We live in a culture that tells us we deserve things. We deserve to go on vacation because we work hard. We deserve to eat dessert because we had a salad for lunch. We deserve to live in a really nice house and drive a really nice car because we put in a lot of hours at the office. We deserve a beautiful place to work. The working environment plays an important role in our mental health. It is really stressful to have a long day of work, and a nice place can give us a cozy and peaceful feeling. There is a company offering an office rental for a short time; visit this site at https://www.untethered.space/ for more info. This mindset is what gives us the idea that if we want something we should just go get it. This is also the mindset that allows rent-to-own and title loan places to thrive. This mindset is a load of crap. There, I said it. The mindset of I deserve is a total load of crap fed to us from thousands of different angles and promulgated (yeah, yeah, I know I just used a college word) by every TV commercial and radio ad you’ll find anywhere. So what’s the truth? What do we REALLY deserve? That’s the topic for another post. Today, however, I’m going to discuss the dangers of rent-to-own and share a story that has captured my heart for months now and motivated me to help people get (and stay) out of debt. [Read more…]
Poor is a State of Mind…and so is Rich!
Last week’s post on change being all about deciding to do it went over well enough that you guys even shared some really great stories about how you’ve used my ramblings to give you some direction. I’m THRILLED to read those types of comments. Some of you also asked me for some specific things where this mindset could be applied, so I thought I’d take today to tackle that idea through the idea of being “poor” (financially).
I talk to people nearly every day who are struggling to make ends meet. Financially, things are tight and there is often little hope of things getting any better. By their very situation, most would call them poor. I think that’s wrong. You may not have any money, but you are not necessarily poor. Poor is a state of mind. If you are short on cash, that doesn’t mean you’re poor. If you are behind on all your bills, that doesn’t mean you’re poor. If you don’t know where your next meal is coming from, that doesn’t mean you’re poor either. You’re only poor when you admit defeat, sit down and decide you are poor. This is a very serious (and bad) place to be. When you are poor, you stop believing in yourself. When you’re poor, you start looking at others and believing they are evil for having more than you do. When you’re poor, you decide the government (or the church, the community, your neighbor, etc.) owes you something because you’ve been wronged. In other words, poor is the decision to give up on succeeding financially. Rather than make this a political statement, which is something most people want to do because it is an easy out, I will say this: Jesus said the poor will always be around (Matthew 26:11), but it is up to you whether or not you decide to be one of them.
[Read more…]Biblical Response to Lending Money
I received a question last week from someone wanting a Biblical response to the concept of lending money. Since I have made Romans 13:8 (“Let no debt remain outstanding, except the continuing debt to love one another…” (NIV)) a bit of a mantra for my counsel on personal finance, it is only fitting that this question would eventually come up. If I’m telling you to avoid borrowing money as much as possible, then what is my stance on lending money if you are a Christian? I thought this was an excellent question, and it is one I truly wrestle with because I know people are going to borrow money. I also know borrowing money in most cases is not a sin. Having put that out there, what does the Bible say about lending people money?
First, let’s get a couple of foundational things out of the way. Biblically, a lender becomes master of someone who borrows from them. This is pretty clear from Proverbs 22:7. Someone who borrows money is figuratively picking up the chains of debt and the lender is not responsible for their choice to do so (generally speaking). Having said that, the Bible speaks a LOT about those who are in debt and that they should free themselves from it (see Psalm 37:21, 1 Corinthians 7:23). The Bible is also pretty clear that co-signing for someone to borrow is a bad plan because co-signing generally means the person wanting to borrow money can’t handle the weight of those chains, even under pretty decent circumstances (see Proverbs 6, Proverbs 11:15, Proverbs 17:18, etc.). But let’s say someone who is an excellent candidate for a loan (is that an oxymoron?) approaches you and asks to borrow $10,000. What is your Biblical response, assuming you have the $10,000 to lend? [Read more…]
Does an Auto Lease Make Sense…Ever?
I thought I’d pick another semi-controversial topic for my post this week. Why? Because I love the debate and discussion, and ultimately the gained education from bringing up these topics with you guys. You’re a smart bunch and you’re always willing to share with each other. Plus I always learn some new perspectives on things. Today, I want to share my thoughts on car leases and why they make absolutely no financial sense. I know, I know – I’m just begging for some of you to disagree with me before I even get started. But that’s exactly why the comments section is at the END of the post.
Just to be sure we’re working from the same definition; let me give you a quick run-down of what an auto lease actually is. In simplest terms, an auto lease is a long-term rental agreement between you and a car company. You make monthly payments and take care of the car but technically the car company still owns it. At the end of an agreed-upon lease term (usually two or three years), you have the option to purchase the car at its “residual value” (fancy term for the amount the car company estimated its market value would be at the end of the lease) or turn the car back in. See – you don’t own a leased car – you simply “rent” it.
So why is this a bad financial plan? Let me get to that part after I mention a few good things about leasing a vehicle: [Read more…]
How Important is Your Credit Score?
Having a good credit score makes life easier. You can borrow money easier than someone who has bad credit (if you really want to do that), you will have an easier time renting, you might pay less for insurance, you don’t have to worry about employers or potential employers labeling you or not hiring you if they run a credit check, etc., etc., etc. There are many perks to having a good score. However (and it is a BIG ONE), what is the REAL value of having a good credit score? I devoted an entire chapter of my book to this topic, titling the chapter, “I Don’t Care About Your Credit Score…and You Shouldn’t Either” to make it obvious my stance on the issue (and to rile up a few people who want to argue the point).
I do not care if you have good credit or bad credit because credit is not the target I’m aiming for. I’m aiming for freedom. [Read more…]
Is 90 Days Same as Cash REALLY the Same as Cash?
I could make this the shortest post ever at Humorous Homemaking because you know I’m not going to condone or encourage debt, even if it is “90 days same as cash” or some other no interest loan. However, let me explain WHY I don’t believe in these “free money” programs and why they simply don’t make sense. Let’s go through five reasons: [Read more…]
Buying a Car for Better Fuel Economy
Have you noticed gas prices recently? If not, that means you either live in a major city where you don’t own or need to own a car…or you live under a rock. Gas prices are HIGH! Seriously people, when you have to drive a lot, filling up your tank hits the budget hard! In light of that lovely fact, I thought I’d write a post about buying a car, which might have a car windscreen sunshade, so you can get better gas mileage. This idea is not new, and it comes up every time gas gets expensive. But what are the costs people don’t consider? Is it really worth trading in your existing car for one that sips the gasoline rather than asking for regular refills? Let’s find out together. [Read more…]
Life Insurance for a Stay at Home Mom
Since I’ve been tackling a lot of stressful financial situations in the lives of those I’ve counseled lately and in light of our upcoming baby #2, I thought I’d spend a little time to discuss the question of whether or not you should have life insurance on a stay at home mom. Let’s get a few basics out of the way first:
Strictly as insurance, I do not believe in “permanent” insurance (whole life, universal life, etc.). It is much more expensive than it needs to be as far as insurance goes and since we’re talking about INSURANCE (and not investments), let’s just stick to the idea of looking at term life insurance for a fair comparison in my examples and avoid all that debate for today.
I’m a HUGE advocate of having life insurance on SOME people. Do I need life insurance for Annie (who is not even 3 and brings in no income to our household) – NO. If she dies, we’d be emotionally crushed, but about the only impact to our finances would be the cost of her funeral and burial. A good way to be able to cover that is by getting a rider on an existing policy. It is cheap (per month) and $10,000 or so of coverage should be plenty.
Grasping the cash value of a life insurance policy can be a game-changer in your financial planning. Not only does it provide a death benefit, but it also creates a cash reserve that can be accessed under specific circumstances. More insight on this can be obtained from https://getsure.org/whole-life-insurance-cash-value-chart/.
Do I need life insurance on me? ABSOLUTELY – I’m the breadwinner in our family and if I die, Stacy needs income to be able to buy a Rolls Royce (strike) continue a reasonable lifestyle even if I’m gone. So that gets at the purpose of life insurance: replace needed income lost if someone in the family dies. That means if you don’t bring in any income to the family, you likely have no need for life insurance (beyond something to cover your burial). And that gets at today’s question – do families need to get life insurance on a stay at home mom? [Read more…]
What is a Reverse Mortgage and is it a Good Idea?
Stacy and I have been seeing a commercial on TV quite a bit lately. It is of “the Fonz” (Henry Winkler) promoting reverse mortgages (see the Youtube video here) and talking about how great they are for seniors who want to enjoy retirement. Well, a friend of ours just so happened to ask what a reverse mortgage is and how it works, so I thought I’d give you a run-down of what a reverse mortgage is, how a reverse mortgage works, and whether or not it is a good idea for you, while you can also learn about the HMO Remortgages that are great for your house as well. I know, I know, that means there will probably be some controversy, but I look forward to the healthy (repeat, HEALTHY) debate. So let’s dive in.
First, let’s define what a reverse mortgage is. A reverse mortgage is a loan supported by the Department of Housing and Urban Development (HUD) where a homeowner age 62 and above can borrow against the equity in his/her home. An equity release calculator can be used to provide an instant initial assessment of the minimum and maximum sums he/she could borrow. A reverse mortgage is only valid on a primary residence. This loan allows seniors to get a lump-sum amount, monthly payments or as a revolving line of credit. Professional mortgage brokers in NZ aim to help homebuyers and homeowners with their mortgage queries. As common sense might tell you based on its name, a reverse mortgage is where the bank pays you money for your house. To keep things simple, we won’t get into the details of how much can be borrowed other than to say you can’t borrow more than the house is worth. [Read more…]
Using Money to Show Your Spouse Real Love
This week I want to keep up my theme of writing about money and marriage. Although I didn’t intend on turning it into a full-blown series, it has been fun to see the interaction it has created with readers and I truly believe it has helped many of you. I know it has helped me to formulate my thoughts well enough to be able to write it all out. This week, I want to write as a husband as much as a financial counselor. I know the demographics of readers on this site tell me it is mostly women who have clicked on here. But if you’re reading this and you’re not a man, you probably know one or two of them and could share this article. Plus, don’t you want to read something you can nod your head in agreement with? One last thing [Read more…]
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