Putting Principles into Practice

Uncle Ryan is going to talk about how hot, hot, hot cash out refinances are. That sounds fun.

I sound like a broken record. I've been doing this for 18 years. I have never seen a market like this in my life. Home values have generally been skyrocketing the last couple of years.

And with interest rates being some low, I've actually seen refinances where people are able to cash out that newly found equity in their homes, do home improvements, whatever it may be, and still save money per month compared to what their prior mortgage payment was. So it's worth a shot just to give us a phone call. And one thing I can promise at United Faith Mortgage is we will not be pushy.

It's one of my biggest pet peeves. I can promise you we will not be that way. I like to see it as my job is to present you with a few different options.

I step back, I let you decide, and I'll let you call me when you want to move forward. We are United Faith Mortgage. If you're tired of worrying about money and living paycheck to paycheck, you can decide now to put God's financial principles into practice and change your life. Hi, I'm Rob West.

They say that insanity is doing the same thing over and over and expecting different results. Nowhere is that more true than with money. I'll talk about making changes first today, then it's on to your calls at 800-525-7000.

That's 800-525-7000. This is MoneyWise Live, biblical wisdom for your financial decisions. Well, like most things, the first step in making financial changes is admitting you have a problem and identifying what you're doing wrong. What's not right with the way you're handling money? Maybe you worry about bouncing a check, or you fear the phone ringing because it might be a bill collector, or you're dealing with the gas or electricity being turned off for non-payment. Maybe you argue with your spouse about money, or you've stopped giving to your church because you're afraid you won't have enough. Those are all signs that something needs to change, and you shouldn't fear that change. It might be a little scary at first, but it will bring great relief from worrying about money. Isaiah 43 tells us, Remember not the former things, nor consider the things of old.

I am doing a new thing. I will make a way in the wilderness and rivers in the desert. So how do you begin to bring about this change? Well, first by dispelling the notion that God's Word doesn't contain everything you need to transform the way you handle money. Hebrews 4-12 tells us, For the word of God is living and active, sharper than any two-edged sword, piercing to the division of soul and of spirit, of joints and of marrow, and discerning the thoughts and intentions of the heart. You see, understanding and believing in biblical truth is essential, and the first principle you need to grasp is that God owns it all.

Psalm 24 is clear, The earth is the Lord's, and all it contains, the world and those who live in it. When you fully embrace that principle, that idea, everything else can fall into place. You won't be consumed with thoughts about the way you're handling your money, because it's not yours. Instead, you'll begin to think about managing God's money, because you're simply his steward or manager of the resources he's temporarily entrusted to you. And as his steward, God will not abandon you to fend for yourself. He's always with you, and he's promised to provide. Luke 12-24 reads, Consider the ravens, they neither sow nor reap, they have neither storehouse nor barn, yet God feeds them.

Of how much more value are you than the birds? Once you realize that God will provide, Scripture will be your guide for changing the way you think and act concerning money. You've struggled with his financial principles, but now they'll be your guide. The Bible says a lot about spending, saving, investing, and getting out of debt, along with contentment and generosity—everything you need to know so you can begin to put them into practice.

Take just one principle to start. Pray earnestly about it. Ask God for strength, discipline, and desire to carry it out. Maybe that's setting aside a few dollars out of your paycheck, or paying more than the minimum payment on your credit card, or putting a little more in the collection plate. Pick one and stick with it.

Then when it's a part of your life, you can go on to the next, and even the next after that. This is putting principle into practice. You do that with tools and structure, a budget, a will, a long-range financial plan, and so on. If you're not living on a budget, you need to develop a spending plan now. Luke 14-28 teaches, For which of you desiring to build a tower does not first sit down and count the cost, whether he has enough to complete it. And there's no better tool for developing a spending plan than the new Money Wise app. It uses the tried and true envelope budgeting system to plan and track all of your spending.

It's free, and you can download it wherever you get your apps. Most people find it difficult to change by themselves. They need someone to encourage them and to hold them accountable.

As our friend Howard Dayton puts it, to hold their fuzzy feet to the fire. We have a whole group of folks trained and ready to help you get and stay on track as you learn to put God's financial principles into practice. They're the Money Wise volunteer coaches, and you can sign up with one at MoneyWiseLive.org. Proverbs 11-14 tells us, Where there is no guidance, a people falls, but in an abundance of counselors, there is safety.

And then Proverbs 27-17, Iron sharpens iron, and one man sharpens another. Well, that's all you need to know to make big changes in your life and to stop worrying about money. We hope you'll get started today. Your calls are next, 800-525-7000.

That's 800-525-7000. I'm Rob West, and you're listening to Money Wise Live. Stay with us. Thanks for joining us today on Money Wise Live, biblical wisdom for your financial decisions. I'm Rob West, your host. Hey, are you part of the Money Wise community? If so, would you consider supporting this ministry? We can't do what we do without your generous support.

We're listener supported. So whether it's a one-time gift or perhaps becoming a monthly partner, we'd ask you to pray. And as long as you're giving beyond the giving to your local church, we'd invite you to be a part. Just head to MoneyWiseLive.org and click the donate button. And between now and December 31st, we're happy to give you a copy of the new book from Pastor Paul David Tripp called Redeeming Money. It's one of the best new books on money from a biblical perspective that I've read in a long, long time. And I'd love to put a copy in your hands for a gift of $25 or more, just as our way to say thank you.

Again, head to MoneyWiseLive.org and click the donate button, and we would sure appreciate it. We've got some lines open today. Looking forward to hearing from you. 800-525-7000.

We're going to begin today in Indiana. Mabula, you called yesterday, didn't get on the air. You're back today. I'm so glad. How can I help you? Hi there, Rob. Thanks so much for taking my call.

I really appreciate your program. My question is really about health care, health insurance. If one doesn't have health insurance and they're trying to budget for that, how much would you recommend?

Yes. Well, on average now, and this is obviously a rising part of many people's budget, just because the cost of health care is increasing, Americans are now spending on average about 8% of their budget on health care costs. So I think that would be a great starting point. Obviously, depending on where you live and what your budget looks like, that number may need to move around, and it all has to add up to no more than 100%. And I would love for that to certainly include your giving, but also some margin for you to fund those long-term savings goals that you have.

But that at least gives you a starting place. I would also encourage you, if you're wanting to think about how to cover your health care needs and do it at a lower cost, our friends at Christian Healthcare Ministries, chministries.org, would provide an alternative. It's medical cost sharing, and it's for Christians to share each other's medical bills. They've literally shared billions and billions over the years for tens of thousands of believers, and it's a very budget-friendly approach to covering the cost of health care.

And you could look into that at, again, chministries.org. You would certainly find it a lot less expensive than you would a typical health insurance policy, which this is not insurance, but a great alternative. Does that make sense, though, Mabula? And did you have a follow-up question? Yes, it does make sense, and I do have a follow-up question, thank you. And that is, you know, if one is trying to, you know, find what insurance option is good for them, but they haven't actually maybe qualified for any of the options, and they're self-employed, or they're transitioning.

Like I said, we were at a workshop with bivocational attendees, and this question came up, I didn't have the answer. So because people have different budgets, how much would you recommend, like a dollar amount, that one should put aside if they want to put themselves in a position where they could, for example, go and say, well, I don't have insurance right now, but I'm self-paid. So how could, you know, is there a dollar amount, I guess? Yes, well, I think that that eight to ten percent number is a good starting point. It, of course, would vary based on your health status, Maboula. Somebody who's in and out of, you know, doctor's offices regularly for pre-existing conditions could drive that up. And, you know, this is an area where I would really caution somebody against going completely unprotected and having some plan to cover your medical expenses, which is why, you know, if a traditional health insurance plan does not fit into the budget, I think using an alternative like Christian Healthcare Ministries would be great because it can be very budget friendly, very affordable. And you're talking about a hundred percent coverage per incident beyond five hundred dollars. So, you know, as long as somebody can cover their routine doctor visits and so forth, if you had an expense that required you to go into the hospital, you needed some surgery, you had something that was prolonged, like a very severe illness, you know, that could be hundreds of thousands of dollars. That's all taken care of and shared by other believers around the country. And that's really the risk that somebody has by going without some sort of protection in this way.

So I would say the answer is let's start with that eight to ten percent number as a placeholder of your budget. But let's recognize that that can vary widely based on your health status. So therefore, make sure you have coverage and check out chministries.org for an alternative. And we appreciate your call today. To Ravina, Ohio, WCRF, Dorothy, go right ahead. Yes. Hi, thanks for taking my call. My question is, I've heard you talk before about Social Security waiting. I thought you said until you're older, like I'm retiring, I'm eligible at 66 and six months. But I thought you had said wait as long as you can. And I'm wondering why that is, because you're losing that money you could be making and something about you can't make it up, but in 12 years or something.

Right. Well, the thing here is that every year you wait beyond age, your full retirement age up to age 70, your check will increase by eight percent. So, you know, for instance, if you were to wait until age 70, you'd get 132 percent of the check you would have received at full retirement age for the rest of your life. Now, you could say, well, yeah, but what about those years between full retirement age and age 70 that I wasn't getting anything? And what I would say is, well, if you're healthy and you're going to live at least to life expectancy, which once you reach age 65 increases to age 84 as a female, then you will eventually, through that added amount in the check each month, make up over time what you gave up by not collecting a check. And then from that point forward, you would be able to enjoy that higher monthly payout for the rest of your life. And given that life expectancy continues to increase, that could be a real benefit, especially if during those years between full retirement age and age 70, you don't need the money, you have other income sources, you're continuing to work, something like that, then that added amount in the check each month could be just what you need to cover perhaps a shortfall in your monthly budget so that then from that point forward, you have enough to cover it. Many estimates say, Dorothy, that it takes about 12 years to recoup those benefits.

So nobody knows, only the Lord knows when he's going to call us home. But if you're healthy and he tarries, then there's a pretty strong likelihood that you're going to live those 12 years to recoup the benefits you gave up. And then from that point forward, you'll enjoy that higher monthly check for the rest of your life.

Now, for some folks, they say, listen, either A, I'm not healthy, I've got pre-existing conditions, or B, I need the money, because I'm relying on that Social Security check at full retirement age or even before that to be able to account for the needs that I have in my monthly spending. Well, if that's the case, then that's your answer. But if you have that luxury of waiting, it can be a real benefit.

Does that make sense? It does. But is it that much more waiting? I mean, it seriously increases by a good significant amount?

It is. It's 8% per year. So think about getting an 8% return on your benefits each year, guaranteed. You won't get that guaranteed anywhere.

Nobody will guarantee that kind of return. And so that 8% after year one, and then another 8% after year two is real money. And I think that's where you have to sit down and do some planning and say, as I head into this retirement season, what does my budget look like?

What are my needs? And at what point do I need to start collecting? And if you have the luxury of waiting, and again, you're healthy, you might say, you know what, I'd rather push this off. And then once I start collecting, I'll get 8% times however many years I waited up to age 70 in additional amounts in every monthly check.

And that could be a real benefit to me. Well, isn't it yearly that there's an increase in, I mean, I'm not collecting yet, but isn't there an increase yearly that a person gets? You know, you start off, let's say you start off at 1500 a month. I'm just seeing that as a number. But then you're collecting that then January, whatever comes around and it goes up X percent, and now you're getting 1550. You know what I'm saying? It goes up anyway.

I do. So there's two increases that you might be referring to that are separate from this 8% that I'm talking about while you're waiting. The first is a cost of living increase, which is a nominal amount based on a certain index that the government looks at to see as prices rise for certain things, they increase those checks that happens for everyone automatically. The only other way you'd see an increase is if you continue to work and you replace lower earning years, perhaps early in your working career with higher years so that the 35 highest years when one is replaced is calculated at a higher amount. But that's only assuming you're continuing to work and you're getting paid at a level that replaces a lower earning year. Those are the only two ways you can get an increase. But what I'm talking about in terms of an 8% increase by waiting beyond full retirement age is in addition to both of those. So this would be a guaranteed 8% increase in every check over and above any automatic increases you would receive for cost of living or by earning more in any given year. So hopefully that helps you.

If you have other questions, reach out to the Social Security Administration, ssa.gov, perhaps set up a virtual visit to understand how this would impact your check. And we appreciate your call today. More calls just around the corner 800-525-7000. Stay with us. This is MoneyWise Live.

We're so glad you're along with us today. I'm Rob West, your host, and we're taking your calls and questions. I see on the board at least four lines open, actually five. Here's the number 800-525-7000. That's 800-525-7000. Hey, are you looking for professional financial advice from a competent financial professional who can bring biblically wise counsel, someone who can really align their advice and investments with your values and priorities as a believer, who understands the counsel of Scripture related to money? Well, we trust the Certified Kingdom Advisor designation.

More than 1,500 professionals, men and women around the country, have earned that designation, which is the gold standard for professional biblical financial advice. If you'd like to find a Certified Kingdom Advisor in your city, you can head to our website, MoneyWiseLive.org. Just click find a CKA. You can search by zip code or city, state.

I'd encourage you to visit with two or three before you decide on the one that's the best fit. Again, MoneyWiseLive.org. 800-525-7000. Back to the phones to Chicago, Illinois, WMBI. Hi, Sheldon. Hello, gentlemen. Good evening. Good afternoon. I should say evening is later.

Afternoon is now. We'll take it. But I've been taking care of my cousin. He's 73 years old for the last two and a half years, and he passed away in June. And he left a 17-year-old daughter who's coming to my life now. And he left her about 47, maybe $45, $41,000. And I don't know how she should invest it. She's 17. I'm going to guide her along the way. I'm not just going to give it to her and leave her. I just want her to know I like gold, but I'm kind of scared of money markets and mutual funds.

What do you guys suggest? Yeah. Well, Sheldon, I'm delighted to hear that you've come alongside her to help. Of course, a minor can inherit assets at any age, but can't take possession until age 18. That's certainly true in the state of Illinois. Have you been appointed by the court as guardian to handle these assets? The attorney's office left it to me. So it's me or nobody else. There's nobody else helping her. Okay.

All right. Well, I think the first thing to do is use this period of time to really help her learn to handle money God's way, both in the terms of financial literacy as well as understanding the Council of Scripture as it relates to money. And when we're done today, I want you to stay on the line.

My producer, Amy, is going to get your information or actually Deb serving in that role today. And we'll send you a copy of Howard Dayton's book, Your Money Counts. And I think as you begin to work through those chapters with her, I think that will uncover so many of these principles that will be critical for her to understand at this early age that beginning with God owns it all and that she's a steward managing God's money and money is a tool and that the Bible speaks to how we should handle our lifestyle. And what about debt? It covers how we should save for the future. What should our giving look like? And even how should we set goals for the longer term?

All of these areas will be covered. And this will be an important season, I think, of education as you prepare her for adulthood, not only to manage what God brings her way in the form of provision, but also these assets that have been entrusted to her. In terms of your specific question about investing these funds, Sheldon, I think the first thing to do is really to define the purpose of this money. Is this money that's going to be used in the next five years for a college education, for an apartment, for the purchase of a car, other expenses? If so, I wouldn't invest it at all. I would put it in a high-yield savings account that's FDIC insured. You mentioned not trusting money market. Well, as long as you trust the full faith and credit of the United States government, you'd be protected in a savings account. And I'd use an online savings account like Ally Bank or Marcus or Capital One 360. She'll get a half a percent, but the money would be available.

She wouldn't take any risk with it. If it's 10 years or more, then I think that's where we can invest, but I wouldn't be highly concentrated in precious metals at all. I would be looking toward mutual funds to get a broad diversification of high quality stocks.

So she owns real companies that over the long haul, I think, will be the very best place for her to grow wealth and soundmindinvesting.org would be a great resource. So stay on the line. I'm going to send you your money counts. I'm also going to send you the Soundmind Investing Handbook. This is MoneyWise Live.

We'll be right back. Thanks for joining us today on MoneyWise Live. Hey, our brand new website, moneywiselive.org, has a place where you can connect with a community of believers supporting one another on their stewardship journey. Just click the connect button when you visit moneywiselive.org. Once you create a free account, you can post questions in our forums. You'll get answers from our MoneyWise coaches and others in the community. We're getting lots and lots of posts. Great to see so many people interacting about managing money God's way. And we'd love for you to be a part of the discussion.

Again, moneywiselive.org. Just click connect and then post away. 800-525-7000. We've got two lines open. We're going to Chicago and Boca and Missouri and Michigan.

But first, St. Louis, Missouri. Brian, thank you for holding. I understand you have a testimony.

Oh, you better believe I do. I've been a Christian over 40 years and I made a huge mistake. It took three and a half years to get it all fixed. But I was young and foolish and didn't differentiate what one is opposed to a need was and got into a lot of debt credit card wise, bank loans, credit union loans and finance company loans and got to the point where I was way over my head and decided, Lord, I took all my bills, opened my Bible and put them all in my Bible and said, Lord, I'm not being a wise steward of your money. I need you to be in control of my finances. And little by little, I wound up getting one loan paid off after another up for another after another. And people said, why didn't you just, you know, get a huge loan and pay him off at one time? And I wound up finding the wisdom of the Lord that he wanted me to see the satisfaction that I was able to do this with him guiding me to how to do this instead of just, you know, snapping my fingers and it all disappearing. And I learned how to he humbled me and learn how to be thankful and grateful that all this debt was just taken care of rather than doing the easy way out of filing bankruptcy because I don't believe you should do that. And literally, you know, it was just people were amazed how I got out of debt in that short a period of time. And now I've got a bank account and now I'm completely debt-free because of doing it that way.

Wow, that's incredible, Brian. Well, there's a couple of things that jump out at me in your story. First of all, thank you for sharing it with us, because I know it's an encouragement to somebody who perhaps finds themselves in the same place you were when you started this. And that is, first, you have to come to the end of yourself. And isn't that true for all of us, no matter what it is we're dealing with?

When we're struggling, turning over lordship to the Father in every area of our lives, and that certainly includes our finances, we need to come to the end of ourselves and say, Lord, in my own power, I can't do this. I need your wisdom. I need your provision. It's going to be me relying on you to make this happen.

I love the physical act. Howard Dayton, the former host of this program, and the compass, which used to be the crown study, would actually go through the process of signing what he called the quitclaim deed, which we would typically think of for a home, but he would have you quitclaim deed everything you have over to the Lord, just out of this acknowledgement that, Lord, it all belongs to you. And I want to do it your way, because in my power, I can't. And you got to that place, Brian.

But I love this other idea that you said, I don't want the easy way out in terms of a consolidation loan or a bankruptcy, because the discipline of doing the hard work to get out of debt forces you to establish the right habits for you to get to a place as you have those small wins along the way to keep going and to form new habits that ultimately will guide you in your financial management in the future. You've gotten to that place. I guarantee you, because you've done the hard work, you're never going back, because you don't ever want to be back where you were. And the Lord's going to use that not only in your life, but in the lives of many, many who are listening today. So Brian, God bless you, my friend. Thank you for calling and sharing your story. We appreciate it very, very much. Let's head south to Boca Raton, Florida. Karen, thank you for holding.

How can I help? Hello. Yes. Hi. Thanks for taking my call. Okay.

I have a question. We have been getting letters from investors. Well, my husband, because he's the owner of the home, but they've been writing him to say, well, they will buy his home for cash. So I wanted to find out, would that be a safe way to sell our home if we're still paying a monthly mortgage? Yeah.

Well, when you're selling the home, it really doesn't matter whether you have a mortgage or not, as long as you have equity, positive equity in the home. You're not upside down right now, are you? You don't owe more than the home is worth. Is that right? No. Okay.

So yeah, you believe you could sell it for more than the balance on your mortgage. Is that correct? Right. But what I'm really concerned about is, is that a safe way we've been getting letters from investors that they want to buy it for cash. Okay.

Yeah. So let's talk about that. But I want to make sure you understand that the fact that you're still paying on a mortgage really doesn't have anything to do with how you go about selling it. So then the question is, how do you sell it in a way that maximizes the value? This is probably your largest asset.

It is for most of us. You're a steward of God's resources, all of your assets, including this home. So how are you a good steward of this home in selling it? And responding to solicitation for a cash buyer company selling your home for cash is not the way to go. Those companies have less than a stellar reputation.

Some are better than others, of course. But on average, you're going to give up about 30% with these cash buyer programs, because essentially what they're doing is they're buying it for cash only just to turn it around and resell it right away. This is not somebody who's going to buy this home to live in it. And so they've got to buy it at a deep enough discount for them to do whatever repairs need to be done, and then turn around and list it immediately and sell it for its true market value. And then they keep the difference, which is the price of the home. And then they keep the difference, which is the profit.

Well, the only way they can do that is if they buy it at a discount. So by using one of these cash buyers, you're not going to maximize the value of this property. So instead, Karen, what I would recommend you do, especially where you are there in South Florida, property values are sky high. I would find a professional realtor, a real estate professional in your area, preferably somebody who specializes in your neighborhood or the surrounding area. And you could find that person probably by just seeing who has the most signs out as you drive around town. But you're going to want to get somebody who can really look at what is the true market value of this home, help you price it accordingly, help you stage it in terms of, are there repairs that need to be done? And do you have too much furniture in there that needs to be decluttered?