Christian Finance

How is your economy?

There's an old saying particularly relevant to our economic times - a recession is when your neighbor loses his job, while a depression is when you lose yours. While I hope that you don't find yourself in this situation, there is a good possibility that you know somebody who is in the middle of their own economic depression because they are without a job.

I want to share some thoughts with you so that you are prepared in case the jobless situation does affect you. In economic times like these - where we really are unsure about which direction the economy is heading - it is important to be economical and prudent with your resources.

Think very carefully about any discretionary spending before you open your wallet.  For example, do you really need to see the new movie on opening weekend - with popcorn and sodas of course - easily running up a tab of $50 for two people, or instead can you rent a DVD and save around $45?

How many choices like these to you encounter - whether it be with entertainment dollars, clothing dollars, or even your choice of transportation.

If you made the prudent choice, how much could you save every month?  Let's try this example:

• Avoiding going to the movies once per month: $45
• Eating dinner at home rather than a restaurant: $40
• Taking public transit to work rather than driving (no parking or gas): $150

With three small changes, you've managed to save over $200 per month!  If you were to put this into your savings account, after a year you would have over $2,000 saved - a small but reliable buffer against a personal economic depression.

Spending changes do not have to be dramatic, but they do have to be made. Small wasteful purchases can add up to hundreds of dollars per month - and this is money that you worked hard for!  Be wise - and you will be prepared.

Dollars in your wallet - Part 4: 0% Balance Transfers

In this installment of dollars in your wallet, I want to share with you an excellent credit card that can be used for balance transfers.  That means you can transfer existing - and high rate - credit card debt to this new card and save potentially hundreds of dollars in interest costs.

I found a balance transfer card for you that offers 0% interest for 6 months!  Where does such a card exist?  At Citibank - you can find it right here.

If you decide to transfer existing balances, I want you to use this as an opportunity to pay the debt down - not as an opportunity to charge up your old credit card again. That of course would defeat the whole purpose of doing this!

If you are currently carrying a $5,000 balance at 18% interest, you have the chance to save $450 over the next six months by using this Citibank card!  Enjoy the extra dollars in your wallet!

Guarantee on Tithing

A few months ago, I talked about the "money back guarantee" that our church was offering on those who were afraid to tithe - they of course often think that it would hurt them financially.

Other than talking about it on this blog, I didn't really think much more about it. However, in church this weekend, the subject came up - in front of the entire congregation.

Somebody who was skeptical - and perhaps that is a harsh word - decided to take our church up on the challenge. This individual was facing some difficult financial times - due to poor financial decisions - and felt that he was not in a position to be able to tithe.

Anyway - he started.  And then it didn't seem like it was going well - to the point of him actually complaining to his financial mentor about the outcome - or lack thereof.  This individual encouraged him to continue which he reluctantly did.  And notwithstanding the apparent lack of other changes (e.g. new income), he was able to pull his finances together and pay off half of the outstanding consumer debt that he had!  Needless to say, he did not take advantage of the money-back guarantee that our church had offered.

While I cannot promise to what degree (and form) God will bless you, I do trust that He will - as long as you keep your part of the bargain with Him.  

Dollars in your wallet - Part 3: One Year High Yield CD

Today's savings tip to put more into your wallet - believe it or not, it focusses on the vanilla bank certificate of deposit, otherwise known as a CD.

If you have a need for money in about a year from now - say for a major purchase such as a downpayment on a home, new vehicle, or college tuition - then you can safely lock up your money for a year and earn a higher rate of interest than if you had just parked the funds into a money market or savings account.

A great 1 year CD is at Ally Bank, where - as of today - they are offering an guaranteed CD yield of 2.05%.  Add to that the fact that there is no minimum deposit, and we have another Christian Finance dollars in your wallet winner!

In case you're wondering, Ally Bank is now what used to be GMAC - the financing arm of General Motors.  And no - you don't have to worry about the safety of your money - it is FDIC insured up to $250,000.