Jason McKnight

The following tips come from several friends in the body at Grace, stuff they have followed to help them out.  I have simply edited them and present them here as a help to you.

Grocery:

-          Plan your meals

o   You will buy what you need instead of picking up random items that may or may not be used during the week

o   For extra savings, meal plan around what is on sale in the local grocery stores.

o   Consider coupons or www.grocerygame.com – where one family at church cut grocery expenses from $450/month to $280/month!

-          Comparison grocery shop:

o   Wal-mart will price match grocery prices (p/u other stores flyers so you don’t have to go to several stores to shop)

o   Plan your menu based on what staple items are on sale rather than paying the retail price (check flyers for chicken/beef/pork sales, etc.)

o   Walgreens rotates eggs, milk, and bacon on a weekly basis for considerably less than the grocery stores

-          Consider investing in a freezer.  Buying in bulk (meats, breads, etc.) when you find deep discounts

o   Can pay for it in a year or two, plus save those “last minute” grocery runs because you’re out of something (that’s usually when you spend extra money on something unplanned)

Budget:

-          Plan your spending

-          Write down every penny you spend for at least 30 days & on what

o   Don’t forget about irregular expenses (car insurance, maintenance on cars, et.)

-          Distinguish as a family: needs vs. wants vs. desires

o   Examples

§  I need a reliable car, I want a new car, I desire a BMW

§  I need tuna, I want shrimp, I desire lobster

-          Set Family Goals (ex. College fund, get out of debt, allow Mom to stay home – these vary with each family)

-          Do you know how much money is in your checking account? (and no, it’s not what online banking says!)

-          2 Keys:

o   (1) Find out where you are – “YOU ARE HERE”

§  List of debts and assets (financial statement)

§  List of monthly expenses (from 30 days of writing down expenses)

o   (2) Destination – “Where you want to be”

§  Debt Free!

§  Family goals (see above)

-          Are you spending more than you earn?

o   Calculate your NSI (Net Spendable Income) = Gross Income minus tithe/giving and minus taxes

o   Do your expenses exceed you NSI?

§  If yes, you must cut expenses or increase income!

o   Is your total housing costs (mortgage, taxes, insurance, utilities, maintenance) more than 38% of your NSI?

§  If so, how can you bring down those costs to help balance your budget?

-          Budget on paper (as a couple, if married) at the beginning of each month, and allocate EVERY incoming dollar for a specific purpose

o   No more can go out than what you bring in!

o   Tithe first!

o   Pay attention over the first few months to what categories can and need to be adjusted

-          If your budget has very little breathing room, assess what are Needs and what are Wants

-          Consider an all-cash envelope system based on a budget, rather than using the “plastic” (credit cards)

o   This way you know exactly where you’re going under or over, and there are no forgotten surprises when the statement comes in

-          Envelope System – put your budgeted amount for each category in an envelope

o   When the envelope is empty, no more spending in that category

§  Works well for groceries, eating out, clothes, recreation, and miscellaneous spending

-          Reduce or cut out as many monthly recurring costs as possible

o   You’re less likely to keep unnecessary services when you have to pay up front every time!

§  Pay credit card off, monthly (don’t carry a balance)

§  Cut the cable

§  Wait a year or two on the latest, greatest technology & subscriptions

·         Generally the “first generation” of any tech. device is very expensive, then drops quickly

§  Call cell company & ask if they can compete with the other company’s best offer, or you’ll switch

·         They want to keep you, and can generally make a better offer

-          Work out an arrangement for hand-me-downs with a family a couple of years ahead of your children

o   Then pass yours on to someone with children just behind you

o   Most people love knowing they can help a family!

-          Multiply your discounts on big-ticket items (clearance, floor models, coupons, etc.)

o   Eg. Lowes offers 10% off coupons every season (up to $500 discount)

-          Buy books on halk.com (used) or Amazon – save 50% or more. (even on housechurch books!)

-          Buy items at the end of current season (i.e. right now is a great time to buy winter clothes)

o   You can get the same coat from 3 or more months ago at ½ off or more!

o   This applies to patio furniture and lawn equipment at the end of summer, Christmas decorations after Christmas etc.

-          Living on One Income:

o   Does mom desire to stay at home but you feel like your family can’t afford it?

o   Have you subtracted the cost of day care, meals out, gas, and extra work clothing from her income as well as the additional taxes you pay on her income?

o   Are there other places in the budget you can “tighten the belt” a bit?

Giving:

-          Give your tithe first

-          Don’t stop giving when things get tight…it’s all God’s money anyway

-          Any additional gifts should come from your family’s surplus

o   That way you are not putting your family at risk of doing without food, shelter, etc.

§  1 Timothy 5:8

-          Look to support one extra ministry & BUILD a relationship with them (i.e. support a campus ministry at your alma mater or child’s school)

o   Your invested not just in education but in the Kingdom!

-          Live by faith

o   Give more on raises

Debt:

-          There are a lot of people who put most of their purchases on credit cards and pay them off each month

o   BUT, studies show that people spend 12-18% more when they use cards as opposed to cash

o   If you budget with cash each month, then you know when it’s gone and you’re less likely to buy something you don’t need

o   Your body literally considers it painful to part with cash…crazy but true!

-          Consider saving a small emergency fund (~$1000), and then focus on paying off debts (other than your primary mortgage) before you begin a larger savings fund

-          List your debts in order, smallest to largest, and start making minimum payments on all debts (outside of your mortgage)

o   Allocate any extra money to your smallest debt until it’s paid off

§  Then take everything you were paying on that smallest debt and add it to the payment of your net largest debt, and so on

o   As you start paying off those smaller debts, you stay motivated and focused, because you’re actually seeing results (As opposed to trying to pay off multiple debts at the same time and seeing very little progress)

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And the final installment of this financial journey:

Our Standard of Living plan (August 2010)

If you have been reading Grace Matters over the last 4 months, you will know that we are on a journey into God’s plans for our finances. Jesus says, “those to whom much is given, much will be required.” (Luke 12:48) Did you know that if you earn more than $50,000 you are in the top 2% of earners around the world, and that you are in the top 1% if you earn more than $75,000?  I sometimes look at my bills and inflation, or I compare myself to sports stars, business leaders, celebrities and find myself thinking that I’m just getting by. But, then I realize that I’m definitely in the top 3-4% of the world’s population, and it hits me that Jesus’ warning is aimed directly at me: I have been given much… and so much will be required from me!

How am I doing on the “much” that God has given me, financially speaking? Am I being frivolous or fruitful? Am I being shrewd or short-sighted? Kingdom-minded or self-centered? If God is going to require much from me, am I going to have it to return to Him? In other words, am I—are we as a body—living with a clean conscience when it comes to our management of God’s resources entrusted to us? Obviously, everything we are and have comes from God—our time, talents and treasure. Over the last few months we’ve been talking about our administration of God’s entrusted treasure. We’ve talked Debt, Savings/Investment, Giving, and now we are going to explore “Lifestyle” questions, or the week-in, week-out household budget.

Maybe you cringe at that word, because you don’t have one or have one but don’t keep it. Perhaps you think of a budget like a straightjacket—always telling you what you CAN’T buy. My definition of a budget is this: it’s an accurate reflection of and a written plan for your income and outgo. It reflects past/current reality, and it directs your future reality. It arises out of your actual obligations (ie., how much your giving should be, your mortgage, utilities, groceries, gas and phone are) and your realistic goals (ie., what you want your savings and planning to be). In order to get an accurate reflection, you need to record your actual spending for a month or two. Just jot down on a pad of paper every last cent that leaves your hand, and what it leaves for. And, in order to make a written plan, you need to categorize your spending.

Our family budget at this point is made up of 5 categories:

·         Giving/Savings/Investing—our tithe to Grace and support of other ministries, Prepare the Way sacrificial gifts, regular & emergency savings, and long-term investing. If, as God’s people, we are giving a minimum of 10% to the Lord’s work, and if, as wise people, we are saving a minimum of 10% (I recommend both of these percentages on our gross), then this first category may well be the largest. This is a good thing, from the perspective of training us to be godly and to delay our gratification.

·         Household—mortgage, insurance, taxes, utilities, phone, cable, miscellaneous (yard-care, repairs, etc).

·         Transportation—savings for car repairs, taxes & registration, insurance, and our next car (or a car payment).

·         Living Expenses—gas for the cars, groceries, doctors/meds, clothing, haircuts, gym, cell phone, pre-school, and all the other stuff that we use up each paycheck.

·         Saving for Future expenses—those things that we use up each year, but are not regular; stuff like Christmas gifts & vacations. We put away money each month for these, so that we are not in debt at Christmas nor at summer vacation time. What else can you think of?

If you have credit card debt, school debt or other non-mortgage/non-car debt, that would be a sixth section, and should go right under giving/savings/investing. You’ll see why in the next paragraph.

The order of these categories is important. In order to live with a clean conscience before the Lord, we need to put the boulders in place before we drop the pebbles in. The boulders are the important and immoveable things—giving, savings, and ridding ourselves of debt. That’s why those two sections should be the first two. We need to give what we need to give BEFORE we decide how much to spend on clothes. We need to get rid of our credit card debt BEFORE we make decisions about what cable package we sign up for.

The household and transportation sections come next because our house and cars are the biggest portions of a regular family’s budget. We have to make sure we allocate enough each paycheck to be good stewards here. We can’t get behind in our utilities and go on cruises every year; that just doesn’t make sense. So, we must make these planning decisions before our living expenses. (NOTE: the assumption is that the house and cars you have are appropriate for your level of income, and so you can work within that framework. If you need to move or downsize a car, that’s a whole different discussion. And, it’s a decision that several folks in the body can help you make, in a confidential counseling session. Call Mike & Stacey Wiggins or myself and we can set you up with Grace financial counselors).

Finally, we get to the Living Expenses (and future expenses) portion of the budget. By this point, a huge deal of your regular income is accounted for and allocated with a clean conscience. So, this is where you allocate the rest in a way that will keep your family fed, clothed and entertained appropriately.

If you do not have a family budget, will you do yourself and your children a favor by taking the steps to put one in place? If you have one but don’t hold to it, will you grow in discipline and shrewdness so that you do? Again, it’s all about living with a clear conscience before the Lord. Please don’t put this down without praying, “Lord, where do I need to grow?”

Keeping to a budget is a matter of discipline and shrewdness. Discipline to keep at it, and to sit down and do the record-keeping each payday. That’s what makes or breaks a budget—whether or not we actually allocate everything properly on the day we get our paycheck.

There’s another kind of discipline that makes or breaks a budget: the discipline to say NO to a good opportunity because you have a bigger YES inside (as Stephen Covey framed it). There’s a great sale—too good to pass up—but, we don’t have the money, or we don’t need the item. The discipline to say “I’ll find another sale when I have the money” keeps us on track. The discipline to know the difference between wants and needs keeps us on track.

As for shrewdness in budgeting, several folks have given me great suggestions that help them keep their costs down each month (ie., one family when from spending $450/m on groceries to $280!). I have posted them in the next blog entry for you to explore more in depth.

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And, the 4th article of 5:

The Treasure Principle (July 2010)

We are on the journey – the 4^th part of the journey into God’s finances in our lives. We began this journey three months ago in April’s issue of Grace Matters. I encouraged us to think of our whole financial lives as falling into one of 4 categories: Debt, Savings, Giving and “Lifestyle”. In May we discussed Debt and last month we considered Savings. Today we get to my favorite: giving. Next month we’ll round out the series with some lifestyle/monthly budget tips and helps.

You might remember that I have gathered insights from almost a dozen people in the church, so you can rest assured that the encouragement and challenge that follows is not mine only. From this wealth of knowledge, let me offer 3 insights into Scripture, 4 instructions for us to run with, and 1 question.

3 Insights into God’s Heart for Giving

Do you remember Randy Alcorn’s little book The Treasure Principle? It is the best short book on the nuts and bolts of giving. He frames the title around Jesus’ awesome words in Matthew 19. Jesus is talking to and about the “Rich Young Ruler” who wants to follow Jesus in every way but with his money. He wants to be a disciple, yet withhold part of his followership, “um, no, Lord, you can’t look in my checkbook.”

The amazing thing is that Jesus sets up a business proposition for him. Jesus addresses the very heart that is looking for a good deal, a great stock tip, an awesome investment opportunity: “Sell all you have… and you will have treasures in heaven.” (Mt 19:21)  Jesus uses investment language for this shrewd investor. But the guy doesn’t bite. He wants a shorter term horizon, a nearer pay-off. Eternity, heaven, the next age… that’s all a little too far for him.

Yet Jesus follows it up with this awesome guarantee of the rate of return, the Return on Investment: “anyone who has left [everything] for my sake will receive 100 times as much and will inherit eternal life.” That’s a 10,000% rate of return. That’s not bad. Move over American Funds… Jesus guarantees that living life the way he wants us to live it IS WORTH IT, even in our regular way of thinking—risk and reward.

A second verse in Matthew helps us as we think about carving out a growing proportion of our income for the work of the Lord: Mt 6:21: “Where your treasure is, there your heart will be also.” I always thought it was the other way around: you’ll put your treasure where your heart already is. But, Jesus says that our heart actually follows our wallet. Wherever we invest our money, our heart is going to follow. Framed like this, we need to be super careful about the spending/investment decisions we make. Every dollar means a heart-string to something! Axiomatic among fundraisers is that if you can get someone giving toward something, they will soon be very interested in it. It’s exactly what Jesus said. So, take-away: how does your investment (ie., giving, tithing, offerings, gifts) in the Kingdom reflect your heart? Would you be embarrassed for your friends, family, church or Lord to see into your giving records? Where you put your treasure is what you truly value. May it be Kingdom work (and that means not only at Grace, but anywhere the Gospel is being preached and lived).

The third insight is a gift of encouragement. God’s heart is so for us, that he tells us for every step we take in obedience to him, he takes 2 (or 10) toward us in blessing! Malachi 3:10 says, “bring in the whole tithe into the [Temple],and see if I do not throw open the floodgates of heaven and pour out so much blessing that you will not have room enough for it.” Now, this is not a “give to get” promise, nor the prosperity gospel. But frankly, I’d love for God to have my back to bless me in ANY way he sees fit. If I give him $5,000 or $105,000 this year, and he blesses me—not by giving that money back in a different way—but by giving me contentment with that much less, that’s a miraculous blessing (you should see how sometimes I can be very greedy!). The blessings come in a million ways. God is so much more creative than “sow a seed” preachers who say, “give $1000 right now, and you’ll get $10,000 in a week”. How boring. God blesses in a multitude of ways. The point is summed up well by this non-biblical axiom, God is no man’s debtor. Amen.

4 Instructions for My Heart for Giving

1.         Give first and start now… or you won’t do it… This is just that simple. If you say, “I’ll start giving on my next paycheck” or “I’ll start when we finish paying this debt”, then there will always be something else to pay off, or a next paycheck to start on. The best way to grow into the grace of giving is to start now. Don’t wait for an opportune time. You’ll miss out on a life of blessed giving. And, each paycheck, make your tithes, offerings and gifts the very first item of business you do in the family budget. don’t see what you have at the end for the Lord. Start with the Lord, and he’ll stretch the rest. No doubt. (Now, this doesn’t mean if you give first you won’t have to exercise any self-restraint. Of course not. But, at least as you are splurging or scrimping, you can do it knowing that it’s with “after-God dollars”.)

2.         Give wholeheartedly – when you write that check, or do the online banking, stop and give thanks for a moment. God has provided you AGAIN with the money for you to invest in eternity. Don’t lose sight of the treasure principle, and the reward held out. Imagine that God would give us that kind of a stock tip. Invest your money in the kingdom with a whole heart!

3.         Give to the Kingdom – it’s not enough for us to give to human causes. We definitely need to be community minded and citizens of our towns, cities, states and country. But, ultimately, we are citizens of a heavenly country, so our giving needs to be heavily weighted there. Now, turn the analogy to warfare. We are in WW2 and everything is rationed for the war effort. Please make sure you are making your resources available to the front line battlegrounds (in Kinston and across the world). Give to Kingdom ministries above all.

4.         Give on a sliding scale / graduated scale – I was shocked and in disbelief when I first heard about this. You give an increased amount of each raise/bonus/inheritance/new source of income. Think about it: you are tithing a healthy 10% on your current income. That’s awesome. Now, you happen to get a 5% raise, or a $10,000 bonus, or a gift from your inlaws. You didn’t have that money yesterday, but now you do. You didn’t need it to live on yesterday. Now, how are you going to invest it? What if you gave 15% on that raise portion, bonus or gift? Not your total salary, just your increase. And the next year, what if you gave 20%? And on you go investing in the kingdom, and here’s the kicker: you don’t even feel it, because it’s on money that you’ve never yet incorporated into your family budget. I was shocked when I first heard about this. Now that Sue and I have been practicing this for 5 or 6 years, it’s a joy to grow in the grace of giving, in a truly attainable way.

Now for the question: How does God want you and your family to grow in giving? What action steps do you need to take? Which of the 4 instructions do you need to work on? Just pick one and start! He’ll meet you in it, and take you deeper into making investments that truly last and bring the greatest dividends.

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Here is part 3 of 5

A penny saved is a penny earned (June 2010)

This is the most fun item in our series on Godly financial stewardship and management of his resources: savings. If you have children in high school, college, or their twenties, please have them read this. Two months ago we dealt with an overall framework and the most important tool in getting a handle on finances: keeping a daily record of every cent spent, for 2 months or so, simple, accurate diagnosis. Last month we dealt with debt; how to recognize trouble, how to stay out of it, and how to get out of it.

What is the purpose of savings? What is the biblical rationale for it? What types of savings are there? And how do we do it? Let’s dive into these questions.

The purpose of savings is to be prepared. If you think about it, it’s that simple. Be prepared for some costs or outlay in the future; retirement, a trip to Disney World; a car or child’s college; a new stove. You save up for all sorts of things. The point of savings is to be prepared.

In fact, Proverbs 21:5 says this, “The plans of the diligent lead surely to abundance, but everyone who is hasty comes only to poverty.” The general principle of life (the proverbial truth) is that diligence—i.e., preparedness—leads to abundance, extra or savings. Poverty awaits those who don’t give any thought to saving for the future. Verse 20 says a similar thing: “Precious treasure and oil are in a wise man’s dwelling, but a foolish man devours it.” The wise don’t devour everything they receive (or earn), but they keep some aside… to be prepared.

Let’s walk through the various types of savings and how we can work toward them. Keep in mind, the purpose is to be prepared for what God brings our way. We don’t save to “get rich” or “accumulate”.

Saving for Expenses:  Expenses that occur randomly or annually, instead of every paycheck. We must hang on to some of our paycheck to pay for the car insurance, homeowner’s insurance, Christmas gifts, vacations, car repairs & registration, etc. How much are each of these? Have a line-item in your budget for each one, and then every pay day, transfer that total amount into a special “future-expense savings account”, and keep a list of how that money breaks down.  For example, you are saving $100 for Christmas each month, $180 for homeowners’, $75 for car repairs. After 3 months, you have to pay $120 to fix your car. Make sure it comes out of the “car repair” section of your records for this “future-expenses” bank account. Don’t leave this money in your checking… too tempting to spend on a great sale for patio furniture or something!

Emergency Savings: in our day and age, we need a minimum of $1,000 in the bank to get us through a crisis—a rock hits your windshield and you need to pay the deductible, the dryer gives up the ghost, an unexpected hospital bill. We’ve got to have $1,000 available. Why? So that we don’t have to go into debt in a crisis situation.

By the way, a line of credit against your home’s value is NOT emergency savings. It’s emergency debt. Do not use that as a “quick source of cash” for the needed new dryer. Plan well and build a cushion.

How do you accumulate that $1,000? First step is change your budget, and put away $100/month into a savings account. If your income will not allow for that, take a longer term approach to building it up. One friend suggests the following: start packing a lunch and hold that $5-7/d; build $10 or 15/wk into your family budget; use your tax refund, bonus, raises or other gifts.  The good news is that once you have topped your emergency cushion, you can use that $10/week or $100/month to pay down debt or save for other things.

Savings for college, cars and the medium term: This is a 2-10 year horizon. Last month I passed along my father-in-law’s advice on saving in advance for cars by making a monthly car payment to yourself. I guess we need to consider the same thing for college (those of us with children not yet there). As a couple, you need to decide how you are going to help your children pay for college. It is not necessarily your responsibility, but it is a great gift to them. I think every college student should help pay their way (summer jobs, semester jobs, etc.). It’s wholly appropriate for Dad and Mom to sit down with Freshman and say, “you will be responsible for $2,000 each year through jobs” and then show them how much you are going to pay. College is about training them for life in the real-world. You can give them an education in finances almost worth more than the sheepskin!!

In the meantime, how do you as parents save for it? Monthly or quarterly contributions to a 529 college plan are a great tool (or even just to your own savings account). You will be surprised how far $50 or 100/m will go over time. Be careful about the plans you use—weigh risk, return and horizon, as well as management fees. College savings are a great place to use raises, bonuses, tax refunds, and the like. Also, many grandparents are willing or able to help (does not take parents off the hook!). One friend’s parents kept the inheritance they received from their parents to pay for my friend’s college costs.

Retirement & Long-term Savings – There is no doubt that each of us is going to have expenses in retirement, even if we don’t have jobs. That’s the reason we need to save now. Remember, savings is about being prepared. In this case, prepared for the day when we are no longer earning an income. We get to live off the “precious treasure and oil” in our houses (Pr 21:20).

The world has missed the boat on retirement savings. They advertise them so that we can do what we want in our retirement years, playing golf in Florida every day, and living like kings. Not so. We may retire from work (ie, no income), but we don’t retire from ministry! It seems to me that it’s only by 60 or 65 that we have enough wisdom to minister effectively. I think of all the “retired” folks at Grace and marvel - they are the cream of the crop. The Lord ages folks beautifully in Christ (like a fine wine?).

Some principles for those of us still working: you are not saving enough! Increase the amount that you put away. Increase it with each raise; give more, save more, then give yourself a living increase.  

Long term savings is the 2nd check you write each month (after giving). Make sure you put money aside before you start paying bills. There won’t be any left over at the other end! Adjust your lifestyle now, so that you can be prepared then.

One Final Note: There is one final reason to save: so that you can be prepared to give when God taps you on the shoulder. Imagine that God would include you in His kingdom work in such a simple way—giving back to Him what is His. Did you know that “giving” is really “long-term investing”? Every gift we make to the Lord and His work is “storing up treasure in heaven”—ie., retirement planning on the ultimate level (Mt 6:20). Twice in the last 2 years God made it very clear to Susan and me that we should give something extra, something in addition to our monthly giving to GFC, various ministries, and Prepare the Way (building fund). It’s His money, after all. He let us know that we need to give a special gift at two different times. They were scary gifts relative to our income and assets. But, they were at His leading. We only rejoice that we can be part of supporting the Kingdom.

I hope you take seriously the help here to grow in being prepared—in savings, short-term, medium-term, long-term and ultimate-term. I know that God will lead you and fill you as you live into his principles. It may take months or a couple of years to get where you need to be… but keep at it. God blesses obedience, and his blessings seem to have a way of compounding over time (like savings compound!).

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Here is the second of five parts on our financial journey.

Buy Now, Pay Later? (May 2010)

In last month’s newsletter, I began a series on how we steward the resources God has given us. If you didn’t get a chance to read it, do so (you can access it on line) because you will hear my heart for us as disciples living blamelessly. We talked at church last Sunday (4/25) about Grace’s financial situation. Please keep praying for that. But as we lean into God’s test of our congregation, let’s be diligent and prudent in our personal lives… leaning into his plans for each of us—to bless us and give us the abundant life (which is not the prosperity gospel, but does mean a life of peace and contentment).

This month we are going to tackle the area of personal finances that steals peace and contentment: the use/mis-use of debt. In the April 17 issue of The Economist, I read “Many Americans, lacking true upward mobility, bought its trappings, such as a bigger house or better car.” (p.29) The availability of debt is what enables so many to “upsize” their lifestyle, even when the income is not there.

So what can we do, as people of the New Creation, called to live by godly wisdom? Let me offer a three-fold framework, and then some miscellaneous suggestions

(1) How to recognize Trouble

Retailers today encourage debt as a normal way to make purchases. Furniture: “No payments until January 2011”. Cars: “zero down, 4.5% APR for five years”. Mortgages: “Get a 3.85% ARM”. Credit Cards: “what’s in your wallet?”. Everyday the world tells us that “debt is no big deal.”

Recognize this: those low percentages represent extra money that we have to pay in order to use the thing we’re buying. The true cost is the purchase price PLUS the interest. For a $15,000 car that we finance (5% for 5yrs) the true cost is $16,984. (Meanwhile the car is only worth 1/3 of the purchase price five years later!). $850 flat screen on “no pmts til January” sounds good, except, if you miss one payment there are 15-20% charges. Is the TV worth that extra $150?

Also recognize what one friend noted to me: that the ultimate cost of a car is not the monthly payment. It includes the insurance, gas, repair savings, etc. Project them out. Perhaps the $10,000 car is more in line with what money you have available for the “car” portion in your budget than the $17,000.

Recognize trouble before it gets you: the world (and my flesh!) wants us to buy more at any cost. We’ll say NO.

(2) How to stay out of trouble

That’s the crux: being able to say NO: keeping our appetites under control. This is a tough struggle. It’s so easy to throw in the pack of gum at the check-out line, or “supersize” at McDs, or buy both shirts because it’s a good sale. None of those will kill us, but together the habit will do us in.

One friend counsels us to ask 3 questions when considering any purchase (but especially those that are going on a credit card or loan): Do I need it?; and be honest on this one! Can I pay for it? Make sure you actually have the money. Am I free to pay for it? In other words, where is the money going to come from? Good insights. Great questions.

Helpful hint from another friend: Pay with cash, instead of credit cards. Studies have shown that we physically don’t want to part with cash, but don’t have that same qualm about plastic. I did not know this, but have intuited it, as I don’t want to “break a $20” for a $2 coffee.

The one major piece of advice my father-in-law, Irv Chambers, gave me (when I asked him for it): save up in advance for your cars. They would have a “car payment” line item in their budget, and make payments each month, but the money would go into their savings account. Then, they paid up front for their cars, and kept making their car payments… except it was for the next car. The difference? They earn interest on their car payments instead of paying interest on them! We started this about 8 years ago, with a measly $50/month. With each raise, we increase the amount that goes to the car payment. Genius.

(3) How to get out of trouble

Some of us are swimming (drowning?) under all sorts of debt. IF only we’d read these principles 5 years ago. Read on! All is not lost. Our God is a God of the second chance who restores the years the locusts have eaten. He’s also a God who hard-wired the world with principles for wise living—prudence and diligence tend to be rewarded. Remember Prov 21:5 – “the plans of the diligent lead surely to abundance.”

What do I do if I owe several different creditors? How will I pay them off? Three steps: (1) list ALL your debts on one sheet of paper—from smallest to largest. Write the amounts, the due dates, the minimum payments, etc. You must know what you are up against.

(2) Make the minimum payments on all of them; keep on the right side of the law, and keep your word. (3) Take the smallest debt first and allocate all extra money to pay it off. Get it gone, and you will be closer to getting all of them gone. Move on to the next smallest right away. You’re building momentum, you’re clearing the creditors out. It won’t be long before you’re down to 4 creditors instead of 7—you are getting the small ones out of the way.

You will likely have to make lifestyle adjustments to get rid of the debts. (It makes sense, since we made the wrong “lifestyle adjustment” that got us into trouble in the first place.) As you work your way out of debt, practice contentment—God will give you everything you need at just the right time.

Not all debts are our choice – for example, debt from medical bills. We can’t help when we break our arm or worse. However, nothing in God’s economy says that when bad things happen to us we are still entitled to everything else we want. If we have to pay medical bills, we simply have to pay them. Call the hospitals, and check into discounts, and work out a payment plan. They will work with you in most cases.

Miscellaneous suggestions

If you own your home: pay your mortgage bi-weekly instead of monthly - $350 every two weeks, instead of $700 each month. On our home mortgage that one simple step would reduce our payback by 5 years! Imagine having $700/m in your pocket five years earlier – that’s 700 * 60 months: $42,000 in your pocket. Not bad

Sit down with a friend: This month, Sue and I are going to spend an hour with a trusted, godly friend who can take a look at our budget, goals, decisions and action plan. What a treasure to have a fresh set of eyes on our budget (typically the most private area of our lives). We’ll see what insights he brings. But I can tell you, as I get everything together for him, I’m understanding our processes better.

Good Debt vs. Bad Debt: All of us would agree that it’s bad to carry balances on credit cards. Almost all would agree that a mortgage is a good thing (how would we ever save $100,000 while paying rent each month). What about in the middle? Car loans, education debt, lines of credit for home improvement, etc. I shy away from it. Some are necessary—you have to have a car for work, who has $12,000 sitting around. Wisdom says be as careful as possible about taking on debt. It means an obligation by you to another.

This is not the last word on Debt, but I trust that there is something for you to chew on here, or for you to teach your students/children. Disciple them into sound financial principles, parents! (even if you haven’t always practiced those principles). Also – do email any questions, feedback or further suggestions. Keep at it, and get ready—next time it’s Savings.

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This is the first of five posts (taken from our church newsletter) about how God would have us thrive in the area of finances.  They are self-contained, but definitely build on each other.  I hope you find these as helpful to read as I found to write!

Invitation to a Journey (April 2010)

I’d like to invite you on a journey with me. It will continue through the next few months of Grace Matters newsletters. It will very likely save you heartache and pain in future years, and help you through some tough times in the present. It will give you a framework for some of your most important (and frequent) decisions. What is it? It’s a journey into God’s finances in your life.

Notice I didn’t say “…into your finances.” The reality is they are not yours; they are God’s. Everything is God’s. He gives it to us to manage for His purposes. He’s actually given us a whole lot, hasn’t he? Homes and incomes, savings and investments, clothes and televisions, cars and boats. The key is for us to live into the truth that they all belong to Him. They are His, on loan to us, so that we can bring Him maximum glory by how we use them.

This is the main purpose of the journey I’m inviting us on: that over the next few months we would grow in perceptible ways, and change some practices so that we (as families and a body) would bring increasing glory to God in all that we do, including the financial realm. What do you think God could do with a group of people (say 300 of us) who have his mind about how to negotiate the opportunities that our particular time and place afford us? Don’t you think, as God sees our courage and faithfulness, he will give us joy on this journey, and invite a whole bunch of angels and saints to peer down at Kinston and say, “look at these folks – they are living for me in a radical and true way.”

Some of you are reading this right now and saying, “I’m so far in the hole, I don’t know what to do.” Or, “I don’t know where we’re going to get this month’s rent, let alone live in radical ways…” Or, “That’s fine Jason, but one of us is in real danger of losing our jobs… what can we do?” This journey is exactly for you. Because God is not done with you – there are miracles to unfold, and He’s still writing the story of grace in your life. Hang on to Him, and follow Him on this journey.

When I was in my 20s, I became burdened with the idea that a whole generation of wealthy Christian men and women in Montreal would not live forever, and that my generation needed to learn how to live by giving, so that we could support the Lord’s work (churches, ministries, camps, schools, etc.) and see the kingdom advance. I reasoned that if 20 or 30 of us young men and women, with 98% of our earning potential ahead of us, could get the basics of godly financial management right, we would be set to support Kingdom work, and our families for the rest of our lives.

Since that time, I’ve thought long and hard about godly financial management.  I’ve been taught by many mentors. I’ve been trained by some great materials. I’ve drunk deeply of God’s Word on this matter. I’ve practiced principles while single, and then meshed them with Susan’s godly practices once we got married. I’ve counseled folks in trouble, taught groups the basics, and generally been very aware of the real needs here. My burden has not lessened over the last 15 years.

So, over the next few months of Grace Matters, would you join me on a journey into God’s heart for the finances he’s given you? A question you should have is, What does the journey entail? It’s two parts: (a) Read the newsletter and internalize the truths (In fact, you may want to start a little file to collect them for future reference); (b) take the action steps given in each issue.

For today, the action steps are simple: one prayer, one framework, one assignment and one proverb.

Prayer: Ask God to help you grow in Him. That’s all. Tell Him you want to listen to His voice and make the hard decisions. Ask Him for joy and help as He leads you on this special journey.

Framework: I don’t know if you have ever categorized your budget line-items. You have the income on the one hand. That’s fine. Don’t we all wish we could have more in that category! Actually, people’s financial problems almost never come from the income side of the equation. They almost always come from the “Outgo” side. So, here’s the framework I suggest you consider for your Outgo part of the budget: four categories that will encompass every last dollar that goes out the door: Giving, Savings, Debt and Lifestyle. Granted, that final category will be the largest and most complicated—the house, car, clothes, vacations, groceries, education choices, etc. Think of it this way: when you get an extra $100 of income, you have to make a decision to put that money in one of those 4 categories (or split it between them). Start considering this as you send money out the door: is this Giving, Savings, Debt and Lifestyle?

Assignment: Take this next month – between now and the next time you read the newsletter – to write down everything you spend. Simply get a sheet of paper. On the left-hand side at the top write “Date”, next to it write “amount”, and then write “Description” (this third column should take up half or more of the width of the paper). And, go to it: jot down every last dollar that goes out of your hand, your bank account, your credit card. $119 on groceries; jot it down. $812 on rent or mortgage; jot it down. $38 at Lowe’s for fertilizer on your Visa; jot it down. $99 for Cable/internet bill; jot it down. $2.58 for a cappuccino at Starbucks (that’s for our Goldsboro and Greenville readers!); jot it down. You get the idea. Just record every last dollar that goes out. You’re not going to do it forever. But for at least one month, get a snapshot of where everything goes when it goes out the door.

Proverb: The plans of the diligent lead surely to abundance, but everyone who is hasty comes only to poverty. (Prov 21:5) Have you been diligent with the finances/resources God has given you? Have you been hasty when it comes to finances… you know, you just look at your bank statement instead of balancing your checkbook, or you don’t stop to think through where the money for this large purchase will come from (even though there’s “No interest and no payments till 2011”). God says abundance is in the future for those who are diligent. That doesn’t mean we’re all going to be wealthy. But, “abundance” means every need supplied, extra ready for tough times, fun & celebration in proper measure, peace of mind in all things, and God’s blessing and leading for his glory in your life. That sounds like an abundant life to me. And, it comes to the diligent, not the hasty.

April 15 is just around the corner. What better time of year to take stock of our understanding and principles of money management. Will you join me on this journey? Will you be one who proves diligent, and on the road to abundance?

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Friends,

The following is an email that Sue sent to some folks.  Read it and the link.  Then, will you join our family in providing a mosquito net for a family? What if Grace Fellowship were ever more part of God’s rescue plan around the world!! 

Jason

Hi friends…

You all know I’ve recently read “The Hole In Our Gospel” and have been quite convicted by what I’ve read! I am more and more impressed with World Vision, an organization that reaches out with the hands, feet, and heart of Jesus to the hurting all over the world. The president of World Vision, Richard Stearns, is the author of the book.

Anyway, I’ve just found out that April 25 is World Malaria Day. Did you know that each year 800,000 children die as a result of Malaria? World Vision has launched a major campaign to combat malaria in these countries where it is still deadly. One major thing they are doing is getting out mosquito nets. How easy is that? I wanted to pass along this article (click on link below) and challenge us - what part can you and your family play in this?

Take a few minutes to read this link - it’s really good!

http://www.worldvision.org/news.nsf/news/mozambique-malaria-200904-enews?Open&wvsrc=enews&lpos=rgt_txt_enews_tt_pr_WORLD-MALARIA-DAY

Thanks!

Susan

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What do you really, really want to know? Everyone has questions. Think about it. 

Some are bold to ask, others are shy. Some pretend like they’ve got all the answers, others are all too happy questioning everything (thank-you, pre-schoolers!). Some have questions about God, others have them about our own lives. Some ponder philosophically (how can the bible teach that God is fully in control, and yet not the author of sin?), others want the bottom line (so what are we supposed to think/do about Gay marriage?). Some wonder about our church doctrine, others about personal lifestyle/discipleship stuff. 

What’s your question? Where would you like some direction, answers, encouragement, help? 

This summer, the preaching series is going to be addressing your questions. Write them as a comment on this blog.  We’ll gather them together, and tackle one (or one grouping) each week during the summer months. 

So, ask away, and we’ll get to as many of them as we can.  And, thanks in advance for asking something that others also want to ask! 

Blessings,

Jason

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Our church services do not matter to God. Our multi-church community services don’t matter, nor do our mission projects and women’s circles, our help for the homeless, feeding the hungry, youth groups and community action groups. They simply don’t matter to God. 

In Psalm 51:16, David says to God, “I know you aren’t into dead animals. They do nothing for you”: you do not delight in sacrifice, or I would bring it. You take no pleasure in burnt offerings. 

Didn’t God tell his people to make these sacrifices back in Exodus and Leviticus? He explained in minute detail what is to be sacrificed when and in what way. 

But, David catches on: “You don’t care about those things, do you God?” I wonder if we’ve caught on? Today, we don’t offer animals. We come to church, we help the hungry, we have bible studies. If David were writing today, he’d write, “God, you don’t delight in our church services, or I would bring them. You do not take pleasure when we feed the hungry.” 

This is a crucial word from God for us to hear today. It’s difficult, puts us off balance. And, it should. We need to be very careful as we come to God. 

But, verse 17 shows David’s hope: “The sacrifices of God (aka, that God delights in) are a broken spirit; a broken and contrite heart, O God, you will not despise (or, you will take pleasure in).”   

God doesn’t want our church services. He wants our hearts. Our broken hearts, our contrite hearts. Our penitent hearts. Hearts that are no longer self-sufficient, but are hungry for God. Hearts that are no longer a self-starter, but are waiting for God. Hearts that are no longer self-justifiying, but are confessing before God. 

Confessing our need and our needs. Our needs are our sins, our errors, our wrongs. The things I have done—in word, deed, thought or action—the things I have left undone. Those things that dishonor God, that rebel against his gracious Word, that go against his character. That’s sin.  

We confess, too, our need – our need of his sustaining power for our very breath. Our need of his gracious presence for our very life. Our need of his only Son for our eternal future. 

So what does God want? A broken heart and a contrite spirit. He wants us to live Psalm 51:1-4 as our daily prayer:   

“Have mercy on me, O God, according to your unfailing love; according to your great compassion blot out my transgressions. Wash away all m y iniquity and cleanse me from my sin. For I know my transgressions, and my sin is always before me. Against you, you only, have I sinned and done what is evil in your sight…” 

He wants confession – confession from a hungry and waiting soul. This is Lent, the time of the year, above all others, when we ponder what it means to confess. 

In his book Your God is too Safe, Mark Buchanan notes that confession is “presenting our real self to God. It’s bringing before God not the person we hope to be, but the person we actually are.” (p.166) 

I think that’s spot-on. Presenting our real self to God. How are you at doing that? We don’t get a lot of practice in being real with people. We keep our appearances up before strangers and co-workers. We try to keep up with the Joneses in the neighborhood. We don’t let our in-laws get the better of us. 

Even church, which is supposed to be a home (where people feel welcomed) and a hospital (a place of healing), is often more like a hotel – where a bunch of fairly strangers gather trying to look like we belong at such a place. 

Confession is presenting our real self to God. Buchanan continues: “[it’s] when we quit all the deal making, the sidestepping, the mask wearing, the pretense and preening, and we get bone-deep honest before God: I am the man!” (P.167) 

Have mercy on me, O God, according to your unfailing love. This is our life-blood. Thanks be to God that his love is really unfailing, it’s totally committed, not petty and conditional like ours. Thanks be to God that his compassion is great – so great it looked beyond my fault and saw my need. Thanks be to God that cleansing and forgiveness are total and true and final. 

Confession is so hard, isn’t it?  The last thing I want to do after my wife and I have an argument is go to her and apologize. And, if I do apologize, the last thing I want to do is ask for her forgiveness. I’m giving her all the power over that wrong. 

But, confession is the doorway to a pure heart, a new spirit. Through confession we see the joy of our salvation restored. When we keep silent about our sin, our bones waste away… By owning our stuff, God restores to us the joy of our salvation.  

How do we know? Because our salvation first comes to us when we look heavenward, with arms outstretched, and say, “I can’t, but you Lord Jesus can! Father, I’ve sinned, I’m done for. Have mercy on me in Christ.” And, then what happens? God moves in response to our confession. It’s what he was waiting for. He pours out his love into our hearts, his Spirit, his joy and peace. 

As a child of God, we cannot hope to hang onto our sin and also bask in joy. We’ve got to get rid of the one, so that the other can take its place. A broken spirit becomes a steadfast spirit. And a contrite heart becomes a pure heart. And our brokenness, our confession, when we own our sin in all its ugliness becomes the doorway to the joy of our salvation. 

One last thought: God never means for confession to be solely me to God. True confession, true brokenness always leads us back to the one on earth whom we have wronged. During Lent, as we hear the call to live with a contrite spirit before God our Savior, will we also hear the call to confess and seek the forgiveness of those we’ve wronged? 

Jesus said, “If your brother has something against you, leave your gift at the altar and be reconciled to him.” God doesn’t care about our gifts at the altar. Remember? He cares about our hearts behind the gifts.  

If someone has something against me, it’s because I’ve most likely wronged him. I need to make it right – confess, apologize, seek forgiveness, offer to help the mess I made. 

Who is it on this day that you need to live Psalm 51 toward? In our spirit of penitence and preparation before God in Lent, who is he calling you to make things right with? 

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As we round the corner after Thanksgiving (still full from the feasting and thankful for our blessings), we come into the final lap of 2008. Right before the finish line is the biggest holiday on our calendars: Christmas. What a transformation Christmas brings: we gather with family, we redecorate our homes, we have special church services, we sing special songs, we give gifts, we cook feasts, we party and we are even allowed to greet strangers with a smile and good wishes! Truly this is a special cultural event!

As the people of God, we fully grasp the meaning of Christmas, even if it is misplaced at times in the hustle and bustle. We know it’s about God’s rescue mission to earth, “peace on earth, good will to men”, the “rising sun” coming to us from heaven, as Zechariah sang, to lead us into the path of peace.

To me, one of the most moving Christmas hymns is O Holy Night. The tune is stirring and the words bring tears to my eyes. Allow me to bring to mind just one line: “Long lay the world in sin and error pining, Till He appeared and the soul felt its worth.” How long was the world pining for help? How long was it mired in sin, prone to error? Longing for a thrill of hope? Too long. Even up to today.

How many of our friends, co-workers, neighbors, classmates and family are pining for something more out of life? How many of them are hungry for food that satisfies, for drink that quenches thirst, for the Gift of Gifts that surpasses even a flat screen at Christmas! What would it be like if he appeared in their days this Christmas? Might their soul, at long last, feel its worth?

What a thought – “the soul felt its worth.” There is a God-given dignity and value in each and every human soul. A dignity and value that is corroded by sin’s cancer, imprisoned by the Enemy’s dominion, and frittered away by our own stupidity when left to ourselves.

What would it be like for the soul to feel its worth? It would be life and peace. It would be generosity and hope. It would be forgiveness and goodwill, gentleness and kindness, honesty and contentment, conviction and love, strength and self-control! That’s what happens when He appears in a life, in a community, in a nation.

How will souls around us feel their worth? How will he appear in Eastern North Carolina this Christmas and in 2009? Through you and me—the body of Christ. I read Garth Rosell’s account, The Surprising Work of God, which details the amazing revival and awakening across the US in the 1940s and ‘50s. It relates the friendship of an anointed evangelist, Billy Graham, and a faithful and visionary pastor, Harold John Ockenga. From 1936 to 1969, Ockenga pastored the venerable Park Street Church in Boston, just down the hill from the gold-domed Statehouse. During that time, he and Billy became great partners in the work of the Lord – founding together, among other things, Christianity Today (1956) and Gordon-Conwell Theological Seminary (1969)

On New Year’s eve, 1949, Ockenga invited Graham to preach in Boston to the youth there. What followed was an amazing outpouring of God’s Spirit throughout New England. Between January and April (when Billy came back for four weeks of meetings) 10,000 people gave their lives to Christ. The revival and awakening spread from there throughout the US and around the world. It’s really an amazing account of God’s sovereign grace redeeming those who long lay in sin and error pining.

Brothers and Sisters, I think it’s time for us to pray with eager expectancy for another work of revival and awakening such as we have never before seen. If the events of the last 3 months have brought anything to the fore, it’s that the Kingdom of our Lord and of his Christ is our only hope. If these last 5 years have taught us anything, it’s that God uses surprising events and people to accomplish his purposes. What if the next Great Awakening started in Kinston? What if we got to be on the front lines of a explosion of grace?

Rosell records that during the 1950 meetings in Boston, Billy Graham laid out 4 conditions for revival of the church: Repentance, prayer, unity and obedience to the Word (pp.135-6). Repentance involves our true sorrow for our sins, a willingness to renounce them (let’s not pretend we’re repenting if we say “sorry” but don’t make any changes!), confessing our sins both to God and to someone else, and a genuine faith and trust in Christ.

Billy’s second condition for revival is prayer. “If Christians would put everything second to prayer… we will see a revival in [this city] greater than anything the city has known…” (p.136). This surely still holds true today, doesn’t it? Keep on asking, seeking, knocking, because if we’re bold, God is willing (Luke 11). Here is the embarrassing part: do I put everything second to prayer? Frankly, do I put anything second to prayer? What would God do in our midst as more and more people joined in the Thursday morning hospital prayer group (6:30am, Oxford room) or the Monday morning prayer group at Grace (10am, Gathering Hall), or the several other groups throughout this city. What do you put second to prayer?

Thirdly, unity among the body. On this level, we are experiencing some of God’s grace in this city: Erasing the Lines, the Association of Congregations, Kinston Men’s Fraternity, The Gate are all building bridges (through the key people involved, like Lee Parker, for instance, who serves as the AOC secretary and a helper at The Gate and a prayer walker through the city… all because of a desire for a spiritual awakening to change this city!). There’s more to do – but there is a great start. Watch for ways and initiate ways for us to come together! Also, within Grace – don’t let gossip, back-biting, bitterness or hurt feelings gain a foothold. Let’s keep short accounts covered in grace.

Finally, study of and obedience to the Word. We have been going very slowly through Ephesians over the last 6 weeks, because we are plumbing the depths of God’s purposes and will, so that we can “Walk Worthy of our Calling.” What do you do when you get home? Do you ask God to change you in one way from that morning’s text? Do you ask him to remove your heart of stone and give you his new heart and his new Spirit in greater measure?

Repentance, prayer, unity and obedience. Billy Graham’s keys to revival from the midst of the greatest revival of the last century. Of course, over all of this is the Spirit of God. We can’t fabricate revival. But, don’t you think God is just waiting for us to live into the preparatory conditions for him to send his Spirit in a super-special way? Think about it: if you were God, and you’ve already given your Son for our sins, why would you withhold your Spirit when your people are following your pathway?

What about it, Brothers and Sisters? Let’s make this Christmas and 2009 the time when we long for, seek after and prepare ourselves for revival (through repentance, prayer, unity and obedience). It’s how the world’s soul will feel it’s worth. It’s how He will appear, and bring “a thrill of hope, the weary world rejoices, for yonder breaks a new and glorious day.”

Oh, may that new and glorious day of Christ’s kingdom break into life after life after life through us and our joyful and faithful discipleship!

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