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Get Control of Your Money

MoneyWise / Rob West and Steve Moore
The Truth Network Radio
November 3, 2021 5:30 pm

Get Control of Your Money

MoneyWise / Rob West and Steve Moore

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November 3, 2021 5:30 pm

Do you feel like you’re not controlling your money, but instead your money is controlling you? If so, what are some steps you can take to be a wise steward of the money God has given you? On today's MoneyWise Live, host Rob West will talk about some ways to get control of your money again. Then he’ll answer your calls and questions on various financial topics. 

See omnystudio.com/listener for privacy information.

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Did you hear the one about the guy whose credit card was stolen.

You didn't report it though because the something less than this number was overspending is your problem, it means you're not controlling your money. Your money is controlling you first of the Dale tell you how to change that. That is all your calls of the 525-7000 gold 24, seven, 800-525-7000. This is money was live well, you're probably wondering why were controlling your money when we know that God is really in control of our finances. In fact, even our ability to earn money comes from God. Well, that certainly true God created everything and he owns everything, but he's put each of us in charge of just a tiny portion of his holdings, and because of that he expects us to be faithful stewards of his resources and to do that we have to control money and not let it control us.

Fortunately, being the loving and gracious father that he is God hasn't left us in the dark about this, his word contains over 2300 verses about money and possessions that will guide us to faithful stewardship. If we follow the principles they contain. What a lot of folks don't realize is that by following those principles, we become financially free. If we don't follow them, we become slaves to money. It controls us.

So what are some of the steps you can take to get control of the money God has entrusted to you.

Well, over and over. The Bible warns us to avoid debt. Proverbs 22 seven reads the rich rules over the poor, and the borrower is the slave of the lender. In Proverbs 2120 precious treasure and oil are in a wise man's dwelling, but a foolish man devours it. If you can't avoid debt. Not much else is going to work. So let's focus their if you have trouble managing your credit and debit cards, meaning your spending is out of control.

Stop using them that there was a time once when credit cards didn't exist. People used cash and there's no reason you can't do it today with most of your budget categories.

The advantage to using cash is you can't overspend like with a credit card that part is just simple math. But there's also a very strong psychological component to using cash. You see when you have to hand over actual dollars it's much more difficult to part with them. Studies show that people spend 10 to 30% lapsed just by using cash will help in controlling impulse spending. That's fine you say but what if you already have a big balance on your credit card.

Well, you're certainly not alone.

According to lending tree, 54% of Americans carry a balance on their credit cards with an average balance of over $6000. Now there's only one way those credit cards will ever be paid off, and that's to pay more than the minimum monthly payment when you pay just the minimum on your credit card each month.

A lot of that money is going toward interest-only so it will take years to pay off, but that's what credit card companies want you to do because minimum payments maximize the money they make off you so pay as much as you can above the minimum each month to get that car paid off quickly and if you have more than one credit card that you decide how much to pay on each of them will studies show that paying off credit cards is as much psychological as it is financial. If you concentrate on the highest interest card first. That's called the avalanche method. It will take months and months to pay it off. So instead, forget about the interest rate and pay off the smallest balance first. That's called the snowball method you'll get a quick psychological boost from paying off a card that gives you incentive to keep going and when that's paid off. You can go on to the next highest balance and so on. Of course it's much easier to stay out of debt in the first place. And that's what a lot of folks think they'll do when they first get a credit card. Maybe they've been lured by the promise of big rewards, but those reward points will be dwarfed by the interest payments they'll have to make if they don't pay off the entire balance each month. They think that won't happen. But then an unexpected expense comes along in the easy way out is to use the credit card. The only way to avoid that is by having an emergency fund saved up. We recommend 3 to 6 months of living expenses. Then when an emergency pops up. You can use the emergency fund money to so those are some ways you can take control of the money God has entrusted to remember. Following his financial principles is in a hardship leads to freedom and that by the way, controlling your spending is a lot easier if you use the new money wise that there's three approaches to managing your money. You can just track you can plan a track or you can use the tried-and-true digital envelope system.

Check it out today when you visit your app store to search for money wise biblical finance your calls or next.

800-525-7000 800-525-7000. This is moneywise live biblical wisdom for your actual decisions to moneywise live on the last two hose with us today as we tackle biblical wisdom for your financial decisions. What's going on in your life today, financially speaking, would love to help you navigate that as we weigh it against the Council of Scripture by the way, God's word has a lot to say on this topic, which is why we spend an hour a day here on this. The radio station talking about biblical money management.

If it was on the heart of God in over half the parables of the Jesus taught reference to money in some way more than 2300 verses.

It was talked about just about more than any other topic in the Bible and I believe that's because it's the chief competitor, the Lordship member in the Bible it says you cannot serve both God and the other thing that was put against. Perhaps what we might choose other than the Lord is mammon or money, and it is in a reflection of our hearts and so often can derail us from God's best. We want to get this area of our lives right in my experience is that when we do that it has a ripple effect throughout the rest of our life. We can hold God's money.

Loosely use it as a tool to accomplish his purposes live with contentment and surrender will experience a more intimate relationship with the father. That's our hearts desire for you, so let's do that together in community give us a call today with your questions and comments. 800-525-7000 in just a moment will be talking about 401(k) plans with John Fran in Valparaiso wants to talk about that gift taxes for $11,000 gift she received. But first to firm Vermont Katrina good afternoon. How can I help, I thank you for taking make sure I received back out.

I open an account with Verizon. From my son's girlfriend because I had the good credit and about a month later I received a letter stating I had a bill for $971 and 25% that I owed him but not a printout. They'll just impel stating that and I I took it as an assumption that it was a scam so I threw it away and then I just kept receiving him and I just kept throwing them away so I won't line a ticket down here. The Verizon department down there and they looked it up online because they knew I didn't have this spell because they just open up the account and they lifted up online and they said yes this is a scam. So I continue to throw it away. I did receive a call from somebody about it and I told her your hand and I hung up and now I went to apply for credit card at my bank and they told me I was unable to get one because of this debt was put on my credit but seeing that my credit was put in as a dad that I owe.

That's not mine. So I dropped out my credit score like 100 point sure well is a very common skin that goes on these days were you get a bill that claims you owe money that you don't actually go and generally it's a phishing scam that what's in by fishing with a pH what we mean is there trying to get you to click a link and input your sensitive information that they're going to then used to go steal your identity or commitment. You know fraud with other financial institutions or spend money in your name. Try to log into your accounts. Things like that you don't that typically though would not show up on a credit report so that's the unusual part here because it's not a bill at all, and therefore they have no way to reported to the Bureau if in fact this is in a bogus transaction which is your what you verified with Verizon, then I would deal with this directly with the credit bureaus so I would first Katrina pull a copy of all three of your credit reports with experienced trans union and echo facts you can do that for free annual credit report.com that's the website you want to go to annual credit report.com. If you find the entry related to this bogus nonpayment item, then you want to use the dispute feature on the web to challenge the item and according to the fair debt collection practices act, the credit bureau will have to contact the creditor and they'll have 30 days to verify that the transaction or the debt is in fact legitimate and owed when they can't. It would be dropped from your report and when that's done, it would immediately increase your score. If they come back and say no, it is legitimate and they can prove that will then you've got a bit more work to do to figure out what is the source of this information is being reported. Was it in error, perhaps, you know, Verizon has mixed up an account and it's being reported to your report because somehow they think it's yours. But it's really not a means you have to get to the bottom of that, but you 1 Easy Way for this to go away would be simply to have the credit bureaus do the hard work of verifying that it is not in fact accurate and again there's already procedures in place and the law requires that if they can't verify it. It has to be removed. So tell me your thoughts on that.

Yeah, that sounds really good to me because I didn't know where to start in the first place. I had my identity stolen before and it is a lot a lot of work to fix that. So I understand that partners a real pain in the Google well here's the thing. So I think your next move is annual credit report.com pull those reports identify which of the three. If any or all have that bogus entry and then use the dispute feature. It's very clear how to do that and then if you have a problem. Beyond that, give us a call back. I would also why you're there, given that you've been the victim of identity theft in the past I'd freeze your credit reports with each of the three bureaus that's gonna place a pin number in place is no cost for this and that pin number will require than anytime you or, more importantly, someone who fraudulently tries to open a new account in your name when they try to contact the Bureau to check your credit for the purposes of opening that account because they're impersonating you they won't be able to do it because they won't have the pin number and that may stop them in their tracks. I think that be a good option for you and Katrina. All the best to you. I know this is frustrating but keep us posted to Valparaiso, Indiana hi Fran, how can I help you. Hi Rob, thank you for taking my call.

Sure, that is canceling more than 11,000 relative of mine and I didn't want to have to wait until something happened began to receive the inherent and I'm very thankful and grateful to but now he WOULD like to pay to get So I looked it up and found out that sometimes the person who is giving the money is required to pay the gift tax. I don't know if that answers.

Well anyway on this.

I know it's a blessing to be to receive this. That's a great thing. Didn't I wouldn't. You need to know first of all is anytime you're dealing with these issues. If you have questions that are tax related, always good when something out of the ordinary happens, meaning it's not just a routine year tax wise always good to check with a professional to make sure that you're doing things properly, or filing correctly, you're paying all the taxes that are owed. That's always a good idea. This would qualify for that.

So I'd run this by a CPA. But let me just tell you. Generally, you as the recipient. You won't owe any taxes. It would be the person making the gift and the IRS allows folks to give away up to $15,000 a year without incurring any allocation toward the lifetime gift exclusion. So if it's under 15,000 that would qualify under the annual gift exclusion of its over 15,000 that would go against the lifetime gift exclusion, which today is $11.7 million before you owe gift taxes now that could change. Of course, and so you know that's just the way it is today, but as the recipient. You really don't have anything to worry about their because that would fall on the giver side. But again, if you have questions about the unusual situation going on in your financial life tax wise or there's something kind of an anomaly that is happening. One time, especially when there's a large sum involved never a bad idea to run this by a professional.

Just to make sure you're doing and I'm sure this'll be a real blessing to your friend.

Check folks here listening to moneywise live financial decisions were guidelines open 800-525-7000 give us a call back to moneywise live ledge along with us today.

We got slides open for your calls and questions 800-525-7000. Let's go right back to the phones. John is in Chattanooga, Tennessee hi John, how can I help you out.

Thank you.

I'm not a conspiracy.

But all of all the creative dollars that are government owned him quite widely today, but always 401(k) plan to borrow three babies that you know we can manage that money better than I can. I'm not going to take it and so short of taking all that money out of my mattress look at I do to keep the government from taking it and what you think about buying gold John, I appreciate that you know I'm not concerned about what you're describing frankly yelled the government without changing the laws and in this case it would take an act of Congress for the US government to be able to seize your retirement funds, which means it needs to go through Congress. The president and the Supreme Court, which by the way, the Supreme Court would probably be the biggest challenge of them all in order to change the laws of the land which currently protect you from having anything taken away the what's called a wrists. The ERISA of 1974 governs these types of plans and no one can seize this without any kind of levy against you from the IRS or legal judgments of the US government really has no legal standing to take the contents of a private retirement account so you know you taking this out would not only generate a whole bunch of taxes but depending on your age could generate penalties and then what you know you paid the tax audit. Probably all at once which are even if you spread it out over years, you're probably increasing your effective tax rates on a portion of this and then you know now it's not growing tax-deferred and you know I think at this point I would just say that this is the very best option for you to save for the long term, and I believe a properly diversified stock and bond portfolio is the very best place for you to be and we still have the strongest economy in the world.

We have our challenges but you don't try to find a better reserve currency than the US dollar, even given the challenges we have here in the United States. You won't find it. Which is why you know, even in the credit crisis of 22,008, we saw the dollar rally even when there was real systemic problems in our financial system so you're at the end of the day you need to be as a steward of God's resources found faithful with what passes through your hands.

Give certain things are out of your control like the economy in the tax code and now we can vote for elected officials that we believe will uphold the right principles that I think we should derive from God's word starting with the fact that he created mankind to be productive to take his creation and improvement which and I think ultimately allows us to create a virtuous cycle with that leads to prosperity, but more importantly than that generosity to share with others, but at the end of the day. I think the very best place for your long-term money. Despite some of these challenges. You may think maybe coming is still you know in a tax-deferred retirement plan, like a 401(k) here in the United States with a properly diversified portfolio. It has to gold although it's a hedge against your falling dollar, and it it's a fear trade when things are awry gold does tenderize that the volatility of long-term performance just isn't in its favor versus a stock and bond portfolio and for that reason I wouldn't allocate more than 5%, so you may not be what you're looking for John but it's just the way I feel about your best course of action to preserve your purchasing power because of inflation and to grow this money in a way that's prudent in sound and give use the very best possibility for growth without added volatility but give me your thoughts. Thank you very much I really appreciate your are accomplishing John, thanks for calling Hudson Florida JP how can I help you I think about taking my call.

I'm about to make a financial decision and I want to know you thought about it. I'm trying to invest in solar and my Wolf is about 25 years now and I was told it would be right to do that, Wolf. At the same time. I asked out of their system that would silence at hundred dollars for 1.9%, 25 years I believe.

Currently my electricity bill is 275 and I would be paid 377 a month so that yeah you know I think the key is really whether this solar is going to infect pay for itself over the long haul and you know, depending upon what tax incentives are available and then just the savings against your current electric bill. Typically the average time for these. The payback is 6 to 10 years. Problem is, most folks don't stay in their home more than seven years.

So a lot of times it's a big upfront expense. And you gotta wait a long time to realize that saving so I do a bit more research get some other second opinions and make sure that it actually makes sense for you to appreciate your call today. This is moneywise live along with us today is moneywise live. They would love to visit moneywise live website divided it moneywise live.org when you're there. Create a free account to post to our community where you can get questions answered from her moneywise coaches to be signed up for our weekly wisdom email that goes out tomorrow with my latest thoughts are trending articles and podcasts and great information each week in the moneywise weekly wisdom and that registered account will allow you to access the moneywise that you can download from your app store. Just search were moneywise biblical finance it offers. I believe the very best money management system out there in an app where you and your spouse if you're married can have access to all of your transactions organized by budget category or envelope. We got three different systems in one so you can pick the one that best fits your personality more directional or detailed you want to be hands on her hands off.

We've got the right system for you.

The key is it allows you to be a faithful and effective steward of God's resources so that your money goes where you wanted to so you can ultimately have margin to give more and to save. I think that's the key. We've got a live within our means to do that and we want to help you do just that. The moneywise Apple help you it's in your app store again. Just search were moneywise biblical finance and then create your free account today are listed back to the phones. By the way, we have slides open 800-525-7000 two Tulsa, Oklahoma hi Tony, how to help user how are you great okay so what I got going on and I have taken your advice and got all of all the credit card that had actually had a annual fee that and I got a hold of one of them looks to be the annual feel of the hundred and $49. The gentleman I was talking to claimant. If I can't thought I was within a time limit to get that money back and so I talked to my wife about it weekly that you know, just let me cancel it. So I called and next thing you know they've offered me a refund or credit on my account for $150 which is of course a dollar more than what they cut out and also now I have the ability to have free earlybird check-in which is normally $10 per person and some other perks. She rattled Margaret anyway want this and that being the aisles of a mild heart so for every dollar I spent I was able to get like 1/2 a mile, or whatever. So pretty much right now able to take her all three of my family to pretty much fly anywhere they fly to Paris because of the amount of mildly out I don't get deleting this card would be a wise thing. Mike read it or do I just play with them.

What does it give me. I do not recommend Tony. I appreciate that question so a couple of things. Let's back up, let's talk about credit cards were second in others of folks out there that would say you should never have a credit card there just too dangerous. My friend Dave Ramsey would certainly advocate for that. I don't take that position. I would say if you can manage it, which means your living within your means on a spending plan you're only using the credit card for budgeted items in your paying it off in full every month, then there's no reason not to. Especially if you can get benefits from its it, whether it's in the form of rewards by travel incentives or cash which would be my preference. So you get that money going back into your budget. Essentially, you could get 2% of everything you spend credited back to you, which I think is the very best option but you know again if it were a comfortable using a credit card and you demonstrated you're not could run up debt and spend money that you don't have that. I think it's okay so then what's the right card for you and I think that's gonna come down to again.

What incentives are you looking for, I would never pay an annual fee. I just don't think there's any reason to. And the question is, would you rather have the roof the travel rewards or you have the cash back. I just recently switched to a new card was offering 2% cash back on every transaction. Most of them it's in a 1% on most, and maybe three on certain ones and to on others.

This is to across the board. It's the best one I've seen and you can look at the various credit cards.

Who has the best incentives right now@nerdwallet.com or credit cards.com but if you want to stay with the travel rewards for the reasons you described Tony, I'm fine with that.

This is a creative way that they've gone about making sure you're comfortable not having that fee this year, but they're preserving the right to charge you that annual fee down the road and I suspect if you overlook it nearly 12 months from now or whenever that charge had 12 months later it'll hit again and unless you ask for you. Probably not to get that voucher. So if you want to kinda be out from under that I'd look at a card to replace it, that has no annual fee and you know has the very best benefits that you're looking for. I wouldn't be very concerned about any impact on your credit score you could see a slight decline because either it's an old card that's now deleted or it's reducing your credit limit and therefore utilization is higher, goes any number of reasons you could take a dip.

But as long as you're managing your credit wisely, or non-time payer your balances are low therefore credit utilization is low, you can have all the credit score you need to qualify for the top tier loans. If you need to refinance your house or buy a car, something like that. So give me your thoughts on what I shared, so what kind of using my credit well and if I do closing you know you I could see somewhere between 20 to 50 points.

But again, it would be temporary, and unless you're out there shopping for a house or car, it's probably not going to be a big deal if you want to replace this card with another card that you found with no annual fee that had as good or better rewards on it will go and do that first and then close this account and does it really matter if your your credit score and it takes a slight decline for 60 days long as you're not out looking for credit and that happened to drop you into a lower tier.

There's really no implications.

Okay, very good thank you but you helped us a lot about my wife and I were both in agreement were not yeah on the next thing you know that your heart well and I think getting out from under this in a way that alleviates you having to do this again next year because they're in a picture with that same charge is probably one of the benefits that you don't have to think about it anymore nerd while a.com or credit cards.com would be two sides to evaluate the best credit cards out there. We appreciate your call quickly to Minnesota hi John, how can I assist hi John, appreciate you taking my call.

So, about 63 years old I took early retirement due to cold it will be a package in 2020 been working part time since then and think about start and Social Security next year early and do some part-time work or 1099 work and I'm wondering if you can give some input on how it works with the penalties regards to net income gross income and what the what options are yeah very good. You know, in terms of you being able to work if you take Social Security early your Social Security benefits will be reduced by a dollar for every two dollars you earn above the threshold of $18,960. So you earn eight more than 8960 they drop a dollar from your benefits for every two value two dollars you earn above that. But here's the key. After you reach full retirement age. Not only can you earn as much as you want the money that was withheld prior to full retirement age will be paid back to you gradually through a higher monthly check. So eventually you will be made whole.

Even though you have that temporary decline.I hope that helps you my friend.

We appreciate your call today that's minds open for your call 800-525-7000 give us a call this moneywise moneywise live biblical wisdom financial decisions and Rob last euros K. Have you considered giving to moneywise media we can only do as a result of your generous support as we head toward the end of the year. This is a great time to remind you of that and ask that you prayerfully consider a gift to the ministry so we can continue to bring you this broadcast and are moneywise coaches and are moneywise Alpine all the things that we do moneywise media is quick and easy to give online it moneywise live.org just click the donate button for a gift of $25 more between now and the end of the year will send you Paul David Tripp's great book redeeming money is our gift to you again moneywise live.org just click the donate button and we would certainly be grateful hey him to stay after for a few minutes today and take a few extra calls.

So if you have a question on your mind or your heart, and you'd like to know my thoughts.

I'd be happy to give it to you.

Here's the number to call 800-525-7000. We got room for your call right now 800-525-7000. Paul is in Minnesota hi Paula, how can help you question. Church's large building campaign will and we would like to donate a larger amount of my husband's idea in that would pull it out of our floral line to donate to the nonprofit on again under the care of the anti-and Leander and that there would be no tax is due on the amount time where wondering, is that correct. Is there anything else we should be aware, and I did contact our tax gal and she just suggested that we would do it as a direct transfer so that we don't see any of the money to see you talk to your tax preparer about this yet. Okay. And this is in a 401(k) or is it then rolled to an IRA or 401(k) okay and your tax preparer believes you can do a direct transfer from your 401(k) to the ministry since he gave me yet that we could transfer it so it doesn't look like it though, it didn't look like it came to yeah, but is rather transparent how what is your age.

I'm going hundred and 61. Okay this is your husband's 401(k) or yours yet. Okay. And is he still working for that employer yet okay well you probably not going to be able to do a direct transfer over to this ministry, unless there's something I'm not aware of what would typically happen as once he separates from that employer you roll it out to an IRA and then you once you reach the age were you would need to take a required minimum distribution at age 72, you could do a qualified charitable distribution direct to the ministry, but far as I'm concerned this is going to have to be a taxable withdrawal which you know I'm not to huge fan of. Just because you not only is he can have a big tax bill.

Now this money is not available to continue to grow.

Now with that said, I love the idea of your giving a large gift to your church. I would just ask, is this the right place to pull it at the end of the day of the Lord directs you to give this money to your church.

I'd say go for it and you know the tax yelled implications would be secondary as long as you know what they are you ready to pay them.

You set that money aside again if the Lord is leading you to do this I would never stand in the way of that. But if you asked me is this the very best place to borrow money I would say I don't really see a way you can do a direct transfer out of the 401(k) so I'd investigate that a lot further and number two. Given that even though there's not a penalty because he is over 59 1/2.

If the employer will allow it the very least, it will all be taxable, which means it will be added to your taxable income and could actually push you up into a higher tax bracket for that portion so I would go slow on this and perhaps look at other ways other assets that you could give to follow the Lord's leading but perhaps prior to you. Looking at the 401(k). If there are other options that make sensible, I'm just curious to hear that I got expired December 31, 2021. I thought that I don't understand much about it but that it was allowing you to donate without paying taxes. Yeah well you could take withdrawal under the cures act of up to 100,000 and then you could be able to put it back in and my understanding if I remember that log records been a while since I've looked at that, it would have to be for coronavirus related expenses, meaning you lost a job or you know something that was related to a hardship that was created by the coronavirus and at that point you know you had the ability to take the hundred thousand and miss the 10% penalty. But that's not what were talking about here on either front because hey, this is not a coronavirus related hardship and be there is no 10% penalty because he's over 59 1/2, again assuming his employer would allow him to take this distribution, so I'd I think of the cures act really doesn't apply here. And again I don't see a way you can do a direct transfer to the ministry. So I think really the only option available is just a taxable distribution which I'm not a big fan of okay you okay Paula thank you for calling.

God bless you.

Let's head to Florida hi Steve, how can help you all I write about about the make and made my required to report that income that rental income to the IRS every year you are yeah you have to report rental income on your taxes. Using schedule E yeah you'll be able to take certain deductions against that income and not only is the rent taxable, but if you got a security deposit or last months rent. Those are considered income by the IRS in the year that you receive them. So as I said to her previous call anytime you have a change in your financial life that you face can result in tax implications are usually you run my situation by a tax preparer account if you don't normally do that. Perhaps you do it yourself.

This is the year to get professional advice, but generally speaking, yes you do have to report that income does it make sense that they might go back find out have been written out for couple years you know I did for the night.

Really a matter you know now I don't know what to get troubling up yeah exactly right. And so that's what I think you certainly want to report all of it. Send this would be a great time to do it so deeply appreciate you listening.

Thanks for your call my friend to Minnesota hi Sandy, how can I help you taking a call to demand shelter care not for a line $200,000 and anything to check it all out and given away the lamp yeah well know 401(k) is an individual account. Sandy and not joints. Your husband has full control over the money. The only way to change that would be the have him declared incompetent by the courts and there's a number of steps to that you have to apply for guardianship of the probate court. You would want to consult an attorney familiar with this kind of thing they would do a psychological exam and submit the evaluation to the cord and then in other be a competency hearing so bottom line is you have to involve the ghost of somebody from a legal standpoint to help you navigate this, I realize it's a very difficult situation. I'm so sorry to hear that you're dealing with this, but at the end of the day until he's otherwise declared incompetent. He has full control the money and can do with it as he wishes. So that would be your next step. If you believe that he's going to harm himself financially. As a result of this, and again make this a matter of prayer asked the Lord to give you some wisdom and then proceed accordingly.

Insanity. We appreciate your call today.

I believe we have time for one more call. David is an Illinois you'll be our final color today sir, how can help you yeah hi Rob, I'm just calling about.

We just purchased a home and were closing this right.

And I just wanted to ask you there asking if we should pay down were getting the rate of 2.7 and for us to pay it down to get to point to. I have a good credit score.

Why wouldn't I be able to get it at 2.2.

Why would they want me to pay an amount of money to homeless $270,000.

Well, the reason is that the prevailing rates right now are no at that 2.7 number so the only way you're going to get it down to the 2.2 is to in fact essentially are prepaying some of the interest in, and in exchange for that they are giving you a lower interest rate.

So I think the question is do you want to do that will prepay this interest and I would just say simply, you know that that typically for most folks. In terms of you, how long they stay in homes does not make sense to buy that rate down because you've got a stay in it long enough to recoup the prepaid interest. If you're going to be there and ride it out. The full length of time and you've got the cash available, then it can make some sense I think you just need to look at that look at the total interest paid in the lifetime savings that you would occur incur if you would again stay in the home until it's paid off in full and make your decision there, but they're not taking anything away from you. It's just that the prevailing rates are in at 2.2. Today there up around three which is why you know the only way you can get that rate is to actually prepay some of the interests out. All the best to you on this new home purchase. David exciting times. We appreciate you checking in with us. My friend got bless you. Well folks that's going to do it for us today. We've covered a lot of ground and we've talked about the saving for investments, retirement to credit cards, credit scores, here's the thing you know there's only so many things we can do with money. We can live on it, we can give it away. We can save it to pay her taxes we pay down her debt. The Bible speaks to all of its we should be in God's word because we want to know his heart as a relates to managing his money. Caleb is a thank you to my team want to say thank you to Hans who was manning our phones today. Deb Solomon, our producer in the Rios engineer Jim Henry on research today couldn't do it without any of them.

Thank you for being here as well come back and join us tomorrow if


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