Today’s lesson talked about racking up lots of credit card debt and expecting others to take care of you. (Oh wait … sorry … that was the pamphlet I saw for FROWN Ministries.) But seriously today’s lesson discussed saving and investing, compound interest … all of that good stuff.

One of the key ideas associated with compound interest is that it’s magic. I guess most people that talk about compound interest assume that the people listening think that math is boring, and that’s probably true. But the key ingredient to make the magic work is time. Decades worth of time, usually.

The lesson not only drove home that regular investment a good thing, but at the time it also seemed to suggest that wanting to do it any way but slowly and methodically was not a good thing. Enter Proverbs 28:20:

A faithful man will be richly blessed, but one eager to get rich will not go unpunished. (Proverbs 28:20, NIV)

This statement concerned me a little because (a) I do often think about different ways to make money that are faster than compounding interest, and (b) I want to enjoy the fruits before they have to be put through a food processor and spoon-fed to me. I’m reading through MJ DeMarco’s The Millionaire Fastlane and he refers to this slow, systematic retirement plan as, well, the “slow lane.” Does the desire to kick things into high gear make me “eager to get rich” as stated in Proverbs 28:20?

It’s a matter of balance and honesty

John Gill, an English theologian in the late-17th, early 18th-century, had this to say about the phrase:

… but he that maketh haste to be rich shall not be innocent; he that is over anxious, and immoderately desirous of being rich, and pursues every method of obtaining his desires, with all his might and main; that labours night and day for it; though he takes no criminal nor unlawful methods, properly so called, nor does he do anything injurious to others, yet he is not innocent; that too much anxiety in him is criminal; nor is he free from covetousness; and if he uses any unjust and unlawful means to acquire wealth, and resolves to be rich, right or wrong … he shall not be innocent, neither before God nor men ….  (reference)

There are many godly rich men mentioned in the Bible: Abraham, Isaac, Jacob, David, Solomon, Barnabus, and Job, to name a few. So, it’s not ungodly to be rich. Nor is it ungodly to become rich at a young age, if the person’s heart is in the right place. Being hell-bent on becoming rich, though, is the problem, and this is the notion that is connected with the word “eager.” It’s not the desire to be smart about making money to bring it in faster that’s bad. It’s both the manner in which it’s done, and also whether more important things are sacrificed in the process.

So the takeaway for me is that wanting to get rich on an accelerated schedule isn’t necessarily “being eager to get rich,” but it can be, and I have to ask continually for wisdom as to whether I’m following the good path or one of the many bad ones.

Sign up for the Mighty Bargain Hunter Newsletter!

First, a very condensed history.  The phrase “In God We Trust” was first used on U.S. money during the American Civil War, on the 2-cent coin.  Its use on other coins followed.  Laws in 1865 and 1873 allowed the phrase to be used on U.S. coins.  (I guess there was no law forbidding the use of the phrase on the 1864 2-cent piece!)  A law in 1908 required the use of the phrase on U.S. coinage, and by 1938 all coins had the phrase.  A law requiring both coins and currency to bear the phrase was enacted in 1954.  In 1956, a law made “In God We Trust” the official U.S. National Motto.  By 1966 and all years thereafter, all U.S. money had the phrase.  (Godless dollars don’t count.  They were errors.)

Teddy Roosevelt takes a stand

On introduction of a new $10 gold piece in 1907, President Roosevelt instructed the Mint not to include the words “In God We Trust” in the design.  He responded to the ensuing criticism in a public letter, published in the New York Times on November 13th, 1907.  From the letter (emphasis mine):

“When the question of the new coinage came up we looked into the law and found there was no warrant therein for putting ‘In God We Trust’ on the coins.  As the custom, although without legal warrant, had grown up, however, I might have felt at liberty to keep the inscription had I approved of its being on the coinage.  But as I did not approve of it I did not direct that it should again be put on . . . . ”

“My own feeling in the matter is due to my very firm conviction that to put such a motto on coins, or to use it in any kindred manner, not only does no good, but does positive harm, and is in effect irreverence, which comes dangerously close to sacrilege.  A beautiful and solemn sentence such as the one in question should be treated and uttered only with that fine reverence which necessarily implies a certain exaltation of spirit.”

“Any use which tends to cheapen it, and, above all, any use which tends to secure its being treated in a spirit of levity, is from every standpoint profoundly to be regretted . . . .“

(From a letter of President Theodore Roosevelt, published November 13th, 1907, in the New York Times)

It’s clear that President Roosevelt’s aim was not to box God in or exclude God, but to keep God at the proper level of respect and reverence.

In whom (or in what) do you trust?

There are over 2300 verses in the Bible that deal with money but one that is closely related to this issue is Matthew 6:24:

“No one can serve two masters. Either he will hate the one and love the other, or he will be devoted to the one and despise the other. You cannot serve both God and Money.“  (Matthew 6:24, New International Version)

So, even though “In God We Trust” is on every piece of money that flows through our hands, do we actually trust God?  Or do we trust the security and the power that we see as coming from the money itself?  Is the phrase “In God We Trust” now so commonplace that we don’t even really think about it much anymore?

I’m a Christian.  I must confess that I do take comfort in what wealth I’m currently enjoying, and that’s wrong.  Everything that is “mine” really isn’t mine.  It’s God’s.  Trusting in my “stuff” instead of in God is idolatry.  There is no room for trusting God and trusting something else too.  But like anything related to a spiritual walk, it’s a process of prayer and relationship-building to gain greater trust in God and lesser trust in money and the things of this world.

Not just “In God We Trust” but “In God Alone We Trust.”

Sign up for the Mighty Bargain Hunter Newsletter!

At work it sometimes means announcement of raises or year-end bonuses when there’s profit to be shared.  People may be entering the new year with a fatter wallet and a bigger paycheck.

This holiday season?  Not so much.  Googlers notwithstanding, many people found out that not only were there no year-end bonuses, but there was no year-end raise, either.  About 1.4 million US Federal employees are likely looking at no annual raises in 2011 and 2012. With the prices of groceries, gas, health care, and many other things steadily climbing, staying put is actually falling behind.

While people don’t wish that a pay freeze would happen to them, it’s far from unusual.  Here are seven things to consider doing if you’re going to be pay-raise challenged for a while:

1. Give thanks for your job. For Christians, like myself, this is part of 1 Thessalonians 5:18; it’s not a quid pro quo exchange with God, but instead a recognition that everything we have comes from Him.  In any case, a thankful heart is a much better launch pad for being proactive.  Spinning wheels with worry just makes a lot of bad-smelling smoke and wears out the tire treads.
2. Don’t panic. A pay freeze is not a pay cut, and it’s not a pink slip.  For the time being, the paychecks will continue to come in.  This is not a worst-case scenario.  Food will continue to go on the table, the lights will continue to come on, and the water will continue to run.  The basics, and a lot of the extras, are still there.
3. Recognize the wake-up call. If this pay freeze came out of the blue — heck, even if it didn’t — it’s still jarring.  Raises aren’t always regular.  It’s possible to experience a backslide with income.  Jobs, even “safe” ones like government jobs, aren’t bulletproof.  Were you ready for the announcement?  If not, it’s time.  Get ready.  Don’t ignore the wake-up call.
4. Make some battle plans. The Bad Economy is knocking on your door.  Maybe you already have another job or have a side business going, or you’ve gone back to the basics cut your expenses and have started to do the little money-saving things again.  That’s great.  Keep doing more of that.  If not, look at options for earning more and spending less.  Since you’re already not in panic mode, you have time to plan for your best way to fortify your finances and find that money that you thought you were going to get.  Revisit the basics and go from there.
5. Work your thaw-out plan. A pay freeze from one job is just that: a pay freeze from one job.  The income can be made up elsewhere, and since you’ve made plans for how to do that, you just do it.  If you feel most comfortable with another job, then go out to get one.  If you think wringing the unsatisfying expenses out of your budget is the way to go, then find less expensive alternatives to your gourmet premium whatevers.  If you want to tackle a side business, then go for it.  Plan enough to get started, and sand down the rough edges along the way.
6. Build momentum. If the pay freeze on the one job is the worst of it, hallelujah!  If it isn’t, and The Bad Economy ends up pounding the door in and you lose that job, then you’ll be glad that you just didn’t coast when you felt comfortable again.  Build the side business more, or take a battle axe to your expenses.  Build up a nice emergency fund.  The more cushion you have, the more time you have to wrestle your way out of a financial head lock.
7. View the entire process as a test. Life has ups and downs.  This is a down part, a trial, a test.  Tests teach you what you know and what you don’t know.  Just going through the test has its own benefits, even if the test itself isn’t fun.

Oh, by the way:  I’m going through this myself right now, so you’re not alone.

(Thanks to Blonde and Balanced for including this post in the Carnival of Personal Finance.)

Sign up for the Mighty Bargain Hunter Newsletter!

I work with more than 800 mainline protestant churches in Ohio. I say the credit card issue reflects larger issues in the church: The world is not the same that it was in the 50’s. Churches that do not recognize this will die.

This is seen in changes in music styles, less formal relationships with clergy, more short-term committee assignments and the way organizations of church women operate.

If we are to be relevant in our world and reach out to people, we have to be willing to do so on their terms and this includes finances. By allowing our “customers” to pay their pledges the same way they pay many other expenses, we are saying to them that we recognize we’re not in the 50’s anymore.

What is the good of churches allowing nontraditional giving methods?

1. Fewer people carry cash or check books with them at all times.
2. Regular on-line transfers help even out giving over the year. We know that if you don’t plop it in the pew you won’t put it in the plate, so giving traditionally dips in the summer time, during bad weather and on holiday weekends.
3. Electronic transfer allows greater privacy in giving. If I write a check and put it in the plate, volunteer counters and others may see what I give. But a concise electronic statement would only be seen by the Financial Secretary who would actually record my pledge.
4. Cash and checks have to be handled. They have to be counted, counted again, prepared for deposit and driven to the bank. In an era where volunteer time is harder to come by, let’s let our volunteers focus on doing the work of the kingdom and not tie them up counting money.
5. Cash is also a safety liability. Although this is quite rare, a pile of cash can be misappropriated, and with no cash register receipt to balance against, such a theft would go unnoticed.

I believe there are many positives to churches accepting credit cards, electronic funds transfers and other “modern” ways of conducting business.

Like I said, very well-thought-out comments.  Thank you!

My original post discussed the downside of tithing with a credit card, focusing mainly on the possibility of leading congregants into financial temptation and retarding spiritual growth, while not really discussing directly the advantages that such transactions can bring to churches.  Brian lists out some of these advantages, and I agree that many congregants would appreciate the fact that giving in this way was an option.

Like anything a church does to make itself more relevant, it should do so while holding true to biblical principles. And if I would be in a church that was considering this change, and if the leadership of the church made the decision to accept credit cards after faithful prayer and with the guidance of the Holy Spirit, I really wouldn’t argue.  For example, if the church made training available from Financial Peace University, Crown Ministries, or some other Christian financial ministry, then that would give the opportunity to soften congregants’ hearts in order to examine their giving in the context of this new technology.

If a church doesn’t seek guidance from the Holy Spirit with regard to this, and does it for, perhaps, worldly reasons (“We need more regular giving” or “We need to encourage more giving”) then that’s where problems are more likely to crop up.  That was the context of my original post.

I do disagree on one point within item #4.  I have helped with counting the offering for quite some time, and this is the work of the kingdom just as much as taking a missions trip to Africa.  I’ve learned a lot doing this, and I have no doubt that performing this task has helped me to grow spiritually.  Besides, even if credit cards come to the offering plate, checks and cash won’t go away, and counting up the offering will still need to be done.  From my experience, counting up 50 checks doesn’t take that much more time than counting up 15 checks, because of all the other set-up and tear-down work that’s needed.

Anyway, any more thoughts on this? I’ll be happy to write about it again next week.

Sign up for the Mighty Bargain Hunter Newsletter!

This could end up being a giant can of worms, but I’m young enough that it makes sense to at least think it through a little bit, since I may be placed in a position later where I’ll have the option of doing this.

Organizations (commercial or otherwise) accept credit cards because they anticipate getting more money by accepting payment through them.  This is for a number of reasons.  First, it may make the difference between a sale or not.  If the would-be customer doesn’t have any cash, but has a credit card, they can still complete the transaction.  Secondly, there’s enough emotional distance for many people between credit and actual cash, so average purchase amounts tend to be higher.

What about for churches?  Presumably a church would accept credit cards (or perhaps just debit cards) in order to bring in more donations or larger donations from the congregation (or perhaps one-time visitors).

But should they? That’s a very complicated question!  Here are a few thoughts:

• It could tempt congregants to shortchange God. Let’s say God laid it on someone’s heart that they were to give $100 per week for tithes and offerings.  Each week they write a check for $100 and put it in the offering plate.  Now add credit cards to the mix.  Let’s say it’s a rebate card.  The congregant now charges $100 per week, and gets a kickback of $1 in rebates from the credit card company.  That part may be fine, but the church had to pay more than that — let’s say $2 — to process that $100 charge!  As a result, the church only saw $98 of what was a $100 offering before the credit cards came around, and the congregant might be tempted into thinking that they gave $100 for the price of $99.
• It could tempt congregants to live beyond their means. Checks bounce if the funds aren’t there.  One could say that debit cards are the same way.  Charges to credit cards don’t bounce, unless the charger is really close to his limit.  I could see some faithful givers run on hard times and, fully wanting to put God first, charge a tithe because the option was there, even if it meant that they’d pay interest on that offering.  Screening possible “problem” charger-tithers and not allowing them to use the card is against the merchant account rules, so it can’t be done while maintaining the account.
• It could make the church an indirect accessory to usury. The church isn’t charging the interest, of course, but if a donation comes in, the cardholder pays interest on that donation, and something happens that causes the cardholder’s rate to go to the default rate (or even before that), this could be usury.
• It could rob regular givers of the joy of giving. If credit cards come online, then recurring credit card payments follow soon after.  The action of putting a check in the offering plate each week is an act of worship, which is something that is lost with a recurring charge to the credit card.

Credit card payments for tithes are already here. This post wasn’t about whether you can tithe on your credit card, but whether you should.  I think credit card donations in church will become more widespread, but I don’t like where it can lead.

Is there a flip side to all of this?  I see the bad, but what about the good?

Sign up for the Mighty Bargain Hunter Newsletter!

First off, Happy Independence Day to my American readers.  Happy July 4th to others.

Gary North’s Tip of the Week (subscribe for free in the upper right of this page) was on outsourcing.  He doesn’t plan to ever mow his lawn himself, because the net cost would be a loss.  He values what he can accomplish in those couple of hours higher than what it would cost him to have someone else mow his lawn.

The answer is easy for him because counting the cost for him is easy.  But what about for people who aren’t as productive now?  Do you outsource in that case?

Counting the cost is more complicated in this case.  Mowing your own lawn, making your own meals, clipping coupons, hitting yard sales, and the like are little money-saving things, but they all take time, which is irreplaceable.

Some questions that might be good to ask if the answer isn’t clear what to do:

• Do you have a clear vision where you’re going? If this is not the case, counting the cost really doesn’t have much meaning anyway.  No one can answer this except you.  Aside from just not having one, another indication of lack of clear vision is having a lot of projects that aren’t really going much of anywhere.  It is time to cut out the losers.
• Are you having trouble making your bills? If this is the case, then a good use of your time is making the money, and reducing expenses, to keep on top of your bills.  Not doing so has clear costs:  late fees, higher interest rates both for not making payments and as the result of a low credit rating.  If these things happen, they will postpone the grander legacy you have in mind.
• Are you in fair shape financially, but not good enough shape that you don’t really have to worry? This is where it gets trickier.  You can free up more time by paying to get things done that don’t directly contribute to your legacy.  The more of these activities you pay for, the more you can accomplish with the finite amount of time you’re given.  But, the more this costs — there’s the rub.  Do you sacrifice the appearance of present financial security to go full-bore at something great, or take up some of that time keeping a good financial cushion and work your legacy more slowly?  This brings about lots more questions, like whether your family is behind you, what other expenses or commitments are down the road, etc.  A silver lining to the recession, by the way, is that hiring out some activities now can be cheaper because business are hungrier for work now.

Happy cost counting!  Here’s to moving in the right direction.  Half the year is ahead of us!

Sign up for the Mighty Bargain Hunter Newsletter!

Once the electricity is shut off, there is usually a reinstatement fee in addition to back charges, so keeping the power on if at all possible is preferable to letting it lapse, not just for comfort and standard of libing, but financially as well.

In going through a few cases I’ve learned a couple of ways to help keep the power on if it’s about ready to be cut off:

• Make payment arrangements with the power company. This may or may not work, but it doesn’t hurt to ask.  If the time for shut-off is approaching and a lot of money is owed, they may accept smaller installment payments and keep your power on.  It’s not a free ride but it can possibly save the extra cost of turning it back on.
• Find a church or other organization that can pledge payment to the company. Our church is able to do this.  We can call the power company on behalf of someone right before the power is to be shut off, say that we’ll pay the amount needed to keep it on, and they’ll keep the power running even if they receive payment after the cutoff time.  This gives a small amount of extra time before cut-off.

These are the tips I’m aware of.  I’d like to hear others if you know of any!

Sign up for the Mighty Bargain Hunter Newsletter!

And just like the parents’ church, the children’s church has an offering.  Our four-year-old daughter asked for money to give in the offering.

When my wife told me this, it didn’t take too long for me to ask if it was the right time for some kind of allowance.  (Aside from the fact that I was very happy that my daughter thought to ask us.  This is a good sign, I think!)

Now, I didn’t receive an allowance until I was quite a bit older, but I’m wondering about what kind of message it sends to my daughter to give money to her to put into the offering without also instilling that it comes out of what we have (or, more precisely, what God has given us stewardship over).  Hence the allowance: to keep the math easy, 50 cents a week, 5 of which goes to the offering, some of which goes into savings (or groceries?) and the rest that she can spend or save as she wants.

Maybe I’m overthinking this, and I should just be thankful that my daughter wants to give at church.  Still though, part of me wonders if she wants to give mainly because everyone else around her is giving, and needs a little more appreciation of what she’s doing.

Any thoughts?

Sign up for the Mighty Bargain Hunter Newsletter!

• Did I read (or listen to) my Bible that day? Yes or no, aiming for every day.  (I’ll explain the “listen to” addition below.)
• Did I exercise for at least 30 minutes that day? Yes or no, aiming for three times per week.

I purposely did not set any financial goals initially and instead purposed the Bible goal to help me gain wisdom in how to proceed that way.  So far this month we’ve had a lot of out-flow, but we’ve also had unexpected in-flow of funds, so I know that God is helping us through our current expenses. What’s more, I won a copy of H&R Block TaxCut Premium Federal tax preparation software from not one, but two personal finance bloggers this month!  (ChristanPF was able to give his copy to someone else.)

So far I’ve kept to my goals pretty well.  Tonight, after reading a post on Lifehacker I checked out a new (free) tool called Joe’s Goals that does exactly what I need.

It was a painless signup process, and I was able to put all of my hand-written data for the year thus far in the tool in about five minutes.  Now that things are set up, I go to the site once a day, click a couple of boxes (if I did both things that day) and I’m done!  It’s that easy.  What’s more, I’ve set my account to send me an e-mail if I don’t log in within two days of my last login, so I’m less likely to forget about it.  JoesGoals.com is very simple and very effective!

Oh, I was going to explain why I changed my first goal to “read or listen to the Bible each day.”  A few weeks ago I was in Costco and ran across the Zondervan NIV Audio Bible.  It’s a dramatized reading of the complete Old and New Testaments on sixty-four CDs.  I bought it sight unseen (sound unheard?) and was pleasantly surprised.  The background music isn’t annoying and the narration isn’t cheesy.  I’ve already gotten a lot out of it, and it’s been very effective at helping me to get the big picture.  Plus, it gives me a way to use my commute effectively.  I’ll go beyond listening, but for now I’m counting it as spending time in the Word.

Incidentally, the Lifehacker post also mentions using Mint.com to track financial goals, so I may need to revisit using that.  So, there you go.  It may be a bit early to ask but how are your goals going for this year? How do you keep track of your progress?

Sign up for the Mighty Bargain Hunter Newsletter!

When she lost her wallet about a week ago, one of the cards in her wallet was a Starbucks card that still had about seven bucks on it.  Slightly annoying, but nothing that would break the bank.

Enter God’s economy.  In Philippians 4:19 the apostle Paul writes: “And my God will meet all your needs according to his glorious riches in Christ Jesus.”  There’s no mention of how specifically needs are met, only that they will be met.  (In any case, the fact that we “have” anything at all is because God lets us use it; everything, including us, is His.)  The books may not be balanced immediately, or in a way that we expect.  Further, if it’s not a true need (food, water, clothing, shelter) then it isn’t obligated to be part of the equation, but this doesn’t preclude it from being part of the equation.

Despite objections from die-hard coffee drinkers like myself, Starbucks probably is not a true need.  Nonetheless, God revealed His economy this way in the past week:

• Someone gave my wife a Starbucks card that they couldn’t use anymore.  My wife was getting her YMCA ID card replaced, and in the process was explaining why she needed it replaced.  During the conversation she recounted that she had barely broken in her Starbucks card before she lost it.  Well, one of the people standing there had had to give up caffeine from some medical condition, and gave her the card she had in her wallet because she couldn’t really use it anymore.
• Costco started selling discounted Starbucks cards.  In the checkout line Sunday they had an advertisement posted: “Five $20 Starbucks gift cards for $79.99.”  Well, all right then!
• My wife’s wallet was recovered!  On Friday we got notice that someone had turned in her wallet.  We don’t know yet what was left in the wallet, but God might give her other card back, too.

Sign up for the Mighty Bargain Hunter Newsletter!