If you missed Saturday night's event at Saddleback Church where Rick Warren interviewed both Barack Obama and John McCain, you can catch video of the event on the CNN.com website.

In preparation for the Financial Peace University class that we are coordinating, we were reviewing some of the promotional videos that the Lampo Group has posted and ran across this one. 

How fitting is the picture in the video of the loaded down cart?

If you think that credit card agreements are fair contracts between you and your financial institution, consider these recent activities by credit card issuers :

• Last year, using the slogan that "a deal is a deal", Citigroup marketed a card that promised that the company would no longer reserve the right to raise rates on the credit cards at any time for any reason.  The company could still raise rates on those who mismanaged their finances or at card expiration.  Now, a year later, Citi is considering reneging on its promise.
• Because of problems at some banks, credit limits on some consumers are being dropped, which ends up damaging their credit score, which is partially based on the ratio of used credit to available credit.  The higher the ratio, the lower your credit score.  The reduced credit score may increase the rates that those borrowers pay for mortgages, insurance, cell phones, etc.  In addition, some of these banks are also reducing credit limits on HELOCs (home equity lines of credit).
• Rates may be raised, not because of your own financial situation, but because the bank mismanaged its money.
• Inadvertently making a late payment or going over your credit limit can set of a chain of events that makes it nearly impossible to get out of debt in a reasonable amount of time.  In these cases, interest rates can approach 30%, which is extremely punitive.

Clearly, the deck is stacked against you when dealing with the credit card issuers. 

If you have credit card debt, we advise implementing a debt snowball to pay them off as quickly as possible.  To read more about the debt snowball method, click here.

Rick Warren, pastor of Saddleback Church, is hosting a forum tonight (Saturday 8/16) where he will interview Barack Obama and John McCain about their faith.  Warren will be asking all of the questions in the non-debate format.

The event will be shown on CNN and Fox News tonight at 8 pm EDT / 5 pm PDT.  The event is also available for viewing online.

For more information, visit http://www.saddlebackcivilforum.com

"The rich rule over the poor, and the borrower is servant to the lender" Proverbs 22:7 (NIV)

The press is full of articles that outline how consumers in the United States are feeling pinched from many different directions.  Here is a brief list of the headlines found in the past month or so from large publications that show the extent of the economic situation:

• Given a Shovel, Americans Dig Deeper Into Debt (NYtimes.com)
• For Many, Real Life Begins with Big Debts (dispatch.com)
• U.S. Consumers Trade Down as Economic Angst Grows (wsj.com)
• Foreclosures Rose 53% in June, Bank Seizures Tripled (Bloomberg.com)
• Overdue Home-Equity Credit Lines Rise Most Since 1987 (Bloomberg.com)
• Oil Slips from Intraday Record High to Settle at $140 (CNBC.com)
• Survey : Even Wealthy Feeling Economic Pinch (CNBC.com)
• Housing Lenders Fear Bigger Wave of Loan Defaults (CNBC.com)
  

Fortunately for many folks, the price of oil has hit the skids recently to close around $120/barrel, which has led to a decline in the price of gasoline.  This has given some temporary relief to those who drive long distances.

Regardless of the economic conditions of the day, we should do our best to live within our means, pay off our debt, build our emergency funds, save for the future. 

God is in control, as he always has been.  The temporary economic situation, whether technically a recession or not, does not change the fact that God owns everything and that we are just managers of his resources.

We can make it through these economic difficulties.  As Paul stated in Philippians 4:11-13 (NIV), "I have learned to be content whatever the circumstances.  I know what it is to be in need, and I know what it is to have plenty.  I have learned the secret of being content in any and every situation, whether well fed or hungry, whether living in plenty or in want.  I can do everything through him who gives me strength. "

Have you every wondered what the worker in the cubicle next to you is making?  Are you getting a fair deal?

Although you will never really know for sure if you are being treated fairly or not, the website glassdoor.com allows workers to review their employer and share their compensation package with others.

The site initially focused on Silicon Valley employers, so you can quickly see if working at Google or Yahoo! is as exciting as everyone thinks it is.

To get the full scoop of what your colleagues have entered, you must agree to post a review and/or a compensation figure.  The site promises that all posts are anonymous and that membership is free.

I did a quick scan for my employer, without entering any information, and could only view a limited number of comments.  Of course, there was a mix of both positive and negative feedback.

One potential use of the site is to view comments for a potential new employer to see if folks are generally content with working there.

Dave Ramsey has launched a new church stewardship program aimed at increasing church giving by teaching those in our congregations to become debt free, instead of tirelessly teaching about tithing.  We believe that this program attacks the true root problem why those in the church are not giving a full 10% of their incomes.  To find out more, you can visit the Momentum website by clicking here.

We have created a free monthly newsletter that is now open for new subscriptions.  The newsletter will be distributed early in the month and will contain articles on finances (debt reduction/budgeting/investing/etc.), career, family, and more.

To subscribe to the newsletter, click on the button below and follow the instructions on the webpage that appears.






The first edition of the newsletter is due to be distributed on June 8th.

How about helping the Dad or grad in your life to find their true calling by doing work that they truly love? 

If this kind of material interests you, 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.

What's a stay-cation?  It's the growing phenomenon of staying home on your vacation and either doing things around the house or visiting local attractions.  According to a story on Marketwatch.com, 60% of consumers are cutting back on spending, due to inflationary pressures (food, gasoline, air travel, etc.), and 49% are scaling down their leisure travel.

Have you adjusted your travel plans because of the economy?  If so, are you doing a stay-cation?

The speaker lineup for the 2008 Catalyst Conference, to be held October 8-10 in Atlanta, has been announced. 

Anticipated speakers for this year's event include : 
        Andy Stanley
        Jim Collins
        Dave Ramsey
        Franklin Graham
        Billy Graham (remote)
        Seth Godin
        Craig Groeschel

The promo video for 2008 can be seen below : 

       


To find out more about the conference, click here.

Late last year, I had the privilege of being able to see a presentation on personal accountability by John G. Miller, the author of QBQ: The Question Behind the Question and Flipping the Switch.  Recently, Miller was on the Dave Ramsey show discussing the importance of taking personal responsibility.

I have read both of Miller's books and subscribe to his "QuickNotes", where he regularly provides stories of people who are living out the QBQ.

A video clip of the appearance can be found below :

 

To find out more about the book or to subscribe to the QuickNotes, you can visit the QBQ website by clicking here. 

Christy Kline, from our parter site CrossChick, was recently published in the Lookout magazine.  For those who are unfamiliar with this publication, it is a weekly magazine from Standard Publishing in Cincinnati, Ohio.

Her article focused on using love as a way to reach out to people that we know who are not Christians.

To read her article, click here.

In one of our previous posts, we outlined the importance of getting rest.  Therefore, we took a brief sabbatical from posting new content. 

We are now back to regular posting and plan to add new features and content in the coming weeks.

By the way, if you like our content and manage your own website, we encourage you to link to us.  If you link to us, drop us a line at mail@sensiblesteward.com and let us know about your site.

Thanks for visiting our site and we hope that you come back often.

Skybus Airlines yesterday announced that they are ceasing operations as of Saturday, April 5th.  If you have a flight scheduled on Skybus, you should arrange with your credit card company to request a refund.

To find out more, visit http://www.skybus.com/.

1)  Debt can be deadly - Bear Stearns was leveraged 30 to 1.  When you're deep in debt, even the smallest misstep can lead to a crisis of confidence, and ultimately disaster.  There were rumors last week that Bear Stearns could be vulnerable, which lead to a run on the bank that ended up in a transaction where the company was bailed out at a small fraction of the previous day's market close.

2)  Allow yourself a reasonable margin for error - not only should you allow for things to go bad in your monthly budget but you need an emergency fund for those large expenses that arise from time to time that could potentially throw your finances out of line.  For example, are you prepared for unforeseen car expenses or medical bills?  When these items arise, and they will every once in a while, you don't want to run to your credit card to bail you out.  You will be much less frustrated by the experience if you can pay with cash.

3)  Diversify your investments - Bear Stearns was more than 30% owned by its employees.  As a result of the crisis, many of those employees will not have jobs, and their savings have been wiped out as well.  Since you are relying upon your employer for a regular income, you don't want to have a lot of money saved in your company stock as well. 

Even if you do not work for a given company, it is not wise to have too much of your investments in one company or sector, no matter how good of a company or sector that may be.

4)  Try to keep some cash around for opportunities to buy at low prices - This is especially true for your investment account but could also be applied to your checking/savings account.  You don't know when the opportunity of a lifetime will present itself.  If you don't have the available funds, you won't be able to take advantage. 

JP Morgan had some cash available to pounce upon an opportunity to buy Bear Stearns at a price of more than 95% off its highest price.  Plus, the Federal Reserve was there to help JP Morgan make the deal happen.  One week ago, no one would have thought that such a scenario was possible.  Because JP Morgan had the cash, they were able to make the deal.

5)  Don't find too much comfort or self-worth in the size of your income statement or balance sheet - we don't know what will happen tomorrow.  As it reads in James 4:13-15, "Now listen, you who say, 'Today or tomorrow we will go to this or that city, spend a year there, carry on business and make money.' Why, you do not even know what will happen tomorrow. What is your life? You are a mist that appears for a little while and then vanishes.  Instead, you ought to say, 'If it is the Lord's will, we will live and do this or that.' "

No matter how much of how little we have, something can happen tomorrow that will wipe us out financially.  Instead, we should put our trust in God.  Our attitude should be like that expressed by David in Psalm 20:7, "Some trust in chariots and some in horses, but we trust in the name of the LORD our God".

Bear Stearns, the fifth largest investment bank, was bought out over the weekend by JP Morgan for $2/share, which is much lower than the stock closed on Friday.  This is due to the liquidity crisis at the firm that was revealed late last week.

In response, the Federal Reserve and JP Morgan worked out a bailout package for Bear Stearns that was revealed late Sunday night.  In addition, the Fed cut a key benchmark interest rate by 0.25%

The markets are expected to be volatile today, as fears of a financial contagion persist. 

We will write more about the situation later today.

Today, we will explore a simple plan to pay off your debts that is often called a debt snowball.  The details of how to execute a debt snowball plan can be found below :

a)    List your debts from smallest to largest.  Show the amount owed on each debt and the minimum monthly payment on each

Example :
    Target     minimum payment = $50      amount owed = $1,000
    Visa        minimum payment = $100    amount owed = $5,000
    GM          minimum payment = $350    amount owed = $10,000

b)    Focus on paying off the smallest debt first.  Each month, pay the minimum payment on all remaining debts but the smallest one.  Pay the remainder of your budget for debt payments on the smallest debt.  This will allow you to retire this first debt quickly, gain some confidence, and move on to the second debt on the list.

Example : if debt budget = $800, first month payments would be as follows :
    Target    : $350
    Visa :       $100
    GM :         $350   

c)    Once the smallest debt is paid off, move to the next smallest debt remaining and attack it

Example : Debt budget = $800, payments are allotted as follows :
    Target : PAID OFF
    Visa :   $450
    GM :     $350

d)    Continue the snowball until all of the debts have been retired

This is a fairly simple plan to help you gain some momentum in paying off your debts and should help you gain confidence as you pay off each debt one at a time.  The beauty in this plan is that you only focus on paying off one debt at a time, instead of trying to pay off all of them at once.

 

Today, we continue our series on debt by considering how credit cards can inhibit our financial progress.

 

•        Credit cards are typically unsecured and used to pay for things that decline in value, so they fall into the bad debt category

•        With rates often exceeding 10%, credit card interest can pile up quickly, due to compound interest

•        Statistics vary on actual usage of credit card debt in this country

•        However, evidence suggests that more than half of people do not pay off credit cards each month

•        In response to subprime crisis, credit card companies are tightening the noose around the necks of Americans by dramatically raising interest rates and fees on responsible people

•        Consider this example to show how damaging credit cards can be

•        $10,000 balance

•        19.90% interest rate

•        minimum payment = 3% of outstanding balance

•        Making only the minimum payment, it would take 25 years and over $22,100 to pay off the debt completely

•        Total amount of payments could be higher if the borrower makes any late payments or if the bank raises rates due to market conditions

•        It’s tempting to open new credit lines to get 10% discount at clothing retailers; this illustration shows why those companies are making you that deal

Clearly, credit cards should be used with care.  In fact, studies show that people tend to spend more money when using a credit card than when they pay with cash.  This is why more and more merchants accept credit cards, even though there is a transaction cost for the merchant for each credit card transaction.

 

The best practices for credit card usage involve only charging what you can pay off at the end of the month (i.e. not carrying a balance). 

 

Tomorrow, we will review a plan to pay off your debts in an orderly manner.

Today, we explore the difference in good debt versus bad debt.  Here are some thoughts :

• Not all debt is created equal
• Although it’s best to have no debt, debt secured by items that increase in value (such as houses) is better than debt taken out to buy things that decline in value, such as automobiles and flat screen TV’s.  The people who end up truly wealthy are those folks who tend to use their money to buy things that appreciate in value (houses, stocks, bonds, etc.) instead of consumer goods, automobiles, entertainment, and other items that quickly lose their value.

However, these assertions do not mean that borrowing on appreciating items should be done irresponsibly.

Much of the subprime mortgage crisis that our country is undergoing right now is the result of reckless borrowing on a (generally) appreciating asset.  Many folks believed that real estate would not decline in value, so they took out mortgages for more than the house was worth, in the hopes that they could flip the house for a quick profit or in order to cash-out to pay for other expenditures.

Furthermore, because real estate was not supposed to decline, the thinking was that it made sense to borrow to pay for vacation homes, investment properties, etc.  Now, many of those homes are in the foreclosure process.

Similarly, the use of margin accounts in stock investing can lead folks into trouble if there are problems at one of the companies in which those funds are invested and the price of the stock declines dramatically.

Thus, even debt on appreciating assets should be exercised with caution.

• Educational debt and business debt may be OK, in moderation.

For example, a small amount of debt to start a new business may be OK, as long as there is a clear plan as to how that business will make money and pay off the debt.

Education loans may be OK to supplement other ways of spending for college.

However, it is not OK to rack up hundreds of thousands of dollars in student loan debt only to end up working in a job making $20K per year.  There is no way in that scenario that the student loans will ever get paid off.

            Similarly, business loans where there is little chance of success are recipes for disaster as well.

• Be especially careful of debt where the interest rate can adjust higher in the future; be sure to understand the basic terms of the agreement.  Many mortgages come with “teaser” rates, where the rate starts out low, but then is guaranteed to adjust higher in a few years, making the payment unaffordable for the homeowners.

To summarize, borrowing to pay for appreciating goods is better than debt to buy depreciating assets.  As always, the use of debt should be done with care.

In our next installment on debt, we will examine why the use of credit cards can be very damaging.

If you're not sure how to begin setting a budget, a new free online tool from Dave Ramsey may help you get started.  The resource is called "Gazelle Budget Lite".

To begin, you enter your monthly income, and then the software automatically enters a recommended target amount in categories ranging from savings, giving, housing, utilities, food, etc.  From there, you can adjust the categories according to your individual situation.

In each category, the tool will explain what kinds of expenses should go into each one and will tell you how much room you have remaining in your budget to make additional adjustments.  When you are finished, you can print your budget for later reference.

If you want to keep track of your spending against your budget, you will need to use something else in addition to this starter budget.  Several options include pencil and paper, cash in envelopes, a spreadsheet, Microsoft Money, Quicken, Quicken Online, Wesabe.com, or Mint.com.  Dave Ramsey also has a subscription online budgeting site called MyTotalMoneyMakeOver.com.  It is important that you find a system that suits you.

To try out the Gazelle Budget Lite tool, click here.

For the second installment in our series on debt, we will examine what the Bible says about debt.

• Nowhere in the Bible is debt listed as a sin
  
• However, Bible advises against reckless borrowing
• Proverbs 22:7 “The rich rule over the poor, and the borrower is servant to the lender”
• Psalm 37:21 “The wicked borrow and do not repay, but the righteous give generously”
  
• Sin can enter the equation if debt comes from envy of neighbor’s possessions or pure greed
• 1 Timothy 6:10 “For the love of money is a root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many griefs."
• Hebrews 13:5 “Keep your lives free from the love of money and be content with what you have, because God has said, ’Never will I leave you; never will I forsake you’ ”
• Finally, debt can also cause a conflict between your pocketbook and your God
• Matthew 6:24 “No one can serve two masters. Either he will hate the one and love the other, or he will be devoted to the one and despise the other. You cannot serve both God and money.”

So, in summary, debt is not a sin but should be used with caution.  We should make sure that we are able to repay our debt and keep money from competing with God. 

We want to serve God, not our lenders, so it is imperative to keep debt to a minimum.  One of the biggest dangers with borrowing is that too much debt can keep us from fulfilling what God created us to do.

Tomorrow, we will examine the difference between good debt and bad debt.

Most folks, men especially, have much of their identity and purpose embedded in the work that they do.  While studying my Bible this week, I ran across a passage that illustrates how important it is that we are working in a position that suits how God made us.

When we are doing what God created us to do, we will enjoy our work and end the day with a sense of accomplishment and fulfillment. Studies show that most people are not in love with their jobs and would like to be set free.

In Ecclesiastes 5:18-19, Solomon wrote, "Then I realized that it is good and proper for a man to eat and drink, and to find satisfaction in his toilsome labor under the sun during the few days of life God has given him—for this is his lot. Moreover, when God gives any man wealth and possessions, and enables him to enjoy them, to accept his lot and be happy in his work—this is a gift of God."

Regardless of how trapped you may feel, there are ways to transform your work situation toward finding something that you find more satisfying.  It may involve asking your boss for different assignments; maybe it is a different job at your current employer.  Perhaps, you need to find a position at another company, or you may want to start your own business.  What is really important is for each of us to be accountable for our own happiness and realize that we have a choice.

I recommend Dan Miller's resources because I have used these materials to personally transform my thinking about work to the point where I am about to begin taking steps out of the rat race and into work that is more fulfilling.  I have been liberated from the trap of entitlement thinking and want everyone to experience this transformation.

If you're ready to take a step toward fulfillment in your career, you can click here to get started.

One often overlooked downside to buying gift cards as gifts is what might happen if the company goes out of business.

People holding Sharper Image gift cards may find out that their cards are now unusable, due to the company's recent bankruptcy filing.

Federal law permits firms to stop honoring gift cards if they file for Chapter 11 bankruptcy.

To read more, click here to read the full story from Marketwatch.com.

•
We are starting a series of posts regarding debt.  Today is the first installment.

Below are 6 reasons why debt should be avoided as much as possible:

• Debt can limit our options, forcing us to work in jobs that we hate or work long hours that keep us from spending precious time with our families – “I owe, I owe, so off to work I go”.
• Strain of debt often leads to breakup of marriages – money is often cited as the #1 cause of divorce
• Because of interest compounding at high rates, we can get stuck in a spiraling debt cycle that is difficult to escape
• Debt assumes that we know what will happen tomorrow; Because there are no guarantees in life, this is a dangerous assumption.
• Debt increases our stress level, which can lead to a variety of health issues – depression, heart attacks, etc. Furthermore, the additional time spent at work can cause people to neglect their health by eating unhealthy foods and spending less time exercising
• Practices of collection agencies is borderline criminal and can lead some people to suicide (see the movie “Maxed Out”)

In later posts, we will examine debt further, including what the Bible says about debt, good debt vs. bad debt, and more. 

The leaders in Washington were hoping that Americans would spend the tax rebates that they authorized earlier this month.  The last round of stimulus from 2001 had a 40% spend rate.

However, according to a new survey, only 18% plan to spend the rebate this time around.  Most people, wisely, are either planning to save the money or use it to pay down debt.

Earlier today, a report showed that consumer confidence is starting to sag, due to concerns about jobs, housing prices and inflation on gas and food items.  Thus, the evidence is mounting that people are starting to cut back on their expenses.

My family is planning to use the cash to build our emergency fund, as we are planning to make some lifestyle changes in the upcoming months.

To read more about the survey, click here

Earlier this month, President Bush signed a tax rebate package that will see checks going out to most Americans from the IRS later this spring.

The rules are a bit complicated, so if you're not sure how much you will receive, you can use this simple calculator from Kiplinger.com. 

To complete the tool, you will need to know your adjusted gross income for 2007.

In order to receive a check, you will need to send in your 2007 tax return first.  Thus, those who file for an extension will not receive a check as soon as someone who files by April 15.

Proverbs 23:4 states, "Do not wear yourself out to get rich; have the wisdom to show restraint." 

Early in my career, I tended to be a workaholic.  I was always chasing the next promotion, pay raise, etc., in an attempt to earn more money and provide for my family.  In addition, I would volunteer for almost everything going on at church and would enroll my kids in as many things as I could.  Eventually, every waking moment was occupied with some sort of activity that involved taking care of somebody else's needs.

However, after doing this for several years, I found that I wasn't satisfied with where I had ended up and was very tired.  Not only was I physically exhausted from the activity, but I had also neglected my health along the way and had gained a great deal of weight.

This year, my family decided that we needed some time for ourselves and that we would keep Sundays reserved for family time and rest (after going to church, of course).

We found that there was a reason that God commanded rest in Exodus 20:8-11, "Remember the Sabbath day by keeping it holy. 9 Six days you shall labor and do all your work, 10 but the seventh day is a Sabbath to the LORD your God. On it you shall not do any work, neither you, nor your son or daughter, nor your manservant or maidservant, nor your animals, nor the alien within your gates. 11 For in six days the LORD made the heavens and the earth, the sea, and all that is in them, but he rested on the seventh day. Therefore the LORD blessed the Sabbath day and made it holy."

If God needed to rest on the 7th day, why do we try to push ourselves to the brink of collapse?  If anyone could go nonstop, it would certainly be God, but even He took the the time to rest and recover.

In our society today, we tend to wear our busyness as a badge of honor.  Whoever runs their kids to the most extracurricular activities and works the hardest to buy the most toys for their children is revered as the best parent.  Companies use incentive pay structures to reward those who have unhealthy work-life balances. 

However, if we stay on this treadmill and never stop to catch our breath, then we don't have ample time to recover and prepare ourselves adequately for the next challenge.  Also, too much busyness can keep us from using our talents to fulfill our God-given purpose.  If we're busy, then we must be doing something important, right? 

In their book, The Power of Full Engagement: Managing Energy, Not Time, is the Key to High Performance and Personal Renewal, Jim Loehr and Tony Schwartz explain how intermittent periods of full engagement, following by periods of disengagement, are critical for high-level performance over time.  To illustrate, they show how sprinters will run as fast as they can for a spell and then intentionally rest to recover their energy.  If these sprinters did not take the time to rest, they would not be able to run as fast the next time around, and their performance would be diminished.

Our family has seen numerous benefits from taking an intentional day of rest each week.  We have been generally more healthy than we were in the previous year.  Our relationships with one another are better.  Most importantly, our overall happiness has improved significantly.  Therefore, I highly recommend taking a day of Sabbath and making it a priority.

One of yesterday's posts described the Dave Ramsey Plasty Award show.  The winner of the People's Choice Award was the video below, where a soldier in Iraq detonates his credit card with some explosives.

Enjoy the video...

Dan Miller, author of 48 Days to the Work You Love and No More Mondays was on the Dave Ramsey show this week.

Below, you can find a clip from the opening segment

 

A couple of key points that I learned from the segment : 
    1)  Dollar bills are a reward for service - if you serve others, like Jesus modeled, the money will follow.  If you focus on the money first, it will always be out of reach
    2)  Dan defined risk as the lack of control.  If you're not in control and not doing work that suits you, there is a huge opportunity cost.
    3)  Dave shared that about 1/3 of his financial counseling clients need help because of career issues

If you're not satisfied with your job and want to start your own business or find a vocation more in line with your God-given talents, you can visit http://www.48DaysProducts.com to find out more.

Dave Ramsey's show on Fox Business Channel will be having its "Plasty" awards show tonight.  The contest will honor those who submitted videos that show people creatively destroying their credit cards.

The show airs at 8 p.m. EST.  Check your local listings, as there may be opportunities to catch the reruns if you missed the original airing.

One of our favorities is a video of a soldier in Iraq blowing up his card.

To see this video and the rest of the nominees, click here.

One of the previous posts outlined how the NFL was cracking down on churches who hosted Super Bowl parties that used screens larger than 55 inches.

Starting with the 2009 Super Bowl, the NFL will now permit religious organizations to host live showings of the big game, regardless of the screen size.

To read more, click here.

According to a new study from the American Psychological Association, the answer is yes.  The study, performed by testing caloric intake of rats who had been given zero calorie saccharin, found that those rodents consumed more calories, gained more pounds, and had more body fat than similar rats who had been fed regular sugar.

The answer to why this may happen lies in the ability of the body to regulate food intake.  The sweet sensation of artificial sweeteners makes the body expect to intake a large number of calories.  When those calories are not present, the body gets confused and either slows down, burning less energy, or entices the person to eat those additional calories.

To read more about the study, click here.

People traditionally associate stewardship with financial matters, but we are also called upon to take care of our bodies.  Included in the blessings that God has given us are our health and another day of life, so we should take care of ourselves to honor Him.  As the Bible states in I Corinthians 6:19-20, "Do you not know that your body is a temple of the Holy Spirit, who is in you, whom you have received from God? You are not your own; you were bought at a price. Therefore honor God with your body."

Similarly, in Proverbs 23:20-21, we read, "Do not join those who drink too much wine or gorge themselves on meat, for drunkards and gluttons become poor, and drowsiness clothes them in rags."

.

Dow Jones today announced 2 changes to its benchmark Dow Jones Industrial Average stock market index, effective February 19.  Out are Altria and Honeywell and in are Bank of America and Chevron.

Altria was removed because it is breaking itself up into at least 3 separate companies, while Honeywell was removed to reflect a diminished role of industrial companies in the U.S.

To read more about the changes, click here.

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The IRS is offering an online filing program this year for free for folks whose adjusted gross income was $54,000 or less in 2007. 

If you participate, you may be able to get your refund within 10 days.

The program is available in both English and Spanish.

To access the program, you must visit the IRS website and click on the Free File link.  Alternatively, you can go to the same place by clicking here. 

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Discount airline Skybus has opened its flight schedule for June and July with $10 fares for the first few seats on each flight.

To see if you can find a cheap flight, click here to visit Skybus online.

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If there was any doubt about who will ultimately bear the brunt of the losses that banks have experienced on their subprime mortgage portfolios, this article from USA Today should remove any lingering uncertainty.

To recoup their losses, the banks are going to increase the fees and interest rates that they charge to generally responsible people.  For instance, ATM fees are being raised at Chase and Bank of America.  Interest rates on some credit cards will be increased by a factor of 3 in some cases.  Grace periods on credit cards will be shortened at Capital One.

In this time when the pricing from banks is changing rapidly, it will be worth your time to shop around.  If you're able to join a credit union, you may be able to find attractive rates and terms there.  Alternatively, Bankrate.com is a website devoted to providing comparison rates from a large number of banks and financial institutions.

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Straddled with $45 million in debt and $60 million in deferred maintenance costs, Oral Roberts University had been on the brink of collapse, amid a financial scandal involving televangelist Richard Roberts.  However, in November, Mart Green, whose family founded Hobby Lobby, announced a $70 million donation to help save the school.

Mart, whose net worth is estimated at $1.8 billion, is a devoted tither who lives in a 4500 square foot home and has only driven 3 cars in the last 18 years.

To read more from AP, click here.

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Tomorrow is national signing day for high school seniors who have been offered scholarships to play college football.  One aspect of the recruiting process that is often overlooked is the faith of the players and coaches. 

I was pleasantly surprised to read this article from AP that outlines how some college coaches, including Tommy Bowden of Clemson and Mark Richt of Georgia openly share their faith with their players.

In addition to the coaches that are mentioned in the article, Jim Tressel, coach at Ohio State, is another coach who openly testifies about the impact of his Christian faith on his life.

What is impressive about these coaches is that they do not cower to threats from organizations like the ACLU, but they use their positions of influence to spread the word about Christ.  As Romans 1:16 proclaims, "I am not ashamed of the gospel, because it is the power of God for the salvation of everyone who believes: first for the Jew, then for the Gentile.".

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Are you looking for a bible study where you can help the people in your church find their God given talents?  Want to help the congregation find work that they love?

A new study from 48 Days will make this possible.  The 12-week study, similar in structure to Dave Ramsey's Financial Peace University, has a participant package full of materials and a leaders kit that will empower the facilitator to deliver the material in an effective way.

The twelve lessons are as follows :

• Lesson 1: Why Do We Work? Introduction
  
• Lesson 2: The Challenge of Change
  
• Lesson 3: What do I want to be when I grow up?
  
• Lesson 4: The Power of Goals
  
• Lesson 5: Planning my Work around the Life I want!
  
• Lesson 6: Hey, I want to be an Eagle
  
• Lesson 7: Shaping the Options
  
• Lesson 8: Creative Job Search Strategy
  
• Lesson 9: Preparing for the Interview
  
• Lesson 10: Negotiating Salaries
  
• Lesson 11: Maybe I Don’t Want a Real Job!
  
• Lesson 12: My Own Acres of Diamonds!

To find out more, click here.

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One of the ways to ensure that you won't get ahead financially (on an average income) is to buy or lease a new car every few years.  Many folks think of trading in vehicles at around the 100 thousand mile mark.

Contrast that with the man in Wisconsin who is about to drive the one millionth mile in his 1991 Chevy Silverado.

He credits regular oil changes and maintenance as the key to making his car last that long.

To read more, click here.

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If so, you might want to read this article from the Wall Street Journal.  If you're a print subscriber, the article is on page W1 of today's paper (2/2/08).

The article explains how the NFL is battling some churches over their use of the name "Super Bowl" and the use of the game images on screens larger than 55 inches.  Another issue centers around whether churches can have a message at halftime.

The battle goes back to February of last year when a church in Indianapolis planed a party on a 12-foot screen but was stopped by the league.

Some churches have altered their plans to comply with the rules of the league, while others have canceled their plans altogether.  A few politicians have asked the NFL to change their rules to allow churches to have outreach events.

If you're not a WSJ.com subscriber, send an email to mail@SensibleSteward.com, and we will email a copy of the story to you.

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I was watching Fox Business Channel tonight, and they highlighted a mission named "Free Wheelchair Mission" that aims to give mobility to disabled folks in developing countries.  According to their website, there are over 100,000,000 disabled people who must crawl along the ground or wait for a loved one to carry them because wheelchairs are not available.

The organization builds wheelchairs out of plastic lawn chairs and bicycle tires, and the total cost of building and distributing each chair is less than $50.  The wheelchair design is very creative, I recommend visiting the site to see how these chairs are built.

The group's mission is “Transforming lives by sharing the gift of mobility with the physically disabled poor in developing countries as motivated by Jesus Christ”.

As for financial accountability, they are members of the ECFA (Evangelical Council for Financial Accountability) and GuideStar.org.

To find out more about the organization, click here.

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Today, the Fed announced their interest rate decision, which was another cut of 50 bps (or 0.50%).  This means that many (but not all) borrowing rates will likely drop, including those based upon prime. 

The stock market initially welcomed the news of the cut, but by the end of the trading day, stocks were generally lower.

This cut means that the Federal Reserve has cut short-term borrowing rates a total of 1.25% over the past 8 days, which is a clear sign that they are concerned about a weak economy going forward.  Moves of this magnitude by the Fed in such a short period of time are rare. 

Stocks had rallied in anticipation of today's move, but I'm not convinced that now is a good time to buy stocks.  Many firms have announced earnings misses and/or have laid off employees.  In addition, house prices continue to fall, and S&P has downgraded $534 billion more of mortgage-backed securities.  Furthermore, a couple of the municipal bond insurers may lose their AAA credit rating.  If these insurers lose their top-notch credit ratings, it would expose banks and insurers to large losses and even more writedowns.

Hopefully, the economy will turn around soon.  Until there are more blue skies on the horizon, my investment funds will be on the sidelines.

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I have been reading Super Crunchers by Ian Ayres.  The book explains how Google, Amazon, Capital One, Teradata and others are using sophisticated statistical techniques on massive databases to better predict customer behavior and increase their profits.

In addition to profit motivations, the book outlines other uses of these mathematical processes, including medical research, baseball scouting, movie production, book publication, wine valuation, and determining the best methods to educate our children.

The strongest challengers to these techniques are those who believe that their training and experience are better predictors of success than a mathematical formula could ever be.  However, more often that not, the mathematicians outperform the humans in terms of predictive ability.

The book has me wondering...are there churches out there that are using statistical analysis to help them increase their effectiveness?  If so, what kind of analysis is being performed? 

There must be a way to use these kind of techniques to help grow the body of Christ.  Could we analyze what kind of programs lead to better outreach?  Perhaps we can determine what Bible studies attract greater attendance?  Is there some way to crunch the numbers to help people step out on faith and increase their generosity? 

Clearly, finding church leaders who possess the skills to do these types of calculations could be a challenge, along with gathering enough data to draw reasonable conclusions.  However, it seems that if we ask the right questions of the available data, then we may have some ability to improve the way that churches operate.

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Do you know how much you are paying in fees for your 401(k) plan?  Most people don't.

It turns out that many plans have multiple layers of fees that are not disclosed to participants.  Over the course of a working lifetime, the impact of fees can be astounding.

Since sponsoring companies are responsible for negotiating the terms of these benefits, the terms can often be beneficial to the employer but not so advantageous to the employee.  One of the most egregious misuses of employee funds is known as revenue sharing, where the retirement plan provider may rebate some fees to the employer sponsoring the plan.  Thus, some of the company expenses are paid by fees from the employee 401(k) plan.

Now, many legislators in Congress are calling for greater transparency in 401(k) plans. To learn more about fees in 401(k), plans and how harmful these fees can be to your retirement plans, click here to read an article from Bloomberg News.

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The Federal Reserve meets this week to discuss their latest move with respect to interest rates.  Their meeting begins on Tuesday and concludes on Wednesday with the announcement of their decision at 2:15 pm Eastern on Wednesday.

The U.S. stock market rallied today in anticipation of further interest rate reductions from the Fed.  Many pundits are predicting a 0.50% interest rate reduction from this meeting.  However, if the Fed does not cut rates by this amount, stocks may fall, as traders may become less optimistic that the U.S. can avoid a recession.

Some folks have criticized the Fed for cutting interest rates by 0.75% last week, as those folks believed that the Fed should not be involved in helping to prevent stock market declines.  Thus, it will be interesting to see how this week's decision will turn out.

Regardless of the size of the interest rate reduction from this meeting, it is likely that the stock market will remain volatile for at least the next few weeks, as the earnings announcement season winds down. 

I always try to keep some cash available to invest, particularly when markets begin to get choppy.  This way, there are funds available to invest at points of temporary market decline, enabling me to lower my average cost basis and earn higher returns.  The key is that you must be willing to take risks when the overall market sentiment is at its most negative and people are fearful.  If you are able to buy when others are afraid, you have a greater chance of buying low and selling high.

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The previous post mentioned the tax rebate plan that had been agreed to between Congress and President Bush.  The rules end up being somewhat complicated, so the size of your rebate can vary based upon the size of your family and your income level.

If you're interested in comparing your situation to some sample scenarios that outline how the rules work, please click here to read a story from AP.

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Congress and President Bush have reached an agreement on the principles of a tax rebate plan.  For most people, the plan would pay out tax rebates of $600 for individuals and $1200 for couples, with an additional payment of $300 per child.  The rebates are subject to phaseout for higher income earners.

To read more about the plan, click here.

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