A Fresh Start for Your Finances

Do your finances need a fresh start in the New Year? Ellie Kay, known as “America’s Family Financial Expert”®, is sharing a timely Financial UPGRADE today.

“After the holidays, most Americans face some pretty hefty credit card bills in January,” Ellie says. “In fact, it will take until May of this year to pay off the new credit card debt from the holidays and this doesn’t even include what debt may have already been on the card.”

Been there, done that, and I (Dawn) have “financial scars” to prove it! I had to learn some wisdom from the Bible and practice good stewardship. (*See end of this post.)

Ellie continues . . .

It may seem like a game to juggle debt, but it’s one that you can win if you are determined to get a fresh start. Through the power of prayer and a desire to follow God’s wisdom in your finances, you can get the fresh start you desire.

As a child, I loved Monopoly®. I pretended all the play money was real—and mine! Sometimes we view real money as if it were play money.

When faced with the hard facts about their finances, many families go through five different stages—similar to the stages of grief:  shock, denial, depression, anger and acceptance. Your fresh start is just on the other side of this journey.

1. Shock

Shock depends on what you believed in the beginning. For example, if a family already knew their total consumer debt load (credit cards, car payments, furniture loans, etc.) was around 40K, they would only be mildly shocked at how 40K in debt looks on paper. But another couple may think they are only a couple of years away from being debt free and they discover they are twenty years away. That kind of a severe shock can take time to absorb. 

Use shock as a starting point to make better decisions. There are excellent budgeting and debt repayment tools at my website. I absolutely love the free Mint app.

2. Denial

Denial is not a river in Egypt.  It is the most common stage in financial recovery. Continual denial makes people more likely to succumb to scams such as email phishing schemes or “Payroll Loans.” Once you face denial, you can overcome it.

Several red flags of financial denial include:

• Paying late fees
• Missing Payments
• Balancing or staggering bills, or
• A perpetual lack of cash.

Oftentimes, this stage will find you stuck—you are unable to reduce your debt, or if you do, you are soon back into debt again. There’s hope when you begin to follow God’s principles of good stewardship.

3. Depression

A series of money problems that press in can bring on financial depression characterized by:

• Lack of concentration,
• Insomnia,
• Guilt, or
• Hopelessness.

Consumer Credit Counseling Services is a non-profit organization specializing in debt reduction and financial education. A counselor can get credit card interest rates lowered, payments deferred, and help develop a plan to emerge from the debt depression cycle.

4. Anger

The anger stage is sometimes scary. Anger can be manifested through a wide range of emotions at a high intensity level. It can be as mild as being a grump or as severe as significant arguments.

At this point, some people even get mad at God and blame Him.

When the number one issue cited in divorce today is “finances,” it’s easy to see how couples in this stage end up in the “debtor’s prison” of divorce court.

Refuse to put your anger on someone else. Talk with someone—professionals, your pastor or church counselor. It helps diffuse feelings.   

5. Acceptance

You’ll know you’ve reached this final stage, acceptance, when at least some of these elements are evident:

• Change – You discover what you need to change and you’re willing to make changes.
• Responsibility – You’ve stopped blaming someone or something else and have accepted responsibility for what you and your spouse did to contribute to your current financial status. 
• Accountability – Besides mutual accountability, couples agree to make themselves accountable to another couple or financial counselor. 
• Hotspots –You’ve identified hotspots where you’ve fallen short financially, and you purpose to avoid them through prayer and God’s help. 
• Patience – You have hope. You are more tolerant of your own mistakes and have decided to learn from them. 

Invite God into the equation. Through the power found in a relationship with Jesus, we can be more than conquers, even when it comes to our finances. Take it a day at a time and, in the future, you will be on the other side of this problem.

Then it will be your time to help someone else.

What will you do to get your financial fresh start in the New Year?

Ellie Kay has been a regular expert on national television with ABC NEWS NOW’s Money Matters and Good Money shows. Ellie is also a national radio commentator, a frequent media guest on Fox News, and CNBC, a popular international speaker, and the best-selling author of fifteen books including Lean Body, Fat Wallet (Thomas Nelson, 2014).

* A few scriptures to apply wisdom from the Bible regarding finances (Proverbs 15:22; 21:5; 22:7; 27:12); and stewardship (Psalm 24:1a; Matthew 6:21; Luke 12:42-44; Romans 14:12).

8 Ways to Celebrate Savings

Ellie Kay, "America's Family Financial Expert" ®, offers some easy, practical money savers in this Financial UPGRADE to help us become better stewards of our financial resources. With financial wisdom, we can share with people in need and support the Kingdom in tangible ways.

"Saving money can be a lot easier than you think," Ellie says, "if you know when and where to use the right websites and apps."

I (Dawn) have appreciated Ellie's budgeting and saving tips in the past, and this post has a few ideas I hadn't thought of before!

Ellie continues . . .

I just returned from Barksdale AFB, where we had the latest Heroes at Home Financial Education event. I absolutely love traveling around the country giving these events to our Heroes and Heroes at Home! 

There are several apps we always love to recommend (RetailMeNot, TravelZoo, etc.) because they are so easy to use and save money. But one of the things I love is that we are always learning more and more websites and apps through these military families we encounter.

According to James 1:5, if we lack wisdom, we can ask of God who will give it to us.  

So let’s CELEBRATE the savings with a few of our favorite ideas, that can help you become wise in the use of your money.

1. Organize your Inbox: Sign up for emails from your favorite stores and brands because they frequently send out sales, deals, and coupons to get you back into the store! But if you don’t want to get 20-30 emails in your inbox every morning, sign up for Unroll.Me. You are able to unsubscribe from lists through this email that you no longer wish to see.

2. Budgeting: Mint is a great site and app for budgeting that I recommend quite frequently. You are also able to pay your bills and see your credit score. Also check out GoodBudget (formerly EEBA) if you are an envelope system family, and for sharing budgets with members of the same household.

3. Gas: Waze is my favorite GPS app out there. It calculates the best route using both major highways and side streets. But one of my favorite features in this app is that it tells you the gas prices for all gas stations in your area. It will also calculate how far off your route each gas station will be. TripTik (by AAA) calculates mileage based on most economic route.  GasBuddy is another great tool for calculating a trip cost, gas price charts, and more.

4. Coupons: RetailMeNot is my recommended coupon app for retail stores. But also check out Coupon Sherpa for in store coupons to make sure you are always getting the best deal. If you are a fan of paper coupons, use SnipSnap to take pictures of the coupon and use your phone when it comes time to redeem.

5. Entertainment Tickets: Goldstar is a great site for finding half-priced tickets for shows and concerts in cities around the world. For Veterans and families, take advantage of Veterans Tickets Foundation, which is a great organization that provides free tickets to family members of troops Killed In Action (K.I.A.), our Military and Veterans to sporting events, concerts, performing arts and family activities.

6. Parking: Never overpay for parking in any city when you use BestParking. You are able to search city and airport parking to find and compare the best rates. This is a great tool for both planning trips, and getting a good price on the go.

7. Airfare: Looking for that special price for that trip coming up? Keep an eye out for the best time to fly at the best price with Hopper or BookingBuddy.com.

8. Other Apps – Travelzoo.com

What are some of your favorite ways to be a better steward of God’s resources? Let me know so I can keep spreading the word!

Ellie Kay is a regular expert on national television with ABC NEWS NOW’s Money Matters and Good Moneyshows. Ellie is also a national radio commentator, a frequent media guest on Fox News, and CNBC, a popular international speaker, and the best-selling author of fourteen books including her  newest release, The Little Book of Big Savings (Waterbrook, 2009).

Graphic adapted, Image courtesy of Feelart at FreeDigitalPhotos.net.

Get Back on Track after Holiday Spending

In this special, much-needed Financial UPGRADE, Ellie Kay—"America’s Family Financial Expert" ®—will help us become better stewards of our resources, helping us get back on track in the New Year.

"The worst decision you can make in regards to your finances," Ellie says, "is to have no plan for financial recovery."

Financial stewardship and use of resources is taught throughout the Bible, encouraging wisdom (Proverbs 21:20), proportionate, unselfish, cheerful giving (Deuteronomy 16:17; Luke 6:38; 2 Corinthians 9:7) and right priorities—putting God and His work first (Malachi 3:10).

Whether we've been careful in our spending or we've "blown it" financially over the holidays, I (Dawn) think Ellie has some wise principles to help us move forward into greater financial freedom.

She continues . . .

Sometimes, a decision that starts as a New Year’s Resolution can end in a dream come true when you let those resolutions become a new way of life.

Our family did this to get out of debt and pay cash for our cars. We wanted to be better stewards of the resources that God gave us and we decided to give our finances an upgrade by doing things wisely.

Here are some common resolutions that can get you back on track in the New Year, even as they did for our own family.

Resolution #1: Pay off Consumer Debt

An excessive amount of consumer debt usually means a lower credit score (FICO), which means higher annual percentage rates (APRs) on existing credit cards. By improving your FICO, you can lower the APRs, thus paying off that debt in a fraction of the time.

It’s not hard to improve your FICO by following three easy steps:

Step 1 - Pay on Time 

Not only does a late payment mean high late fees, but part of your score is determined by payment history. Set up automatic payments online with each card to make sure you’re never late again.

Step 2 - Pay in Proportionally 

Utilization, which is the ratio of debt to available credit is important. For example, if your card has a limit of $5,000 and you have $2,500 charged, your ratio is 50%.  Adjust the balances on your cards to make sure each has no more than a 50% ratio.

Step 3 - Pay it Down!

Pay as little as $5 to $10 more than your minimum credit card payment.  It shows up on paper as the consumer trying to “pay down” the debt. 

You can also get out of holiday debt sooner if you reduce spending and repurpose those funds.

As soon as you save in one area, immediately channel the money you saved toward your debt load. If you don’t take that saved money and put it toward a credit card or other debt, then it will just get reabsorbed into your spending.

Resolution #2: Pay Cash for Your Cars

The least expensive car you can own is the paid-for car that you currently drive.

By going to my tool section at EllieKay.com and clicking onto the “Automobile Affordibility Calculator” you can see how much to save each month in order to afford to pay cash for a newer car. It is a lot easier than you think.

Once you’ve paid off your current car, don’t trade it in, but keep making payments to yourself in the amount of the former loan. So let’s say you put $350 per month into a car fund and invest it in a fund that makes 5% annually. You would have around $4400 at the end of the year, plus the value of your existing car (let’s estimate $5,000) to put almost $10,000 down on a newer car than you now own.

If you keep saving and keep trading up, then you’ll be able to pay cash for your cars for the rest of your life!

In the first fifteen years of our marriage, on one (military man’s) income, we bought 11 cars this way, paying cash and even donated some of those used cars to charity! When you do things God’s way, He often provides ways for you to be a blessing to others.

What will you do to get on track after Holiday spending?

Ellie Kay is a regular expert on national television with ABC NEWS NOW’s Money Matters and Good Money shows. Ellie is also a national radio commentator, a frequent media guest on Fox News, and CNBC, a popular international speaker, and the best-selling author of fourteen books including her  newest release, The Little Book of Big Savings (Waterbrook, 2009).

Graphic adapted, Image courtesy of Stuart Miles at FreeDigitalPhotos.net.

Keeping to the 'B-word'

In this Financial UPGRADE, Ellie Kay, known as “America’s Family Financial Expert,”® gives us some timely information on how to be better stewards of our resources through budgeting.

"The only real failure in budgeting is to do nothing at all," Ellie says.

Budget! I (Dawn) used to hate that word. I saw it as restrictive ... no fun! But the Lord showed me the value of budgeting, and how it could free me up to do the things I really longed to do.

Ellie continues ...

Families usually have favorite restaurants, movies, and even special songs that reflect the character and tastes of the family. Your budget will be just as unique as your family. It will be based on variable factors, such as your family’s size, geographical location, debt load, and income.

One of the reasons Bob and I first set up a budget, is because we wanted to be better stewards of our finances. We remembered Luke 14:28, a passage that talked about the fact that a wise man counts the cost before he builds a tower. We wanted to build a Biblical financial legacy for our kids and realized that both of us wanted to have healthy finances.

We also realized that we didn’t need to go overboard by pinching our pennies so tightly that it strained our relationship and took all the enjoyment out of life. So we allowed for an occasional indulgence, implemented budget-cutting techniques slowly, and modified our plan as needed.

There are a few problems that can throw your budget off in a matter of seconds, sending it toward disaster. But the only real failure in budgeting is to do nothing at all.

Here are a few tips to avoid these common pitfalls, and a few reminders to keep trekking at this budget thing:

Debt or Credit

Proverbs 22:7 says, “The rich rule over the poor, and the borrower is servant to the lender.” We knew we wanted to get out of debt and we chose to adopt a cash-only policy when it came to our budget, setting up an envelope system where we placed the budgeted amount of cash in envelopes marked “food,” “entertainment,” “gas,” and so on.

When the money runs out, you stop spending until the end of the allotted period (generally one to
two weeks, depending upon how you are paid). A regular peek at the amount of cash left in each envelope is a vivid reminder of your budget commitment. If credit has become a habit, then you might even do something drastic, like cut up your credit cards. Mint.com also has a great, free app to help you track your budget.

Impulse Buying

Nothing busts a budget like impulse buying. If this is an area where you struggle, it’s important to be proactive and address the issue before you take action.

If you don’t drive to the mall and go to your favorite department store, you won’t be as likely to spend unbudgeted money. So determine to practice the habits you’ve been learning every day so you will have to internal motivation needed the next time you are tempted.

Comfort Spending

Many couples indulge in comfort spending on clothes, sports equipment, expensive restaurants, and excessive entertainment, to name a few. This unhealthy habit of throwing caution to the wind just to live in the “now” is a budget buster that will keep you living in debt. However, most of us do not reform our unhealthy habits overnight.

At the very least, begin to modify and become more intentional about these comfort indulgences. Even cutting back on some of this kind of spending can add up positively.

What is one thing you can do this week to stay on budget?

Ellie Kay is a regular expert on national television with ABC NEWS NOW’s Money Matters and Good
Money shows. She is also a national radio commentator, a frequent media guest on Fox News, and CNBC, a popular international speaker, and the best-selling author of fourteen books including her newest release, The Little Book of Big Savings (Waterbrook, 2009). For money savings links, or to view Ellie’s blog, go to www.elliekay.com.

Graphic in Text, adapted, Image courtesy of Stuart Miles at FreeDigitalPhotos.net.

Timeless Truths for Financial Health

Janice Thompson encourages women to manage the money maze. She helps them consider their attitudes about finances, and points them to the timeless Word of God.

"It is hard to go a day without hearing financial news that makes us want to run and hide, even in relatively good markets," Janice said. "But there are timeless truths that can help us weather any economic climate, no matter what financial language we speak."

In previous posts, Janice detailed the financial languages women "speak"—the Driver, the Thinker, the Partner, the Avoider, the Idealist, and the Overcomer. In this post, she offers timeless truth from the scriptures for all women.

Janice continues ...

I would like to outline some principles that can help you weather turbulent times. Whether the current news is bleak or positive, these truths are always relevant.

These truths answer the question:

"In light of what's going on, what should I be doing with my money?"

They are universally wise, applicable in all economic climates, and are rooted in God's Word.

1. Do Your Best to Rein In Spending.

I continue to see two extremes as I discuss this point with women.

• On one side, there are those who are guilt-ridden over every dollar spent.
• On the other side, there are those making foolish spending decisions with little thought to their long-term impact.

I encourage you to find a balance between these two extremes that provides true quality of life for you and your family both now and with an eye for the future.

2. Avoid the Use of and Eliminate All Consumer Debt.

In most cases, the eradication of debt provides an immediate tangible "return on your investment," not to mention a tremendous sense of financial freedom.

I am amazed at the number of widows who either have already paid off their mortgage or indicate that as a primary goal when we first meet. There are, in certain instances, wise ways to use debt, but these uses should be sparingly applied.

The wisdom of Solomon reminds us that "the borrower is servant to the lender" (Proverbs 22:7).

3. Build and Maintain an Emergency Cash Reserve.

Conventional wisdom tells us this should be equal to at least three to six months' living expenses. I would suggest targeting a minimum of six months' living expense as a goal, particularly if you are a single parent or self-employed.

Again, quoting Solomon, "The prudent see danger and take refuge" (Proverbs 27:12). History shows us that volatile times are always both painful and inevitable. We can be less fearful if we do our best to prepare.

4. Consider Both a Proper "Asset Allocation Strategy" as well as "Purpose Allocation Strategy" for Your Investments.

Where you put your money should be based on your time horizon and risk tolerance, and centered on your mission, vision, values and goals.

Keeping an eye on the purpose for your various assets can help keep you emotionally balanced when facing turbulent times.

5. Stick to Your Strategy.

Irrational or emotional financial decisions can be extremely detrimental to your long-term financial future. Keep a level head and stay focused on what lies ahead.

6. Create a Comprehensive Financial Plan.

This will keep you focused on your mission, vision, values and goals in life.

When you are crystal clear about these important elements and have a plan that can be modified as God takes you through the twists and turns of life, it helps you maintain the proper perspective through the highs and lows.

7. Focus on Giving More.

A myopic view of the needs around us does little to enhance our mental health or our financial position. There will always be those around us with needs greater than our own. You don't have to look very hard to see them.

Great joy and personal satisfaction can be found in rocky financial times by taking the focus off of ourselves and putting it on others.

By giving, I'm not just talking about writing a check. Volunteer work with those in need costs very little and can give you a reality check about just how blessed you are!

8. Attitude Determines Altitude.

Economic downturns are a natural part of our free market system. You see these cycles occurring throughout history and, while never pleasant and always stressful, they are included in the historical progression of slow and steady upward progress.

So, while we cannot control events, your attitude will play a major role in determining your emotional and financial health. Billy Graham once said, "If a person gets his attitude toward money straight, it will help straighten out almost every other area in his life."

Since there are no "silver bullets" or "magic formulas" when it comes to the economies of this world, prudence and wisdom must prevail. Money does not buy true happiness. Solomon wrote that those who focus on money will never have enough (Ecclesiastes 5:10-11).

Happiness through wealth accumulation is not the goal, but the joy that comes through the wise stewardship of what you have been given. The truth is, "An undisciplined, self-willed life is puny; an obedient, God-willed life is spacious" (Proverbs 15:32, The Message).

Are you heeding these timeless financial truths? What area needs attention or improvement?

Janice Thompson is the co-Founder and CEO of One Degree Advisors, Inc., a comprehensive wealth management firm focused on biblically-based financial solutions. Janice is a Certified Financial Planner®, a Life Stewardship Advisor, and serves on the Board of Directors of Kingdom Advisors. She has two married children and one grandson. She and her husband Tom live in San Diego.

Note: Material adapted from the book, Managing Your Money Maze by Janice Thompson (Revive Our Hearts, 2009).