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New Year, Less Debt

MoneyWise / Rob West and Steve Moore
The Truth Network Radio
January 3, 2022 5:07 pm

New Year, Less Debt

MoneyWise / Rob West and Steve Moore

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January 3, 2022 5:07 pm

It’s New Year’s Eve and you know what that means—you only have a few hours left to decide on your 2022 resolutions…and it’s easy to come up with a list of things you’re determined to do. Sticking to those resolutions is the hard part. On today's MoneyWise Live, Rob West will share one financial resolution that you’ll never regret keeping. Then he’ll answer some calls and questions on various financial topics. 

See omnystudio.com/listener for privacy information.

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You guys couldn't figure out what his credit score was so low average collectors goal. So these payments were outstanding, Rob was having a good credit score is no joke. Keep your money in your pocket by getting lower interest rate will talk about ways you can boost your score 1st today that it's all your calls at 800-525-7000 number 24 seven. 800-525-7000. This is moneywise live as your financial jerk giving the past were raising your credit score will go over some of them again. Plus give you some new ones now. I should say right at the start that some of these are recommended but I'll mention them because it will help you understand how your credit score is determined. The first way to boost your score is to have a strategy for paying off your balances.

Ideally, you pay them off in full every month but if you can't do that. Make sure you never use more than 30% of your available credit on any revolving account like a credit card once you go over 30%. Your score begins to fall, so if you're over that figure on the card take steps to get below it quickly. You want to make your payment before the issuer reports to the credit bureaus each month. You can Google to find out when that is.

For example, discover reports to all three credit bureaus experience Trans Union and neck with facts three days after your closing statement for the month and easy way to make sure your payment is recorded make two or more payments throughout the month.

Keeping your balances below 30% is the second most important factor making up your credit score right after making your payments on time and that's the next way to boost your score by never making a late payment. If you pay late a single time, it can wipe out any gains you might make elsewhere if you're ever more than 30 days late, call the creditor immediately and explain your situation and ask if they'll delay reporting the late payment they might but there's no guarantee then make the payment as soon as possible. Here's another one we've talked about dispute any errors on your credit report.

Get all three reports for free@annualcreditreport.com. If you see an error. You can disputed at the appropriate credit bureau. Now this might seem strange at first but the lower your credit score, the more it will rise when you take any of these steps, and I mentioned that because the neck strategy to improve your score involves collection agencies. If you have an account that's gone to collections. Your score has probably suffered significantly and will continue to be affected for seven years, so be encouraged that dealing with collectors properly can have a big impact on your score. Obviously, if an account has gone to collections you need to pay it off as quickly as possible. Call the collection agency and give them a plan for paying it in full or making regular and faithful monthly payments when you've paid off the account. Ask the collection agency if they'll stop reporting it to the credit bureaus. If they agree to and that's a big if, it will greatly improve your score. Of course, if the collection action is an error, you need to disputed immediately at all three credit bureaus. Now the next few ways to boost your credit score are aimed at folks who have no or very little credit history you can become an authorized user on someone else's credit card. For example, a parent can sign up online with the issuer to make a child, an authorized user on a card. The child then gets the benefit of the parents longer credit history and good payment record but you can also get a secured credit card you would put a deposit of say $500 on the card and you can then use the card up to that limit. But don't instead make one small regular purchase each month and pay off the balance in full. Your credit score will improve month by month.

You can also boost your credit score by making your rent and utility payments on time.

Landlords and utilities don't usually report to the credit bureaus, but you can subscribe with a rent reporting service to have it done now. Here are a couple strategies that we don't recommend first, you can raise your credit score by getting an increase in your available credit from your card issuer that would improve your score because it lowers your credit utilization which makes up 30% of your score.

A better way to achieve the same thing is to simply pay down your balances.

You can also add different kinds of accounts. For example, if you don't have a car loan to finance a car. Your score will increase because you have a greater credit tax which makes up another 10% of your score, but it's just not wise to take on debt to improve your score. So don't aren't so those are a couple of bad ways to improve your score and a lot of good your calls and asked 800-525-7000 on Rob West and this is moneywise live biblical wisdom for your thanks for joining us and moneywise line your financial decisions on the West Coast. Just a moment will begin taking calls and questions financial what's on your mind today.

Love to hear from phone lines are open get PT waiting for your calls today 800-525-7000 800-525-7000. Whether it's saving or giving perhaps at your lifestyle, your spending plan or looking toward retirement. Maybe at Social Security or where we started today which was boosting your credit score. We'd love to tackle whatever you're dealing with today and help you move forward with confidence 800 525 7000s a number to call before we head to the phones. Let me encourage you if you haven't signed up for a free moneywise account would love for you to do that quickly and easily and moneywise live.org when you create a free account that will ensure that you receive each Thursday. Our moneywise weekly wisdom email where I share a thought for the week. We have our trending articles and podcasts relevant financial insights based on biblical truth that I think you'll find practical and enjoyable each week create that account again moneywise live.org. Just sign up there and that will also allow you to post to our moneywise community where literally thousands of questions have been posted and answered by our amazing moneywise coaches it's the moneywise community. It's all available right now and moneywise live.org Bartlett said to the phones today were to begin in New Mexico, Rio Rancho hi Denise, thank you for: how can I help?

I like helping out my friend. I have a question for Bill Nicole.

She was able to get a credit card and I thought it best to pay off credit card each month. But as she got maybe continuing to have a balance that I know which way is best to build your credit. That's a popular misconception. Denise there really is no benefit from keeping a balance on a credit card so I would encourage her friend pay off that balance in full every month. Now what is helpful is to have an on time payment recorded, which means that you have transactions that are flowing through, but I would only use the credit card for budgeted items things you've planned to spend money on in your plan in your budget and then I would pay that off in full. Because here's the key next to having that interaction and that on time payment. The next biggest item to improve your credit score is to keep your balance is below 30% of your limit, which is called your credit utilization even better than 30% is better is less than 10%. So if you're at zero. That's the best case scenario. Now the only consideration. There is something I mentioned at the top of the program and that is when you pay it off because what you need to know is if you're running up against that 30% utilization ratio. If you even if you're paying it off in full.

But if you're charging more than 30% of your limit on a monthly basis and your payment isn't recorded until after the balances are reported to the Bureau it will appear as though you have more than 30%. That's on the card even though it's paid off three days later so I think if you're running up near that 30% threshold, perhaps consider getting in your payment a little earlier so that balance is at zero or close to it when it's reported to the Bureau but bottom line to get to your question Denise, tell your friend, no benefit whatsoever from keeping a balance so let's get those cards paid off in full every month. Let's not pay a dime of interest and again only use them for budgeted items to set cleared up like my helpful perhaps consider becoming one of our moneywise coaches at some point down the roads as like you have a passion for this area. Thank you for listening and calling today.

Denise God bless you on to Illinois hi Dick, thanks for going out to help his or well, I thank you for taking the call I have for many years save money before purchase a car. I don't like paying interest on it anyway.

I over the last several years of saving up for my next vehicle which I'm not in dire need of but would like to buy a new vehicle. As you know probably that many out there to really pick from.

Right now, and so I have over 40,000 for the next vehicle stop pushed away into a passbook savings account where it's getting basically nothing as far as interest would you have any suggestions what to do temporarily with the amount of money like that knowing I already have a need to use it whenever cards are available.

Yeah, that's good to be a challenge because I do agree with you. It's a challenging time to be in the market for car supply constraints as results of predominantly the shortage in the chips that are needed to make new cars has resulted in inflation that's beyond the norm in not only new car prices but that's then trickle down to the used car market as well which that lack of inventory has created the elevated prices. In fact, Robert Sutherland's openness with research today just told me the cost of the average used car just hit $30,000, which is amazing and unfortunate. Hopefully we will see a normalization of the car market here in the next six months or so, but to your point, you want to get that money working for you and where you do it. I think the challenge of God, Dick, is that the time horizon on this. You know, if you're looking at using this money in less than five years, and in your case it sounds like you're hoping it will be even less than a year.

You don't want to take any risk with that. The key for you is not the return on your money, but the return of your money want to keep it safe you wanted to be liquid so when that the car rolls around that you're ready to buy. That's the right price that fits your budget. You've got the money to do that you don't want to find yourself in a situation where it all of a sudden warrant a correction in the market and let's say the markets down 10% feel it very well could be a very short period of time.

Now that's okay if you got a long time horizon, but if you don't, that could be problematic. So I think for you. You need to be looking at just a high yield savings account with FDIC insurance. It's going to be paying about one half of 1%. But that's okay because again, were not looking to make a bunch of money and I think the inflation, the rise in car prices is Artie gotten ahead of itself.

So I think the next move is to level off and come down, so it's not like you're losing purchasing power, at least in the near term, so I'd had to either Marcus capital one 360 or Ally Bank. Any one of those will give you a savings account that you can link to your checking will be no fees. You get a good interest rate. Relatively speaking, and you'll have access to that money when you need it.

Does that sound good okay what no marketing or something I could do better than what I'm currently doing and I appreciate your helping after yeah I deafly wouldn't put it all in. Crypto currencies are Tesla, despite what your brother-in-law might be telling you, I'm just kidding.

But yeah, investing is out of the question. The time horizon just doesn't match so we appreciate your letting count of two lines open maybe once for you 800-525-7000.

That's 800-525-7000. Let us help you apply biblical truth to your financial questions unravel as this is moneywise live delighted to have you along with us today our moneywise live biblical with your financial decisions got a wide open, perhaps for you on your financial question today 800-525-7000 before we head back to the phone judo here at the start of a new year. A lot of folks are thinking about how do I get on God's plan for my finances how I pay down debt and live within my means.

And maybe this is the year I start and implement that spending plan and start to rein in my spending to make sure that the story that my spending this telling is reflective of what's most important to me that I'm accomplishing my goals that I'm giving every dollar a name not allowing it to slip through my hands into who knows what.

Well, perhaps a spending plan is in order for you and that's where the moneywise app comes then we spent years with a team of developers building what I believe is the very best money management system out there today and it's chock-full of biblical wisdom to support and encourage you along the way. It employs the latest technology and security so you can download your transactions and use the digital envelope system and track your spending. With custom envelopes and smart intelligence that automatically categorizes each transaction for you. You can maximize that with a pro subscription to the moneywise Alpine good news is right here at the start of the year. We have incredible limited time offer available for you to get moneywise pro at the lowest price point. It's ever been offered, so to learn more just said to moneywise.org/Pro there's a 14 day trial.

You can put it through the paces make sure it's gonna work for you again moneywise.org/PRO and I will look forward to hearing from you as you jump in hard. Let's head back to the post today Spokane, Washington hi Derek, how can help user. Are you think of the Lord, thank you so my question is that I'm trying to know this new year after Covidien. Just try to make it little by little scrimping by immuno rent got high because of the new year. I guess the moratorium went out then it will now not paying their rent. So we're stuck paying their share that wasn't paid so rent went out and so now I'm in this dilemma of trying to save money to invest in prior to before the year ended last year and start trying to me. My wife are trying to save money to invest. It is perhaps moving out of the apartment complex and move to more housing a better house, so in the situation of just having trouble to be able to get out. Utilize any part of my investment and because of because of all that's going on now my have to dip into my savings and mind of my other investment account so what should I do specifically related to what Derek I know you'd mentioned to my producer. Student loans are you wondering how to approach that.

Are you asking a question more general, more general mission loan thing that had to do another administrative forbearance.

Luckily, you know, Jill Biden had died. That plan where I think is going to suspend student loan payments out for a while so help out a little bit yes well yeah you're right. On December 22, the US DOE extended the emergency relief or student loans, which includes a suspension of student loan 0% interest rate. They stop collections on defaulted loan. So ill that does provide some relief. So I think the key for you. You know whenever were in a tight spot just like you're in right now and we all go through these is to first of all begin to record all of your expenses. Maybe you've done this if you haven't, you need to start there so you understand exactly what's going out on a monthly basis and you know I like to put in place was called a made a budget where we deal with the most important priorities are gotta keep the mortgage of the rent paid to keep food on the table. We gotta keep the utilities on. We got to keep the no gas in the car and the car paid so you can get to work and everything else is kennel on the table at that point where we go in and we look at what can we cut and maybe start with those big four and then rebuild the budget. From there, with only the things that are absolutely necessary and I'd be looking at what can I know eliminates you what can be sold in terms of assets. Let's get that to the bare minimum. Then once we get to a budget that balances even for taking advantage of things like forbearance on the student loans.

We then look at how do we control the flow of money for whatever it is that remains in the budget and I think whether to paper system or the moneywise app which hold on when you're done here today and I be happy to give you pro subscription is our gift so you can get that set up inside the moneywise out but I think the key is having a system to control the flow of money in and out and then we need to look at priorities in terms of the priorities for any surplus above you know what your required expenses are. I would start with getting at least $1500 in an emergency fund, which is what you fall back on and then we can kind of you to move down the line.

From there, whether that's in a beginning or re-starting your payments to your student loans whenever you're available or saving for you know moving to your next home, whatever that might be.

But tell me what questions you have. Other than just kinda how I would approach getting started here all call another question. I think that in general yeah I just wanted you after I laid out that thought on where you might go from here.

What questions does that spark in your mind, and was there something specific that I didn't address sort of elated to know such a general question was what I mean could you laid it out pretty well in an account of something that I'm doing right now I do not have a havoc in my computer has this established suspend system for her where the money is going.

Sort of like the traffic keeping track of all my finances I keep my receipt just last week we want to go food shopping trip for the weeks out dinner.

We resort I started maintain. Having the receipts altogether and then night I started like circle all the all the cheap cheap meals that we could, you know duets are like being frugal with our and I think we ended obtain first part of groceries out less than $100. So like $50 each on both my knee and my wife we are look forward you know dinner for two weeks is just by doing that, but what what my related question so that such a Jennifer a specific question for such related general question. What about its far as my I know were you. You taught you touch a little bit credit score. I think just like you said if I if I can reduce my credit score. If I can reduce it to me and I can have a good credit score. It would assisting 30% more which would help me a lot with my with getting a house I you know I suppose so, you know, with a lower interest, then it gives me could give me like a booster jumpstart. So how would I be able to get a credit card. I have like they have very low low credit score get SOMETHING I agree having a good credit score will help you down the road. That's not the most important thing right now, but it is a factor using a secured credit card would be the way to go on that Derek to school in your bank you can put a couple hundred dollars on deposit Bill give you a limit up to that amount, then start charging a very small budgeted item every month paid off in full and that on-time payment will help you reestablish credit on cutting your grocery bill, check out my friend Crystal peanut saving mom.com money-saving mom.com.

Thanks for your call right back. Thanks for tuning in the moneywise live as hostess biblical wisdom for your financial decisions.

They think so much to so many of you ordered the Ministry of moneywise live at the end of the year we were asking you to come in with your support of your part of the moneywise community to help us meet some year if ends giving goals and to be able to plan for 2022 and all of the ministry activities. So many of you a part of that.

Let me just say thank you on behalf of our team.

If you weren't able to get in on that I would tell you there's still time.

We always can use your support.

As a listener supported ministry. The quickest and easiest way to give is online just had to moneywise live.org and click the donate button.

You'll also find a phone number in a physical mailing address if that's what you're looking for in moneywise live.org/donate and thank you to so many of you who are supporting this ministry, we are incredibly grateful every line full get to as many calls as we can today. Next is sway go Illinois W MBI hi Amy, how can I help you I can totally understand your question and you know a lot of folks are in that difficult spot where they just had more expense than deal. They know what to do with them.

They have often delayed or just neglected to save for the long term because of the tyranny of the urgent. From a financial standpoint, and I think the key to that Amy is just to recognize that and say you know what we wish we would've started sooner, but we have it, but working to do what we can from this point forward, to live well within God's provision to limit our lifestyle live frugally so we can create more margin is going to allow us to save for the future and then once we do that and that's hard work. I don't want to minimize that we have to go back to the spending plan and make some hard decisions on what the card in some cases it may be as simple as just trimming some expenses that aren't too difficult. In other cases it may be a major decision like downsizing and selling a home or you're going down to one car. Whatever that might look like. But then you gotta figure out where you put that access and once you have an emergency fund that's funded and I would say that's three months expenses and once you paid off at the very least all of your credit card debt.

If you have any that I be looking to put as much as you can away toward retirement. If you're playing catch-up. I'd be looking like 15% or more getting into retirement plan. I would like to do that, if possible in a tax-deferred environment so I would look first at a company-sponsored 401(k) or 43B. If you have one. If you're self-employed, you could look at a separate IRA. In either case, you could also supplement that with a Roth IRA or a traditional IRA to be able to put more money away on a tax favored basis, but the key is going to be just start where you can and that's can involve you living modestly, cutting expenses so you got the money to set aside and if you do that for the next 10 years and perhaps then you know if you're debt free. When you're entering retirement savings that you're able to put away plus Social Security plus perhaps some part-time work beyond maybe the. Were you working full-time. All of that together hopefully will allow you to continue to fund your lifestyle and if at some point, you all can't work any longer. You've got the assets to support you. But tell me what specific questions you have. Based on that answer credit line, helping Sharon mortgage on parking our monthly income ratio court more. Of course, what we bring in so my thing that the credit card debt, for we put away for retirement briefings gives both at one time, yeah, you mentioned a consolidation loan to the changes a little that I would probably encourage you not to get the consolidation loan really focus on paying off the credit card debt. Here's the reason why you'd want to do that is the interest rates is attached to that, that if it's credit card that is far greater than what you're going to get even in you know your retirement accounts so it just doesn't make sense to be funding retirement account when you're paying 1617% on credit cards to be better to go and get out from under that debt, and then in a really focus with all the margin that you have on saving for the future now that you got this consolidation loan. The interest rates down a little bit lower. You may be extended the term a bit longer.

That's where you're gonna have to decide do you continue waiting several years to start funding your retirement. Given this consolidation loan. I think that's a little more tricky. What you owe on this, so this one debt that you have. That is the rollup of of which had previously. Okay, what's interest. 23. Oh well you and how much are you putting toward that on a monthly basis and on the current plan.

Do you know how quickly gets paid off. Okay yeah I would focus on that with everything that you have me there is no reason you're gonna be wanting to put money into the stock market when you're paying 23% on 23 grand that you just doesn't make any sense. You may want to check with our friends. A Christian credit counselors.org to see if they can help you get that interest rate reduced so you can pay it off a little bit quicker again Christian credit counselors.org but until that's paid off. Amy that's gonna be my singular focus, let's try to eliminate as many expenses as we can with seeding even get that 800 a month up to a thousand or more because that's a whole lot interest that were paying but as soon as that's gone let's redirect every bit of that into long-term retirement savings and again check with Christian credit counselors.org to see if they can help. If you have other questions along the way and certainly once you get it paid off. Give us a call back and will help you move forward from here. We appreciate your call today and all the best in the days ahead Minerva, Ohio hi Neil, how can help user will wrap all my my understanding that every year you delay your purity increase. I recall the amount rounding. That's right. So my question but I don't want to do is I don't want back taking my social security and find out if I don't wait one more month that would've gone up 8% of my life so the question is, is that one year and calendar year, or is it anniversary here doesn't happen all at once, though, so here's some good news. Neil, you actually get two thirds of 1% for each month you delay after your birthday month which happens to total up to 8% for each full year you wait until age 70 and the clock starts ticking the month you reach full retirement age every month you wait to get that two thirds of 1%. It's not like you get all 8% each anniversaries that make sense okay and the only appreciate your call today. The best you in this exciting season of life. This is what Isaiah we recognize God owns it all were stewards monies to accomplish his purposes. Want to help you do that with passion will take more because just around the moneywise live wisdom for your financial decisions. As we begin the new year together in community we want to explore the Scriptures and apply God's truth which is timeless, always relevant never to change would apply that to the decisions were making each day as we manage God's money. That's right.

It's all his and here's the key way we spend it is the clearest reflection of what's important to us.

Remember Jesus said where your treasure is, there your heart will be also our heart follows our money where is your heart, based on where you're spending your money, and perhaps this is the year to say I want to realign some of my spending is I define my lifestyle and as I give is a saving as a payback. What I oh well, let's do that together you can join her moneywise community online moneywise live.org where questions are being posted in answers being given by her moneywise. Coaches were we can do that together each day here on the radio. Let's head back to the phones. Huntington, Indiana Serena, how can I help you all okay alone so question military and postal worker working on Kim retirement only. I'm looking to eventually having a family early, 30, 37 ranking. If I continue to work there really any point during a retirement can have both of those, or when a better team and finances to pay off as much as possible so that I can and yes was a great decision in both of those would give excellent pensions both the military and the post office it would be important understand those.

The risk is if something happens to him and he is not been observed were put in enough years to earn those there would be obviously some survivors benefits but you want to understand the implications of that if you're relying solely on those two pensions, but because there should be quite a bit there and you want to understand that and what you can expect and how many years he needs to put into earn those and obviously life insurance until he's at least qualified for enough years to receive both pensions and full so that that death benefit would pay out what you need to then sustain yourself and convert to an income stream for the rest of your life. If all of that's been done then. I like what you're saying here because if you have a conviction to be able to stay at home.

I think that's great. You know having a modest lifestyle being living debt free. To the best you can be able to save for other expenses that are to come down the road and kids are going to add to quite a bit of expense and being able to replace cars without without financing being able to pay off the mortgage. You know sooner rather than later. I think all of those things are great and so if you were to perhaps take your income and focus on those priorities so that you can you be able when God provides to to be able to stay at home. I think that's great. So I think you've got a great plan here you're thinking about it properly, so long as you offset any risk of the Lord you're taking him home field prior to when we might expect to some extent. Here's what military attire that's kind of why members start to look any longer. That way he can retire. Standing in his talking about pain everything up in a nine to date ranking stuff. I'm trying to pay think YOU like really really early and I know it will pay off the mortgage and my two ears up like a night out killing a little bit more expensive than I think you're really solely focus on after five years I put is wondering how much detrimental client toward Mike my retirement site yeah well I think that's great. As long as you understand what he's going to be getting and that syncs up with the lifestyle you'd like to maintain in retirement and I think that's fabulous because let's treat your income now as something we don't want to rely on so that when you're ready to stay at home and that the Lord provides an opportunity you're able to do that. But in the meantime, let's focus really solely on you all getting out of debt if you could get that house paid off. If you could get any other debt paid off and your other goals that you have in the near term through your income alone, given he's going to have a robust retirement, especially if he stays in and to receive officer status. I like that plan. Shareen I think you your thinking really well appreciate your kind are blessed all the best you in the days ahead. Thank you for listening and calling for Chattanooga, Tennessee hi Tyler, how can I help you protect my call. My question is regarding where Jesus commands in Matthew 542 give to the one who pecks from you and do not turn away from the one who would borrow from you so I guess my question is, is how do you plan for that and you know what being a good steward of what God has blessed you with.

How do you also be obedient to what Jesus says to do their see what that looks like what you yeah well here's the really cool thing Tyler is that the Lord leads that up to each of us.

He says I'm going to entrust to you provision and out of that.

I want you to be generous and a lot of times we start with providing for families and it's interesting to look at the Council Scripture no will see very clearly that the primary reason he gives to us is so that we can share with others in need. And yes, to provide for families and oh by the way, based on first Timothy to enjoy what he's given us as well, but he leaves to each of us to decide what that means for us. But what is our lifestyle. You know, we follow the model of the you know others who have done a reverse Tiger. They tried to live on 10% and give away 90% well that works for some others say I'm just not there yet. You know, I think you've gotta define your lifestyle and that's really what it all comes down to what are you going to spend on your lifestyle what you want to be able to give starting with your local church and be able to give systematically and in proportion to your income and by living modestly and having margin. It then gives you the flexibility and freedom to follow the leading of the Lord to give beyond the tide which my friend in the author, Randy Alcorn calls the training wheels of giving and so now were starting to give to those causes in issues and people that God has placed on her heart. Well, unless we live within our means and live modestly. We don't even have the option to do that so I think it starts on your knees to say what would we like to be able to do, and then each year let's build a plan to do that and perhaps every year. Let's look to increase what's available, which means overtime work capping our lifestyle.

So as income increases were not allowing lifestyle creep to occur, but were giving more and we give beyond the base that we establish from the last year and then were asking the Lord of the Holy Spirit to reveal to us where we should be giving and who are the people that are in need and what are the causes and ministries that are on our heart that align with our passions and where God is moving that we want to give to as well so I would spend some time you and your wife praying about it. Ask the Lord to make that clear.

And then do the hard work in your budget in your plan so that the monies available for you to follow the leading of the Lord and then report back to us how it's going. Tyler thank you for your call today. Let's into another Tyler in Iowa. I believe Tyler go right ahead and agree that a lot of hospitals like you five or even $10,000. Those are taxed differently than what you learned planning on how to use the yeah very good was a great question. You're right receive a lot of sign-on bonuses, especially in industries where there's a lot of competition. Your bonuses are subject to income taxes. They don't simply get added to your income is taxed at your top marginal rate so your bonus discounts is supplemental income and is subject to federal withholding and a 22% flat rate. Also you have to check on state taxes as well. The withholding rate will vary depending upon your state so you want to plan for the tax side, which is a good thing that you think about that but in terms of how to use the money you know I would look at it. So depending on what your goals are is not money that just gets kind of thrown into the general pool of lifestyle spending.

But how can I use that to accomplish a goal. Maybe assuring up an emergency fund. Maybe it's eliminating some debt. This can eliminate a monthly payment, maybe it's saving for that next car purchases can happen in cash. Maybe it's a down payment on a house that you're looking toward. So I'd look at it again, aligning it with your values and priorities, not just dropping it in the checking were gets consumed by lifestyle spending and listen all the best in the days ahead help you find out what God has for you, for your next job finished today in Nashville Tennessee W MD W hi Jean, thank you for your patience and how can I help wondering.

I believe a working yeah it's a great question Jean and it's a legitimate question asked by people who are goodhearted, wanting to honor the Lord like yourself and do the right thing. I don't think there's necessarily a right or wrong answer.

There'll tell you personally what I think I don't try to drill down and try to estimate on how much is considered an increase because remember when we give the forgiving a tithe based on that principle that we see in Scripture it's based on our increase, so the provision that comes into us. That's the increase over and above what we had originally. So the question would be do we try to drill down on how much is increase how much is return of capital that we've already put in well in the farming economy of the biblical times. They didn't subtract the amount of the wheat they had planted in computing the tide they tithe on the whole increase, so I would just look at this as a gracious gift from the Lord, regardless of what I've invested in. Remember that giving is about nurturing a closer relationship with Christ by loving him for his provision.

It's an act of worship. It's an expression of our thankfulness and obedience. And here's the thing. Just as my friend Robert Sutherlin said to me a break for a moment ago we shovel it out.

God always has a bigger shovel, back this way. That may not always be financial but working experience his blessing woman living within his will, Jean. All the best to you as you play through that book that's good for us moneywise lives of partnership. Moneywise, the thank you to Amy to Robert today and thank you is welcome back to join us tomorrow. I'll be here will see


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