this role we have in our values and our priorities and it's not the goal. It's just a means to an end and that end is most effective when it something other than us, so we gotta teach them to give generously and hold it loosely and accept God's provision to live with contentment and to realize that if something is going to compete with God for first place in our lives. That's most often going to be money and the things that money can buy. These lessons are invaluable. So we gotta talk about that. We gotta model them. We gotta find practical ways to instill these beliefs and principles into our kids, so perhaps pick up a primer on this topic.

Maybe Howard Dayton's book, your money counts are Ron blues, book, master your money and work through those principles with your kids and they will be grateful. Maybe not right away, but certainly down the road. Let's head back to the phones today in Danville, Indiana is Pam and were so glad you called today how can help. I know your opinion is of real estate investment trust.

Read and another at different times and I want one know what you think the safest type category and also I know if interest rates rise, it could affect them somewhat. How much could interest rates right before they will be affected in Okay very good you know I like real estate as an asset class in your portfolio. I wouldn't start there.

I would say you know it's something to add.

After you have a base of stocks and bonds because that's really go for most folks at least historically speaking, has provided the most effective returns over the long haul with the least volatility and it's a passive investment which real estate investment trusts are but direct real estate investments are not so we have to recognize that and I think as we diversify among our stocks and then among stocks and bonds away to further diversify, according to what Ecclesiastes tells us is to move into other asset classes in real estate would certainly be one of those. I don't think you should overweight in that area, especially with real estate investment trusts. I would be looking Pam to have an allocation to a read of somewhere between five and at the most. 15% of your portfolio is a part of the well balanced portfolio, but I like them a lot. I mean think of it as a mutual fund for real estate you buy shares.

The trust uses that money to buy and maintain real property any particular REIT just like any particular investment stock or bond can be good or bad depending upon in this case the skill and the decisions of the administrator, the manager of the REITs. There are two kinds, both traded and nontraded in the nontraded type are very illiquid, meaning it could take several years or even longer for you to get your money out. Where is the traded REITs your trade on the market just like a stock and is there making a market for you which makes them very liquid to get your money back.

It's a simple business model. They purchase the property and lease it out and then the properties rented, maintained and upgraded as needed and then 90% or more of the taxable profits are then passed on to the shareholders so that typically have very little appreciation.

See not going to typically see a lot of movement in the underlying price of the REIT, but the real benefit comes as the profits are distributed to the shareholders as income. So again, it can be a nice income base to the portfolio. I would recommend that if you don't have a real particular skill or expertise in this area that you talk to an advisor about managing the portfolio and talk about including real estate investment trust as a portion of that but again I would say no more than 5 to 15% deal in terms of the interest rates. No real estate investment trust prices tend to rise along with real estate interest rates and the reason is that a growing economy increases the value of the REIT because the value of their underlying real estate assets increase, and so if that's why the rates are increasing then you know we typically see the real estate investment trusts go with them in a slowing economy where the Fed is tightening money.

The relationship typically turns negative so again in any market and economy. You have some investments that are performing well.

Others that are not.

And so it tends to balance out, but overall I would say Pam a real estate investment trust is a great addition to a portfolio, but I certainly wouldn't be highly concentrated there.

I would just make it one small part. I hope that helps you.

If you have other questions along the way. Let us know what folks, we have a lot of great questions coming up still to cover on the programmer to be talking about credit cards and you should consolidate or use a debt management program will be talking about scams related to paying off a whole and having a mortgage that's paid off. Andrea wants to know about that Jennifer was to talk about whether this is a good time to put an inheritance in the stock market that and perhaps your question just around the corner would get one line open 800-525-7000. By the way, if you have a check out our brand-new website will encourage you to do that contents our communities, their axis AND broadcaster moneywise.


Thank you for joining us and moneywise live today around West your host if you consider yourself part of the moneywise family.

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By the way, it's quick to just head over to our website moneywise,.org and you can donate but we would certainly be grateful that we have some great questions lined up every line is full, so let's dive right in Michigan. Jennifer's calling Jennifer good afternoon to you. There are every feeding a large cash inherent three quarters in a million words quite serially keep on typing trust that this is where coming to an end of the bull market and sell) to take that money and putting that: and then a year and have it help you. I totally understand. Yeah.

And I think you as you approach this obviously unique season where you're going to be all the sudden managing a significant sum of money up about perhaps more than you ever had to deal with. Or maybe not, it's still something you need to approach very carefully and prayerfully as well just to think about what God would have you to do with these resources in the way of giving and investing in should you pay off any debt that you have or just save it all for the future. So these are important considerations and ones Jennifer that I would probably take up with the Council of the professional somebody who can walk alongside you, 1/3 party to give you some godly and wise of financial counsel along the way but at the heart. Your question is a good one and that is yeah where you know 12 years into a raging bull market. The last two years of been been unbelievable. The click it. Quickest employment into a recession on the history and history and then the quickest climb out and of course we moved to new highs. We just did another one last week on the S&P 500. So where does the market go from here. Well, the best experts that I talk to say the probably the best word to describe the market moving forward over the next 12 to 18 months is choppy, meaning you were not to go straight up from here. We just are so high and yet there's a raging economy that's very strong underneath everything and even though we have some challenges to deal with some speed bumps that will have along the way and the name of debt that we taken on as a country and your rising inflation that at least the Fed says is probably going to be short-lived. Will see what all of that could result in us you know having a recession. At some point down the road and working have to deal with some of these things.

But does that mean that you should stay out of the market. I don't think so.

I think you just need to be wise about how you move into it.

It could be that you begin to move this money into the market in phases. So perhaps the tranche goes in right up front and then you systematically invested over.

You know of six or 12 months. The other thing you can look at is just based on what your needs are and what you set as your ultimate financial finish line will help you determine how much risk you need to take right now because the goal is not just to get as much return as possible because with that comes in excessive potentially amount of risk with that and you may find yourselves given the sum of money you're receiving that you say you know what we want to be more conservative. We don't want to move it all into stocks and so you know that would be another way just to begin to work your way into the market, but do it in a way that is a bit more conservative.

Again, that's all good to be tied to your goals and objectives in your needs. Down the road so I would say in terms of where to put this money given that if we don't put it anywhere and you kind of put it under the proverbial mattress so that that would be difficult with this amount of money you know you're going to lose purchasing power because especially at right now we've got, you know, inflation, which means these dollars are less valuable than they will be in the year from now than they are today, and I think the stock market with a prudent discipline strategy is going to be the very best place to be, but it doesn't mean you throw caution to the wind either, so I know I'm not giving you no concrete specifics on where you go from here, but I would say that a properly diversified stock and bond portfolio that's tied to your goals and objectives even at this stage in the cycle we find ourselves in economically and from a market standpoint is still the right place to be. The question of just how quickly you move it in and out what investment you choose, let me ask you this, Jennifer. Are you all planning to manage this yourself or do you have a trusted advisor. How is anyone going comfortable with and how is sure.

How has he or she described how they're going to approach moving into the market approach at whatever comfort level where comfortable with and that likely were more aggressive and now that we've actually gotten money that a little more research we don't think were as aggressive as we think sleepwear was good to realize that now right. You can always get more aggressive down the road you guys so I suspect still have quite a bit of time between now and retirement is that right yeah okay yeah so okay great so you you got to plenty of time. So here's the thing Jennifer. I mean even if you're buying at the very high for the next two years, and you're not. You know that.

But let's say you were right deal is long is your time horizon is 20 years and as long as you understand the risk you're taking and you're willing to weather that storm even if you are hundred percent allocated to stocks. What I would say is you need to be able to weather opening a statement in seeing that portfolio down 30 to 35% net that's if you are hundred percent in stocks, you know, if you were to start to diversify out of stocks and other types of investments that are more stable, more conservative fixed income type investments, then you know that begins to lessen that volatility. And so even if the stock market was down considerably.

You know you might be down 20 or 25%. That's a lot of money, but keep in mind you're in it for the long haul and you're not buying at the top is you're not gonna put it all in on one day and you the market that is still very strong right now because the economy is very strong so I would say that be prudent be prayed up. You've done your due diligence on selecting an advisor and I think as you express some of these concerns you described to me today. The two of you can work together to make sure that you're going into the market, whether that stocks or bonds, or combination of the two in an appropriate way. So you're not taking unnecessary risk. Does that make sense. I happy to do a Jennifer all the best to you and your husband and if you have other questions on the way. Give us a call.

Let's see guy just another minute before the next break. Let's quickly go to Tampa Florida. Tom good afternoon sir great like almost 6 years old. I don't have much say that I got 20,000 saved up in about 20,000 401(k) and I need to get some advice on how to best manage money and get prepared for retirement five or six years okay yeah very good. Well, working to take a break here.

The second and I'm I give you my thoughts on the other side of the break.

Just a quick question so that in terms of retirement assets. The 20,000 is the extent of that, plus the savings of another 20% right yeah okay very good. And do you have a budget work down the retirement budget so you know what your expenses are to be in that season. Right now I'm thinking all night very good. Listen, you hang on the line with take a quick break we come back I'll give you my thoughts just on the other side. This this is moneywise. I be this is moneywise live around whereas this program will recognize God as steward so money is a tool to accomplish his purposes. How can we be found faithful. That's the question just before the break we were talking to your friend Tom in Tampa Florida times, nearly 60 years old, has limited retirement funds. About 20,000 in cash in a reserve account 20,000 401(k) and just wondering how does he proceed financially at this stage of life and time just before the break. I was asking about your budget because it would limited resources, it's even more important.

It's always important, even more important to understand what your outgo looks like because your expenses on a monthly basis now in, and perhaps if they're going to change in that retirement season of life because you're no longer contributing to a 401(k) and you know you are able to dial back some other expenses. Potentially, you need to know what that monthly need is and then of course we need to compare that to the income sources you're going to have, namely Social Security so you're gonna want to have a clear understanding of what you're going to receive at every step along the way and obviously in your situation, you're gonna want to try to wait until full retirement age, if not to age 70 because that's gonna get that check up as high as it can possibly be, and then whatever you can say between now and then becomes an asset that we can convert into an income stream to supplement that Social Security and the goal would be that that that income stream, we can pull out. Perhaps, maybe 4% a year ideally would be such that you'd never impact the principal and that plus your Social Security would cover your monthly expenses. If that's not the case, then we do have to work longer find ways to reduce expenses. So I think that's really your next step is between now and retirement to save as much as you can. Which means you gotta have his modest lifestyle as possible and looking to trim expenses wherever you can.

Right now, and that means you gotta get that budget in place so you can analyze where your spending is going, but then you know maximizing what you're putting away, so that you can convert that into a supplemental income stream down the road but give me your thoughts and and are there other specific concerns I have addressed what where when I get up a little income stream is what what a good, I don't have any investment ability. Yeah well I think the key here is you know how long you're gonna plan to can continue to work so if you have good health and the Lord Terry's would you see yourself working another 10 years younger after I think yeah yeah so what I'm saying is that you know that 20,000 that you have today. If you can try to go back to the budget right now. Look for ways to increase your margin cut expenses so that you can put away as much as possible on a systematic basis into that 401(k) through salary deferral over the next decade. Let's grow that 20,002 in a let's say 100,000 or hundred and 50 if you can and then all of a sudden you know that at 4% a year's gonna throw off in an extra $500 a month and hopefully that plus the Social Security and that would be managed by an investment advisor that 500+ Social Security hopefully covers your lifestyle need mean that would be ideal because then we never touch that one 50 and it would just continue to throw off some income but if that's not enough, then I think that's where we have to either work a bit longer get a part-time job in that season of life, or you're going to have to pull out such an amount that you would be draining that account. Over time, and at some point you would deplete that ghetto which becomes problematic to do you follow what I find it advisor yeah well I think you mean the challenges that with $20,000 you probably below in its in a 401(k) so means you have a very limited universe of investment.

So what I would probably be looking to do is either connect with an advisor like a certified kingdom advisor in Tampa you can find one on our website moneywise click find the CK alien search by ZIP Code. What you would do as you would pay that individual probably once a year for a few hours of their time just to look over your investment options inside the 401(k) and tell you which funds to pick based on where you're at. The key is that once you get those investments that you just leave it and you just contribute as much as you can. Every month, systematically, whether the markets up or down. You keep putting it in and let's let it grow for the next decade. Then when you roll it out to an IRA when you're 70 or 72, whatever that is.

You know, then you'd hire an investment advisor to take discretion over that money with your goals and objectives in mind, probably to be conservative and generate an income and they would then invest that for you. Making those decisions but that's down the road to default.

Thank you.

Okay, you're very welcome. I think the key right now is let's dial back your expenses get as much as you can going into that 401(k) find somebody to make sure you're in the right funds for you inside that 401(k) and then let's trust the Lord for the balance. And if you have other questions along the way. Give us a call to Chicago, Illinois John, thank you for going out can help grab right yes or you know I actually I heard a radio station and I was 90.1 all time and you guys are very uplifting and I want to say thank you dear old sometimes I feel like I'm not here so you look me up like management. Well, we all need encouragement along the way, John, and so were here for one another, but thank you for those kind words. I can help you well on your moneywise segment I heard you talking about that in all the stop and I have multiple credit card is pulling out all about 20 30,000 and you know I good you know just figure out a way to. All but not THE right move because $30,000 is a lot of money and I dated one time $30,000 and I have those not $30,000 credit limit and then after that date date hold you down to 10,000 after I had Artie put 10,000 icons regarding my credit now so you try to pay the bankers back, but then at the end of the day. You know all you like that yeah well Jon, I think the key here is, and I certainly understand where you're coming from. We gotta solve the problem, not the symptom. So at the core of all of this fruit for all of us and not talk to you, talking myself and everyone else is listening is living within our means. So we gotta have a plan which means we gotta have a budget, we gotta know what our expenses are what's coming in what's going out and make sure were living beneath that. So after the day in our giving comes out and after our taxes are paid in any insurance payments that might be deducted from your paycheck. What's left over your net spendable income.

We got have a plan for that to cover the bills.

The discretionary expenses and have a little bit left over so we can you know pursue our goals mainly in your case, getting out of debt. But that means we gotta limit our lifestyle and not live beyond their means.

Even if somebody will lend us money to allow us to do that once we've solved that and demonstrated were able to be disciplined and live in that way. Now we can go after the problem. So how do we attack this debt will my favorite approach to this John is something called debt management, not a consolidation loan. We got get a new loan because usually that treats the symptom and then the credit cards come back and then we have the consolidation loan on top of it with debt management. The credit cards are closed. The interest rates are reduced.

You get one fixed monthly payment that fits into your budget and you typically get to pay these credit cards off 80% faster because of the level payment and the reduction in the interest rates, the cards will be closely have to accept that but it'll help you get out of debt once and for all. I want you to visit with my Christian credit counselors there really a trusted source of wisdom and they'll be the ones that will handle this for you and I think you'll be thrilled at how it goes so Christian credit will tell you exactly how it works and I get you set up on the program if it makes sense for you John. We appreciate your call today. All the best to use her to finish today in Orlando, Florida Andrea, thank you for your call.

How can I help hello mortgage payment that I need to pay off or want to pay her that there and out there where you have no balance on your your home. People can come in quick deed or do something to take your home away and someone to get taken out a line of credit, but I'm wondering if there are alternative ways to protect my prop yeah Andrea. I'm not concerned about you paying off the home.

In fact, I would absolutely do it and not look back you know any kind of scams that your hearing about regarding a quit claim deed really don't have anything to do with whether you own the home free and clear or you have a mortgage on it. It has everything to do with and it's been getting a lot of press lately. A scam involving your title were somebody goes into a County deed office and forges your signature on a deed transfer to another party and while that can present some legal entanglements. I guess you could say it would ultimately be thrown out in court because it's forgery and there are services out there to monitor your deed status. They discharged typically about $15 a month. But here's the thing they call them you know title Walker title insurance not the typical title insurance but title theft insurance. They can't lock your title as some of the ads might imply you can protect yourself for free by periodically checking your property record on the website of your county's register of deeds so you know this is not something you need to pay for and even if it was to occur. You'd be able to unwind it because they would have the signed this property over fraudulently, which you don't nobody can prevent fraud from taking place. Been ultimately it would be handled in a court but that has nothing to do with whether or not you pay off this mortgage and your free and clear so I wouldn't pay one extra ounce of the debts. Our interest then you absolutely have to.

In fact, I'd pay off that loan and not look back, and anything that would be happening or could happen. They are related to somebody trying to fraudulently sign your title away from you has nothing to do with whether you have a balance on your mortgage. Does that make sense. I listened and congratulations on being so close to being debt-free.

I'm really excited for you know that would be a real blessing give you a lot of freedom and peace of mind. You probably sleep a little better at night Sandra, thank you for being so patient today, not even holding while we appreciate your call for folks that's gonna do it for us today so thankful that you were along with us on the ride today only say thank you to my team Deb Solomon producing today the amazing Amy Rios engineering Mr. Jim Henry providing research and I believe Eric or Gabby were answering the phones today. Whoever was were grateful for both of them.

If I want to thank you for being here with us today as well come back and join us tomorrow will you will apply God's truth to your financial situation. That's all we do every day and moneywise life. This is a partnership between Moody radio and moneywise me

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