Insights from the Bible on the Redistribution of Wealth

redistribution of wealthThere are, it seems, two sides to this question:

  1. what is the responsibility of the individual, and
  2. what is the responsibility of the state?

I don’t think anyone would argue the idea that, as individuals, we have a responsibility to take care of the less fortunate—the Bible, both Old and New Testaments—make it clear that we do. Strictly speaking though, this is about sharing wealth, not about redistributing it according to some formula. So let’s say that the question of redistribution of wealth as an individual responsibility is a moot point. We’re required to provide for the less fortunate, but it isn’t redistribution in any sense of the term.

That leaves us with one open question: does the Bible call us to engage in the redistribution of wealth through the apparatus of the state?

This is actually a more complex question than it seems at first glance, and I’ll tip my hand up front and make the following assertions:

  1. There is no directive in the Bible for the state to engage in redistribution of wealth (other than, loosely, the tithe—which we’ll get to shortly), BUT
  2. We are required to do what the authorities (a.k.a., the state) command of us.

This makes the answer yes AND no—but mostly yes. Why do I feel this way?

Let’s tackle the “no” portion of my assumption, just to get it out of the way.

 

Biblical directives to Israel were for Israel, not the modern nation-state

There’s a wide division among Christians on this point. Some believe that the commands God gave to Biblical Israel are immutable for all nations for all times, while others—like me—don’t believe this to be true.

Biblical Israel was established by God to eventually carry out his plan of salvation for all the world through Jesus Christ. This gave Biblical Israel a special status, but not a universal one. Israel was not only a nation, but it also functioned as a theocracy where there was no separation between the clergy (Levites) and the political class. That hardly describes modern, pluralistic nations such as the United States or Canada.

In any event, the closest we come to redistribution of wealth by “the state” is the Old Testament tithe. In Leviticus, Numbers and Deuteronomy, we have the tithe established by God to fund three purposes: an income for the clergy, funding for religious festivals and for “…the foreigner, the fatherless and the widow, so that they may eat in your towns and be satisfied.”—Deuteronomy 26:12.

We can take that last part and say that it justifies redistribution of wealth by the state, but that’s a real stretch. The tithe was commanded for the purpose of glorifying God, and it was food-the most basic provision—that was to be provided to “the foreigner, the fatherless and the widow” who were in the midst of the people of God. This is vastly different than the modern welfare state that redistributes wealth in the form of direct cash (to be spent at the discretion of the recipient).

Also, consider that the political-type redistribution of today is facilitated by modern states which go to some length to separate themselves from God. In case there’s any question as to the transferability of the things of God to the secular state, Jesus provides a clear separation:

”Render therefore unto Caesar the things which be Caesar’s, and unto God the things which be God’s.”—Luke 20:25

There’s no conclusive Biblical support for redistribution of wealth as it’s practiced by modern governments that are divorced from God.

But that’s not the end of the story; here’s where we clarify the ambiguous, but all-important, “no, but yes” part of the equation…

 

We are SPECIFICALLY directed to obey the civil authorities

Take another look at Luke 20:25 above. Note that Jesus doesn’t tell us to do one and neglect the other-he tells us to render to both God and Caesar what is due each! Thus we have a personal, God-given responsibility to the less fortunate, PLUS that which is required by the civil authorities.

Want more proof?

“Let everyone be subject to the governing authorities, for there is no authority except that which God has established. The authorities that exist have been established by God…Therefore, it is necessary to submit to the authorities, not only because of possible punishment but also as a matter of conscience.”—Romans 13:1 & 5

Peter gives even more specific guidance.

“Submit yourselves for the Lord’s sake to every human authority: whether to the emperor, as the supreme authority, or to governors, who are sent by him to punish those who do wrong and to commend those who do right.”—1 Peter 2:13-14

If we’re looking for Biblical permission to resist the governing authorities, we’re not going to find it, not at least as it relates to redistribution of wealth.

Government has largely taken over what we might loosely call “charity” and turned it into the wholesale redistribution of wealth, no argument there. But this is a civil, social, philosophical, legal and political debate for sure—but it isn’t a faith based argument. If it is to be changed, that must happen at the voting booth, through the legislative process or through the courts, and until that happens we’re commanded to comply.

 

Personal observations and thoughts…

Technically speaking, any transfer of money from productive populations to non-productive ones is redistribution of wealth. The argument then should also extend to Social Security, Medicare, corporate welfare, industry subsidies, tax breaks, foreign aid—virtually anywhere money is taken from one person or entity and given to others. It’s clear that current government redistribution has moved well beyond caring for “widows and orphans” and shows unmistakable signs of political preference.

We can try to bring about change through the political and legal systems we have, but as for looking to Biblical justification to say that participating somehow puts us at odds with Biblical laws or doctrines isn’t supported.

For what it’s worth, I haven’t arrived at this conclusion lightly. I confess to being a Libertarian, and the whole idea of redistribution of wealth runs against everything I believe from a non-faith perspective. However, everything we believe—our personal preferences, our behavior and even our politics—must be subject to our faith and not the other way around. Any time we try to wrap the faith around our preferred doctrines, we’re in danger of following a false gospel.

What are your thoughts? What do you think the Bible says about redistribution of wealth? Can you find Scripture that supports a different conclusion?

Cut it Out America!

Americans thrive on the nonessentials. I am guilty of this just like the next person. However, how much stuff do we have that we really NEED? A “want” is something that can be done without. A “need” is defined as the essentials: food, shelter, and clothing. I wonder how much money we would save if we cut out these frivolities and focused on the basics. I presume thousands.

We could blame this on marketing and we could blame this on the credit card companies and our ability to charge everything to credit cards, but this does not rectify the problem. In the end, we must take responsibility for our lack of self-control, our lack of restraint, and take charge of our finances.

I have accrued a list of a few items that I think many have and many could cut from their budget helping to eliminate debt and thrive financially:

 

Cable

Who needs cable? No one. In fact, no one needs a television. However, cable is even less of an essential. CNN Money says that “The average digital cable customer already pays almost $75 a month, according to research firm Centris. And many subscribers pay more than $100 to tune in to everything from “The Daily Show” to “Jersey Shore.”” Ridiculous. If you’re paying that much and parking your butt in front of the television for hours—find a new hobby. It is not only mind-numbing, but it is a waste of time. Spend time with your family, go for a walk, communicate with the outside world—quit staring at an inanimate object for hours on end! It could save you a whopping $1,200 a year.

 

Texting/Data Plan

I have never had texting, or a data plan. Most gawk at me unintelligently when I declare this bold statement. They look at me like I have a milk jug on my head. When I give someone my number the automated response from that person is “Oh, I’ll text you mine…” To which I promptly respond, “I won’t text back. I don’t have texting.” I love being a rebel and I truly enjoy not texting. It keeps things personal. People are forced to call me!

I will be getting texting when I get married. My fiancé’s company gives him a substantial discount and, sadly, I will become part of the followers. However, I have proven I can happily do without for years and let me tell you: it has never hampered my social life whatsoever. Texting + data (unlimited) plan at Verizon is: $120 per month which adds up to a staggering $1,440 per year. Give me snail mail and phone conversations, please!

 

New Vehicles

Brand new vehicles are a rip off. If you live in the city and have public transportation options available to you, take them! You not only save maintenance on a vehicle, but with gas prices soaring your wallet will be left much more unscathed. If you have to buy a vehicle, go used.

A brand spanking new car depreciates significantly once you drive it off the lot. My family has always bought used cars – we’re always able to turn them around at a profit, and we’re never left with nasty car payments or feeling the weight of perhaps dinging a brand new car. Average cost of a new car: $22,000 (and I am being generous. I’m pulling this information from a Honda Accord).

 

Eating Out

Who doesn’t love going out to eat? I know I do! An average dinner will run you anywhere from $8-14 at a moderately priced restaurant. Imagine if you did this everyday for 365 days: $2,920. I estimated at the low end too! I am also a huge sucker for Starbucks. Let me tell you, Starbucks can add up quickly. I typically play it frugal and get an iced tea or iced coffee and bring my own cup. Refills are also free if you have a registered card! I cannot deny it; I am guilty of Starbucks overspending.

If I would have forgone Starbucks this month I would have saved a total of $26.08. That can add up rapidly! My entertainment revolves around eating out or Starbucks trips…. I know if I cut back on both my wallet would thank me profusely.

So my fellow consumers I hope this sheds new light on what is essential and what needs to be cut. When we step back and analyze our income vs. our spending, and how our needs correlate with the two, it is sobering. Let’s start now with living within our means and beating the Marketers. We’re not drones, we’re intelligent human beings. We can fight the urge.

“Save your pennies…and your dollars will take care of themselves.” – Benjamin Franklin

Have your “wants” mysteriously turned into faux “needs?” What could you cut out in order to live a more frugal lifestyle?

Side note: This method would probably prove much more effective rather than sitting on Wall Street picketing. Just a thought for those of you participating in Occupy Wall Street!

Root of Riches Review With Book + $350 Giveaway!

root of richesRoot of Riches. Pretty catchy title isn’t it? I know it caught my attention!

A couple weeks ago, I had the opportunity to interview Chuck Bentley, the author of Root of Riches. Chuck is also the CEO of Crown Financial Ministries, an organization with a mission to touch people’s lives through the combination of personal finance and Biblical principles.

Before we get too deep into this review, I just want to say how big of an impact Root of Riches made on my life. It has transformed the way I look at finances and has shed some much needed light on scripture related to money. Because of this book, I know see the world differently and see money differently.

If you’re looking for a way to get involved with Crown, they have an awesome blog as well as Facebook community. I highly encourage you to check Crown Financial ministries out and get plugged into their resources.

 

Book Give-Away and Free Budgeting Credits!

I support what Crown is doing so much that I’m willing to give away a brand new copy of the book with over $350 worth of Mvelope budgeting credits! I hope this goes to someone that could use the help with a great budgeting resource. OK, so how do you enter? You have four options!

-Subscribe to my email list by going here (you will get my free 7 day e-course on how to retire a millionaire!)

-Become a fan on my Facebook page

-Follow me on Twitter

-Join my Linkedin group “Personal Finance For Everyone”

 

Remember, whatever you do, make sure you comment below this article and let me now what you did! Each action will get you one point for a maximum of 4 points! Good luck and may the best reader win!

 

Now the review!

(FYI, I was not compensated for this review.)

Boy, was I challenged reading Root of Riches! Chuck doesn’t hold back in this book and I felt as if he was sitting next to me asking me if I was going to apply what I just learned! It’s especially convicting when Chuck’s words are grounded in scripture. It’s so easy to write someone off if they are only talking from experiences in their life. Chuck sticks to the Bible and does not go on a detour.

At the core, Root of Riches is about just that: roots! Chuck has created this fantastic visual of a tree and the roots below in the soil. He goes on to explain how there are two types of tress with two very different types of roots. One is the “me tree” and other is a “he tree.”

 

Me Tree, He Tree

Chuck’s definition of a “me tree”:

-Focus is on earthly treasures

-Roots have not been redeemed

-Worldly belief system void of Jesus

-Selfish and out for itself

 

Chuck’s definition of a “he tree”:

-Redeemed through Christ

-Has a heavenly worldview

-Outpouring of good fruit

-Jesus is at its core

 

Complete Transformation

Yes, did you know that God compares us to trees in the Bible? It goes back all the way to the garden of Eden. There was the tree of life and the tree of knowledge of good and evil. One was amazing and pure, while the other brought despair and destruction. Jesus later compares us to trees again and tells his disciples that they need to be producing good fruit. The two trees share a bodily similarity but are extremely different at the core.

It doesn’t stop there though. Chuck keeps going and encourages the reader to dig deeper, down to the “roots.” Chuck explains that we should be completely transformed by God, seeing the world through a brand new set of eyes. No longer should our desire be to get rich, but it should be to help others instead. Chuck also talks about how “true riches” are not the fancy cars and big houses. True riches are things like worshiping the Lord, serving in the church, sharing the gospel, and the blessings of family. With Jesus at the core, it doesn’t matter how big your bank account is!

 

Non-Negotiable Pillars

To sum up his writing and not write a 2,000+ page book, Chuck introduces the reader to three non-negotiable points that every human needs to live by.

 

1. I accept that both the cause and the solution to my money problems lie within my own heart.

Chuck brings up a great point about 1 Timothy 6:10, “the love of money is the root of all kinds of evil.” Chuck explains that that verse is centered around the word love, not money. This is an interesting take-away. We should have transformed hearts and tackle money problems at the heart level. If we are in love with these things of this world, we will never be truly rich in the Lord’s eyes. This is huge and ground breaking for me personally. I take scripture at face value sometimes and don’t dig deep enough.

 

2. I must align my beliefs with God’s Word to produce behaviors that will make me truly rich.

It call comes down to our belief system. We can have positive behavioral change according to Chuck but true transformation can’t happen unless our fundamental belief system changes. Oftentimes you may wonder how other Christians are cheerful givers. Chuck encourages you to look deep inside your heart and do some introspective meditation. Cheerful gives really believe God’s word and it becomes something they “get” to do. Once you align your beliefs with God’s Word, generous giving and generous living ill start to flow naturally. Chuck drives home this message.

 

3. I must act upon and apply spiritual truth in order to receive true riches.

Chuck brings up a great verse for this non-negotiable, “Now that you know these things, blessed are you if you do them” from John 13:17. Chuck encourages everyone to stop treating the Word like a self-help book and more of a heart changer. Chuck goes on to say that the more we act on spiritual truth, God will reveal himself more and more. Yet, this does not mean financial riches specifically. Again, remember, true riches might not be physical. We should shift our focus toward heavenly riches and know that any type of financial pain here on Earth is nothing to worry about and that we have so much more to look forward to in the Lord’s presence in Heaven.

After reading Root of Riches, I came away with one overarching theme: our life is destined for ruin if we live it for ourselves. God wants us to recognize that we need Him first and need Him far more than earthly riches. This will stick with me for the remaining of my life and is just one example of how this book has changed the way I look at finances.

To end this book review, I’d like to showcase an info graphic from Crown Ministries that I found to be very interesting. Check it out!

 

Hit up Amazon here to grab your copy today! If you have read Root of Riches already, please comment below with your thoughts, I wanna hear from you!

5 Ways People Waste Money on their Cars

This may be something of a personal bugbear, but why do people waste money on their cars? Spending money on cars, fine. Wasting money? Not so fine. Of course, if you have a car, there are always going to be costs involved. From buying gas to car insurance, you can’t get away from the fact that motoring costs money. But with this in mind, it makes even less sense to waste money on cars. Below are five common ways people waste money on their cars.

Not maintaining them properly

Maintaining a car costs money, there’s no denying that. However, failing to maintain your car costs you money in the long run and so ends up as a waste. For example, if you drive regularly and never change your air filter, you could be getting much less mileage out of your gas than if you changed it every 25,000 miles. You could be penalizing yourself by as much as 15%, so this is potentially a serious amount of money going down the drain. The cost of changing the air filter pales next to this.

Using premium fuel unnecessarily

A few months ago, the national average price per gallon for premium gas was $4.04. By contrast, regular gas was $3.78. That’s a significant difference that means unless you actually need to use premium gas in your car, you’re wasting quite a lot of money. Some cars are required to use premium but for most it’s either just ‘recommended’ or not necessary at all. Why burden yourself with the extra cost if you don’t need to?

Making unnecessary modifications

Alloy wheels, tinted windows and pimped-up engines all cost money you don’t need to spend. In general, car modifications are unnecessary and are arguably a waste of money. Also, they lead to higher insurance premiums so if you’re looking to save money on your car, making modifications to it is definitely not the way to go.

Paying too much on insurance

It’s not just modifications that have an impact on how much insurance you pay, either. You can’t get away from all car insurance costs as you’re required to have a certain standard of cover by law, but it is possible to get good value for money and it’s definitely worth doing. For instance, many people could save money by switching insurance provider or by making a few security additions to their car, which helps to reduce insurance premiums. As an example, parking your car in a garage rather than on the road significantly reduces your risk, which is reflected in car insurance quotes.

Ignoring warning lights

Your car’s warning lights are there for a reason, so don’t ignore them if they come on or you could be throwing money down the drain. It might cost a few dollars to make a repair now, but something relatively minor could turn into a much bigger problem if you don’t sort things out quickly. Delaying fixing your car might save you in the short term but it’s almost certain to cost more in the long run – and, as it is money you needn’t have spent, that definitely counts as a waste.

photo by ilkerender

How Safe is Spread Betting?

In the current financial times we live in there are people looking for various ways to make money, some are safe, some are dangerous, and some are just a waste of time!

One of the alternatives that you may not have considered is spread betting, which can see you gain great returns on your investments, or conversely massive losses.

This is why you need to make sure you do your research before you begin to invest in such a method to make money, because if you don’t there is a chance that you will lose more money that you hoped for, and see the money that you wanted to save disappear before your eyes.

 

What does spread betting offer?

Spread betting is essentially betting on the stock and shares markets. Therefore you are making the same moves as someone who has actually invested in stocks and shares without actually buying them. So if you have always wanted shares in that top company, for example Apple, then you can actually find a way of getting rewards from their shares, without actually holding any of them.

At the same time, ‘investing’ in these shares will not cost as much as actually trying to find some to buy, so you can benefit from any increase, or suffer from any decrease in value, but, at the same time, spend less of your savings and investments on the stock. This means that you can control your investments completely even at a low level, and try and see returns. Obviously betting on stock market changes can be extremely risky, and you need to make sure you know what you are doing before you commit to investing your money.

That being said, if you manage to pick the right stocks you will see good returns on your spread betting activities, much the same as if you were investing on the normal stock market.

 

Is it actually safe then?

So is spread betting safe? Realistically it is only as safe as you make it. If you decide to invest in a spread betting firm, and begin to see which stocks appeal to you, there are limits you can set. You can set a limit on the amount of money you make before you take your investments out, and you can also set a limit on the amount of money you lose before your investment ends.

This means that you do have ultimate control, just in case the markets collapse. Whilst this gives you slightly more freedom than investing on the stock market, it is important to remember that you should not get carried away, at the end of the day the stock markets are an extremely liquid market and a bad day can lead to huge losses. On the other hand you could have a great day and see huge profits, it’s just about playing the right cards at the right time, and to do that you need to make sure that you do a lot of research on the market you intend to bet on.

(This article is written by James who has a strong interest in different investment techniques, including spread betting. He believes it is important to manage investments appropriately and advises you check the various spread betting firms before beginning to bet on the markets.)

When Financial Secrecy May Not be a Good Idea

One of the areas of life we tend to be most secretive about is our finances. That’s a broad category of course, encompassing our income, expenses, assets, debt levels and credit standing. Now for obvious reasons we want to be secretive when it comes to giving out financial information as a matter of protecting our identity—that goes without saying. But the secrecy I’m talking about here deals with people, as in those closest to us.

It’s easy enough to see why we don’t want other people to know too much about our financial affairs—too much income and assets and other people might resent us; too much debt and poor credit and they might judge us. Who wouldn’t want to avoid that?

While we can argue the pros and cons as to how much of our financial lives we reveal to family and friends, there may be times when doing so is in our best interest.

Accountability

As much as we might not like the idea of driving on a road that’s monitored by traffic cameras, it’s equally true that we tend to behave better when we do. So it is anytime others have sight of what it is we do. It’s called accountability, and it’s a way of keeping us on the straight and narrow.

At a minimum, we need to keep our spouses in the loop as to what we’re doing with our money. While this might be self-evident, in my experience in the mortgage business, I’d come across people who didn’t want their spouses to know a about a certain savings or investment account, or about a debt or even a collection of credit cards. There may be all sorts of logical sounding reasons for this practice, but it’s doubtful that it leads to a happy place.

“Whoever conceals his transgressions will not prosper, but he who confesses and forsakes them will obtain mercy.”—Proverbs 28:13

But beyond our spouses, there’s also an argument for having a close friend or family member (parent, sibling or adult child) aware of at least some aspects of our finances. By having someone else in the loop at least regarding the general state of our finances, we’re more likely to do the right things—or at least to stick to what it is we’ve declared to others we plan to do. It’s like have a “second pair of eyes” keeping watch over us.

When you have money problems

It’s ironic that the one time we most rebel against financial transparency is probably the time we most need to be open about it. Maybe we shouldn’t broadcast it to the world, but it’s generally better when a small number of people very close to us know what’s happening.

You should never go through a financial crisis alone; at a minimum you need trusted people to bounce ideas and strategies off of. In addition, when we’re going through troubles we’re not always thinking clearly, and that’s when an outside opinion becomes absolutely necessary.

Achieving savings, investment or debt payoff goals

If no one knows what our financial goals are it will be a lot easier for us to give up on them when the going gets tough. This is especially true if your goal is to pay off debt. Sometimes the pain of the effort can be offset by the greater pain that comes with disappointing people whose opinions really matter to us.

In general, financial goals are not always best accomplished in private. If you make a plan to begin saving money or to pay off debt, letting one or two others know what you’re doing is a way of making the plan official with an announcement. Think of it as an unwritten contract. Once that’s done, you’ll have greater incentive to follow through with the plan, if for no other reason than to show people you trust that you can be counted on.

In making your final arrangements

Grief and financial management are not compatible. Even though you commit your final arrangements to paper through a will, you still need to have at least one other person from outside your immediate family who will act as a point person at the time of your death to help your family cope with your loss. That person should have intimate knowledge of your finances beforehand.

Though we might think that our spouse—armed with a will—will be up to the task, that isn’t always true. Our immediate family may be too overcome with emotion to handle our financial affairs at the time of our death, to say nothing of dealing with banks, creditors, courts and tax authorities in the months that follow. Assigning beforehand a person that YOU trust to help settle your affairs can be one of the best provisions you can make for your loved ones.

How much of your finances do you keep hidden from close family and friends? Have you ever had problems because no one knew anything at all? Have you ever had problems because you revealed too much?

Getting the Best Building Insurance

Very few people think about building insurance. Imagine sitting on your porch at your house on the ocean front. You sit up in your chair and realize that the waves are growing. You then get even more scared as you come to the realization that your home is built on stilts!

This fear of loss to your home could easily be replaced with a peace of mind through building insurance. Building insurance is just what it means, insurance that protects your physical structure home in times of disaster. Types of disaster could include fires, falling trees, wind storms, water damage, and even vandalism! This type of insurance is of especially great importance if you live in a high risk area. Looking back, there are thousands of people who regret not owning building insurance after going through hurricane Katrina.

 

So who needs building insurance and how much?

Anyone who owns a home should have building insurance. You wouldn’t want to risk the loss of your home, so get building insurance and live life with a peace of mind. One thing you need to keep in mind is to ensure that you get the right amount of building and contents insurance. You need to understand the facts and figures so you get enough home insurance to cover the cost of rebuilding your home. Seems simple enough but it could get pretty complicated actually.

Good resources include online calculators and local surveyors who can assess your home’s true value and tell you how much building insurance you really need. If you get lucky, you can get an insurance company that offer unlimited coverage in a case of a terrible disaster.

 

Tips for getting the best price on building insurance

-Get quotes from multiple insurance companies to make sure you’re not paying top dollar for building insurance.

-Did you know that you can combine contents and building insurance? If your insurance company offers this, this can be a much better rate. I highly recommend you doing this.

-No claims=lower insurance. It’s just like speeding tickets. The less activity on your record, the more insurance companies will trust you.

 

I hope this has been an informative post on building insurance and what it covers. Don’t worry about your home, instead get yourself some building insurance!

photo by gusdrinks

Get $150 in Bonus Cash for the Holidays with the Discover More Card

Well, it’s that time of year again. That time when credit card companies offer amazing sign-up bonuses just in time for the holidays. The Discover More card is one of those examples. This is a card everyone should have in their wallet. With 5% cash back in rotating categories, it’s a card out to impress!

In an effort to help people ease the burden of holiday shopping, Discover is offering a limited time bonus of $150 in cash just for singing up for their Discover More card. When will you receive this bonus? It’s easy; all you have to do is spend $1,000 during the first three months of ownership and you’ll get $150 transferred to your account automatically. How sweet is that?

Discover decided to sweeten up the pot a little bit and throw in something special in case the bonus cash wasn’t enough. Right now when you open this card, you’ll get 2% cash back on all Amazon purchases during the first billing period. This is an awesome perk during the holidays. Why not get cash back on presents you were planning on buying anyways?

 

What Discover More Has to Offer

5% cash back bonus- Discover offers this program to the credit card user’s benefit. They have various rotating categories. From January to March is travel and restaurants. From April to June is home and fashion. June is groceries. July to September is gas, hotels, movies, and theme parks. Lastly, October to December is restaurants and fashion. Discover is great about reminidng you to sign up for each rotating category when it changes, so no worries there.

Discover online shopping mall- During the upcoming holidays, you may want to head on over to ShopDiscover, Discover’s online shopping mall. When you use your Discover card through their online mall, you can receive up to 20% cash back from various vendors. This may be a great option if you can buy your gifts online vs. going to the store.

Gift cards are king- For some reason, Discover gives you more value in terms of benefits with their gift card cash back. Instead of receiving cash, you can opt to receive gift cards. You will have plenty of vendors to choose from and you may find this to be a better value in the end.

 

Discover More Card Positives

0% APR for six months- This applies to both purchases and transfers. After the six months is up, the APR will go back to a rate between 11.99% and 20.99%.

No annual fee- This is an added benefit! This makes the Discover More card an excellent choice for every day consumers during this holiday season. Combine a $150 bonus, zero interest for six months, and no annual fee, this card is begging to be placed in your wallet.

World class customer service- A reason I recommend Discover over Chase is because Discover offers real people to talk to and is known for their stellar customer service. I don;t know about you but I hate talking to machines.

Zero fraud liability- No need to worry if you lose your card or it gets stolen, because the Discover More card offers zero fraud liability. Basically, Discover will reimburses you for any purchases that you didn’t make. No need for backup documentation, Discover will take your word for it.

 

Discover More Card Negatives

Foreign transaction fees- This may or may not apply to you depending on how much you travel. You will be charged a 2% fee when you spend money in a foreign country. Just be aware of this when you open the Discover More card.

Lost reward points if account is closed- You’ll need to keep your account open if you want to spend your rewards points. They disappear the moment you close your card.

 

Discover More Card a Must Have

I highly recommend that open a Discover More card. With $150 in bonus cash, it just makes sense during this holiday season. With great features and customer service, this card is a winner. It’s important to note that this bonus cash is a limited time offer, so you’ll want to jump on this opportunity as soon as you can.

You can visit the Discover application page for the More card by going here.

How I Graduated with a Surplus

Hey Y’all! Greetings from the South!

I am so thrilled to be given the opportunity to write for my fiancé’s amazing blog. I thought I would begin my first post by explaining how I am graduating from college debt free. December 1st is my last day and I will graduate with a major in English and minor in Sociology. It was hard and not without sacrifice, but I am doing it! It is with the help from the Lord, my parents, and the realization that college is too short to go into thousands of dollars of debt over.

I have comprised five tips that I think every college student should adhere to. I believe that, had I diverted my attention from these key factors, I would be entering the marriage covenant laden down with unmanageable tuition loans and credit card debt. Thankfully, by God’s grace and wisdom, I am not, and will graduate with money in my savings.

So, here we go!

 

Tip #1: Go to a community college the first two years

I cannot stress this enough. What student knows what they want to major in when they’re 18? Not many. Even if they do, college prerequisites have to be completed nevertheless, so why not do it at a place that charges a fraction of the cost? **Just make sure that your community college credits can be transferred to the future University you are aspiring to go to. I cannot tell you how much I saved by doing this AND by living at home…which brings me to my second tip.

 

Tip #2: Live at home all four years

Many argue that they won’t be able to have the “college experience” if they live at home. They say they’re independence will not be fostered. I say that is a bunch of hogwash. How many years do you attend college? Four. Five if you’re a fifth year senior. Okay, then how many years do you have after college to “foster” this independence? The rest of your life. I say sacrificing a few years in order to live rent free, with free food, and in state tuition is nothing when you look at the big picture.

Personally, I would rather graduate with $0.00 in debt than to have mounds of bills and an inflated view of independence. I have plenty of independence at home. If independence comes in the form of drinking or partying for you then you may want to revaluate your priorities in the first place. I have many friends – my social life thrives and I have traveled more than most of my fellow college students. I would say my independence has thrived even within the confines of my parent’s home.

 

Tip #3: Get a job

I was a full time student. Most of the time I took the bare minimum to maintain a full-time status, however, I also worked. I pay for everything beside rent and food and car maintenance (it’s my dad’s car). I also paid for books. If you have a full ride to school and don’t need the money then awesome, but it is always a plus to have a job in order to save for the future. I have been able to put money away and tithe to the Lord with my job. I also have been able to buy the things I want, and save for our wedding!

 

Tip #4: Never underestimate the power of scholarships

I applied for a few and never thought anything of them. However, lo and behold, I was selected to participate as a Student Ambassador. I also got scholarships for academic excellence for several semesters. You have to search for them and it does take a bit of leg work. You just have to determine how much saving money is worth to you. I had to write several essays and search for scholarships applicable to me. It took hours, but I am here to testify that it literally paid off in the end.

I would also suggest applying for financial aid if your family is not in a substantial financial bracket. I was able to pay for my school some semesters without ever taking money out of my pocket. I often put money in my savings every semester from the extra that was left even after paying tuition and book fees.

 

Tip #5: Be wary of the credit card companies

Credit cards are not your friend. They may seem tempting to use at the first moment of desperation, but they are NOT. Only buy something you know you will pay off quickly – if not immediately. If you don’t have the money in your account, it is not a wise decision to make the purchase.

Living within your means is essential to graduating debt free. There were times when money was extremely tight and I didn’t know how I was going to make it. Those times have been a growing experience and my faith in the Lord flourished. Honor the Lord with your finances, live within your means, and ask Him to provide. He loves showing up at the 11th hour – it gives Him joy to bless His kids and He LOVES getting the glory!

You may decide after reading this article that going into debt isn’t a big deal to you. However, I leave you with this question: If you are married (or wanting to be married) do you really want to place the burden on your spouse to pay off the debts YOU incurred? I didn’t, instead I chose to sacrifice a little now in order to have a burgeoning future later.

Money Tips from 49 Personal Finance Bloggers

money tipsI’ve been getting sick of my own voice recently. No, no, not my physical voice, but my writing voice. I have my own opinions on financial issues, but I’ve been wanting to get inside the heads of other top personal finance bloggers and see what they think. So, in my quest for knowledge, I contacted 49 of the top finance blogs on the web and asked one simple question: “What is your #1 personal finance tip?”

I ended up receiving short and sweet answers as well as more in-depth answers. It was awesome to find out other financial blogger’s opinions on the number one thing that drove financial success. A few even surprised me with their answers.

The following is the end result. Each blogger has something great to say, and feel free to head over to their blogs. Enjoy these money tips:

 

Sustainable PF- “Pay yourself first. By saving 10% in an automated matter you can save for your retirement more easily.”

Money is the Root- ”Spend less than you earn, and you will never be broke!”

My Personal Finance Journey- “My top financial tip would be for college students to open up a Roth IRA and fund it if they have a job in college or during the summer between classes so that they can take advantage of compound interest to save for retirement.”

College Investor- ”Start investing your income from your first job to get ahead. The power of compounding is amazing!”

Prairie EcoThrifter- “My best tip would be to make your own cleaning and personal care products. You can save a bundle and they are much healthier for you and your family.”

Net Worth Protect- “When developing a savings plan keep it simple. As soon as you receive your paycheck allocate a percentage towards savings and immediately move the funds out of your spending account. Out of sight, out of mind”

Funancials- ”Your child can easily get a loan for school, but you cannot get a loan for retirement. I think too many parents have the dream of paying for their child’s education (which is great) but they reduce their retirement savings to make it happen. Big no no.”

One Cent at a Time- “Do not prepare your buying list after clipping coupons rather, get your shopping list and find coupons for each of them.”

20′s Finances- ”Start saving for your future today! Planning for retirement even in your 20′s can earn you lots of money in the long run and make life much easier.”

DollarVersity- “Failing to plan is planning to fail—you need a roadmap to achieving goals. Paying off debt, building wealth, or running a successful business may be the goals, but you need to plan your course to reach those destinations.”

Free From Broke- “Don’t spend more money than you have.”

KrantCents- “Savings is the key to success. I learned how to save early and it, more than anything, helped me achieve success.”

The Jenny Pincher- “Spend Less Than You Earn! It’s so simple yet so effective if we can get ourselves in that mindset!”

The Family CEO- “Be very intentional with your spending. Cut back on or eliminate the things that don’t bring you much value, so you can have in your life the things and experiences that do.”

101 Centavos- “Early is for go, late is for show. If you want to be successful, get up early. Getting to work while everyone else is either still asleep or just now brushing their teeth will give you a leg up on the competition. Staying late is fine if you want to impress the boss, but your productivity decreases along with your energy levels.”

Millionaire Nurse Blog- “To prevent lifestyle creep, any raises, bonus money, and gifts can be put into your emergency fund, or added to your retirement savings. You will hit your savings goal faster and not increase your lifestyle costs, a twofer!”

Your Finances Simplified- “Limit your rent/mortgage payment to no more than 25% of your net income. The reason why you want to do this is so that you are flexible when life happens or you have the opportunity to invest more money and generate wealth. This tip alone has given me the income to invest in multiple income producing business that will have me retiring by 40 or sooner.”

The Frugal Toad- “Diversify among asset classes, re-balance quarterly, employ dollar cost averaging, and keep your hands off!”

20 and Engaged- “Don’t keep up with the Joneses. Live your own live beneath your means and you’ll prosper financially.”

Money Beagle- “When setting large goals, make sure to set smaller goals along the way. Reaching the smaller goals (and giving yourself a small reward) will help you stay on track and minimize the chance of losing momentum and focus on the way toward your larger goals.”

Money QandA- “We spend our entire lives buying things and collecting things. Instead spend your money doing things, gaining experiences, and checking things off your bucket list. Not only is that the way to financial success, it will make your life more rewarding as well.”

Retire by 40- “My top tip is to start saving and investing as early as possible. If you start saving and investing as soon as you start making money, then you will have a lot of time to take advantage of compound interest. It will also give you more time to learn about investing and a lot of time to correct the many inevitable investing mistakes. ”

Wisebread- “Many rewards credit cards pay you a sign-up bonus only after you reach a minimum spending threshold. The best way to reach this minimum is to purchase gift cards for merchants you visit often, or even cash cards from Visa or American Express. Simply make the purchase before the deadline, and use the gift cards later. You can also buy gift cards at grocery stores in order to maximize bonus spending categories. For example, the American Express Blue Cash Preferred card gives customers 6% cash back from supermarkets.”

Free Money Finance- “Spend less than you earn.”

Money Crashers- “It’s really important to focus on cutting expenses and implementing strict budgets to allow us to live our lives to the fullest while still saving for the future. But, beyond that, one of the most overlooked strategies is creating incremental income. For example, do you have a passion or expertise you could leverage into a business? Then consider some of the many side business ideas as an avenue for you to create some valuable passive income. And if you’re lucky, this could potentially turn into a full-time job that you’re truly passionate about each and every day!”

Afford Anything- “Spend lavishly on things you love and cut ruthlessly on things you don’t care about. Money is just a stand-in for your priorities.”

Financial Highway- “Start Investing EARLY! Even at $50/month you can benefit from the power of compounding, it is better to save $50 today then $100 a year from now. ”

Christian Dollar- “Spend less than you make, make more through hard work and patience, and give more than you want to. It’s really that simple.”

Financial Samurai- “To listen to people who are wealthier and older than you.”

GenXFinance- “Don’t sweat the small stuff. So you’ve cut out the daily Starbucks, dropped cable, and clip coupons to save a couple hundred bucks a month. Who cares. You will never become wealthy by worrying about how to save the next five bucks. It is a losing game because there is only so much that can be cut, and beyond the basics you end up sacrificing your quality of life for the sake of saving what amounts to essentially nothing. Instead of spending time dreaming up ways to cut things out of your life to save ten dollars, think about how to make an extra ten dollars. Or a hundred dollars. Or a thousand dollars. Unlike the limited upside by cutting expenses, the upside of potential income is limitless. Yes, you still want to be conscious of how you spend your money, but focusing your energy on earning more has the potential to make a much greater impact on your life.”

Bucksome Boomer- “Choose your life partner well. Divorce sets you back decades in your net worth and financial health.”

Life and my Finances- “The best tip I could ever give anyone is “put on your blinders”. Your happiness in life does not depend on how shiny your car is or how many square feet you have in your house. Be thankful for what you have and ignore the Joneses.”

Financial Success Young Adults- “Stay on top of the markets! The Wall Street Journal and CNBC are great ways to keep up with the flow of information. The economy does impact your personal finances and keeping up with help you become familiar with the language of finance and help you better manage your money. ”

Narrow Bridge Finance- “My best money tip is to know when to buy and sell stocks. Technical and fundamental analysis sound complex, but once you know the difference you will know how to buy a stock for long run value over the trends of the moment.”

Debt Eye- ”Check your bank statements every month, and make sure there are no reoccuring charges that you’re not familiar with. These can include: identity protection, credit monitoring, and or services you hardly use.”

Ultimate Smart Money- ”Think wisely before you act. Make your purchasing decisions based on your need instead of what you want. Don’t allow your emotion to control your decision.”

Frugal Confessions- “Create an End-of-Year Windfall for Yourself: If you max out your Roth IRA every year ($5,000) by spreading out the payments, it would be around $416 per month. Instead, pay $500 per month for ten months and create a small windfall of cash for one of the most expensive times of the year: an extra $500 cash flow for November and for December. Remember to turn the automatic withdrawals back on after the holidays.”

Fat Guy Skinny Wallet- ”Whenever we are tempted to splurge on an item, or in some other way, spend money on an item for which we haven’t budgeted, we pay that money against our debt instead. For instance, if I get tempted to order a pizza and some wings on the way home from work, what helps me refrain from wasting my money is the thought of using that money to pay off debt instead. So we will not make the purchase and instead we will sign onto our bank’s website and make a payment against our credit card in the amount of the splurge ($20 for pizza in this case). This helps us to fight the urge to spend money frivolously, and it helps us to pay down our debt faster!”

Soldier of Finance- “Find a battle buddy that shares your financial goals to keep yourself accountable (like a workout partner) and help each other succeed.”

Good Financial Cents- “Incorporate the multiple bucket approach when saving for your retirement. Do this by incorporating Roth IRA’s, Traditional IRA’s, 401k’s, and regular investment accounts to give you plenty of options for your retirement income needs.”

Budgeting in the Fun Stuff- “Keep track of your spending. If you don’t know where your money is going, you can’t manage it for your present or future.”

Maximizing Money- ”Always make your money work hard for you, but remember to work even harder for your money.”

Roshan Watson- “The Real Golden Rule: He Who Has the Gold Makes the Rules”

ChristianPF- ”For me I think being content with all that we have is one of the smartest things we can do financially. We all know living below our means is a key to financial success, but for many being content with what we have is the first step to living below our means.”

Digerati Life- “My #1 personal finance tip is to prioritize where your money should go. Many people don’t use a budget or think about where their money is being spent. But if you take the time to sit down and do some planning (even just a little), by focusing on your financial priorities and on how you intend to parcel out your money (a limited resource), you may be surprised by what you find. For example, if you’ve got debt, you may decide to prioritize this over saving for a much longer term goal, like a house purchase. Either way, the exercise of thinking about your income and outgo can be a good first step in making sure your finances are in order.”

DQYDJ- ”Sweat the big stuff. Automate your retirement contributions and savings and eventually you’ll thank me.”

Thirty Six Months- “My biggest financial tip to budget for everything and don’t buy on impulse. That’s how you get in trouble.”

Frugal Wiz- Financial Tip: “Establish an emergency savings account first before paying off your debt.”

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