Your Money Answers

Sometimes the “B” word is not a popular word among many people. It is almost a secret and few have used it. Let me tell you the “B” word will do wonders for your life. It will lift the pain and pressure from you. It will give you a new perspective in life for your money. If you follow, you will gain some much wisdom. The “B” word is your future. The “B” word is your fried not enemy. Okay, are you ready for it? The “B” word that so many people are afraid to say is “budget”.  

Yep, I said it – budget. The budget is your future for success. Having a budget is the best weapon to attack your finances. Proverbs 27:23, Be thou diligent to know the state of thy flocks, and look well to thy herds.  The budget enables you to address your income and expenses in a systematic way. It is a financial picture for your future. We have to link our future with ourselves. We must link our financial future with a budget (http://financialplan.about.com/od/budgetingyourmoney/ht/createbudget.htm).

 Better yet, what is your financial future? Your future is a resemblance of who you are. If you financial future is cloudy and bleak, then what are you? If your financial future gives you an positive outlook, what does that mean to you? I have talked to many people who do not having a working budget. They claim that they are going somewhere but physically they cannot get there because they do not have a budget. Habakkuk 2:2 says to write the vision, and make it plan, that he may run that read it. I normally ask people in my seminars how you expect to get from A to B without a vision. Some look at me like I’m crazy.  I even ask them about their future financial vision. Some look at me with amazement. I tell them that having a plan is necessary as breathing. If you don’t have a plan, how do you know if you are going to be successful?  There are 3 easy steps for a successful budget. This is it – no trick or gimmicks – just get a pen and paper to get started.

  Step 1 – Understand your income.   We must understand what is coming into your house. Finances come into our house planned and unplanned. Our job is to understand and get a handle on those finances that impact  us daily.  We should know how much money is coming in on any given day. By understanding your income, you will begin to see the light in your future

 Step 2- Get wise about your spending. Proverbs 27:23 says to be diligent to know the state of your flocks. We must put a name on every expense in your house. No money should run away from you without you knowing it. Sometimes we spend on frivolous items. When we have a plan, those frivolous expenses will be eliminated.

 Step 3 – Understand your money on hand – this is subtracting income from expenses. In order to get to our financial future, we must understand the bottom line. The bottom line is that you must know what is in your hand right now. With that, you can see your picture and what you need to do. It is not often that we need more money; it is our ability to handle what is in our hands. We have to work with the rock in our hands.

 The future is bright for you. Seize it and plan for success. If you want a sample copy of my budget, please email me at cedricdukes@gm.com. More information on the “B” word at www.cedricdukes.com.

Cedric Dukes – Author of Hostile Takeover – www.cedricdukes.com

The last principle of the financial takeover series that we will discuss is investing. As we have seen in the past year, the stock market has been unstable, economies taken a major dip, and rising unemployment. What we thought was a sure bet is no longer one. Long gone are the hefty returns. The markets are undergoing a correction due to the unstableness in other countries. The best analysts cannot predict the market or even tell us what to buy. We have learned in this market that there are no get rich quick schemes in investing.

Wait a minute before you throw investing to the can; Investing is a spiritual principle. The Bible tells us in Ecclesiastes 11:1-2, 5 tells to, “Cast thy bread upon the waters: for thou shalt find it after many days: Give a portion to seven, and also to eight; for thou knowest not what evil shall be upon the earth…even so thou knowest not the works of God who maketh all.” The main point is to diversify your investments because you do not know the works of the Almighty God. No one knows how God is changing the economy, not even the experts. He is changing it for a specific purpose. A successful investment strategy must accomplish three main objectives: diversification, long-term focus and continuity. These objectives must work together. If they don’t, your investment will not generate a good return.  Investing is a slow, grinding, and even a mundane process. With that, there are several different types of investments that you can use in your investment journey.

The first area is the savings account. A savings account gives you an easy method to put money away for a short time or even for emergencies. The interest on a savings account is not that terrific, but it is a great way to have your money available (liquid) for emergencies or for planned expenses. Within a savings account you can move up to a CD or money market account which will give you a greater interest rate. All of this is good for short term saving.

The next investment is bonds. Bonds are actually good for a market like this especially with the unstableness in the economy if you do not like risks. Good bonds will hold your principal balance neutral. Bonds allow you, as the bond investor, to lend certain amounts of money to a company, bank, or government agency for a predetermined time in exchange for income. Bonds can be secured through an investment firm, bank, government, or corporation. The company or bank pays you interest in exchange for your investment. Governments use bonds to finance major projects such as parks, recreation facilities, and highways. Companies use bonds to finance research and development of major products. Bonds are secured loans that have a specific time period. They don’t pay the same type of interest as a savings account; they pay at a higher rate.

The next area is stocks. Stocks are the most common instruments traded today. However, they can be risky. Buying stocks simply mean that you are buying ownership into another company. Rushing to buy a stock is risky, especially without doing the proper homework. To avoid the risk of losing money, conduct research on companies that have a long-term focus. A long-term focus enables you to buy high-quality companies, which are those that have a vision for their product, advantage over their competition, and potentially new technology that will increase future revenue. Long-term investing enables a stock to go through the roller-coaster cycle of a company’s performance, plus it reduces the risk of losing money. Investing in stocks individually will not build your assets quickly. Stocks should be a complement to your 401(k) or IRA portfolio. Seek wisdom as you invest. How much better is it to get wisdom than gold and to get understanding rather than to be chosen than silver! (Proverbs 16:6).

On the other side of stocks are mutual funds.. Mutual funds are one of the best alternatives to increase your assets. Mutual funds can double your growth over stocks each year. Unlike stocks, you do not own a stake in the company’s fund. A mutual fund is a collection of companies owned by investment firms that invest in another companies’ stocks, bonds, real estate, etc. Fund managers run mutual funds. They are certified professionals who typically spend time, resources, and efforts selecting the right companies to invest for that particular fund. Here are some advantages of mutual funds.  They are easy to invest in because you don’t need a large amount of money, as opposed to stocks that you buy. Secondly, they provide instant diversification. You’re automatically diversified among many different companies. Lastly, they are easy to sell without the expenses of a stock. You can diversify in any type of fund like growth, international, bond, and index funds. There are many of them, research and pick the best one.

Lastly there is a people fund. Investing in people is the best type of fund because there is a return for that you can expect. Investing in people could be paying for college, paying a loan off or volunteering or donating to a shelter where people are directly helped. Once you start investing in people, you will see this principle come to life found in Luke 16:12 – And if you are not faithful with other people’s things, why should you be trusted with things of your own? Once you start helping others, you will get what you desire. This principle is the highest form of stewardship and investing because you have used your resources wisely for someone else and have taken over your finances.

This concludes the 4 principles of a financial takeover. Start working them and watch your finances come alive.

Cedric Dukes is an ordained deacon, author, speaker, and columnist. His book, Hostile Takeover – Manifesting God’s Plan and Purpose for Your Finances, has changed the way people think about finances and has been featured nationally.  You may contact him at www.cedricdukes.com.

First it was stewardship, second it was budgeting. The third principle in the financial takeover series is giving. The concept of giving has been given a bad reputation in these economic times as most people are holding on. Some have dwindled giving to a self-motivated action. Giving has been viewed in many circles as an opportunity to get money, power, or fame. Is this right? Does it benefit the masses or does it benefit a certain group of people? You have to look at the intent.

I want to discuss the power of giving that benefits the masses which includes you. I am not talking about socialism. I am talking about the giving that pleases God. True giving helps people no matter their religion, nationality or culture. True giving does not gain recognition. True giving meets the need and in turn, meets your need. Understand when you honor God with our finances, He in turn will honor you. To better explain how God honors one in finances, let’s look at 2 Corinthians 9:7-9. It states, you must each decide in your heart how much to give. And don’t give reluctantly or in response to pressure. “For God loves a person who gives cheerfully.” And God will generously provide all you need. Then you will always have everything you need and plenty left over to share with others. As the Scriptures say, “They share freely and give generously to the poor. Their good deeds will be remembered forever.” God looks at your giving as an honor because you gave freely to those in need and He will reward you for that.

There are 3 areas of giving that can stimulate your financial takeover as well as share your resources with others. They are obedience giving, abundant giving, and sacrificial giving. Again, giving if executed will increase your finances because God will trust you with more of His resources to do the most good. As I stated in the first principle of a financial takeover, Psalm 24:1 says that the earth is the Lord’s and fullness thereof. We don’t own anything on this earth. We cannot take our gold, silver, or any investment with us when leave this earth, we will wind up giving it away. We must put back into the earth that we have taken away. The power of giving solves this problem.

Obedience giving is the type of giving sanctioned by God to support His church. This can be in the area of tithes and offering found in Malachi 3:8-11 or in Matthew 23:23. The tithe and offering supports the ongoing work of the church. Some have said that tithing is the byproduct of the law. One has to remember that tithing was started by Abraham in where there was no law. The law came later. Abraham gave tithes out of love in which the law could not command. He gave because of his devotion and love to God and God rewarded Abraham for his faithfulness. Again the promise that God has for you in giving can be referenced in Malachi 3:10-11.

The next area of giving is abundant giving. Abundant giving addresses a specific need through family, friends, or coworkers, etc. I am not talking about a handout but changing the lives of people who are in need. 1 John 3:17-18 states if someone has enough money to live well and sees a brother or sister in need but shows no compassion—how can God’s love be in that person? Dear children, let’s not merely say that we love each other; let us show the truth by our actions. Abundant giving is motivated by love. When we love ourselves, we will be more willing to share our love with others.

The last area is sacrificial giving. Sacrificial giving is abstaining from your wants or desires to meet and or exceed the needs of others. One example is supporting foreign work or supporting those who cannot support themselves. James 1:27 states that pure religion in the sight of God means caring for orphans and widows in their distress and refusing to let the world corrupt you with their material things. I have learned that to keep from loving money, I had to give some of it away for a mission greater than myself. For the scriptures states, that the love of money is the root of all kinds of evil. Money is not inherently bad but the love of money can corrupt every motive. The sacrificial mindset moves your mindset from love to a compete stewardship. Again God’s promise hold true for you as stated in Proverbs 19:17: Those who are kind to the poor lend to the LORD, and he will reward them for what they have done.

As I have said many times, the purpose of money is not for hoarding but doing the most good. Money is designed to go from your hands to meet the need of others. Budget problems can be met if we just follow the principles of giving. Giving keeps your heart clean and your motives pure. In doing so, God will trust you with more. Know this, giving is better than receiving. How much more could we move our country out of economic fears if we start giving?

Cedric Dukes is an ordained deacon, author, speaker, and columnist. His book, Hostile Takeover – Manifesting God’s Plan and Purpose for Your Finances, has changed the way people think about finances and has been featured nationally. You may contact him at www.cedricdukes.com.

Most people change their life by their appearance or by their careers or even through a spiritual conversion. All of this is good if there is a vision. A vision for your life creates direction, purpose and mission. Changing your life happens in four distinct areas: personal growth, family, health, and career. If you focus or change your life in these areas, you will see a great change. If you change any of these areas, you will change your financial future. Changing your financial future starts with a vision. To facilitate your personal vision in those four areas, you probably will need to have a financial budget. Good managed finances will certain impact the achievement in those four areas. One survey suggests that over 33% of people do not operate a budget properly. I have seen disastrous results of a non-working budget, i.e. bankruptcy, surmounting debt, frustration, pain and shame are just a few. Habakkuk 2:2 says Write a vision, and make it plain upon a table so that a runner can read it. A budget if operated correctly will guide, direct and even constrain you from splurging. It will cause you to run toward your end goal. Here are the most common reasons that many don’t operate with a budget: I don’t make enough money; I have too much debt, I have too many bills and it’s not worth it. I don’t handle money well therefore I am doomed to fail.

Know this: Your budget can resolve all of your concerns.

A budget should have three components: income, expenses, and net income. It’s just that easy. Let’s briefly discuss these components: Income comes in a couple of ways: planned or unplanned. Most would prefer planned but in some cases unplanned is what people are going through today. Planned income is the steady stream of finances on a weekly/monthly basis. Unplanned income comes at an infrequent rate. Examples of this are commissions, credit returns, and temporary pay from work being done and even unemployment wages. It is always good to know where you stand with planned income so that you can regulate your budget. If you have unplanned income, try to limit enough expenses during that period of time. Remember this: income is the most important aspect of the budget because the amount of income controls the amount of spending.

Now let’s look at expenses. I will try not to replicate the traditional principles of expenses here. It is good to write down all of your expenses as stated in Proverbs 27:23 – 24, Know the state of your flocks, and put your heart into caring for your herds, for riches don’t last forever, and the crown might not be passed to the next generation. Separate your expenses into three categories: Need, Want, or Desire. This will give you the confidence to win any battle with finances.

Work your budget first with the “Need” in mind. The need is a necessary expense for living (food, clothing, shelter, insurances expenses, and emergency fund/savings). The need is a “gotta have”. Work your budget with the need expenses and determine if your budget can be met. If your income does not exceed your expenses, then go back and work it until you have a surplus. There is a saying in Proverbs 10:22 which states, the blessing of the Lord makes a person rich, and he adds no sorrow with it. If there is something in your expenses that causes you pain and frustration, you may need to get rid of it. By doing so, freedom will come. Additionally, when your income is unplanned, always put some money away so when the rainy day comes you have it to pay those needed expenses.

If you have a surplus, work your budget with the “Want” expenses. The want is something above and beyond basic needs, better quality and better technology than the store brand. In most cases, the cost is higher (i.e. PDA vs. flip phone, name brand cornflakes instead of store brand – you get the picture!). You should be meeting your budget comfortably with the want expenses. Lastly, if you have a surplus, move on to the “Desire” expenses. These are expenses that will move you closer to the achievement of your personal goals. Within each category, there is a level of budget constraint that you should experience. This means that accomplishment is around the corner for your vision.

Finally the last section is next income. This is nothing more than subtracting the Need, Want, or Desire from your income. Executing your budget this way will change your life. You might not see the difference now but in 3 to 6 months you will see a change. You will begin to takeover your finances with a vengeance and change will happen immediately.

Here is a prayer to help you make it through budgeting: Father, please help me with my budgeting. Your word says that the righteous is never forsaken nor his seed begs bread. I commit my budget to you. Show me what is out of whack and out of order. Help me to balance my budget to balance and show me how I can become a good steward of finances, in Jesus name, Amen.

Cedric Dukes is an ordained deacon, author, speaker, and columnist. His book, Hostile Takeover – Manifesting God’s Plan and Purpose for Your Finances, has changed the way people think about finances and has been featured nationally. You may contact him at www.cedricdukes.com.

Excerpts from Hostile Takeover – Manifesting God’s Plan and Purpose for Your Finances

Psalm 24:1 declares that, “The earth is the Lord’s and the fullness thereof; the world, and they that dwell therein.” Everything we have on this earth is the Lord’s. We do not own anything. We are managers of the earth and all the possessions therein. We are tenants. Everything belongs to God. The cars, houses, jobs and the money are all His. We cannot take it with us when we die. God allows us to use these things in order to bring Him glory and for our good. This is called stewardship. Stewardship is simply managing someone else’s resources to accomplish an objective. God is your source. It is your job to use or “re-source” the provision that God supplies. Therefore, your resources are God’s. He is the One who has given us all things. There are several characteristics of a good steward noted in the Bible.

First, the steward must be faithful. 1 Corinthians 4:2 states, “Moreover it is required in stewards, that a man be found faithful.” It is the responsibility of the steward to become faithful with God’s resources. The steward does not squander God’s resources on frivolous things. The steward does not spend money like it is going out of style. He is faithful with what he is given. In other words, he acts and lives prudently based on a predetermined plan to accomplish a set goal. This brings me to my second characteristic of a good steward. A steward must have the ability to learn (educate himself). No one knows everything. Proverbs 24:5 states that, “A wise man is strong; yea, a man of knowledge increases strength.” We have to educate our mind to become mentally strong; when we become mentally strong, we are unstoppable and our knowledge increases. When we become more knowledgeable about our finances, our financial value will increase because we put the right investment in the right place.

The final characteristic of a good steward is that he takes risks. Since a steward is faithful and has the ability to learn, he must take a risk to see if the new area of investment will work. Ecclesiastes 11:6 says that, “In the morning sow thy seed, and in the evening withhold not thine hand: for thou knowest not whether shall prosper, either this or that, or whether they both shall be alike good.” To sow is to take a risk. Most of us do not take risks because we have not understood that it takes a risk to sow. Remember, stewardship is the managing of God’s resources. You have been given the ability to create a profit with the resources given to you by the Heavenly Father

Cedric Dukes is an ordained deacon, author, speaker, and columnist. His book, Hostile Takeover – Manifesting God’s Plan and Purpose for Your Finances, has changed the way people think about finances and has been featured nationally. You may contact him at www.cedricdukes.com.

I know the subject of taxes is on every ones mind after the debt ceiling debate. According to the scripture from Romans 13: 1-7, we should pay taxes and revenues in order to keep the government working. Not only that I agee that we should cut but I also agree that rasing revenues will be another primary source to eliminate our debt. We can continue to cut but if we cut so much what type of benefits will the underprivileged have. There is a responsibility of our government to ensure the underprivileged is served. The rich will find ways to make money but the poor need our  help until they can reverse the chains of poverty. All poor people don’t mismanage money; they are caught in a cycle of trying to surviving. The government can ensure their existence until they are removed from the cycle of poverty.   A balanced government is what we need – for the future is at stake and our competitiveness as a country will recede because we have forgotten about equality. 

 Scripture – 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. ² Consequently, whoever rebels against the authority is rebelling against what God has instituted, and those who do so will bring judgment on themselves. ³ For rulers hold no terror for those who do right, but for those who do wrong. Do you want to be free from fear of the one in authority? Then do what is right and you will be commended. ⁴ For the one in authority is God’s servant for your good. But if you do wrong, be afraid, for rulers do not bear the sword for no reason. They are God’s servants, agents of wrath to bring punishment on the wrongdoer. ⁵Therefore, it is necessary to submit to the authorities, not only because of possible punishment but also as a matter of conscience.  ⁶ This is also why you pay taxes, for the authorities are God’s servants, who give their full time to governing. ⁷ Give to everyone what you owe them: If you owe taxes, pay taxes; if revenue, then revenue; if respect, then respect; if honor, then honor.

We have seen over the past month, The Great Debt Ceiling Debate. No matter how you look at it; whether you are for or against it, you have to admit there were some pretty interesting discussion. I do believe that we are truly educated about the United States debt ceiling. Let me ask you a question. Can you raise your own debt ceiling anytime you like? I am reminded of the story from the Bible in 2 Kings 4:1-7. The Bible is still applicable today in solving financial debt problems. There was a certain woman who husband died who owed debt. The creditors were coming to take her sons away to make them slaves. She was distressed and really had given up hope until the prophet Elisha came into her life. Elisha gave her some key instructions to immediately lower her debt ceiling.  He asked her an unlikely question, “What is in your house?” She responded, “I only have a jar of oil in my house.” He told her to go and borrow as many jars as she could and pour the oil into them. She did exactly what she was told.  She poured the oil into the jars until the oil stopped because she ran out of jars. Afterwards, she came back to the Elisha and asked, “What shall I do next with the jar of oil?” Elisha said these life changing words, “Go sell the oil, pay off the debt and live off the rest.” 

The revelation from this story is this: there is something valuable in your house that will immediately lower your debt ceiling. When I teach about finances, I have a debt truth. It is this: The breakthrough of debt is in your house. Most people ask me how they can identify those things that are keeping them in debt. You have to look at this with a spiritual and natural eye. Let’s look at it spiritually, Proverbs 10:22 says, The blessing of the LORD makes one rich, And He adds no sorrow with it. What things in your house are causing you to have sorrow? Could it be your home, car, furniture, clothing, credit cards, or expensive electronic items?  If one of these items is causing an issue, sell it! Don’t allow it to take over your life.

Now look at it naturally. In my book, Hostile Takeover, I give readers a tool to analyze their net worth. Net worth not only determines your wealth; it can ultimately determine the health of your financial future. The net worth is composed of assets and liabilities. Assets include residences, automobiles, and items that have significant monetary value.    Liabilities are short term and long term debt which includes bills, credit cards, real estate, and other properties in your possession. To get your net worth subtract total liabilities from total assets. There are three types of net worth: positive, negative, and sum zero. A negative net worth is the result of more liabilities than assets, which may mean too much debt. From the net worth picture, you can easily find what is giving you sorrow by identifying the specific item that impacts your budget.  

We don’t have the luxury like our government to raise our debt ceilings. Creditors will come after us quicker than the government.  The government has years to pay even decades; you don’t. The one thing that I have learned through this economic rollercoaster is that we truly have control over our money. Our control is in our hands, not the government, not Wall Street, nor the creditors.

I say again, “The breakthrough of debt is in your house – you can find the oil!”

The meaning of sacrifice is to surrender of something prized or desirable for the sake of something considered as having a higher or more pressing claim. Sacrifice is good. Sacrifice will not benefit you in the short term; it will benefit you later. Once you start sacrificing in your budget, you will see a greater move of God in your finances. My family began to experience increase in our finances once we started to sacrifice our finances for the greater good.

Question – Cedric, I am 82 years old, retired, and enjoying life. What is the best option for people like me to handle finances? My family needs are not as great as they were before. We do what we can and we serve in the church faithfully. We enjoy sharing with others.

Answer – Congratulations on being retried. Many of us would like to be in that position. I cannot tell you much more except to keep living. You said that you are enjoying life. Obviously, you have done something right with your money. Proverbs 10:22 says the blessing of the Lord makes a person rich, and he adds no sorrow with it.  You are rich in more ways than one. You are rich in the eyes of God not in the eyes of man or Wall Street. Being rich is ensuring that all of your needs are met, meeting other needs, and having some left over to do what you like.

My first suggestion is to ensure all of your financial information is update. Don’t let anything lapse, policies included. Continue to do what you are doing. If it is not broke, leave it alone. This is your time to reap your harvest because you sacrificed many years ago. Secondly, continue to witness and teach the grace of God to others in the area of your finances. We need to hear your testimony. It is not often that we see people live this long and enjoying life.

Question – Deacon Cedric, I need help with my budget. I have a 1 year old son; we receive government assistance. I am currently staying with my aunt in which she takes care all of the expenses. I am attending school part-time to become a dental hygienist and I don’t work. I have a few expenses with some outstanding student loan debt.  How should I handle my budget?

Answer – Thanks for sharing, I applaud you for taking control of your finances. It seems that you are getting the necessary help. Before you start a budget, my suggestion is to sit down to decide your goals. Your goals will really fuel what you need. If you desire to have more than you have now, you have to make some tough decisions. What are you willing to sacrifice? Habakkuk 2:2 says Write the vision, and make it plain upon tables, that he may run that readeth it. When you have a goal in mind you tend to run toward it. You have already started by going to school. At this time, you are not in the position to create a budget because you have no income. The only way to get there is to start working.  Secondly, you can address your school loans by calling the loan department and ask them to defer your loans until you finish school.  Again, write your goals, find a job, budget, then save money.

Update from reader since question – Cedric, I have now finished school and have the opportunity to work as a dental hygienist. Until I am able to find a job in this area, I have secured another position working full time. Thanks for your help!

Question – Deacon Dukes, we have a family business and we want to pay tithes. Some of us want to pay them from a net income meaning after taxes and others want to pay them as gross. What should we do?

Answer – Thanks for the question. I have a few questions:  Do you have a legal contract/agreement on how distributions are given; also what does your contract say in terms of giving your tithes – gross or net? If you don’t have this language right now, my suggestion is not to sweat it. Once everyone gets their distribution, you can decide on how you want to pay it.  The Bible does not specifically mention gross or net tithing. It says give your best as stated in Proverbs 3: 9-10. The promise of that scripture is that God will ensure that your barns will be filled with plenty.

Remember, sacrifice is good because it will pay off later. Have a good day.

P.S. Encourage your friends and family by sharing this column and invite others to ask questions about their money. Send questions to Twitter @CDDukes, cedricdukes@gmail.com or visit the contact page at www.cedricdukes.com. Cedric Dukes, speaker and columnist, is the author of Hostile Takeover – Manifesting God’s Plan and Purpose for Your Finances.

Finance is a tool that should benefit you. When the tool is used, it does wonderful things for your life. If you allow it to master you, it will bring pain, frustration, and disappointment.  Mastering the tool of finances will bring you into the abundant life that God has prepared for you. Today’s edition is about making tough decisions. All decisions have options. Choose the best one.

 Question - Cedric, I have three kids from three different fathers. I get unemployment. I make about $1200 per month and my rent is $600 and the rest of my expenses go to food and diapers.  I am also interested in going back to school but I am not sure how can I do this. How do a single mother of three work a budget and have something every month to live. Also, I do not get any outside support from the fathers.

 Answer - I am glad that you are taking control of your finances. First it is important to understand your priorities. Your main priority is to first take care of your children. God is going to give you the ability for He takes care of the fatherless (James 1:27).  You should prepare your budget and keep track of your expenses for the next 30 days. You must establish a spending pattern. Become prudent and eliminate luxuries now (Proverbs 21:17). Second, work with your landlord to determine if you can reduce your monthly rent because of your recent hardship of unemployment. You are in the position to negotiate because you fill that space and you have been current with you rent on a monthly basis. If they are not interested, begin to shop around for other apartments with competitive rates in that area. Third, look for a job. You have to get back into the work force. Look at different agencies that will help single mothers. Lastly, pray for your children’s fathers; don’t waste time to get money from them right now.  Your focus is on surviving. Pray that they will come into their purpose. It is important because you do not want your kids duplicating their behavior.  I know that you are interested in going back to school. Right now the priority is the kids. Once you get stable enough, go back to school. I pray God give you grace in your house and finances.

 Question - Cedric, I need help. I am married and we are struggling to live. I am under so much pressure to provide. I work but my wife does not; she volunteers for a nonprofit agency.  Our credit scores are around 560. Our rental payments are $1900/month. Every month we come up short. How do I take control of my financial house?

 Answer - Money is not the major reason for marriages not living up to expectation; it is communication. You have to communicate with your wife to let her know your struggles. She should be your best friend. Let her sharpen you in this time of concern (Proverbs 27:17). 

 Recommendations: 1) Discuss your family goals and priorities with your wife (Luke 14:28 and Habakkuk 2:2). Once you detail out the vision you can start running toward it. If there is no vision, there is stagnation. 2) Track your expenses for 30 days and have a lock tight budget. What luxury items do you have? Get rid of all luxury items (cell phone, internet, cable). You stated that your largest expense is your rent. You must attack this with a vengeance. Your credit score has inflated your rent. You must correct your credit score by start paying bills on time and ensure that you have no felonious debt on your credit report. 4) Look for opportunities to move or renegotiate a lower payment. Are you paying other utilities (water, gas, and electric)? Don’t become comfortable living beyond your means – downsize fast!  You and your wife must be on the same page. Your goal should be living within your means and saving money. Reading your question again, I can assume that you have no savings. Treat savings as an expense not as an asset.  5) Talk with your wife and let her know that the house needs help. Maybe she can pick up a part time or full time job to assist. Again, if you and your wife set priorities and goals for your house, you will become unstoppable. Families that succeed; succeed with goals.

 Have a good day

P.S. Encourage your friends and family by sharing this column and invite others to ask questions about their money – it’s free! Send questions to Twitter @CDDukes, cedricdukes@gmail.com or visit the contact page at www.cedricdukes.com. Cedric Dukes, speaker and columnist, is the author of Hostile Takeover – Manifesting God’s Plan and Purpose for Your Finances.

Finance is a tool that should benefit you. When the tool is used correctly, it does wonderful things for your life. If you allow it to master you, it will bring pain, frustration, and disappointment.  Mastering the tool of finances will bring you into the abundant life that God has prepared for you. Here are some questions from readers and more tips about your money.

 Income Generating Tips

•  Put God first and resist falling in love with money (Luke 16:13)
• Find a higher paying job
• Pay your tithes  (Malachi 3:8)
• Work with your utility company to develop a payment plan to fit your budget needs
• Develop your budget and reduce or eliminate discretionary spending (cell phone, internet service, grooming, eating out, etc.) (Proverbs 27:23)
• Review insurances for higher deductibles
• Start your own business (Isaiah 48:17)
• Be generous (Matthew 10:8 & Proverbs 22:9)
• Payoff consumer debts from the smallest to the largest in value
• Use  bank debit cards instead of credit cards to control spending (Romans 13:8)
• Adjust your withholding/exemptions from your paycheck
• Renegotiate your rent or refinance your mortgage to a lower rate
• Keep investing in yourself – hard work grows into wealth (Proverbs 14:23)

 Question – Why do I really have to tithe and what will it really do for me?

 Most people ask me this question because they have subscribed to the fact that tithing is not required because it was referenced in the Old Testament and secondly God knows their situation. It is true that God wants the best for you that is why He instituted the tithe to meet and exceed your needs. The tithe is for your benefit.  God only requires a dime out of a dollar because He wants to set up a repetitive cycle of blessings for you and your family. When you give, your needs are met and increase happens in your life not only in the area of money, but in all areas of your life.

There are 3 different promises from giving the tithe: First, God promises that He will open the windows of Heaven for you to become a blessing (Malachi 3:10). Secondly, the giving of the tithe protects your future income and prevents debt (Malachi 3:11). Lastly, the tithe will ensure a lasting testimony of God’s greatness for your life (Malachi 3:12). Your witness for God will be much stronger and you will become the light of the world that people are searching.

Finance is a tool that will benefit you. When the tool is used, it does wonderful things. If you allow it to master you, it will bring pain, frustration, and disappointment.  Mastering the tool of finances will bring you into the abundant life. Here are a few questions from readers concerning investments.

Question – What are bonds or bond mutual funds and how do I incorporate them in my portfolio?

Great question, bonds allow you as a bond investor to lend certain amount of money to a company, bank or government agency for a predetermined time in exchange for income. The company will pay you interest in exchange for your investment. Bonds are used to finance major projects such as parks, recreation facilities, and highways. Companies use bonds to finance research and development of major products. 

Typically bonds can be invested for as little as $1000.  Bonds can be used in a retirement account to avoid fluctuations due to the stock market. For instance, many investors switched their investments to bonds to avoid loses during the stok market crash in 2007.. Bonds are especially useful when a person is in the later years of his or her working career. Good bonds are safe and will give you stability. Bond mutual funds are a collection of bonds similar to mutual funds. Bond funds ensure a steady flow of income because they do not take on much risk.

Question – I have insurance; how much do I need and what type should I purchase?

Determining the type and amount of life insurance can be secured through an insurance agent. There are many types such as term life, cash value or permanent life. Term life is a temporary insurance specifically for a number of years (10, 20 or 30). Term life is popular and low cost.

Another popular policy is permanent life insurance. It is a policy to build wealth while living. Permanent life has two components. The first is the death benefit and the second is the cash value of the policy. The cash value enables the life insurance companies to make policy loans available to the policy holder. It is a savings account that allows wealth to accumulate from a portion of your monthly premiums. Payments of this insurance can be twice as much as term due to the fact the policy never expires.

The last question is how much should I purchase. Work with your agent to determine. A simple rule of thumb is to buy five to eight times your current income.

To determine your amount consider these questions for starters:

• How much income should I replace for my family when I am no longer living?
• What are the unresolved bills and debts?
• How can I ensure financial success for my children and grandchildren?

 As Proverbs 13:22 states, “A good man leaves an inheritance to his children’s children.  

Question – What is the best stock tip for me to gain some extra money? 

Don’t buy.  Stocks can sometimes encourage a short term get rich mentality rather than having a long term focus. I encourage others to do these things before buying stock:

• Get out of credit card debt
• Fund your emergency fund
• Contribute consistently to an IRA or 401K
• Secure the appropriate amount of insurance

Stocks can be considered risky and too narrow focused. The objective of any investment should be to seek diversification (Ecclesiastes 11:2), have a long term focus (Luke 14:28), and become a continuous investor (Proverbs 28:20, 22). Stocks can be a complement to your investment future. Acquiring mutual funds may give you the best opportunity to double your growth rather than having individual stocks.

This week money perspective – Taking control of your money will help you to become a smarter investor.

P.S. Encourage your friends and family by sharing this column and invite others to ask questions about their money. Send questions to Twitter @CDDukes, cedricdukes@gmail.com or visit the contact page at www.cedricdukes.com. Cedric Dukes, speaker and columnist, is the author of Hostile Takeover – Manifesting God’s Plan and Purpose for Your Finances. To look at previous columns, go to www.cedricdukes.com

Have a good day,

Cedric Dukes