Your Money Answers

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

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. Here are some questions from readers about the tithe, husband spending, and bankruptcy.

 Question – Should I tithe even though I cannot pay my bills?

Great question, I have received many questions on this topic. Conventional wisdom says no, but the Bible says yes.  If you are a Christian, you should tithe. Many would say this is careless but you have to look at why you are in this situation. It was not the tithe. It was due to overspending and not managing your assets properly. Of course if you don’t have income, you should tithe your time to your local church in the area of volunteering. Let your leadership know.  If you do have a job, I suggest that you should take control of your finances. Proverbs 3:9-10 says Honor the Lord with your wealth and with the best part of everything you produce. Then he will fill your barns with grain, and your vats will overflow with good wine. If you honor God first, he will honor you. God works through a covenant with his people. Malachi 3:10-11 guarantees two things that God will personally do if you tithe. First, he will open the windows of heaven for you meaning that your needs will be met including your unpaid bills. Secondly, God guarantees that he would rebuke the devourer from your harvest. The devourer can be anything that eats up your paycheck before receiving it. In reality, paying the tithe prevents overspending and will put you in a position by God to honor his Word in your finances.

Question – My husband spends money that we don’t have, how can I stop him?

The answer to this question will surprise you. You cannot stop him from spending. Here is my question to you. Do you and your spouse have a financial vision? Write the vision and make it plan for all to see so your spouse may run toward it. Most people correct their behavior if an overall goal or vision is in front of them. Normally, I suggest that every family have their financial vision posted on the refrigerator or on the bathroom mirror to remind them the purpose of their money and the goals that they want to accomplish. Here are some additional pointers:

1)      Sit down with your spouse and analyze your financial future – short term and long term

2)      Create a list of items that you want to accomplish with your money including getting rid of debt and making major purchases.

3)      Create a budget around those activities and look at your current budget to substantiate that vision for the short term goals.

4)      Allocate spending money for your spouse. Realize a spouse is either a saver or spender. There is a time to spend and there is a time to save.

5)      Come into agreement and hold each other accountable by having monthly family meetings in reviewing your vision.

6)      Have fun and be creative

Question – Do you think I should file for bankruptcy as a Christian?

In 2009, over 300,000,000 people filed for bankruptcy. This means1of 212 people have filed. Bankruptcy is not a Christian problem, it is a choice. Bankruptcy can devastate lives and it can help others out of the strain of debt. You should seek a trusted counselor before you do so. While the Bible never states anything about bankruptcy it warns us about debt. Romans 13:1 says don’t run up debts, except for the huge debt of love you owe each other. God’s expectation is that you pay your bills regardless if you are a Christian. Here are some additional tips:

1)      Pray over your finances  and listen for the answer

2)      Communicate with your creditors regularly about your payments – don’t shy away from them

3)      Offer lenders a written copy of your budget and a list of your debts – God may choose them to give you leniency with your bills.

4)    Operate in integrity; Proverbs22:1 says that A good name is to be more desired than great wealth, Favor is better than silver and gold.

5)    Be patient for all debt will not automatically go away– But let patience have its perfect work, that you may be perfect and complete, lacking nothing (James 1:4)

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 Twiiter @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.

Question – How do I teach my kids finance?

This is not an uncommon question. Many parents have struggled for years to understand this answer. There is one principle that you can teach your kids. It is called GSS principle. Teach them how to give, how to save, and how to spend.  If you use this, you will give them the greatest financial principle for life.

Here are some more suggestions:

·        Give them money for chores around the house, allowances or reward them for excellent grades.

·        Encourage them to save the money that you are given them in a bank account. Many parents wait too late to open a checking/savings account for their children. This will give them a sense of responsibility.

·        Use the GSS principle with them. Allow them to give some of it away by tithing to their church or by donating to the less needy.  Teach them the value of giving to others less fortunate. Their mindset will change once you do.

·        Give them the option to either save or spend their money. By allowing them to save or spend their money, they will choose what to do with it. Enforce spending within their means.

·        Teach them the priorities of having a goal for their money.

·        Play games with them such as Monopoly. Although fun, these games will allow them to understand about money at a quicker pace than their counter parts.

Question – What are the best investment products?

I don’t endorse products. Understand that stocks, mutual funds, bonds will not give you everything. You must have a well-rounded vision as found in Habakkuk 2:3 For the vision is yet for an appointed time; But at the end it will speak, and it will not lie. Though it tarries, wait for it; Because it will surely come, It will not tarry.

Here are my suggestions:

·        Invest by putting money away for yourself whether savings, emergency funds, or etc.

·        Utilize your company 401K or 403B as sometimes most companies will match your contribution.

·        Use insurance as a way to fund your financial vision.  See an insurance specialist for more details.

·        Look for tax advantage opportunities such as a house if you are renting. In some areas it is a buyer’s market.

·        As always, see you trusted financial advisor; pick one who has similar goals and beliefs as you.

Question – I owe $40,000 from my debts – where do I start?

Debt can be scary thing if you allow it to conquer you. The first thing that you have to do is to change your mind about your finances. Don’t allow money to master you. You master it. Understand that your behavior now has to change for evermore. I know this is harsh but most people get back right into debt after eliminating it.  Here are some of my suggested steps (some you have heard off and some you have not heard):

1.      Pray and Listen – Whether you are a believer or not, you need the help of God or higher power. Understand that you have access.

2.      Compile all debts from smallest to the largest

3.      Payoff the smallest balance while paying minimum payments on the others. You can consider calling the companies to see if you can settle for debt less than owed. They don’t have to settle with you.  If unsuccessful, plan to pay the debt off.

4.      After paying off the smaller debt, use that money and add it to the other bill to pay it off quicker. Continue to payoff all debt until you get to the last bill.  This is called recycling.

5.      Be patient – all debt will not be instantly payed off.

6.      Consider selling things that you don’t need and consider valuable and use that money to pay off debt. Answered prayers are a wonderful thing.

7.      Occasionally pay off debt for others. Do unto others, as they will have to do unto you. It works. You never know when someone will pay your bill off or your creditor will say no more payments. We will settle for debt less than owed. It happed to me.

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 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.

So what, no one should care. As long as no individuals holds it over that other person, it does not matter. The husband and the wife are one in the eyes of God. Your income is one not two. Allow no division to come upon you.

Here are some helpful suggestions for married couples:

1) Refrain from controlling or domineering behavior

2) Refer to the money as “our” not mine

3)Husbands, Get over the fact that she earns more

4)Continue to encourage each other in your career

5)Both of you have the final say so in all financial decisions

6) Have the same financial goals

7) Hold budget meetings at your house and talk candidly about your money – for you are a corporation

One of the major factors in divorce is communication not money. Once you stop communicating, every things else falls including money. Having separate personal checking accounts with your spouse is almost like not communicating. What is the purpose of having separate accounts? Having accountability keeps integrity within the relationship and accountability to others. Having two accounts may allow that person to do something that they are not supposed to do. Ecclesiastes 4:9 says two are better than one. Genesis 2:24 talks about the two becoming one. When you are married, you are spiritually becoming one person that God sees in the spirit. Put your resources together so that God sees one and your goals and desires will get accomplished much quicker.

Blessings to you

This column is not intended to degrade any political party or to seek benefit for any entity. It is intended to show the original intent of God of certain issues today using biblical scripture. Use this as a discussion to solve problems not to select sides, for God is an independent.

 Balanced Budget – The ability to control spending with respect to the income that is generated. It is a measure to control spending and to operate within the means of generated income.

 Democrats view – The Democrats believe in a balanced budget, believes in living within a budget, and believes that basic services should be afforded to every person.

 Republican view – The GOP budget controls the national debt, does not raise taxes, and achieves lower deficits than the President’s.

 God’s view  - Luke 14:28  – For which of you, intending to build a tower, does not sit down first and count the cost, whether he has enough to finish it.  Matthew 22:21 -Render therefore unto Caesar the things which are Caesar’s; and unto God the things that are God’s.  Proverbs 27:23  – Know the state of your flocks, and put your heart into caring for your herds.

 God’s view of the budget is simplistic.  Luke mentions that it is common sense to count the cost before you do anything.  Having federal programs are good, but will the programs withstand the test of time and will it weather any economic atmosphere. Can we continue to fund social security or government programs while we go into debt? Every line item in a budget has to be looked with cautious. We can no longer spend frivolously. Our lawmakers are keepers of the law and they are responsible for the lives of the people and for the rules of this country no matter the party. We send the lawmakers to take care of us, therefore they have to scrutinize every line item. Of course, people will disagree with programs that will be cut but we must trust our lawmakers that they are making the right decisions for all people no matter the economic status. It is biblically right to balance the budget. We should not go into debt and have our children pay for them. We can no longer pass this responsibility to our children.

 A word on taxes, let’s not get bogged down about who owes what. Taxes funds programs and initiatives. So pay the government what is rightfully theirs and pay God what is His also.

I know that if you read books, it states there is good debt and bad debt. Let me say this – Debt can be the enemy of your finances and future if you do not control it. There is nothing good about debt. Debt is not your friend. Don’t even let it in your house.  I am talking about the type of debt that we build up for our own pleasures such as credit cards, department store cards, personal loans, and etc. Sometime our house mortgage can be a pleasure if we are not careful.

In Romans 13:8, it says owe no man nothing but love. I know this is strange but the only cure for having debt is to replace it with love.  The bible never says that you could not have debt. It specifically says that if you have debt; you should pay it back. I believe that we have the power to get out of debt if we desire. Getting out of debt is the plan of God. God never wanted you to become indebted to someone else. He wants you free to do other things.

Once we get out of debt, we can do things with our finances that we never thought of. We can take vacations, save for retirement, invest, save for major purchases, and give.  When we conquer debt, we are free. Proverbs 22:7 says just as the rich rule the poor, so the borrower is servant to the lender.  Becoming subservient to the lender is not the desired result because the lender can control you anytime.

How do you know if debt is a problem?  Proverbs 10:22 says the blessing of the Lord makes a person rich, and he adds no sorrow with it.  If your debt is causing pain, sickness, sleepless nights, irritation, anger, and worry, it is not a blessing.  If you are serious about removing debt do the following:

1. Compile a list of all the debts from the smallest to the largest
2. Cut up all your credits cards that has put you in trouble
3. Pay off debt starting with the smallest balance
4. Consider selling something if need to (Read 2 Kings 4:1-7 for understanding)
5. Pay off debt for someone else
6. Be patient

Remember debt is not fashionable.

Have a good day

About now many are getting their tax returns. The key question for these individuals – what should I do with my return? This has baffled many for years especially since the financial crisis have devastated many. The conventional wisdom is to spend it on whatever you want. I can’t blame you; it was your hard earned money and you felt like you deserved that. On the other side, some say invest it. I can’t blame that reasoning because many 401k’s and IRAs were impacted greatly.

I am not here to say what you need to do but we have to look at why you received an overpayment. The reason why most received a tax return is that you were paying more than your fair share of taxes to the government which is not a bad thing. Your money is used for different services for our local and national government. The fact that you paid more to them means that you used less of your money during the year. The government took more and the return of your money was less.

The key point is to take control of your money. Your money is too valuable to give away. Your tax liability can change at any given time during the year. So the step that you may want to take in the upcoming year is to work with your tax advisor or accountant to determine how do you ensure that you are not getting a big fat refund on April 15. You want to be as close to a zero balance. You may want to adjust your withholdings on your W4.

So to answer the question should you invest or blow it? My answer would be to invest in you. You may have done this with your money if you had not given it away. So look at doing the following: create or build upon your emergency fund, pay or eliminate credit cards debt with high interest rates, buy something that you have been wanting (do it with cash not the credit card), do home repairs especially if you are utilizing energy efficient windows (you may get a tax deduction for the upcoming year) or put it  toward a vacation that you were planning to take. Again investing is not bad when it is benefiting you. Look over your taxes and pay the right amount so that you can utilize the benefit of your money now than later.

 Have a good day