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More People Are Budgeting

MoneyWise / Rob West and Steve Moore
The Truth Network Radio
October 21, 2021 5:14 pm

More People Are Budgeting

MoneyWise / Rob West and Steve Moore

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October 21, 2021 5:14 pm

As work hours shrank during the COVID crisis and resulting shutdowns, many turned to budgeting to help stretch their precious dollars. But why are some people still not budgeting? On today's MoneyWise Live, host Rob West will talk about the likely reasons why some people still are not using a spending plan. Then he’ll answer your calls on various financial questions from a biblical perspective. 

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This is Damon Baxter and I serve as business development director for MIDI radio.

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More people are living on a budget. Rob West, it's true as work hours shrank folks proudly spending plan to stretch their precious dollars first today and why some people still are budgeting your calls at 800-525-7000 24, seven, 800-525-7000. This is moneywise live wisdom for your financial decisions.

Okay, so how do budgeting, but we can think of folks for that information. They recently surveyed a thousand Americans and found that 80% of them were living on a budget.

That's up from 68% found in the same survey conducted two years ago before the pandemic hit, that's a pretty significant increase. What isn't so surprising is that nearly 90% of those in the latest survey, who are using a budget said it helped them get or stay out of debt. Some other interesting findings. Only about 10%.

Use a budgeting app, and 60% prefer paper and pencil. Obviously they haven't heard about the new moneywise app which you can download for free wherever you get your apps to search for moneywise biblical finance. But let's get back to that 8020 statistic that showed 1/5 people still aren't living on a budget and then you might be asking why not. I think it's because they just don't understand the importance of budgeting so they're not motivated to do it. The solution there is simply more education. Some high schools of started teaching things like budgeting and balancing the checking account, but the vast majority of kids need to learn from their parents, which is always better parents can model budgeting and responsible spending for their children. Otherwise they have to learn it on their own, the hard way.

The second reason might be there, afraid a budget will be like wearing chains and will make them miserable day quite a spending plan with restriction now.

True, it does limit spending and nonessential areas. But instead of making their life miserable and confined folks to stick it out and stay on a budget. In one sense actually find it liberating for example, they feel better about spending money for a vacation because they planned and saved for it. They don't worry or feel guilty about it and they can really enjoy themselves. Another reason than the easiest one to overcome is that some people don't think they make enough to justify budgeting. The reality is, the less you make the more you need to budget so you know where every dollar is going ahead of time.

That's just simple logic. Sometimes these folks will say everything we make goes right back out the door to pay bills so there's no point in budgeting and that may be true for a minority of people living near the poverty level, but the vast majority of people have some margin some amount of discretionary income. They just don't realize it because they're not watching how their spending. A budget forces you to keep track and consider this, you only have so much money to spend. Even if you're wealthy your money is still finite. There's always a limit. If you fail to grasp that you'll eventually find yourself in debt so with a budget. You still have the same amount of money to spend or save the differences you're just deciding ahead of time how you'll spend or save it. Okay, so you're in the 20% not living on a budget but now you're motivated to start. So what should you do first to put together a spending plan. Well, it's always a good idea to start by tracking your spending. Write down everything you spend for at least a month so you can see where your money's going, then you need to make categories for your spending. Things like groceries, gas, clothing, rent or mortgage and utilities you probably have a few more categories write down how much you need to put in those categories. For example, your rent or mortgage is fixed to no guesswork there, but you will have to decide what you'll spend in areas like food and entertainment. Then you also want to add up your total monthly income that you subtract your obligations. The total of all your categories from your income, then you can see how much you have been discretionary funds.

Once you know how much is left over. You can use that money to start paying down debt and saving. It's really just simple math and once again the moneywise that makes this whole process much easier than using a pencil and paper uses the tried-and-true envelope system. You can easily link it to your checking and savings accounts, the app will track your spending and notify you if you go over in a particular category so you can make adjustments. In fact, you can connected to all of your financial accounts. Your transactions will come down automatically even learn where certain transactions go in terms of the categories it's appropriate so more people are budgeting these days. Make sure you're one of them are here because her next at 800-525-7000. This is moneywise live biblical wisdom for your financial decisions will be right moneywise calls and questions in just a moment. Here's number 800-525-7000 lines open to five, 7000 we began today by talking about the importance of budgeting, tracking your spending. It was managers of God's money. We realize how we allocate God's money says what's important to us and we're never going to be as effective as we can possibly be in managing that money wisely unless we have a plan and a system to control the flow of money in and out.

Think about this. Most families will take in well over $1 million in their lifetime question is how are we allocating that in is some of it slipping through our fingers into areas perhaps we would otherwise control if we had that information at our fingertips. Well that's what a budget can do for you and we mention the moneywise out.

This is why we created the moneywise app.

So God's people not only could have a community of people encouraging them where they can ask questions that's in there.

Not only could they learn the best way to handle God's money in areas like saving and investing and giving. That's all in their in our learn tab but at its core of the moneywise app is our money management system that we got some exciting news. We just released in the last couple of weeks. The brand-new moneywise. 3.0 and if you haven't checked it out of love for you to check it out today. In fact, today we just put up a blog with all of the new features found in the new moneywise app version 3 you can find that it what you will see there is that really the big new feature, other than our new design is our three money management systems. It's the first step to have three and one you can use the tried-and-true envelope system, but if that's too advanced for you right now then you can use our monthly spending plan tracking system. That's where you just establish your budget and track against it, or if you want to, perhaps even more simpler process. We've got just the pure tracking only option where you just track your expenses and categorize them so you have that information. Check it out today so you can see all the new features in moneywise 3.0 it was just released by the way, you can download the app in your app store. Just search for moneywise biblical finance, hard-working head to the phones 800-525-7000 uppers today is Valerie in Tennessee hi Valerie, how can I help you recently retired at 65. We are leaving on our pension and add pulling out some that semi retirement 401(k) we need to replace our faith in your own vehicle with a newer one way to look at possibly taking no one something out and playing more adamant semi 401(k) or find out the option and refinancing your home and get a little extra cash and paying it back down. Okay, let's unpack each of these first is you said your living on your pension and 401(k) so both of your fully retired. Is that right okay and are you drawing Social Security now warehousing finance okay very good and how much what would you say roughly is in your 401(k)'s altogether, about 1.4 million okay and what you pulling out of that to supplement the pension income will pulling out 4000 okay very good so you know you're right there in terms of just under the 4% number that I would be comfortable with where you can maintain the principal if it's invested conservatively with the focused on fixed income, but perhaps a portion in stocks that could be kind of a growth catalyst. Over the years and once you begin collecting Social Security that'll make things even a bit easier because that would be supplemental income that you have coming in but let's talk about the home for a second.

Valerie, what is it worth and what you owe on it. We were looking to praise her for 65 and we owe 110 on it now okay very good. And how many years are left on that mortgage.

I think about 800 pay that damn what is your interest rate. Interest rate 4 1/2. Okay, so there is an opportunity there. I mean you're getting into the range where you know it it the most.

I wouldn't want you to go more than a new 10 year mortgage which if you're accelerating that pay off. You could still you know have an eight year payback but if you save let's say a point and 1/2 on the interest rate and you make payments such that you match the current remaining term so you could ask the mortgage company to amortize that for you in such a way that that you don't increase the terminal with that savings of appointment half on 10 years, you know, I want to make sure that there's enough interest savings over the 10 years to justify the cost because you know you'll probably spend three grand in costs. Closing costs and so forth related to the mortgage refinance itself and we just want to make sure that there is to be enough interest savings. There probably will, but you want to look at that, should you roll this vehicle purchase into that. You certainly could, but I think you know as you look at other options. You know you could also just pull this out of the 401(k) as you said what you looking to spend on the vehicle were looking at about heading into. Okay. All right. Very good. You know I'd rather you not put all of that on the house that would essentially put your mortgage back up to 200,000.

It's can be collateralized by the house. I realize you got quite a bit of equity but I'd rather you look at either. Just feel adding a bit more to what you're taking out if you could good a good interest rate or just taking the just distribution out right and buying the cars that way or car. As you look at this. Do you have some cash available that you could use as a down payment right now right in your spending about 4000.

So if we were to mean you've got well over a year's worth of expenses in their correct okay or anything now so if you were to put down. Let's say no even on 72,000. If you were to put down 30% of the 21,000 solicit you put down 20 and I you still have 40,000 left which would give you a really healthy emergency fund, you know that would bring that the note down to 50 and then you could increase the amount that you're taking out as a distribution or we just pull that 50 from your 1.4 and you know I would imagine using an advisor he or she could tell you which is the most effective investments to sell for you did to raise that cash if there's not, that amount of cash already in money market, which would there likely is. Do you all have a preference as to whether you bump up the monthly distribution or you pull that out outright we not incur that you will so you know, one option would be you can spread it over to tax years to make sure that you don't bump any portion of it up into a higher bracket so you if you were going to do this right after the first of the year you could take a no portion of it this year, and a portion of it next year you could do it right at the end of the year, which is when you're going to get the best deals on cars if you're buying new and at that point you could take a small note but then pay it off right away.

As you take that second distribution in the new calendar year and that would spread the tax bite if you will over two years.

Does that make sense okay so I think you depending on how quickly you need this car. I think that would be my preferred option. I mean, you've got plenty of assets that you could structure this any number of ways, but I think what I would prefer to see you do is pull 20,000 from the emergency fund take another you know if the balance on that is 50,000 its remaining take another 25 from your 401(k) this year went by the car.

With that in a 45,000 taken note for the rest and then pull that final distribution in 2022 and just pay it off and at that point you won't have to increase anything you own the car outright and all you move forward from there. Okay now I really appreciate your call today. Absolutely.

And thanks for listening.

But let's said Buick. Let's taking a quick break and we come back will continue to unpack some great questions that are all lined up here.

Ed's in Indianapolis. He wants to know about test back taxes and student loans how to tackle this, Glenda wants to know what PMI is private mortgage insurance will talk about that Craig and Missouri wanted to know about investing 50,000 would love to hear from you what your question today will run it through biblical filter and apply biblical principles help you. This is moneywise for turning in the moneywise live recognize the stewards of God's resources. This principle of ownership says that God created everything and therefore owns everything we own nothing but the next principle that follows is the one of responsibility that says that as stewards, we have no rights over what we temporarily possessed by the Lord's provision, but we do have responsibility to use those resources wisely, and God will reward us for doing that. It may not be financial but there is blessing that will come from that and we can seek counsel from God's word so that we make sure that were getting it right because his principles are always right there always relevant and they will never change. I unpack these principles of stewardship in this week's moneywise weekly wisdom that email is going out today. In fact, it's sending as we speak along with our recommended reads for the week are trending podcasts and our verse of the week, so if you'd like to receive the moneywise weekly wisdom just create a free account when you go to moneywise and will be sure to get it out to you but said back to the phones today 800-525-7000. Bernie is in Chicago Illinois I Bernie can help you sir, I thought you had to get a good show but about two years ago I called you guys for some advice and invite for the right and I'm glad I called to the end and I just I have another question. Well, I always like when it works out Bernie so I'm glad you said that. That's no I would be 62 this November I receive is that an adventure that was called to come to the mail and it kinda tells you what you going to be receiving as far as your benefits. Yes and it told me that the Bible get 1066 1/2 I would get 1300 and I was just wondering have been should I work with mother in no you will hear the whatever it is due. 300 hours more order. Should I retire about a part-time job in well I can understand the dilemma because there's not only the financial side of this, Bernie. You know what you're locking in here on Social Security, but there's the nonfinancial side, the quality of life issue and I suspect you like the idea of saying well I can easily make up $3600 a year with part-time work and slow down and not you have this full-time job and you would be able to do that because the threshold where you'd start to have your benefits reduced in terms of your earnings would be not until you reached about $19,000 which clearly you don't need that much to make up that 13 $3600 shortfall. Here's though the missing piece and that is that that amount that you're going to be receiving as a benefit the thousand a month.

If you retire right now you're locking that in for the rest of your life. And so there will come a point I would imagine where you're not gonna want to work at all or you're knocking to be able to work either because you just simply can't or God's redirecting you to something else in that season of life, and at that point, you're going to have to live on that thousand dollars a month plus whatever other retirement income sources you have. So it's not just about making up the $3600 a year for the next four years because of that amount is what you're going to be stuck with. If you will, as a benefit for the rest of your life. And so I think that's the consideration is to say what is my monthly budget look like, how much do I need on a monthly basis and is this $3600 a year really going to make the difference in terms of me being able to meet those obligations and if it will, then I think it's pretty important that you continue working and get that check up as much as you can. Does that make sense to you but I didn't understand it was something about where and some caller came in and asked you to like she retired. She said you retired or something but she make up a benefit later somehow.

Well, so what that's referring to is the reduction that takes place when you continue to work so if you earn more than 18,960 in the year 2021 and you're on Social Security, you've started to collect benefits.

The Social Security Administration will deduct a dollar for every two dollars you earn above that threshold, but that will be reimbursed to you later in increments. Once you reach full retirement age, that's a temporary reduction. The problem is that is different than what you're talking about, which is claiming Social Security early, which is a permanent reduction of those benefits so that the amount that's reduced that will be restored to you is simply based on you earning beyond the threshold that's permitted.

That is entirely different than you beginning to collect Social Security benefits at 62 and you walking in that thousand a month for the rest your life you will never earn that $300 back for any reason.

The only increases you will have in the future will be cost-of-living increases will be which would be nominal. Does does that make sense and quite badly.

I called you guys but yeah, thank you so much I appreciate you got a great show. I Bernie. We appreciate you my friend. Thank you for listening and for your kind words. Today, folks, this is what it's all about. We want to look at what God's entrusted to us. You know that's what we are charged to be found faithful with what passes through our hands and then we will apply biblical wisdom so we can manage God's moneywise live with contentment hold it loosely give generously.

Yeah, we want to save for the future, but we all should be.

We also should be asking how much is enough with lifestyle and about which so that we can give generously.

That's what true joy is found there were to continue to take your questions. 800-525-7000 takes returning it moneywise live around posting calls and questions today just a moment in Nashville Tennessee and Missouri Indianapolis for next up is Cleveland, Ohio hi Teresa, okay, okay. I love the program. Every day I can guide you front now what are my questionnaires to find out okay. My job retire early from my job at Armani going on my 55 so I feel like $144,000 in my way and I'm trying to find out what the Y displayed to best invest it because I really can't take outcome 59 or half so I'm just trying to get ahead at that lunch I voted out of the IRA that Ian into maybe another IRA or 401(k) or something. Some advice can you help me I be happy to Teresa.

Tell me what you're planning so you're retiring at 54 you planning to gonna restart another career is God directing you to some other activity. What are you planning to do what you directed me to stomp them because you've been in my life since I was a young camel gospel singer. My mom we come from the Brooks family without both family was with finger in your program. You can call me. I'm trying to find I want the best may be investment I can make to make a profit off the bat because I work about still young enough to figure out just sitting there and want to waste big just sitting there some time to figure out what you think is wise for me to do absolutely. Is it with your previous employer in the 401(k) Teresa or somewhere else. My previous employer, OPR and and I want very much it will be. I don't know what you I would look at the rolling it out to an IRA and you're exactly right Teresa, you're young you got time on your side, you know, if you were to let's say you know we typically think of retirement in terms of age 65 or somewhere between 65 and 70 but it we don't follow the world's necessarily perspective on retirement. We realize God's call on our life happens throughout the entirety of our lives and in that season when we either stop working because we have to, or because God redirects us we should be asking, Lord. What's my next assignment you when you have the greatest in terms of wisdom and experience to bring to God service. It's an exciting season of life.

It's not a time just to live necessarily a life of leisure. But keep in mind this money needs to last year with the Lord Terry's and you're in good health for decades and so you should be thinking about investing it, but it's also a good significant sum of money a minute hundred and $50,000 and what it could grow to is a a lot of money. So what I would be thinking about. Teresa is in fact rolling into an IRA.

But first, before you do that, I believe it right there and I would find an investment professional who can take over responsibility of this for you to be somebody that you would interview and I recommend you sit down with two or three certified kingdom advisors find one that's a good fit for you in terms of the size of account of the opportunity for you to get to know one another how you would be communicated with their experience and expertise.

All of these things, and once you decided on an advisor to manage this for you, then he or she would open an IRA at their custodian could be Schwab or fidelity any number of institutions and then you would just simply roll the money inside the 401(k) out to your new IRA and based on the investment strategy that you discussed with the advisor he or she would begin managing that for you on your behalf so you could then go and work and serve the Lord and you'd certainly get the statements and oversee it and meet with the advisor a couple times a year, but somebody would be waking up every day thinking about making sure that that money was invested wisely and where you're not taking unnecessary risk. Given your agent objectives and risk tolerance. So the way you would proceed with that as you had to our website moneywise just click find ACK then again there's a number of them there in Cleveland so I'd interview at least two or three. Find the one that's the best fit and then you roll the assets out and it would be invested at that point. Does that make sense to you. I'm glad to hear it. Well I think this is a great next step. I mean, obviously you can manage it yourself and if you wanted to do that.

I'd recommend you visit with our and you through this online investing newsletter. They could give you some great mutual funds. You roll it out to an IRA that you'd open and then you could pick the mutual funds but I think you have a meaningful sum of money. I think you'd probably have a lot of peace of mind knowing that there was a professional investment advisor making these decisions for you. So again had to our website moneywise click find a CK Glenda's in Nashville Tennessee.

Glenda you're next on the program. How can I help you yes ma'am I will get like I don't know, but I'm not why Barry what what yes well it's a great question to ask because it has no benefit to you whatsoever as the borrower. So the thing is if you have a loan that's conventional loan and you borrowed more than 80% of the value of the property at the time you purchased it.

Then you were required to have private mortgage insurance, which is basically insurance for the lender, not for you. So in case you defaulted on the loan. It would make them whole, has again nothing to do with you.

So I think the key is you would want to at this point.

Look at if you have now more than 20% because you've either paid it down or the value of the home has risen, you'd want to look at getting that removed once you get to 78%.

Typically, it's automatically removed. But at this point, as long as you can document that you got at least 20% of equity in the home and you might need to get an appraisal to do that, you can ask the mortgage company to have that removed so you're no longer paying that because your typically this is anywhere between 1/2 of 1% and 1% of the loan amount on an annual basis so you know that could be to our thousand dollar mortgage of hundred and $66 a month, or about $2000 a year or so. If you can get rid of that is not doing anything for you.

You absolutely want to so I would call don't respond to some the comes in the mail. I call your mortgage lender and tell them that tell you'd like to know what it would take for you to get rid of the private mortgage insurance, and what steps you need to follow to see if you can do that, but a quick search on the value of your home versus your current mortgage balance will tell you whether or not you're in the neighborhood of the of that 80% loan to value, meaning you have at least 20% in equity and that would be a good starting point to determine where you need to go next Glenda. We appreciate your call today. Thanks so much for checking in with us. A lot of folks are asking whether it still time to refinance their mortgages and I would just simply say we're in still an incredibly low interest rate environment so it maybe most folks have already done it, but if you haven't make sure you save at least a point in interest. Make sure you don't increase the term meaning if you have 20 years left. Don't get a new 30 year mortgage and make sure you're not spending any more than 2 to 3% of the mortgage closing costs also need to stay put in that home for 5 to 7 years. This is moneywise live biblical wisdom for your financial decision is on Rob West with us today moneywise live on Western hostesses biblical wisdom for your financial decisions were taking your calls and questions today and I got a few lines open.

In fact I'm to stay after for a few minutes today I got a bit of extra time which gives me a chance to take a few more calls even beyond the program so you'd like to be a part of the program. I'd love to hear from years. The number 800-525-7000 that Craig is in Missouri and Craig understand you have some money to invest. How can I help you, just a quick snapshot of what were at thousand dollars cash in the bank and we have some for one know some Roth IRAs.

But we don't know what we can do with the money that just sitting in our account. I fully funded on our lot collaborated that every year but dumb.

I don't know any identified tasks.

Yeah, I will appreciate you asking.

So let's figure out how much you need to keep in reserves where you are spending on a monthly basis roughly: oh, 500 budget alright so let's even bump it up to 4000. If we were to do six months of that would be 24,000.

So you've got about 75,000, potentially, you say you're fully funding the Roth but that's only 6000 a year for you and if you have a spousal Roth another 6000 if you're over 50.

The most 7000 piece. How much you putting in your 401(k) 401(k) is fully funding all Roth IRAs.

Right now we do it individually. My wife and I myself very good. Are you self-employed yes okay so I would look at the opportunity to open perhaps a separate IRA, SEP, or an individual 401(k). The third option would be what was called the simple IRA and depending upon your situation. You any one of them may be the best option for separate IRA would allow you to make an employee's contribution that's either 25% of your compensation or 58,000 depending on you which one is less and then you can put in an additional amount. Beyond that, so that would be one option where you could begin to put some serious money away and you know that would allow you to not only get the tax benefit now but get growing on a tax-deferred basis because remember the goal of what we want to be putting away as long as we got the emergency fund. We don't have any consumer debt were giving first, then the goal of what you want to be saving for the future would be somewhere between 10 to 15% of your income and you know I would imagine that. That's more than the other four. This is 14,000 that your potentially putting away each year so you don't depending on your whether you have the ability to do more. It sounds like you do that. I think that's up IRA could be a great way to go. Have you ever done any financial planning with the financial planner Craig locally and once a year, sometimes twice managing our loss and estimates to the degree that we've invested and not gone back with him to deal with the excess money.

I don't know what I almost feel like I want to look around a bit and find out I can help distill a more creative yeah well I think the key is to do some planning. First, just to determine what is your ultimate goal based on your lifestyle and how many years you're planning to work and what you anticipate the value of the business will be in a down the road. Once you sell it or you know induced your transition out of this work you what are you ultimately trying to say because we don't want to just save for saving sake and we want to ultimately have a goal so you know how much you should be targeting to put away on an annual basis and it could be that that fully funding those Ross's enough, but if not, that's where the setup or the symbol of the individual K could be another great option to get some tax-advantaged money growing for you.

A long-term basis, but having that plan so you set those financial finish lines and establish those goals. I think comes first, and then we open the accounts and refund them out of your excess cash in corporate profits from your small business. You know, to achieve those goals over time.

So if you're looking for an advisor to do that planning for yard headwear website moneywise click find a CK and you don't have to hire that individual to manage the money you could just pay somebody for their time to do the planning and then you can either use that person or someone else to actually you manage any additional counts.

You decide to open and fund out of this roughly 75,000 were saying, is available for long-term investing because you don't need it for dad to her emergency funds or anything like that doesn't make sense. Craig okay okay very good moneywise just click find a CK.

We appreciate your call today. Beth is in Indiana hi Beth, how can I help you yes ma'am about how that I have that that I hate that many more that will keep in mind the reason the bank is telling you that you need a new mortgage.

Sure they want you to refinance or they want you to get a home equity loan in place is because that's how they make money and there's really wrong with that, there in business to make a profit, but that doesn't mean that's in your best interest. You know, there was never really a good argument to pay mortgage interest for the tax deduction. But now with the standard deduction rate is so high it makes even less sense because very few people even qualified to deduct the interest payments. But even if you can, it still doesn't make sense to be in debt for that reason. So I love the idea of you all wiping out that mortgage you've only got 4000 ago you tear it up. You've got the peace of mind to know that you own your home free and clear in your unencumbered and now you are no longer making that mortgage payment which is you said then freeze up margin for you to apply to your next priority, which I love the idea of you paying off student loan debt because at some point you are to be completely debt-free to be able to increase your giving.

If you want to be able to save for the future and know that you know I owe no one anything, which is a great place to be, so there's no reason for you to go refinance or open a new line just because the bank is telling you to. In fact, I would encourage you not to do that okay. I bet we present to listening going today. Thanks very much. St. Louis, Missouri hi Sherilyn, how can I assist you.

Thank you for taking my call, my question to you I did at night in case I wanted my credit card and so they stared at it with the right impact on my credit if they do it right now so let me know that it would affect my credit score and I know how much money if you only need to a high impact thank you to concentrate okay great yeah you would want to know what that credit score is and you can check it out a cry credit Karma that's credit KA you get it for free. You may also have a credit card. Many of the credit card companies now offer free credit scores I would know what that is. Just as a good baseline and I would be checking your credit report at least 3 to 4 times a year and you can do that in annual credit free of charge. Just to make sure there's not any inaccurate information or no accounts that are not yours that are showing up that you're there by error fraudulently so you can get that cleaned up in terms of this hard inquiry. That's just essentially where you authorize a lender to pull your credit for the purpose of considering whether you're a good credit risk because they want to know whether or not to extend you credit. In this case, increase your line that hard inquiry does cause your score to go down, but typically it's not more than 20 or 30 points and it will be temporary. You know it'll come right back up.

So unless you're out seeking a loan beyond this credit line increase your your shopping for a car you refinancing your mortgage. I wouldn't worry about it because any impact is going to be temporary and if you're carrying balances on anything which I'd love for you not to be, but if you are you that credit line increases get to make your credit utilization go down, which is a good thing.

The credit utilization is just simply the percentage of your total balances that you're carrying versus the total available credit.

You want that below 30% so increasing the available credit is going to cause your utilization to decline, which again is in your favor, but that hard inquiries can be a temporary minimal drop and I wouldn't worry about it unless you're actively shopping for a new loan. Okay part. Thank you so much my heart down okay thank you very much questionnaire for Your very welcome Sherilyn. We appreciate your call today. May the Lord bless you. Well it's good to do it for us today. We covered a lot of ground only talked about investing in that credit scores and giving in Social Security and whole host of issues here this here's the good news God's word speaks to all of you know. But if we want to simplify. We recognize that ultimately it comes down to living within our means avoiding the use of debt.

Having some margin or some savings in our lives. I would say setting long-term goals is number four and number five is giving generously.

If we do that consistently over a long period of time, then we've done our part to manage God's moneywise and I think we should always be asking the Lord how much is enough. What should my lifestyle look like I don't need to take my cues from the word from the world.

I want to take my cues from the Lord. And so we got of the auto leasing Lord, what would you have me to do.

How much is enough for switching review spending and more importantly, what should we be giving well. We want to help you figure out God's heart for your finances together each day here in moneywise live in hope you enjoyed our time together was a thank you to my team today. Gevity was answering their phones that Solomon was producing today Amy Rios engineering the amazing Jim Henry providing research today. Thanks for being along with this. I hope you come back tomorrow and join us. I'll be here will see that middle English

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