Compass » Money Wise

Your Money Concerns Matter to God - Steve Moore and Howard Dayton discuss the "appropriateness" of bringing your financial needs, concerns, frustrations and even your wants to the Lord.  Steve asks whether we even NEED to pray about our finances since there are so many scriptures dealing with money.  (The answer is yes!) What to do when a spouse opens a credit card in your name  (Howard deals with this issue, but also recommends checking your credit report for free by going to AnnualCreditReport.com.) The differences between term life insurance and whole life insurance and how to determine which is best for your particular needs (There is a Life Insurance Calculator to help determine how MUCH insurance you need on our website.) Whether it's a good idea to switch banks periodically just to get the best rates Other resources include Howard's books, "Free and Clear" and "Money and Marriage God's Way," several of our books that help teach kids to be better money managers, and our Small Group Study based on the best-selling book on business from a Biblical perspective, "Business By the Book."  Thanks for your prayers and ongoing financial support that help keep Money Wise on the air.  Please remember to let your station know that you enjoy the program, too.  But most of all, thanks for listening!

Taking the Sting out of Paying Taxes - Howard Dayton and Steve Moore revisit the age old question about whether God really requires us to pay our taxes.  The answer is yes, by the way.  Howard reminds us that God requires us to be good stewards of our money, but also to be in submission to the governing authorities over us, and that includes our being submissive in paying our taxes.  He mentions that you can get free help in filing your taxes, too.  Details are available at www.irs.gov.  Click on FREE FILE to get started.  This link includes a list of companies that offer free tax filing software. TurboTax is one such company that has a free edition for those who would file using IRS form 1040EZ. Next, Steve and Howard answer calls and emails (800-525-7000 or moneywise@compass1.org) about the following: What options should a retired person consider, upon realizing that savings and investments have lost value and may not be enough to cover expenses? Is it a good idea to borrow against the value of a home in order to secure business debt, when the home finance interest rate is better? Today's resources include the nine-week small group study, "Navigating Your Finances God's Way."  Thanks for listening, and thanks for your continuing prayers and generous financial support that help keep "Money Wise" on-the-air!

Mortgage and Housing Questions, with guest, Dale Vermillion – Howard Dayton, Steve Moore and today’s guest simplify the process of acquiring or refinancing a home mortgage, including available government programs and what homework you’ll need to do up front. Next, they answer calls (800-525-7000 or moneywise@compass1.org) with questions such as the following: My income and home value have dropped - can I still refinance? We've been in a home for six years that we can't afford - what do we do? We have a variable rate Home Equity Line of Credit - should we lock in the rate?  And should I apply extra cash on hand to the mortgage or to the Line of Credit? Today's resources also include the book, "Navigating the Mortgage Maze " (by our guest, Dale Vermillion); the government website, www.MakingHomeAffordable.gov; and the Resources section on our website. Dale will be joining us again soon, so if you have a mortgage question, let us know (800-525-7000 or moneywise@compass1.org). Thanks for your prayers and generous financial support which allow us to keep Money Wise on-the-air!

Compass Money Map / Destination 3 – Howard Dayton and Steve Moore continue leading you along the journey to True Financial Freedom with a review of the first two destinations and an in-depth look at Destination 3 – increasing your emergency savings and paying off consumer debt. Next, they answer these questions from listeners (800-525-7000 or moneywise@compass1.org): Where do we save extra money from a tax refund? Should we pay off existing student loans before going to seminary? How do we deal with a slow-selling, out-of-state home? Should we roll a Home Equity Line of Credit into the mortgage of our new home? How can I convince my wife to tithe? Is there a rule of thumb for the marketing expenses of a small business? How do we decide the best use of an extra $1,000? Today's resources also include the free Compass Money Map (found in the Resources section of our website) and Howard’s book, “Your Money Map” (also available on audio CD). Thanks for your prayers and generous financial support which allow us to keep Money Wise on-the-air!

Making It in Full-time Ministry - If you're in full-time ministry, or considering it, you'll likely be living on a modest income.  Howard Dayton and Steve Moore offer vital insights to help you count the costs and prepare spiritually and financially. Next, they answer calls and emails (800-525-7000 or moneywise@compass1.org) about the following: Selling assets before a pending divorce Investing funds from a severance package Renting vs. buying - which is the better choice and what must be considered before buying? Selling an inherited item without harming family relationships Today's resources include the book, "Sound Mind Investing," and other tools and articles you'll find in the RESOURCES section of our website.  Thanks for your prayers and generous financial support which help us keep "Money Wise" on-the-air!

Investing: Why and How? - Steve and Howard welcome special guest Mark Biller from Sound Mind Investing to discuss the reasons we should invest and the ways in which to do it in a manner that follows time-tested Biblical principles.  Mark says that operating out of fear is NOT the way to go.  Here's some of what he covers: Some reasonable hedges against inflation The principle of diversification Taking a long-term approach to investing, and Some tax issues to consider as you invest. Plus, they answer the following calls and emails (800-525-7000 or moneywise@compass1.org): Tax obligations on an inheritance and what should be done with that inheritance (emergency savings, paying off debt, funding a 401K or an IRA, etc.) Whether it's best to put money in a regular 401K or a Roth 401K if you're within a few years of retirement What to do with life insurance proceeds following death of spouse (Howard recommends KingdomAdvisors.com), and Whether rental properties should be used as an investment for retirement. Mark Biller referred listeners to an Investing Temperament Quiz at SoundMindInvesting.com.  Steve discovered his temperament is Grumpy, though Mark denies that Grumpy is actually one of the Investing Temperaments.  Thanks for listening and telling your friends about Money Wise Weekend, and thanks for your prayers and generous financial support that help keep us on-the-air!

Policing the Family Budget - Howard Dayton and Steve Moore discuss the Biblical guidelines that direct us to have a spending plan.  The mechanics of setting up a budget can involve computer software or a pencil and paper; the key is to choose a system that you will use.  Weekly money dates help to keep the family on track with the plan, and allow each person to operate within the gifts God has given to allow the family to use the money He gives.  Rather than a limitation, a spending plan gives freedom to do the things you really want to do with your money. Next, they answer calls and emails (800-525-7000 or moneywise@compass1.org) such as the following: Is it best to pay off IRS and medical debt with an inheritance?  Howard discusses difficult tax situations, and recommends contacting the IRS Taxpayer Advocate Service for help in getting taxes filed and ultimately paid. Is going with a mortgage broker a good idea?  Howard suggests getting at least three bids on a mortgage, to compare cost of closing and interest rates.  A good source for assessing a good interest rate is bankrate.com.  This is a good time to get a mortgage because rates are so low. How long should you keep tax returns and backup information for a business?  Howard suggests that keeping those records for ten years is a good idea, but he says to keep tax returns "forever." How does a company value itself to establish a sales price?  The caller has a vending machine business, and Howard and Steve discuss details of that kind of business. Other resources mentioned on the program include the Compass spending plan, online budgeting through Mint.com, the Compass Money Map, contacting a personal budget coach, Elise Glink's financial website, and the small group study Navigating Your Finances God's Way. Thanks for your prayers and generous financial support which allow us to keep Money Wise on the air!

Being Money Wise Parents to Adult Children - Howard Dayton and Steve Moore discuss how to help adult children in financial matters.  It's difficult as a parent to watch children struggle, but if you want God to work in their lives to help them become what He intends them to be, sometimes that means standing back while they go through difficult times.  It's more of an art than a science, and requires discernment from God to know what's best.  Howard says parents should only help in ways that do not elevate the lifestyle of their children, that do not usurp the authority of the husband (if children are married), that do not use money as a means of control, and that only intervene in the short term. Next, they answer calls and emails (800-525-7000 or moneywise@compass1.org) about the following: How to know when to put money in savings as a small business owner; the Money Map helps with this. Howard discusses the advantage of a Roth IRA as a savings/investment instrument. Whether to manage investments personally or to hire a money manager; "Sound Mind Investing" addresses these issues. What to do instead of co-signing for children's education loans. Today's resources also include the books "Free and Clear" and "Business by the Book."  Thanks for your prayers and generous financial support which allow us to keep Money Wise on-the-air!

The Pros and Cons of Using Debit Cards - Howard Dayton and Steve Moore discuss the advantages of using a debit card rather than a credit card.  Howard says that one of the main benefits is that a debit card keeps you from being able to go into debt.  If you don't have the money in your account, you can't use the card.  Unfortunately, it doesn't protect you from overspending.  That's why you need a spending plan.  Another danger with these cards is that it has become much easier in recent years to steal the information on your debit card.  Once a thief has the info, he or she can wipe out your bank account.   They discuss ways to play it safe and things to watch for when using a debit card. Next, they answer calls and emails (800-525-7000 or moneywise@compass1.org) about the following: What to do with money received in a divorce settlement When the time is right to own your home rather than renting How to teach children to be grateful for what they've received and to become generous givers.  Howard recommends you become an MVP Parent and he explains what that means.  Steve mentions Howard and Bev Dayton's books for kids, "The ABCs of Handling Money" and "The Secret." Today's resources also include the book,  "Your Money Map " and the Money Q&A section on our website.  Thanks for your prayers and generous financial support which allow us to keep Money Wise on-the-air!

The Compass Money Map: Destination 2 - The journey to True Financial Freedom is just that, a journey.  Howard Dayton and Steve Moore will be discussing the seven destinations on that journey every Tuesday for the next several weeks.  Compass provides a map for your journey, and you can download a copy for free here from the Compass website.  At Destination 2, we're shoring up our reserves and beginning to pay off our debts: Increase your Emergency Saving Fund to 1-month of income Start paying off your credit card debts.  Being with the card that has the smallest balance because you will see progress sooner AND you'll make all the money that was going to that credit card payment available to help pay down the next card. Next, they answer calls and emails (800-525-7000 or moneywise@compass1.org) about the following: Whether an Equity Indexed Annuity is a good investment (Howard recommends Kiplinger.com for further study about these instruments) Leasing a car vs. buying a car when it's being used for business What to do about a brother who is hiding a bank account from his wife Opting-Out of Social Security when you're a pastor Whether a couple should consider investing at a high rate given the down economy Steve concludes the program by recommending two of Howard's books, "Money and Marriage God's Way" and "Free and Clear."  As always, thanks for listening and for your generous financial support that keeps Money Wise on-the-air.  Be sure to check out next Tuesday's program in which we head to Destination 3 on the Compass Money Map!

Lead Us Not Into Financial Temptation - Howard Dayton and Steve Moore discuss the challenges we all face with fighting temptation, especially financial temptation.  They remind us that Jesus was tempted, and show us how we can follow the "battle plan" that Christ utilized to avoid the temptation to overspend and stay in debt.  Next, they take calls and emails (800-525-7000 or moneywise@compass1.org) about the following: Whether to rebuild emergency fund or continue paying down mortgage when close to paying it off How to curb spouse's habit of over-spending (Howard recommends the book and the small group study, "Money and Marriage God's Way," to help build communication and put both husband and wife together on the same financial page.  He and Steve also point out that "whacking" your spouse when he or she makes a mistake is not helpful, but celebrating the successes will do a lot to bring harmony in the marriage and in the solution.) Whether it's wrong to consider a job promotion when taking that promotion would mean having to sell your house in a Short Sale, and Whether it's permissible to take an ex-husband to court when he's not making child support payments. Don't miss tomorrow's program, when Steve and Howard will discuss Destination 2 on the Compass Money Map.  You can download your free copy of the map at Compass1.org.  Today's resources are "Free and Clear," and "The Compass Collegiate Small Group Study." Thanks for listening and for your generous financial support that keeps Money Wise on-the-air!

Creating a Financial Disaster Plan - Howard Dayton and Steve Moore discuss how to be prepared for the worst in order to be set up for success in case of natural disaster.  They use lessons learned from Proverbs 22:3, and from Joseph, who stored provisions during seven years of plenty so that Egypt would have an abundance during the next seven years of famine.  Next, they answer calls and emails (800-525-7000 or moneywise@compass1.org) about the following: What creditors can do to persuade a borrower to settle a credit card debt  (Howard mentions the Fair Debt Collection Practices Act.  Read the law here.  Read the Debt Collection FAQ from the FTC here. Learn more on Wikipedia here.  Howard also mentions debt settlement help available through CredAbility.org), How to know when to replace you used car rather than to make yet another repair, How to raise your credit score (Howard encourages you to check your three credit reports for free each year by going to annualcreditreport.com), Whether there is a rule of thumb as to how much to save for retirement, and What a child should do with the money earned from a job. Remember that you can maximize your commute time each day with audiobooks from Compass.  Thanks for your prayers and generous financial support that help keep this program on the air!

Preparing for Large Annual Expenses - Howard Dayton and Steve Moore discuss how best to prepare for times of increased spending such as the Christmas holidays and annual vacations.  They provide the following suggestions, which can also apply to one-time annual expenses that can catch you by surprise: Pay off existing Christmas (or vacation) debt Looking ahead to next Christmas, don't buy things using one penny of debt.  You do this by paying cash for everything and, obviously, saving up ahead of time.  To do that... During your Zero-Christmas-Debt year, even while you're making monthly payments to pay off last Christmas, put the same amount of money in savings each month to prepare for the upcoming Christmas season.  Also do this for any one-time annual expense.  If you make some sort of an annual payment in the amount of, say, $120, set aside $10 each month to cover it.  When the expense comes due, you'll have the money waiting to pay for it. Howard and Steve also answer calls and emails (800-525-7000 or moneywise@compass1.org) about the following: God's guidance on selling your house through a short sale  (Psalm 37:21, Proverbs 3:27-28) Whether or not life insurance is Biblical and whether it's appropriate to have it on your children  (1 Timothy 5:8) Parents wanting to help daughter make the transition from college to the adult life, whether to charge her for rent, and if so, how to report it on tax return. Thanks for your prayers and generous financial support which allow us to keep the program on the air!

A Different Way of Thinking - Howard and Steve discuss the temptation of impulse spending, and suggest a few ways to avoid those impulses and still maintain your sanity.  Plus they answer calls and emails (800-525-7000 or moneywise@compass1.org) about the following: Ways to speed up the process of paying off student loans Whether to cash-out or keep an old life insurance policy The best way to handle donations to a couple going overseas to do mission work Whether it's a good idea to sign a 12-month lease with a friend for when all you need is 9 months of student housing Whether to turn in a co-worker you suspect of filing a fraudulent Workers Compensation claim, and Tips for a beginning real estate investor Improve your daily commute by checking out the audio books,"Money and Marriage God's Way" and "Your Money Map" -- available on CD. Thanks for your prayers and generous financial support which allow us to keep the program on the air!

Setting Financial Goals - Howard Dayton and Steve Moore discuss the importance of goal setting and planning ahead together as a couple if you're married (Proverbs 16:9).  Next they answer calls and emails (800-525-7000 or moneywise@compass1.org) about the following: Canceling credit cards all at once vs. one at a time, and which is better for your credit score What to do when a potential employer tells you you're overqualified, yet you really want and need the job Determining best plan of attack when trying to pay off a home mortgage and $15k in credit card debt, and Whether to increase contributions to an employer matched retirement plan or pay off remaining $30k on mortgage. Thanks for your prayers and generous financial support which allow us to keep the Money Wise on the air!