We are now on Twitter.  If you are a Twitter user, you can find us at twitter.com/SensibleSteward.

Also, we plan to redesign the site soon, so our blog may be relocating to a subdomain.  Stay tuned...

        

Here is a video clip of one of my favorite songs right now, based upon Matthew 16:26 and Mark 8:36 ("What good is it for a man to gain the whole world, yet forfeit his soul?")

It is performed by tobyMac, Kirk Franklin, and Mandisa and is called "Lose My Soul". The song helps us remember that we should not focus on material things but should instead focus on God and eternal matters.

Are your priorities in order? Do you associate your identity with your occupation, or with being a child of God?

I hope you enjoy the song.

        

Normally, credit card companies do everything they can to get consumers to sign up for their products, become addicted to spending money that we don't have, and pay them extraordinary amounts of interest.

However, with the credit crisis looming on bank balance sheets and increasing levels of late payments and defaults on credit card balances, American Express has decided to reverse course.

Now, they are offering an incentive to selected borrowers who pay off what they owe to American Express and cancel their cards.  The company offered to pay invited customers who cancel between March 1st and April 30th a stipend of $300.

Clearly, this is not a program that is being rolled out because AmEx suddenly cares about your financial well-being and wants to help you manage your money better.  It is a way to incent customers who have large outstanding balances to move those balances elsewhere, so that American Express looks better to outside investors.

Of course, we should pay off our balances and stop using our credit cards as part of our money management discipline.  Now, we have an unusual partner in our corner as well.

        

In our household, we have 4 children under the age of 12.  Not surprisingly, we tend to stay busy with a large number of activities for the children, in addition to being fully involved in our local church.

One resource that we found particularly helpful was the book, The Three Big Questions for a Frantic Family by Patrick Lencioni.

Ironically, the book is about a family with 4 children who is trying to juggle a growing set of activities.

The family gets their lives in order by sitting down together and agreeing on a set of priorities and developing a game plan, centered around 3 key questions :
1) what makes your family unique?
2) what is your top priority, or rallying cry, right now?
3) how do you talk about and use the answer to these questions?

Slight variations to this approach can be used to solve family financial issues as well, as sitting down as a couple and planning/prioritizing how to spend the family's money is a similarly valuable exercise.

We highly recommend the book for any family that feels as if they are getting pulled in many different directions. 

To read more, visit Lencioni's website, which explains the concepts of the book in greater detail.

        

With the current financial situation in mind, many folks are looking to cut back on unnecessary expenses. Have you ever wondered where Americans draw the line between a want and a necessity?  Are we on the right track?

A recent National Retail Federation survey gave some clues as to where we are quick to make sacrifices and where we are not.

For instance, high on the expendable list were luxury handbags, satellite radio, high end cosmetics and maid service.

In contrast, on the untouchable list were such items as internet, cell phone, and cable TV.  The good news is that the respondents appeared to make a clear distinction between a basic level of service in these categories and an upgraded set of services.  The premium tier of service tended to be classified as expendable item, even if the basic level of service was not.

Of the respondents, over 60% had reported that they had already started to cut back on unnecessary items.  The items that were high on the list of expenses that had already been reduced were restaurant expenses, entertainment, some apparel purchases, and travel.

The bad news for many people in church leadership is that charitable contributions were seen as expendable by 67% of the survey participants.

To see the full set of survey results, you can visit the National Retail Federation website to learn more.

        

Dave Ramsey recently announced a Town Hall for Hope program, where folks can watch a free 90 minute program on Thursday, April 23 at 8 PM ET. 

At this event, Dave will discuss what's happening with the economy, how we got here, and where we're going. Plus, Dave will answer questions live throughout the event.

There are hundreds of locations across the country that have already signed up to host the program.




To find out more about the program, you can visit the event's website at TownHallForHope.com.

        

There has been quite a bit of debate in the financial press recently about all of the government programs being attempted to try to restart the economy. 

Meanwhile, there is continuing evidence that our personal balance sheets are being devastated by the housing crisis.  For instance, First American CoreLogic recently announced that more than 8.3 million U.S. mortgage holders owed more on their loans in the fourth quarter than their property was worth.  Furthermore, an additional 2.2 million borrowers will be underwater if home prices decline another 5 percent, and households with negative equity or near it account for a quarter of all mortgage holders.

In addition, the Case-Shiller home price report was recently released and showed nearly a 30% drop in home values since the peak.  Furthermore, the composite index of nationwide home prices has dropped for 30 consecutive months.  To read the press release, click here.

One of the more controversial government programs was the "Home Affordable Modification" program, where people who are late or at risk of becoming late on their mortgage payments would have the opportunity to rework their mortgages to stay in their current homes.

However, did you know that there is also a  program available for responsible borrowers where you may be able to do a streamlined (i.e. lower cost) refinance, even if there is not a large amount of equity in your home?  The qualifications for the program are as follows :

1)  you must be the owner of a one-to-four unit home
2)  you must have a loan guaranteed by FNMA or FHLMC
3)  you must be current on your home loan payments over the last 12 months
4)  your loan must be no more than 105% of the value of your home

To find out more about whether or not you qualify, you can contact your mortgage servicer.  There are also additional details about the program at the Making Home Affordable website.  If you're not sure if your loan is guaranteed by FNMA or FHLMC, there are tools available on this website to allow you to find out whether or not you meet that part of the qualifications by entering your home address.

Many lenders are going to start refinancing borrowers under this new program in April, so you may want to find out soon whether or not you qualify.

Furthermore, mortgage rates are approaching levels in the 4% - 5% range, so you may be able to save some money on your mortgage payment in the very near future.

        

On whom does the success of the recent stimulus plan rest?  No, it's not anyone here in the United States.  Sure, our collective activity to go out, earn a living, spend wisely, save, and invest for the future, etc. will have some influence.  We need to move past our fear and keep doing the right things for our long-term financial well-being.  However, the answer is that the actions of the Chinese government will have a very large impact on the ultimate outcome.

For this reason, there is a story on Bloomberg News today that Hillary Clinton has been begging the Chinese government to keep buying U.S. Treasuries so that interest rates will stay low here.  China is currently the largest holder of U.S. debt, buying almost $700 billion in the past year.  There is much fear that the Chinese will look elsewhere to invest their vast savings, as U.S. Treasuries yielding next to nothing are not the best investments in the world right now for long-term growth.  If the Chinese do pull the plug on further investments in U.S. Treasuries, then interest rates will need to rise here, as higher yields on those bonds will be required to lure new buyers.

So, this is a very visible example of the wisdom of Proverbs 22:7, "The rich rule over the poor, and the borrower is servant to the lender."  This is why I am very concerned about the future of the country.  We are now in a position where we have to beg our political enemies to continue to fund our lifestyle.  This is not a trend that can possibly end well.

        

The Plasty Awards were handed out this week on the Dave Ramsey show on the Fox Business channel.  This awards show highlights the most creative videos of people destroying their credit cards that were sent into Dave Ramsey studios over the past year.  There are always some great clips as part of the program.  To see some of the videos, you can visit this page on FoxBusiness.com.  Also, check your local listings, as a repeat of the program may be available over the weekend.

        

By now, many of you have probably seen the video clip from CNBC where Rick Santelli urges hard-working Americans to revolt against Obama's mortgage assistance bailout plan.  If not, you can view the video from CNBC here.

This article is not about the merits of his argument, although I happen to agree that government needs to get out of the way at this point since they are making the problem worse than better.  There is a lot of money on the sidelines that is too afraid to make a move because of fears of a massive bank nationalization plan.  As a result, the stock market keeps going down every day until somebody announces a plan that actually might work or the government decides to stop meddling.

The point of this post is that if you do your job with passion, eventually your work will get noticed and you will enjoy success.  The one of the key reasons that this rant has become so popular is the passion with which it was delivered.  If it was delivered in a monotone way without any conviction, would anyone have really paid attention?

Similarly, are you being passionate about sharing the love of Christ with others?  In Revelation 3:15-16, the church at Laodicea was warned about being lukewarm, "I know your deeds, that you are neither cold nor hot. I wish you were either one or the other!  So, because you are lukewarm—neither hot nor cold—I am about to spit you out of my mouth."

As a result of the 2008 Catalyst Conference, I found a series of sermons presented by Craig Groeschel from Lifechurch.tv entitled "Practical Atheist" that really hits home with respect to this topic.  The main point of the series is the question of whether or not you are acting as if God does not exist.  To view the series via streaming video, click here.

Are you comfortable in your job or in your ministry at your church?  Or are you stepping out of your comfort zone and making a difference in people's lives?  Let's find a way to live with passion so that people will take note of how we are living.  Or perhaps we'd rather risk that God finds us lukewarm and wants to spit us out?

        

We recently learned that Bob from ChristianPF.com named our site one of the best 20 Christian financial websites, in the blog category.  Thanks go out to Bob and anyone who recommended us for thinking of this site when building the list. 

We hope to continue to improve our service to all of our audience in the days and months to come. 

To read the article and read the full list, click here. 

        

Churches - are you reaching out to help people in their time of need?  This is a time where we need to spend less time preaching about tithing and other matters of "the law" and spend more time reaching people.  I'm not saying that there is not a time and place to educate on these important matters.  However, this is not the right time of emphasis, as a rapidly increasing number of folks are doing all they can to make ends meet due to job losses, pressures from an increasing debt burden, a drop in income, etc.  If we meet the needs of our congregation and those in the communities around us, the giving will happen, as people will be committed to their churches in ways that they never have been previously.

For instance, do you have a financial education program in place?  Do you have a financial counseling ministry?  Do you have a well-defined benevolence program?  Are people being helped?  How much of your church budget is going toward meeting people's needs? 

This is likely the most profound time of financial need that our congregations will ever see.  Are we responding with the hands and feet of Jesus, or are we just being a big mouth?
 

        

If you or someone that you know is in a personal financial crisis, our thoughts and our prayers go out to you.  Here are some tips : 

1)  Stay calm; God & your family and friends still love you.  You still have value as a child of God.
2)  Take care of basic necessities first – food, clothing, shelter (including utilities) and transportation.  Prioritize your remaining expenses, so that the important things are taken care of first.
3)  Don’t live in denial and hide from your creditors; communicate with them and negotiate a plan.  If you show that you have a plan, it will likely buy you some additional time
4)  Never give a debt collector direct access to your checking or savings account; they will wipe out your account and cause all kinds of problems for you
5)  Debt collectors are not your friends; do not give them too much information or else they may use it against you later
6)  Keep learning…read, listen to audio programs, learn from websites, etc.
7)  Seek Godly counsel
 • Proverbs 15:22, "Plans fail for lack of counsel, but with many advisers they succeed.“
 • Proverbs 19:20-21, "Listen to advice and accept instruction, and in the end you will be wise. Many are the plans in a man's heart, but it is the LORD's purpose that prevails“
8)  If there’s someone in your church that you trust on financial matters, seek that person out
9)  Pray

 

        

My wife and I recently went out to the movies on a date night.  We were not sure what to watch, but we were intrigued by the description of a movie called "Not Easily Broken".  What we found was a realistic snapshot of the difficulties that a married couple can face over the years and how we should remain committed to our spouses. 

The premise is rooted in Ecclesiastes 4:12 (NIV), "Though one may be overpowered, two can defend themselves. A cord of three strands is not quickly broken. "

The movie is based upon a book of the same name by T.D. Jakes. 

Although the movie did not receive a large amount of publicity, it was very well done and we highly recommend the film.

Please note that the movie was not your typical sanitized Christian film, as it is rated PG-13.

Key stars include Morris Chestnut, Tarah P Henson, Kevin Hart, Jenifer Lewis, Maeve Quinlan, Eddie Cibrian, and Wood Harris.  There is also a brief appearance from T.D. Jakes as well.

To find out more, click here to visit the official site for the movie, where you can view a trailer, find out show times, etc.

        

Want to be able to buy things from your favorite store at a discount? 

Here's a new way to do so, without waiting for a coupon or sale to come around : gift card resale sites.

One rising trend of late is the purchase of gift cards for Christmas and other special events, instead of giving cash or items that may end up at a white elephant exchange.  However, with the current financial crisis, some folks really need the cash now for necessities.  Thus, a series of gift card resale sites have emerged to facilitate the process.

The clearing price for the exchanges depends on supply and demand, so the size of the discount available for those willing to purchase the cards depends upon the popularity of the store and how many gift cards are available for sale.

Of course, one way to buy gift cards from someone else would be to use eBay or Craigslist, but you would likely need to sift your way through a bunch of listings that may or may not be relevant.  In contrast, these gift card sites appear to be an efficient way to transact.

In scanning one of these sites, PlasticJungle.com, discounts seemed to go up to 40%, which is a substantial savings off of face value.  Other gift card exchange sites include : CardAvenue, GiftCardBuyback, and GiftCardRescue.

        

The website JobsRated.com recently released a list of the top jobs in America today.  They evaluated a series of around 200 occupations and scored them on 5 "core criteria" - Environment, Income, Outlook, Stress and Physical Demands.

The top 3 jobs are very closely related - mathematician, actuary, and statistician.  Does this mean that we should all go out and become math majors?  Absolutely not.

The problem with these studies is that they assume that people are all gifted in the same way.  If someone is more artistically gifted than analytical, it is doubtful that becoming a mathematician would work out well for that person.  If you're not blessed with math skills, you would probably end each day very drained and would not make much money over the long run. 

The best job for you is a job consistent with your personality profile and passion.  I happen to have a B.A. in Mathematics, but that still does not imply that these jobs are right for me. 

Yes, the job descriptions are very consistent with my personality traits.  However, I have found that work that is not linked to a personal passion can be very draining as well.

Thus, my recommendation is to take this and other job ranking surveys with a grain of salt.  The best way to find a career that is right for you is to undergo a process of learning how God wired you and matching your gifts and abilities with a career about which you are passionate.

        

Q:My 401(k) balance has dropped like a rock.  What investments do you recommend?

A : These are difficult times in the market.  The answer depends largely on your time horizon.  If you have some time to wait out the current financial storm, there are some excellent opportunities out there. 

We recommend looking past the valley of the current crisis situation and determining what the world will look like after the storm clouds have passed. 

With this picture in mind, we think that inflation will return sooner than most people think, so investments in TIPS (Treasury Inflation Protected Securities) are undervalued.  Similarly, there are some great values in municipal bonds right now, which are yielding more than U.S. Treasury bonds (which is rare). 

New stock investments in high-quality companies will likely pay off handsomely over time.

Eventually, cash and U.S. Treasuries, which have outperformed other asset classes lately, will lag risk-based assets. 

We would avoid U.S. Treasuries, as you are essentially giving the government a low-interest loan at these yield levels.

Do you have a question that we can answer about your finances, investments or career?  Each month, we will answer questions from our readers in this segment.  If you have a question, send a note to ask@sensiblesteward.com, and check back next month to see if we answer your question in our monthly newsletter.  We look forward to hearing from you. 

        

Our January newsletter will be out by Monday, January 26th, as we took a brief break from running the website to take care of some church Treasurer duties.  If you're new to the site and have not yet registered for your free copy, please sign up at our website by Sunday the 25th in order to receive our next issue.

Thanks for your patience.

        

Inauguration Day is upon us.  Regardless of your political views, it will be a historic day of transition. 

The past 8 years under President Bush have seen their highs and lows, as will President Obama's term in office.  Thank you President Bush for your 8 years of service.  Our country is better because of your time in office.

The challenges facing Obama and our country right now are looming large - financial problems, rising nuclear states, terrorism, the list goes on and on. 

Our nation needs a return to humility and prayer.  God is in control.  He always has been and always will be.  Let us ask God for His wisdom and blessing in the days to come.  Pray specifically for both Bush and Obama, as we enter a new stage in the life of our country.

God  Bless America.

        

"In those days Caesar Augustus issued a decree that a census should be taken of the entire Roman world. (This was the first census that took place while Quirinius was governor of Syria.)  And everyone went to his own town to register.

So Joseph also went up from the town of Nazareth in Galilee to Judea, to Bethlehem the town of David, because he belonged to the house and line of David.  He went there to register with Mary, who was pledged to be married to him and was expecting a child.   While they were there, the time came for the baby to be born, and she gave birth to her firstborn, a son. She wrapped him in cloths and placed him in a manger, because there was no room for them in the inn.

And there were shepherds living out in the fields nearby, keeping watch over their flocks at night.  An angel of the Lord appeared to them, and the glory of the Lord shone around them, and they were terrified.  But the angel said to them, "Do not be afraid. I bring you good news of great joy that will be for all the people.  Today in the town of David a Savior has been born to you; he is Christ the Lord.  This will be a sign to you: You will find a baby wrapped in cloths and lying in a manger."

Suddenly a great company of the heavenly host appeared with the angel, praising God and saying, 
 "Glory to God in the highest,
      and on earth peace to men on whom his favor rests."

When the angels had left them and gone into heaven, the shepherds said to one another, "Let's go to Bethlehem and see this thing that has happened, which the Lord has told us about."

So they hurried off and found Mary and Joseph, and the baby, who was lying in the manger.   When they had seen him, they spread the word concerning what had been told them about this child, and all who heard it were amazed at what the shepherds said to them. But Mary treasured up all these things and pondered them in her heart.  The shepherds returned, glorifying and praising God for all the things they had heard and seen, which were just as they had been told."
 
One thing that strikes me about this story is the response of the shepherds.  When they first heard the news, they immediately changed their plans and went to Bethlehem.  They could have sent a representative to scout things out first and report back, or they could have waited for a more convenient time.  But that's not what they did.  According to verse 16, they hurried off and found Mary and Joseph.

The second thing that is important is that they spread the word...what they had witnessed was so impressive that they could not keep it to themselves.  We have been given the gift of salvation; a gift so great that we should be telling the world.

The final act of the shepherds that impresses me is found in verse 20...they glorified and praised God for all the things they had heard and seen.  With all the activities that accompany Christmas - the company parties, the school programs, etc. - let's not forget to worship this Christmas season.

I pray that we all will remember the birth of Christ this year and act in a way that resembles the response of the shepherds.  Merry Christmas!

        

We have launched a new partner site, named SensibleSteward.net.  This is a social networking site where Christians can share their personal finance and career hints and tips so that we can all be better stewards of God's blessings.

This new site is dependent upon your input to create a vibrant community.  It is our goal that we will all learn from each other and improve our situations.

Membership to the site is free.  As a member, you may add groups and discussions, blog posts, photos, videos, and more.

We invite you to join today.

        

        

The Wall Street Journal is reporting that an increasing number of churches are being forced into bankruptcy and foreclosure, due to the burden of their mortgage debt and a dwindling contribution base. 

Giving is down 15% in some places, according to the article, which cited data from pastors and lenders.

Until the past few months, foreclosures on churches were very rare, as church financial leaders were very conservative and hesitant to go into debt.  However, construction on church buildings grew from $3.8 billion in 1997 to $6.2 billion in 2007, which increased the pressure on churches to keep people in the pews and giving generously.  As the economy soured, pledged offerings did not come through, and financial problems for the churches ensued. 

The problems even caused a lender to churches to fail, Church Mortgage & Loan, after they were unable to sell properties on which they were forced to repossess.

Clearly, this is a set of unfortunate circumstances, as these congregations likely had lofty goals of building places where they could reach out and impact their communities. 

The underlying problem is likely that the congregation members are having financial problems as well, which impedes their ability to give as much as they would like.  Financial education is a huge need right now, as this article illustrates.

I pray that things turn around quickly, so that more churches don't fall behind and lose their buildings.

        

Seems like no one is saying...check out this article from FoxNews. 

Basically, it sounds like the banks put the money into their accounts and kept doing business as usual. 

Furthermore, there appears to be some secrecy from the government end as well.  The Federal Reserve recently denied a Bloomberg request to disclose recipients of emergency funding from the Fed.  One site trying to keep track of all the government distributions is BailoutSleuth.

        

Last week, FedEx announced a series of moves to cut costs as it deals with reduced revenues. 

The moves include pay cuts for more than 35,000 employees and a pause in making contributions to retirement plans.  Several other firms have also announced that they are no longer matching contributions to 401(k) accounts.

If your company ceases to make 401(k) matching contributions, should you continue to contribute?  The answer is absolutely yes.  The tax-deferral benefits make 401(k)'s and other retirement savings vehicles an excellent deal, regardless of how much or how little your company matches.  Furthermore, since more of your retirement is now in your own hands with the gradual decline of the defined benefit pension plan, you simply cannot afford to stop contributing to your retirement.  Plus, with the market down significantly of late, times such as these may be an excellent buying opportunity.

If you're deeply in debt or have yet to establish an emergency fund, it may make sense to temporarily stop contributions to accelerate your debt reduction.  However, you must be aggressive in paying off your debts, as you need to save for retirement in the long run.

The good news in the story of FedEx is that they are making the compensation changes instead of announcing a large number of layoffs.  It will be interesting to see if other firms follow suit and cut pay instead of jobs.

        

Credit card companies, responding to their own financial problems, continue to tighten the noose around their customers.  Discover, Capital One, and other issuers are closing accounts of cardholders who have not used their cards in the past 6 months or more.

Since we advocate cutting up your credit cards, this is not the end of the world, as we see it, since dormant credit cards are a sign that your money management may be on the right track.  However, the residual effect of this is that it is possible that these actions will lower the credit scores of those consumers, which can lead to higher payments in some situations.

These actions are further confirmation of the wisdom of Proverbs 22:7, "The rich rule over the poor, and the borrower is servant to the lender."  If you're already out of debt, a few cancelled credit cards are not a big deal.  However, if you're living off your credit cards, moves such as these from the credit card companies can be extremely damaging. 

Click here to read more from Bloomberg.com.

        

Marketwatch.com reports that divorces are down as a result of the financial crisis.  Apparently, couples who are having a rough time making it on two incomes are not finding it possible to split up and each fund a new household on one income.

Since it's commonly quoted that money issues are the #1 cause of divorce, it's not difficult to see why financial issues would be that much more difficult after a divorce.  In fact, divorce is often the most difficult on the single mother, who often has custody of the couple's children and must try to work to earn a living as well.

Since the Bible states that God hates divorce (Malachi 2:16), maybe there is a small silver lining in the current financial situation.  Perhaps some couples will stay together long enough to work things out.  A few potential helpful resources include : The Love Dare, Love & Respect, His Needs, Her Needs, The Five Love Languages, and Men are from Mars, Women are from Venus.

        

I recently learned of a new site where employees and past employees can go and privately rate their places of employment.  The site is called JobVent. 

Each person rating the company gives a numerical score to each of 9 categories - pay, respect, benefits, job security, work/life balance, career potential/growth, location, co-worker competence, and work environment.  Then, the total from each category is tallied into an overall score.  Finally, the overall scores are tabulated into a company score, where companies can be ranked.

The top 10 companies are shown on the main page in the "I Love My Job" list, whereas the bottom 10 are presented in a "I Hate My Job" list.

In addition to the numerical ratings, each reviewer also provides descriptive ratings for each category, and others can comment on each post.

If you really hate your job, I suggest either finding a new job or starting a new business.  There are a wealth of opportunities in this country, so there's no need to be miserable every day.

Regardless of whether you love your job or not, I recommend checking out the site to see what your co-workers have to say.

        

        

If you'd like to give someone a gift this Christmas that can help the recipients improve their financial situation, you may be interested in the sale going on at DaveRamsey.com.  For as little as $10, you can purchase items such as one of Dave's best selling books, software, single session DVD's from the Financial Peace University series, or an audio lesson from Dave.

If you order more than $65 of materials, the shipping is free.

The sale ends Sunday, December 21st.

        

We recommend The Winners Manual by Jim Tressel with Chris Fabry.  With the college football season underway, we thought that it would be fitting to recommend a book by a football coach.  You may not be as big of an Ohio State fan as we are, but this book teaches the same life fundamentals that Coach Tressel teaches his athletes at Ohio State.  Important values that Tressel promotes include humility, generosity, family, faith, teamwork and learning. One of the primary themes of the book is the importance of setting goals.  To learn more about the book, you can visit the book's website.

        

In his book Good to Great, Jim Collins introduced the hedgehog concept as it applies to companies.  A similar principle applies to individuals as well.

We believe that people are able to work at their full potential when they find the intersection of 3 circles :

1. What are you srongly passionate about? 
2. At what specialty can you be the best in the world?
3. What can I do that will bring in money?

Where these three circles meet is your center of excellence.

If you are deeply passionate about your work, there will be no distinction between your work and your play.  All of your energy and interest will be focused on bringing that idea into reality.  Learning new things related to your passion will be easy, as that topic will consume you day and night.  You will be invigorated to wake up in the morning and bring your dream to fruition.

If you are passionate about something and have a God-given talent in that area, you are able to become the best in the world.  People will flock to you as the hands-down expert.  Talent is a clear factor here.  How many people have you seen on American Idol who had a passion for music but did not have an ability for singing?   Simon Cowell gets a lot of disdain because he tells people to find their true gifts elsewhere.  However, he is really doing those folks a favor, as God has probably gifted them elsewhere.  As the audience of the show can attest, talent matters.  Have you been wired by God to be the best? 

Finally, you will need to cross the bridge from hobby to career.  If your passion cannot bring in any sales, you will not be able to feed your family.  If you're not sure that you can make money in an area, seek out some help from someone who has done it before.  Maybe you could read a book from a small business expert.  Maybe you should seek out a professional coach.

What happens when one of the three circles is missing?

If you are not passionate about your work, you will sooner or later end up with a feeling of burnout.  Work will become a drag, and you won't want to wake up in the morning and make that commute. 

If you don't have the talent to do the job, you will either need to put in a bunch of extra effort, which is not sustainable, or you will not be paid well. 

Finally, as we covered earlier, if you cannot make money at your passion, then eventually, you will need to find another job to bring in some money, unless you are independently wealthy.

If you are seeking further help in this area, we recommend the career resources at http://www.48DaysProducts.com.

At this site, you can find a personality profile and a variety of books, church study materials, etc. that will help you to discover what careers are a good fit for your personality and aid you in your search for more fulfilling work.

If you would like to work with a professional coach, there are a number of good coaches available at the 212 Connection.

        

Today, the Federal Reserve Board cut the Federal Funds rate to nearly zero.  They also announced a series of moves that will potentially drive down mortgage rates.

The U.S. markets responded with a lot of enthusiasm, sending the stock market much higher and driving long-term bond yields down.

If you have equity in your home, you may be able to refinance soon and save money, as mortgage rates will likely plummet below 5%.  You may want to pay attention to the national averages posted at sites such as Bankrate.com.

One potential unintended consequence of the low rates is that it may start costing you to have money saved in a money market fund, as the investment management fees in these funds may be higher than the investment income those funds' investments earn.  How these negative yields would be accomplished is still unknown, as today's low rates are clearly unprecedented.  One potential approach is that your number of shares could be reduced on a monthly basis.  To read more about the potential for negative money market yields, click here for an article from Bloomberg.com.

Ultimately, these moves show that the Federal Reserve is committed to do whatever it takes to end the financial crisis.  Whether or not these steps are enough to turn the tide is debatable.  Stay tuned.

        

There are over 800 verses in the Bible about money.  Jesus spoke more about money than He did about love.

How we spend our time and money tells more about who we are than what we say. 

If you're looking for some scripturally-based teaching about finances, we recommend finding a Financial Peace University class in your area.  We recently finished coordinating two classes in our local church and were excited with the level of interest.  We are also going to start a new class in January.

Classes are being held throughout the country, so chances are good that there's a class near you.  In the event that there is not a class nearby, there are also opportunities to view the material online.

Sign up today!

        

An article on SmartMoney.com details how some parents are spending upwards of $10,000 per year on their child's athletic activities, in the hopes of one day landing an athletic scholarship from a Division I college or university.

The article fully details how some parents have gone off the deep end with respect to travel teams, home athletic facilities, etc.  Some budding athletes have their own personal coaches, nutritionists, and personal trainers by the time they reach age 10.  Furthermore, the parents and siblings of these children spend countless hours following their athletic family member around the country at tournaments, practices, etc.  If you include the cost of everyone's time in the equation, the costs would be even larger!

We think that youth sports, in proper moderation, teach children important skills such as teamwork, fitness, etc.  Our 3 sons are involved in their youth recreation leagues, which they enjoy very much.  Sports clearly are fun to watch and are beneficial to the development of children.

However, some parents are not realistic with their expectations.  Only 2% of high school athletes end up earning a scholarship.  Some children who exhibit an athletic gift at a young age end up getting burned out by the time they reach high school.

In the example above, if the parents of these young athletes would have pocketed the $10,000 per year they were spending on sports, starting at age 5 through age 18, they would have ended up with more than $242,000 (at 8% interest) by the time that the college bills started rolling in.  This would pay for the cost of college every time, not just a 1-in-50 chance.

As winter sets in and youth sports begin a new season, I pray that all of us can find the proper perspective.

        

Did you know that Dave Ramsey and Jim Cramer agree?  Both extol the virtue of cash, albeit for different reasons. 

As you may know, the tag line for Dave Ramsey's show is, "where debt is dumb, cash is king, and the paid-off home mortgage has replaced the BMW as the status symbol of choice".  Thus, Dave Ramsey emphasizes that we pay for our everyday purchases using cash, instead of using credit cards.

Cramer praises the value of cash for a different reason, related to your investing activity.  For those of you who do not know about Jim Cramer,  he is a former hedge fund manager who is host of 'Mad Money" on CNBC.  Most people want to be fully invested at all times in their 401(k) or IRA accounts.  However, if you are fully invested, you do not have any funds available to take advantage of opportunities that arise from time-to-time in the market, due to downswings or irrational selling.  Thus, Cramer recommends having 5-10% of your holdings in cash at all times.  To read more about Cramer's cash recommendation, click here.

        

According to a MSNBC study, Americans hate their jobs more than ever before in the past 20 years, with fewer than half saying they are satisfied.  Furthermore, the Herman Group Found that at least 30% to as much as 40% have already "checked-out" - showing up for work every day, but focusing on where their next job will be.

Do any of these sound like you or someone that you know?

I recently finished reading The Three Signs of a Miserable Job by Patrick Lencioni, the author of The Five Dysfunctions of A Team, Silos, Politics, and Turf Wars, and Death by Meeting.

Written as a fable of a man trying to improve a small Italian restaurant, Lencioni outlines what makes people so unhappy in their work.  Do any of these resemble your job?

    1)  anonymity - people need to know that someone cares about them, especially their manager
    2)  irrelevance - people need to feel that their job is benefiting someone else in at least some small way
    3)  immeasurement - people need to be able to measure for themselves whether or not they are doing a good job. 

There is a large body of evidence that suggests that a person's relationship with his or her manager is the biggest factor in whether or not that person stays in their current role.  Likewise, the manager has a very important role in ensuring that their subordinates are not miserable.  For instance, if the employees feel that they are making a difference in the lives of someone else, that the company cares about them, and that they are being productive, they are likely to stay at that organization for a long time, regardless of their amount of pay.

Lencioni ended with the thought that management is ministry, in that the way that you treat your employees will impact how they treat the other people around them.  It will impact their marriages, their families and their friends. Other than immediate family, the manager impacts their subordinates in ways that no one else can.  Thus, the role of manager is a very powerful role that should be taken seriously.

        

With many banks struggling to make ends meet, due to large bets made on subprime mortgages and other risky assets, it's becoming more difficult each day to find a good deal on a standard checking account.  Many checking accounts have monthly fees, minimum balances, and/or pay a low rate of interest.  If this sounds like your current account, there is a website that can help you find a better deal.

CheckingFinder.com is a resource that shows available accounts that have CD-like rates, no monthly fees, ATM refunds nationwide, and no minimum balance requirements.  The accounts returned are all insured by the FDIC, NCUA, or ASI (depending on the type of financial institution).

You enter a zip code and the search tool looks for deals for you. 

Click on the link above to get started now!

        

With the current financial crisis in mind, we thought that you might like a few money saving ideas.

The Grocery Game - this site matches local grocery promotions with coupons to maximize your grocery savings

RetailMeNot - this site will alert you of available coupons when visiting a shopping site

Hulu - free movies and TV shows online

AnnualCreditReport - free credit reports from each credit reporting agency once per year.  Be sure to stagger the reports so that you receive one report every 4 months.

OpenOffice - free office software, compare with Microsoft Office

Gutenberg.org - free e-books

KidsMealDeals - find when restaurants near you offer free kids' meals

BibleGateway - free online Bible, choose from several available online versions

Other coupon sites include : CouponMountain.com, Coupons.com, DealCatcher.com, CurrentCodes.com, FatWallet.com, Ebates.com, CoolSavings.com

        

In each family, there is usually one person who takes care of the finances and one person who is less involved and may not know all of the details.  If something unforeseen would happen to the person who keeps track of the finances, would the other spouse, or anyone else in charge or your estate, know what to do?

A love drawer is a drawer in your home that contains all the important information that your family needs if something happens to you. It gets the name from the fact that you love your family so much that you get all your matters in order and put it in this drawer, so that the information is easy to get to and understand when they need it.

The essential components of a love drawer are as follows :

• will and estate plan
• information on the financial accounts
• funeral instructions
• insurance policies
• monthly budget
• tax returns
• location of safe deposit box
• passwords
• other important documents - birth certificates, deeds, titles, social security cards, etc.
• legacy letters
  

        

Some of the commentators on TV have begun to compare the current economic situation to the Great Depression.  It is likely that the massive government interventions that we have witnessed will prevent a repeat of a depression.  However, clearly, there are people hurting all around us.  Home foreclosures are on the rise, job layoffs are increasing day-by-day, investment account balances have dropped dramatically, and people are feeling uncertain about the future.

With the current situation in mind, we have compiled a series of thoughts that will hopefully add some perspective.

Where does our value come from?
Our value comes from being a child of God, not from having money.  God still loves us, regardless of whether we are in an economic expansion or contraction.  Furthermore, Jesus still died on the cross for us.  Nothing will take that away from us.  For this fact, we should continue to praise Him.
          1 John 4:9-10, "This is how God showed his love among us: He sent his one and only Son into the world that we might live through him. This is love: not that we loved God, but that he loved us and sent his Son as an atoning sacrifice for our sins."
          Psalm 139:14, "I praise you because I am fearfully and wonderfully made"
 
In whom do we trust?
We should place our trust in God, not the size of our net worth.  We all know that God's principles are eternal, whereas the riches of this world are temporary.  Let's place our hope in eternal things, not in temporary possessions.
          Psalm 20:7, "Some trust in chariots and some in horses, but we trust in the name of the LORD our God."
          Proverbs 11:28, "Whoever trusts in his riches will fall, but the righteous will thrive like a green leaf."
          Proverbs 3:5, "Trust in the LORD with all your heart and lean not on your own understanding;"
          Proverbs 23:5, "Cast but a glance at riches, and they are gone, for they will surely sprout wings and fly off to the sky like an eagle."
 
Does anyone know what will happen next?
No, they do not, no matter how smart they are.  The Bible urges us to be wary of anyone who claims to know the future.
          Proverbs 27:1 (NLT), "Don't brag about tomorrow, since you don't know what the day will bring"
 
How should we react ?

• Pray

Proverbs 16:3, "Commit to the LORD whatever you do, and your plans will succeed"

• Seek Godly Counsel

Proverbs 15:22, "Plans fail for lack of counsel, but with many advisers they succeed."
Proverbs 19:20-21, "Listen to advice and accept instruction, and in the end you will be wise. Many are the plans in a man's heart, but it is the LORD's purpose that prevails"

• Stay Diversified

Ecclesiastes 11:1-6, "Cast your bread upon the waters, for after many days you will find it again. Give portions to seven, yes to eight, for you do not know what disaster may come upon the land. If clouds are full of water, they pour rain upon the earth.  Whether a tree falls to the south or to the north, in the place where it falls, there will it lie.  Whoever watches the wind will not plant; whoever looks at the clouds will not reap.  As you do not know the path of the wind, how the body is formed in a mother's womb, so you cannot understand the work of God, the Maker of all things.  Sow your seed in the morning, and at evening let not your hands be idle, for you do not know which will succeed, whether this or that, or whether both will do equally well."

• Don't Aim to Get Rich Quickly

Proverbs 28:20, "A faithful man will be richly blessed, but one eager to get rich will not go unpunished."
Proverbs 13:11, "Dishonest money dwindles away, but he who gathers money little by little makes it grow"
Stick with your savings routine
        Proverbs 6:6-8, "Go to the ant, you sluggard; consider its ways and be wise! It has no commander, no overseer or ruler, yet it stores its provisions in summer and gathers its food at harvest"
        Proverbs 21:20, "In the house of the wise are stores of choice food and oil, but a foolish man devours all he has."

• Be Patient

Proverbs 14:29, "A patient man has great understanding, but a quick-tempered man displays folly."
Proverbs 21:5, "The plans of the diligent lead to profit as surely as haste leads to poverty."

• Be Generous

Proverbs 11:25, "A generous man will prosper; he who refreshes others will himself be refreshed."
Proverbs 28:22, "A stingy man is eager to get rich and is unaware that poverty awaits him."

It is in the rough patches of life where people often seek out answers.  We, as a group of Christians, can use opportunities like these to reach out and meet people's needs.  There will likely be some opportunities in the coming days and months to minister to those around you and lend a helping hand.  I encourage you to keep your eyes open and move as the Holy Spirit guides you.

        

Our free September Newsletter has been completed and distributed to all of our subscribers. 

We are offering a contest this month, featuring a Dave Ramsey prize package, to those who distribute this edition to the most friends. 

Please read the newsletter by clicking on the link above for more details.

To subscribe to the newsletter, you can click the link on the right sidebar, under the "Free Monthly Newsletter Signup" section of our webpage to ensure that you receive next month's edition.

        

Living within one's means is so unusual these days that Saturday Night Live made a parody clip starring Steve Martin.  This video illustrates the point that personal finance is more behavior than head knowledge.  Enjoy!

        

Our September newsletter is scheduled for release on Friday, September 5th. We are excited about this month’s edition, as we think that it is jam-packed with useful information for you.

Headlines for the September edition include:

• Looking for a Deal on a Checking Account?

• Do You Have a Love Drawer?

• What Do the Problems and Fannie Mae and Freddie Mac Mean to Me?

• Are You Working in Your Center of Excellence?

• Hiring One Person for Two Jobs?

• Signs of a Miserable Job

• Cash is King

• Money Saving and Free Sites

• Are Youth Sports Worth the Investment?

• September Contest

• Verse of the Month

• Quote of the Month

• Recommended Resource : The Winner’s Manual by Jim Tressel

• Humorous Video

• Did You Know?

• Answers to Your Questions: "Is Debt a Sin?"

We encourage you to sign up today, so that you don’t miss it.

        

Just a quick reminder...we use a double opt-in procedure for our monthly newsletter.  Thus, in order to receive our newsletter, you need to confirm that you want to receive it by clicking on a link found inside of a confirmation e-mail that you receive after signing up. 

We have noticed that many of you have completed the initial sign-up but have not yet followed up with the confirmation step. 

If you want to receive our next edition, you should confirm your interest by Thursday, September 4th.

Have a good holiday weekend.

        

Today, the FDIC (Federal Deposit Insurance Corporation) announced that it's list of "problem" banks had grown to 117 institutions, as of June 30, which is the highest number since 2003 and an increase of 30% since last quarter.  To read more about the most recent update, click here.

With the recent failure of IndyMac Bank and fears in the marketplace of potential other bank failures, it's worth a quick mention of how the FDIC Deposit Insurance program works.

Generally, deposits from a single depositor up to $100,000 are fully insured.  The limit is $100,000 per depositor, regardless of how many accounts were opened.  For instance, if an individual has $95,000 in CD's and $10,000 in checking, then $5,000 of the deposits would generally not be covered.

Any bank that participates in the FDIC program must display the FDIC logo at teller stations where deposits are accepted.

The FDIC does not insure money invested in stocks, bonds, mutual funds, life insurance policies, annuities, or municipal securities, even if they were bought from an insured bank.  The FDIC also does not insure U.S.Treasury bills, bonds, or notes, but those are backed by the full faith and credit of the United States government.

Deposits with each FDIC-insured bank are insured separately from any deposits at another insured bank. If an insured bank has branch offices, the main office and all branch offices are considered
one insured bank - a depositor cannot increase insurance coverage by placing deposits at different branches of the same insured bank.  Similarly, deposits held with the Internet division of an insured bank are considered the same as deposits with the "brick and mortar" part of the bank, even if the Internet division uses a different name. If two banks are affiliated, such as having a common holding company, but are separately chartered (indicated by having two different FDIC Certificate numbers), deposits in each bank would be separately insured.

To read more details from the FDIC or to use an interactive tool from the FDIC that helps assess your potential risk, click here

        

Today's Dilbert comic strip (from 8/24/08) reminds me of many investment or real estate seminars...they sound good at the surface, but when you dig deeper into the details, you find that the only person getting rich from the seminar is the speaker/promoter.



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

Trying to get rich too quickly can cause great failure.  Typically, for most people, this involves chasing the latest hot stock or asset class.  In the early part of this decade, the hot money was chasing internet stocks.  A few years ago, the "guaranteed" wealth was in real estate.  Recently, commodities were all the rage.

Successfully building wealth usually involves time for compound interest to work its magic.  It's like the story "The Tortoise and the Hare".  The rabbit (or get rich quick scheme) promises to deliver a quick victory, but in the end, the tortoise (or diligent saver) wins the race.

        

        

        

As we approach football season, consider this method of motivation to go out and tell others about Christ.