Compass » Money Wise

How to Avoid "Stuff-itis" - Steve Moore and Howard Dayton look into the Gotta-Have-It sensation that can lure us into overspending.  They suggest the following steps to avoid the traps that marketing sets for us:  (1)  Skip commercials when watching TV, (2) Don't browse catalogs, (3) Avoid "window shopping" -- stay away from stores when you don't have a specific need to go, (4) Don't test drive cars when you're not in the market to buy a car.  Remember that the less you're exposed to advertising, the less you're apt to spend. Next, they answer calls and emails (800-525-7000 or moneywise@compass1.org) about trying to sell a vehicle when your credit is too weak to finance its replacement (Selling your car yourself will usually bring a better price -- look to kbb.com, edmunds,com, and autotrader.com to get an idea of what your car is worth), what next steps you should take once you've got a spending plan in place and a surplus comes in (download a free copy of the Compass Money Map at www.compass1.org), whether investing in the stock market is simply a form of gambling, protecting your privacy, and whether bankruptcy is Biblical.

Investing: Why and How? - Steve Moore and Howard Dayton welcome special guest Mark Biller from Sound Mind Investing (soundmindinvesting.com) to discuss the reasons behind investing and the ways in which to do it in a way that follows time-tested Biblical principles.  Mark says that operating out of fear is NOT the way to go.  He discusses some reasonable hedges against inflation, the principle of diversification, taking a long-term approach to investing, and some tax considerations as we start the new year. Plus they answer calls and emails (800-525-7000 or moneywise@compass1.org) about 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 its 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 (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.

Death and Taxes - Howard and Steve talk about preparing for a couple of life's certainties.  Howard reminds us that God's the owner of everything, including the stuff he has put in our care.  That's one of the reasons why it's important for each of us to prepare a will or trust.  Howard discusses the differences between these two instruments, both of which are tools of communication so that your loved ones can know what your wishes are with regard to you assets.  Next, Steve asks about where life insurance fits into the equation, and what the tax implications are with regard to our estate planning. Calls and emails (800-525-7000 or moneywise@compass1.org) include a question about how to know to whom we are to give beyond the local church (Steve offers the suggestion of setting up a personal benevolence fund), whether or not to borrow from a retirement account to pay off a balloon loan,

Christian Compromise - Howard and Steve discuss Christians the dangers that come from compromising clear Biblical truth. Plus, they answer questions (800-525-7000 or moneywise@compass1.org) about the need to take on debt in order to improve your credit score (annualcreditreport.com), whether or not 0% car loans are real and if there's a catch, and whether it's better to sell your home in a short sale or work with creditors to refinance a house you can't afford.

Accounting vs. Budgeting - Howard and Steve discuss what it takes to manage your money wisely and be in control of your finances. Plus, they answer questions (800-525-7000 or moneywise@compass1.org) about taking out a loan to cover marketing expenses for a small business, how much money to put into a Roth IRA, God's wisdom about job promotions (Psalm 75:6-7), God's permission for churches taking out loans for building, ways to get out of an auto lease, whether it's okay to offer your kids money as an incentive to get good grades, what percentage of a budget should go to transportation, and how much money you should have in an emergency fund.

New Year Financial Resolution -  Howard and Steve share how to change a few key financial habits in order to be more Money Wise in 2012. Plus, they answer questions (800-525-7000 or moneywise@compass1.org) about paying off multiple mortgages and the overwhelming affect on a marriage that can have, what God's word says about charging interest to other believers, and whether it's okay to pay off a student loan for a child and in turn  have your child pay you back in order to cut down on the interest from the loan.

Symptoms of the Financial Flu - Howard and Steve share their wisdom about staying healthy financially.  Plus, they answer questions (800-525-7000 or moneywise@compass1.org) about making more money in tight economic times in order to pay off debt (credability.org), what your obligations are to lenders and how to know that they're not trying to rip you off in a settlement, and whether or not to use an IRA to cover expenses when you're not making ends meet due to the loss of a job.

New Year's Spiritual Goals - Starting off the new year with wise steps to help set a foundation for a Money Wise New Year. Plus, Howard and Steve answer questions (800-525-7000 or moneywise@compass1.org) about getting finances in order before marriage when a saver and a spender are involved, what you can do to save for the future now that an increase in work is bringing in more income, and how to increase charitable giving and get your spouse on board when coming out of a difficult financial time.

Your Financial Year in Review - Closing out 2011 with some wisdom from Howard and Steve about what the Lord has to say about money and how it ties into difficult economic times.  Plus, they answer questions (800-525-7000 or moneywise@compass1.org) about investing in difficult times, tithing on an inheritance (Proverbs 3:9-10), and how to lower student loans/pay them off in order to move on in life.

Dos and Don'ts for Engages Couples - Howard and Steve share their advice using biblical principles to help steer engaged couples in the right direction in order to set up a sound foundation for a healthy marriage. Next, they answer calls and emails (800-525-7000 or moneywise@compass1.org) about how to know where to invest your money, what kinds of companies one should invest in and how to know which companies or funds those are, how best to prepare for retirement, which mortgage to pay off first when you have more than one, when you should get a teenager a debit card and checking account, and whether it's a good idea to go with companies that loan money based on accounts receivable. Investing resources include Austin Pryor and Mark Biller of SoundMindInvesting.com and Rusty Leonard of StewardshipPartners.com.

Being Financially Faithful to Your Spouse - Howard and Steve discuss the importance of good communication about money with your spouse (Genesis 2:24). Then they answer calls and emails (800-525-7000 or moneywise@compass1.org) about how pastoral families can stay afloat financially during an economic drought that has resulted in a decrease in tithing at their church, using money from a retirement account to pay off a home mortgage, and a question harkening back to the opening topic: how to share financial responsibilities and be honest in making large purchases and financial decisions with your spouse without damaging trust.

End of Year Financial Planning - It's time for a year-end fiscal review!  Make sure things are correct, up to date and ready for the new year.  Howard and Steve recommend a trip to www.annualcreditreport.com to check your credit report, and they offer Biblical wisdom from James 4 and Proverbs about financial planning.  Then they answer listener questions (800-525-7000 or moneywise@compass1.org) about pulling money out of a 401k for a down payment on a new home when your current home has been destroyed in a flood, determining the right time in terms of age to pull money from your 401k and IRAs, what your financial obligations are to a bank that has repossessed and sold your car, and things to consider when starting a business.  Howard referenced Larry Burkett's book, Business By The Book as being a great resource for further study on the subject.

Home Equity Loan vs Home Equity Line of Credit - Howard and Steve discuss the differences, strengths and weaknesses of each as well as answering calls and emails (800-525-7000 or moneywise@compass1.org) about paying off small business loans and refinancing loans to lower interest rates, using a CD ladder to maximize profits, renting an inherited property, choosing a financial advisor, and how to start a budget correctly and biblically.  (You can download the Compass Money Map and guideline Spending Plan, or get connected with a budget coach at www.compass1.org.)

Should We Be Poor Like Jesus - A look at the various people in the Bible God used.  It seems He used people in all walks of life.  Howard and Steve address the challenges faced by those who were wealthy and those who were poor and offer tips on being content with where you are and in service to Christ regardless.  They also answer calls and emails (800-525-7000 or moneywise@compass1.org) about what to do when you lose your home in foreclosure and are still liable for the amount owed on the loan, whether it's a good idea to use money in a 401k to pay off rental homes, who is liable for the debts of a deceased parent, and whether retirement from work is Biblical.

Help for Newlywed's First Christmas - Newly married couple has already been arguing about money issues, and now Christmas spending is adding to the tension.  Howard and Steve discuss how to commit your finances to God and encourage husbands and wives to do it TOGETHER.  Next they answer calls and emails (800-525-7000 or moneywise@compass1.org) about what to do with a house after a divorce, the best ways to find a good used car and keep it within your budget, how often you should update your will, and how to teach your teens to use and manage credit cards.