Kevin

Why We Should Give in Secret

By

Why we should give in secret...Giving is giving, right? Not if you’re a Christian. There are ways to give – and God wants us to give – and there are ways we shouldn’t give. One way we shouldn't is giving publicly. As Christians, we’re told to give in secret. Our mission in life is to glorify God in all that we do – when we give in public that may not be exactly what’s happening.Giving is giving, right?

Not if you’re a Christian. There are ways to give – and God wants us to give – and there are ways we shouldn’t give.

One way we shouldn’t is giving publicly. As Christians, we’re told to give in secret.

Our mission in life is to glorify God in all that we do – when we give in public that may not be exactly what’s happening.

It could be our secular selves rising to the surface.

How the World Gives

When the secular world gives it’s often with considerable public fanfare, and even trumpeted in the media. The giver is exalted for his generosity, the charity for its new resource, and all of society celebrates the basic goodness of humankind.

The giver is often rewarded by having his or her name included on buildings, roadways, parks, or whatever is connected with the beneficiary. But the giver often gets other benefits as well, and those benefits may be one of the primary reasons for the gift.

For one thing, charitable giving typically creates tax benefits. For another, it could be an attempt to soften criticism against the giver or to somehow portray them in a more positive light. It might prove that the giver is a solid citizen and a significant member of a community, group, or organization. All afford some benefit to the giver beyond just giving because it’s the right thing to do.

Do Not Seek Your Reward Before Men

If you are a Christian this is not the way to give, at least if we can avoid it. Public giving is usually a way of seeking favor among men. The Bible tells us to seek favor from God alone. Even worse, by giving publicly we call attention to ourselves. God isn’t glorified by our giving, we are.

Giving to Those Outside Recognized Charities

It’s pretty easy to measure giving when it’s done through organized charities, but how strong is our generosity in giving to those who are not part of such a charity? I’m talking about people around us who are in need. There’s no tax deduction for that kind of giving and little potential for any sort of public recognition. But this may also be the ultimate test of our giving.

Jesus gives us some idea how important this kind of giving is:

“Then the King will say to those on his right, ‘Come, you who are blessed by my Father; take your inheritance, the kingdom prepared for you since the creation of the world. For I was hungry and you gave me something to eat, I was thirsty and you gave me something to drink, I was a stranger and you invited me in, I needed clothes and you clothed me, I was sick and you looked after me, I was in prison and you came to visit me.’

“Then the righteous will answer him, ‘Lord, when did we see you hungry and feed you, or thirsty and give you something to drink? When did we see you a stranger and invite you in, or needing clothes and clothe you? When did we see you sick or in prison and go to visit you?’

“The King will reply, ‘Truly I tell you, whatever you did for one of the least of these brothers and sisters of mine, you did for me.’ – Matthew 25:34-40 NIV

Giving to “the least” among us is God’s preferred way for us to give, perhaps because we will receive no benefit for doing it. And notice that it’s giving food, drink, shelter, clothing or care – time and effort. Those aren’t as easy to measure and recognize as money is.

Don’t Flaunt Your Tithe Either!

There are different ways to go public about giving, and they don’t always involve dollars and cents. Percentages work just as well. Declaring that you give 10% of your income to the church, or that you give more than 10%, can be a way of glorifying yourself or seeking the favor of men.

Give, but don’t declare your giving to the world.

What Jesus Tells Us About How to Give

Jesus gives us very specific instructions on how to give – and how not to give:

“Be careful not to practice your righteousness in front of others to be seen by them. If you do, you will have no reward from your Father in heaven.

“So when you give to the needy, do not announce it with trumpets, as the hypocrites do in the synagogues and on the streets, to be honored by others. Truly I tell you, they have received their reward in full. But when you give to the needy, do not let your left hand know what your right hand is doing, so that your giving may be in secret. Then your Father, who sees what is done in secret, will reward you. – Matthew 6:1-4 NIV

Jesus is describing true charity here – we get no credit from man for our generosity. People are helped, God is glorified by our efforts – and our secrecy – and we are rewarded by our Father in Heaven.

Have you ever thought about giving this way? Leave a comment with your thoughts on giving in secret.

If You Only Read 5 Financial Books Your Entire Life, Make Sure These 5 Are Included

By

if you only read 5 financial books your entire life make sure these are included

There are all kinds of lists that will proclaim this or that book to be the top financial book available.

But we’re going to take a different approach here.

Our list is going to focus on the books that are a benefit to you in five fundamental areas:

If you only read five financial books your entire life, make sure you read these five!

1The Total Money Makeover: A Proven Plan for Financial Fitness

The Total Money Makeover“Don’t even consider keeping up with the Joneses – they’re broke!” So writes The Total Money Makeover author, Dave Ramsey. This may be the book for the person who is in debt and wants to get out. There’s no high finance or technical applications here, just common sense get-tough-with-yourself strategies to help you dig yourself out of a financial hole, and get yourself positioned to create a life of financial independence.

Ramsey recommends what he calls “gazelle intensity” as the key to success. You live your financial life the way a gazelle saves itself from an attacking cheetah – “outmaneuver the enemy and run for your life.” He even takes aim at the American Dream, which encourages going into debt.

That means avoiding common practices that can get you into debt in the first place. Ramsey challenges the widespread use of debt consolidation, cash advances, and rent-to-own schemes. Instead he advises readers to pay with cash, and avoid the entire debt trap altogether.

This is not a get-rich-quick book, but rather something of a financial guerrilla warfare strategy for those mired in debt and lacking savings.

His first recommendation is to create a $1,000 emergency fund. Once that’s accomplished, he recommends moving on to paying off your debts. For this he advises that you pay the smallest debt first, then move on to the next smallest, and so on – the so-called Debt Snowball method of getting out of debt.

Once you’re out of debt, his recommendation is that you increase the size of your emergency fund so that it covers 3 to 6 months of living expenses. From there, you can begin to accumulate serious savings, to pay off your mortgage, save for college, and invest for retirement.

2Your Money Or Your Life: 9 Steps to Transforming Your Relationship with Money and Achieving Financial Independence

Your Money or Your LifeYour Money Or Your Life is written by Vicki Robin, Joe Dominguez, and Monique Tilford. Originally written in 1993, the book is been revised for the 21st Century.

The book shows you how to get control over your money and to begin creating a worthwhile life, rather than simply making a living and paying your bills. It takes a whole subject of money at the big picture, and beyond money itself.

For example, the book offers advice in the following areas:

  • Getting out of debt and building savings
  • Creating a better life with fewer material possessions and a lower cost of living
  • Finding balance by living a life that incorporates and reflects your personal values
  • Spending and investing your money in a way that will benefit the planet
  • The real cost of holding a job (and how it reduces your income)

It’s a bit of an unconventional look at personal finance, but sometimes that’s just what we all need.

3The Intelligent Investor: The Definitive Book on Value Investing

The Intelligent InvestorThe Intelligent Investor: The Definitive Book on Value Investing was written by Ben Graham and Jason Zweig, or more precisely, an update of the book originally written by Ben Graham. If you aren’t familiar with Ben Graham, he was a mentor to none other than Warren Buffet, which should rate this book a position on any list of financial publications. Graham is also credited as being the father of value investing, which is the standard investment operating procedure by Buffet – buy companies when their market value is low (but their fundamental value is high), then ride the elevator up with them.

The book is practically required reading if you’re interested in investing in individual stocks. It was originally written in the 1930s by Graham, but it was updated by Zweig and Buffett in 2003 and 2009. And naturally, the more recent editions include up-to-date techniques on stock market investing.

4The Millionaire Next Door: The Surprising Secrets of America’s Wealthy

The Millionaire Next DoorWritten in 1996 by Thomas J. Stanley and William D. Danko, The Millionaire Next Door unravels the myths that surround America’s millionaires, and how they came to reach their financial status.

While most people believe that the majority millionaires inherit their money, or are financial geniuses and investment wizards, and live opulent lifestyles, the authors’ research shows otherwise. As it turns out, most millionaires live much closer to the ground than the average person thinks. In the book, they produce a detailed profile of who the typical millionaire is, and what their life looks like.

The results are astounding. It turns out that people who live lives of the textbook millionaire – based on high-level of consumption – are not millionaires. Most spend their money at least as fast as they earn it.

The real millionaires turn out to be far more frugal. Their research indicates the following:

  • True millionaires typically live well below their means. While others spend money, millionaires and would-be millionaires are dedicated savers.
  • They begin earning and investing money early in life. But unlike their free-spending contemporaries, they are committed to delayed gratification, preferring to save and invest their money for the future.
  • They value financial independence over social status. They tend to live in ordinary homes, and the drive non-status cars, such as Fords and Chevys.
  • Most come from humble beginnings, and are self-made.
  • Self-employment is a common characteristic of millionaires; the book notes that self-employed people are four times more likely to be millionaires than people hold salaried positions.

Perhaps the most eye-opening revelation of the book is that there is no secret to becoming a millionaire. They are for the most part ordinary people, who hold ordinary jobs and run ordinary businesses, but with an incredible propensity for self-denial and to save and invest for the future.

Even if you don’t aspire to become a millionaire yourself, the book is an excellent read if you simply want to improve your financial situation.

5Debt-Free U: How I Paid for an Outstanding College Education Without Loans, Scholarships, or Mooching off My Parents

Debt-Free UDebt-Free U may not be the biggest blockbuster on the book market, but it’s incredibly timely given the explosion in student loan debt, and the crisis that’s building behind it. It’s a classic strategy on how to avoid becoming yet another student loan victim.

Author Zac Bissonette attended the University of Massachusetts, and managed to get an education at a top public university without using student loan debt to make it happen. He didn’t even use his parents’ money.

Bissonette challenges the conventional assumption that people need to pay top dollar to get a college education. But even more specifically, he refutes the idea that you need to use student loan debt to pay for it.

Bissonette disputes the default assumption that student loans are a necessary evil. In fact, he claims that avoiding them is an absolute necessity, even if you don’t have the benefit of scholarships. He even goes so far as to assert that popular college rankings are mostly marketing hype, that will trap you into paying more for an education then you should. He even challenges the notion that a degree from an elite program is a requirement, either to enter graduate school or to get a job at some of the country’s top employers.

This book is a must-read if you are about to attend college, or if you have children that are about to do so. Read this book before you make costly mistakes – the kind that can affect the rest of yours or your child’s life.

Those are my 5 – what books would you have included? Leave a comment!

12 Things You Should Stop Doing That Are Stealing Your Joy

By

These are 12 things you can stop doing today to get more of your JOY back in your lifeSometimes we’re unhappy, but we don’t know exactly why.

Even if our lives seem to be happy and successful on the outside, we may not feel that way deep inside.

If you feel that way, it’s likely that there are some things you should stop doing that are stealing your joy.

Here are several of them:

1Worrying About the Future

Jesus specifically warned us against worry in Matthew 6:25-34. I think he did this specifically because he knew that we’re prone to doing it, and doing it well.

But worrying about the future robs us of the joys of the moment. It also causes us to doubt that God will take care of us. At the extreme, it can cause us to live in fear, which can result in paralysis in facing it.

2Agonizing Over the Past

What’s happened in the past should be left to the past. There’s no use in trying to fix it, or to rewrite it to make it seem less unfortunate than it was. The only benefit that can come out of negative past experiences should be found in learning from them.

Your life is what you live today, and the direction you hope to take in the future.

3Fretting Over the World Condition

Thanks in large part to the power of the media, fretting over the world condition is practically a social requirement. In fact, you may be considered irresponsible or uncaring if you aren’t worried about what’s happening in the world.

But the reality is that you can’t fix the whole world. All you can do is to do your best to manage your little corner of it. Do your best in the space you occupy, and let go of the notion that either you – or anyone else – can fix the world condition.

4Procrastinating

This may be the single worst human habit. When you procrastinate, you put off taking actions that could make your life better. You also allow problems to fester and grow. And if you’re like me, the feelings of guilt begin to creep in when you know there’s something you need to take care of but don’t.

Good feelings flow from accomplishment. That can’t happen if you procrastinate. All that will do is weigh you down with the negative feelings that come from not doing what you know you need to do.

5Doubting Your Eternal Salvation

But when the kindness and love of God our Savior appeared, he saved us, not because of righteous things we had done, but because of his mercy. He saved us through the washing of rebirth and renewal by the Holy Spirit, whom he poured out on us generously through Jesus Christ our Savior, so that, having been justified by his grace, we might become heirs having the hope of eternal life. â€“ Titus 3:4-7 NIV

I bolded the word heirs in the verse for a reason. You’re not just a follower of Jesus Christ; if you truly believe that he died for your sins, you are now an heir to the hope of eternal life.

Once you embrace that reality, all the trials and tribulations of life suddenly don’t seem to be so threatening.

6Worrying About Your Health

When it comes to health, there’s plenty to worry about – if that’s what you choose to do. But if you are in good health, and merely worried about the possibilities, try doing these two things instead:

  1. Celebrate the good health that you enjoy, and
  2. Actively work to preserve and even improve it.

Worrying about your health only leads to stress, and that will degrade it. Instead, resolve to start living better, to eat more nutritious food and lay off the junk, to get regular exercise, and get immediate medical attention if you think something really is wrong.

Beyond that, enjoy your life and don’t worry about your health.

7Watching Too Much TV

If there is one thing TV is really good at, it’s making us feel bad about ourselves. It’s not an accident either. The primary purpose of TV is to sell us something. One of the best ways to do that is by making us unsatisfied with who we are and with what we now have.

Spend enough time watching TV, and you’ll come to doubt yourself, your life, and everything that you have. TV is a form of indoctrination – negative indoctrination. For that reason, you can’t spend too much time watching it.

8Trying to Fix People

Trying to fix people is an exercise in frustration. People don’t always feel they need to be fixed, and in fact they may not need to. And even if they do, they’ll probably resist change enforced by someone else with every fiber of their being.

You can spend a lot of good time and energy trying to fix someone and make no progress at all. If you’re that worried about them, then pray for them. And then focus your attention on fixing the person in the mirror (see Matthew 7:3-5).

9Worrying About Appearances

If you are too concerned with how things look – your home, your car, your appearance, or even how people will perceive how you make a living – you can live a joyless life.

The problem is that somebody else always has something that looks better than what you have. Concentrate on what makes you happy, rather than on how things may appear to other people. They almost certainly care less about how things look in your life than you do, so you’re worrying about nothing.

10Comparing Yourself With Others

This is a tough one because we all have different skills and abilities. If you are in the sales department at your company, and you always compare yourself with the top salesperson, you’re always going to come up short, and that will leave you doubting yourself.

Instead of comparing yourself with others, work on becoming better than what you’ve been in the past. Small, incremental changes made in your life over a long period of time could make a huge positive difference. That needs to be your focus, not comparing yourself with others.

11Ruminating Over Your Troubles

Nothing can steal your joy faster or better than ruminating over your troubles. When you ruminate, it’s usually over something unfortunate that’s happened in the past, or out of fear of an uncertain future outcome.

While you’re busy agonizing over the details of the past event or projecting one for the future, you trap yourself in a state of emotional paralysis. That’s a poor launching pad to deal with any type of uncertainty.

Concentrate on doing the best you can at improving reasonably expected outcomes, then trust that it will all work out one way or another. Events seldom turn out as bad as we think they will, if only because human imagination is virtually unlimited. You always have to be open to the possibility that unknown positives will appear in your situation that will prevent the worst from happening. Prayer is a good way to bring that about.

12Believing You Need to Achieve Perfection

Perfect people only exist on TV – which is another excellent reason that you shouldn’t spend too much time watching it. You’re a human being, with human flaws and weaknesses. That doesn’t make you a failure or unlovable – it just makes you more like everyone else.

Recognize that no one is perfect, and that you’ll never be perfect, and that’s perfectly okay. In the end, life really isn’t about achieving perfection, but rather about achieving happiness as an imperfect person living an imperfect life in an imperfect world.

Free yourself from these attitudes and behaviors, and see if you aren’t suddenly living a more joyful life.

What are some other things that can steal your joy? Leave a comment!

7 Things Every Christian Should Do Every Day

By

These are 7 things that every Christian should be doing each day!As Christians, we never want to get into the legalistic practice of creating “to do lists” that we must follow in order to define ourselves as believers.

But at the same time, there certain things every Christian should do every day in order to stay in faith.

“But be doers of the word, and not hearers only, deceiving yourselves.” – James 1:22 (ESV)

If we merely study the word of God, and don’t put it into practice, then faith is nothing more than an intellectual exercise.

It is what we do every day that defines and demonstrates our faith, and for that reason we need to be intentional about how to go about it.

There’s no 12-step plan when it comes to the Christian faith, but there are certain things every Christian should do every day, and here are some.

1Pray

Our prayer time is our personal time with God. This is the time when we block out the distractions of the world, and concentrate our attention strictly on our Creator. By connecting with God in this way, every day, we put ourselves in a better frame of mind to deal with everything we will face in our day-to-day lives.

This is something we should look forward to as well. After all, it is the Holy Spirit who equips us and protects us to go out to the world and live our faith. If we miss this step too frequently, our faith can quickly become superficial.

2Read Your Bible

In order to consider ourselves to be “believers”, we have to be absolutely clear on what it is we actually believe in. We can do this through prayer, personal reflection, fellowship, attending church, participating in faith-based activities, and even through supplemental study. But the Bible is the very word of God – the source for everything that we all believe in.

The only way to be clear what it is we should believe in, is to spend time studying the Bible. You should be purposeful about doing this each and every day.

As believers, we have to acknowledge that there are many doctrines and beliefs that exist throughout the faith. For that reason, we need to be certain as to what the Bible says – and what it doesn’t. That’s the only way that we can know if a doctrine or belief truly comes from God.

3Be Thankful

It’s all too easy to sink into self-pity – in fact, it’s practically the way of the world (just watch TV talk shows if you doubt that). There’s plenty happening in your life and in the world to regret or be bitter about. But it’s important that we understand that as Christians were called to come out and to be different. Rather than immersing ourselves in the negatives that are all around us, it’s far more important that we make it a practice to be thankful each and every day.

Don’t underestimate the importance of this step. A thankful heart is a changed heart. If forces you to focus your attention on the good things that God has given you in your life (starting with eternal life), rather than on the missed opportunities and unfortunate circumstances that we’ve all been exposed to. A thankful heart also makes it easier to witness to others. The answer to mankind’s problems can be found by seeking out God, that point is best expressed by someone who knows why we should.

Being thankful to God is also a form of positive thinking. It forces you to think about all that’s good in your life, rather than spending time ruminating over your problems. We need to be people of hope, and the only way to do that is by being thankful. And that’s an attitude that is developed on a day by day basis.

One other point: Being thankful is a form of worship – the kind that comes from the heart.

4Be Forgiving

In Matthew 6:14, Jesus tells us “For if you forgive other people when they sin against you, your heavenly Father will also forgive you.

If Jesus is truly our savior, than we must be absolutely serious on this practice. A forgiving heart is another of those qualities that doesn’t come to us naturally. It’s something that comes about through practice. And we can practice forgiving people each and every day. Once you get into the habit of doing so, it becomes second nature like any other good habit.

And it’s a habit that we need to develop. In our sinful hearts, we desperately want to see the flaws in others, while expecting complete forgiveness from others for our own shortcomings. But we cannot expect forgiveness from others, until we are ready to freely give it to them. God requires this of us!

5Reflect on Your Own Sinfulness

In order to worship a holy God, even to consider the whole concept, we first have to realize our own inherent sinfulness. That means we need to own up to what we’ve done wrong in the past, and what were doing right now. It’s only when we realize the true depth of our sinfulness that can we truly appreciate the need for a Savior.

When doing this, don’t merely concentrate on specific past sins. Rather, focus on the overall state of your heart. That includes your evil and selfish desires, which reveal the true state of your heart. God sees what’s in your heart, no matter how righteous you or others may think you to be.

Realizing our own sinful nature is probably the start of all forms of worship. It’s a form of coming to the end of yourself, and that sets the table for true worship. It also makes it considerably easier to forgive others, when you realize the depth of your own sin.

6Be Ready to Help Where There’s a Need

While we’re busy being wrapped up in our own lives and problems, there are people with needs all around us. While it is impractical to spend all day every day helping others with their problems, you can easily choose one or two people to help out each day.

Focus on the people around you, and try to be sensitive to any issues that they may be going through. A kind word or helpful gesture from you could be all it takes to get them moving forward. It will also help them to begin seeing you as a follower of Jesus Christ, and not just another insensitive face in the crowd. Opportunities for more direct witnessing can flow from these encounters.

7Be Mindful That Your Behavior Is Your Most Powerful Witness to Others

In all that you do, understand that your behavior is your most powerful witness to others. All of your best words and impressive pronouncements will become meaningless if your actions go in a different direction.

Whether we like it or not, the world will hold us to a higher standard because we are believers. They will be moved when we practice what we preach, but turned away when we do the opposite.

Each day, consider all of your behaviors, and how they might impact others for good or for evil. Put greater emphasis on your more positive behaviors, and eliminate or gradually reduce those that could be perceived as a negative witness.

Do you put any of these into practice on a regular basis? Are there other steps that you would suggest that we help us all to live our faith?

11 Things To Never Forget – Even On Your Worst Day

By

Even on your worst of days, these are 11 things that you must never forget...There are bad days, and then there are really bad days, maybe even rising to the level of your worst day. We can probably separate worst days from bad days based on the impact that the day will have on your life. For example, on a bad day the damage is usually limited to today or no more than a next few days. But a worst day is one of those days and will have a negative impact on your future, and maybe even for the rest of your life.... There are bad days, and then there are really bad days, maybe even rising to the level of your worst day.

We can probably separate worst days from bad days based on the impact that the day will have on your life.

For example, on a bad day the damage is usually limited to today or no more than a next few days.

But a worst day is one of those days and will have a negative impact on your future, and maybe even for the rest of your life.

No matter how bad your day is – even if it turns out to be your worst day – here are 11 things you should never forget:

1. If You’re a Christian You’re Sealed For Eternity

Even as Christians we can easily forget this reality. No matter how bad life gets, God has sealed us for eternity with Him, through the shed blood of Jesus Christ. A really bad day is an excellent time to remember that. What happens in this life is certainly important, but we also need to remember that were being prepared for eternity. Along the way, it’s important to remember that this life is very temporary:

“Whereas ye know not what shall be on the morrow. For what is your life? It is even a vapour, that appeareth for a little time, and then vanisheth away.” – James 4:14

I purposely used the King James version of this verse because it’s more poetic and really makes the point. It’s something to remember any time you’re having a dark day.

2. Prayer Is Your “Hotline” to the Creator of the Universe

No matter how bad your circumstances are – no matter how hopeless they may seem – you’re never alone. And there’s always a first, best option – and that’s prayer.

Prayer isn’t just meditative reflection, it’s quite literally conversation with God, the Creator of the universe. He who has created the universe can fix anything within it that’s broken, and that includes your life and your problems. God is bigger than your problems, even bigger than the entire universe. Reflect on that, they get on your knees and pray. God will be listening. Start by praying for peace, and go from there.

3. You Matter to Somebody

Often the reason for a worst day is rejection by someone who we consider to be very important to us. It could be rejection by a person who you have been hoping to date for a long time. Or it could be a breakup of a long-term relationship, and even a marriage. When such an event happens, it’s very typical to believe that we are alone, and maybe we’re even unlovable.

None of that is true. If you have family and friends, then you matter to somebody – you’re loved by other people. Never minimize that, even in the face of rejection by someone you consider to be very important to your life. We need many people in our lives, and they’re usually just waiting for us to call on them.

4. You’re Not Perfect – And That’s OK

Often the reason for a worst day is when something major goes wrong, and it’s your fault. Accept responsibility, and do what you can to remedy the situation.

And then move on.

You don’t have to be heartless or unfeeling to do this either. The reality is that you’re not perfect, and neither is anyone else. Perfection is one of those things that’s always expected, but never provided. That’s because human beings can’t deliver it – it’s not who we are or what we do. You don’t have to be perfect, and that’s absolutely okay.

5. Money Problems Are All Relative

Many times the reason for a worst day is a financial situation that got out of control. It could be the job that you didn’t land, the promotion you didn’t get, or the deal that felt apart. But whatever it is, the outcome is unlikely to be terminal as far as the rest of your life is concerned.

More important, when it comes to money, we always have to put things into perspective.

Statistically, 80% of the world’s population live on less than $10 a day. If you live in an industrialized country, chances are you’re living on a lot more than that. Learn the difference between struggle and survival, and realize that survival is rarely the real problem.

And struggle? That’s mostly a temporary problem.

6. Tomorrow’s Another Day

No matter how bad today may be, tomorrow will offer a shot at redemption. In most bad circumstances, the worst occurs at the very beginning. That’s when our emotions, and in particular our fears, are in control and making things worse than they really are.

But as the days pass, you’ll have time to put the situation into better perspective. Once you do, you can begin rallying yourself for the next push forward. And that’s exactly what you need to do. Life is too short to ruminate on our problems; forward motion is usually the solution. Trust in God, trust in yourself, and trust in tomorrow. No matter how bad today is, you’ll have a lot of better tomorrows.

7. The Ability to Make a Living Is a Under-estimated Blessing

Since a bad day is often tied to a work-related situation, this is something you really need to put into perspective. If you have a really bad day, if you’ve been passed over for a promotion, if you hate your job and today just made it more obvious – or even if you lost your job – there is a silver lining here.

The fact that you have the ability to earn a living is a true blessing. Even if you’re not where you want to be in your career, or you’re not making the kind of money that you think you should, you’re still able to earn money to finance your life – no matter how inadequate you think that is. With millions of people around the world literally foraging for survival, that ability is no small blessing.

8. You Can Make Changes Based On the Bad Experience

It is possible to turn nearly any negative situation into a positive one. Maybe that won’t happen overnight, but the seeds of progress in our lives are often sown during bad experiences. For whatever reason, we seem more motivated to make major changes in our lives when bad things happen than when were tooling along and life is good. Be prepared to capitalize on that arrangement – it’s real.

The bad experience might be beyond repair – so be it. Your response should be to convert all of that negative energy into positive, creative energy. Whatever happened that caused the problem, resolve that you will move toward a solution – a permanent solution.

If you can, that worst day can turn into the best day of your life. It works out that way for a lot of people.

9. If You Have Your Health You Really Do Have Everything

In an almost dismissive way, we often say at least I have my health as a backdoor admission that everything else in our lives has gone down the drain. But you need to turn that around.

If you do have your health, then you have everything you need to go forward and to make the kind of progress that will put a worst day deep into your past.

Try imagining that you’re having this worst day at a time when you also have a serious health condition. How much worse would this day be?

Good health should never be underestimated as a blessing. If you have it, then you’re in a position to fix what’s wrong in your life. It should never be dismissed lightly.

10. What Ever Happened, It Could Always Be Worse

No matter how bad things are right now, it really could always be worse. That isn’t just a cliche. And it’s not negative thinking either – it’s a matter of developing a healthy perspective.

If you just lost your job, but you’re single or married with no children, compare yourself to a divorced woman with three children who has been out of work for over a year. Suddenly your situation doesn’t look so bad.

If your boyfriend or girlfriend dumped you, compare yourself to a homeless person who has been cut off from everyone in his or her life.

If you just lost your home to foreclosure, compare your plight with that of a person who is doing a life sentence in prison – possibly for a crime she didn’t commit (Yes, that does happen).

If you didn’t get the promotion that you’ve been working on for the past three years, compare your situation to a soldier who is doing a tour of duty in some hostile corner of the Middle East.

Is your situation really that bad?

11. This Too Shall Pass

Net nearly every bad situation we encounter will ultimately prove to be temporary. Even though it never seems to be the case when it’s happening, that’s usually how it turns out. Think about all the other times you’ve had a worst day, and then think about how it ended up. You survived those episodes, and you’ll survive this one too.

A good question I heard and have learned to ask myself on my many worst days is will this matter in six months? If on reflection, it won’t, then you need to downgrade your latest worst day to just another bad day – then be ready to move on to better things.

How we view events in life has a major bearing on how they turn out. If you’re a Christian, you need believe this. We’re the children of hope, and there’s always hope, no matter how bad things look right now.

Do you ever reflect on these when you’re having a really bad time in your life?

Is Refinancing Your Mortgage Always a Good Idea?

By

Is refinancing your mortgage always a good idea?The possibility of a lower monthly house payment would be welcome by any homeowner, but lower payments aren’t always what they seem.

And what about those who are not in a position to refinance – are they out of luck?

Some may be better off for not refinancing. Refinancing, even for a lower rate and payment, isn’t always the bargain it seems to be.

There are some elements of refinances that lenders can and do massage in order to make refinances more appealing than they really are.

Now as a former mortgage originator, I’m fully aware of the math calculations used to compute the viability of a refinance.

Top of the list is the “closing cost recapture period” – dividing the upfront cost of the refinance by the monthly savings to determine how many months it will take to recapture those costs before true savings are achieved (the “standard” is usually 24-36 months).

But I’d argue that in the very different housing market and uncertain economy we now find ourselves with factors beyond math calculations that have to be considered.

Loan Term

One of the ways homeowners lower their payments in a refinance is by extending their loan term. A longer term translates to lower payments because the principal repayment is spread out over more years.

Let’s say that you’re currently ten years into a 30-year loan — you have 20 years left to pay. If you refinance your mortgage and in the process reset the loan back to 30 years, you will lower your payment, but you’ll add another ten years of payments to your loan.

If you do refinance, make sure the term of the new loan matches the remaining term of your existing mortgage, otherwise you may be at least partially buying your lower payment by adding many years of payments on the back end of the loan.

Extending the loan term is common with refinances, and can give the appearance of greater savings than is actually true.

Closing Costs

A former mortgage customer of mine recently called about refinancing his mortgage. After explaining that I was in “mortgage refugee retirement,” he said that he had been approached by a lender who was offering an extremely low rate for him to refinance. But there was a catch: on a loan amount of just over $200,000 he would pay $8,000 in closing costs and another $6,000 for prepaid taxes and insurance.

In order to get his ridiculously low rate, he’d have to incur upfront costs totaling $14,000. Now like a lot of homeowners, he didn’t have the spare $14,000 in order to complete his refinance “investment.” The lender’s solution? Add the closing costs and prepaid expenses to his new loan balance. He goes in owing $200,000 and comes out owing $214,000 – does that sound like a good deal?

This is standard operating procedure in the mortgage world – sell the homeowner on rate and payment. If you’re also a rate-and-payment junkie, keep a couple of things in mind. First, the borrower is sacrificing equity in a declining market; second, should selling their home become necessary, they will be impaired by this transaction.

Never be anxious to “buy” a lower rate with a higher loan balance. The housing market of the past few years has left homeowners needing to protect equity as much as anything else.

Oh, and in case you’re interested, my former customer didn’t do the refinance.

Plan B

Changes in the mortgage lending industry – as well as declining equity – have made it difficult or even impossible for many homeowners to even qualify for a refinance. If you’re one of those who can’t get a loan, don’t fret. There is another way – want to know what it is?

Pay off your mortgage.

Painfully simple and definitely “old school,” it was how people handled their mortgages until about a generation ago. Maybe you can’t pay it off right now, but you can accelerate the payments and pay it off much quicker than you think.

Use a mortgage payoff calculator to see how much extra money you need to pay each month to reach your payoff goal. Using a combination of tax refund money and extra monthly payments will move it even faster.

And here’s a bonus: as your mortgage balance declines the interest charge will drop too. High interest rates don’t seem so high when the amount of money owed is lower.

What’s often misunderstood about mortgages is that the ultimate goal is to pay them off and to own your home free and clear (see Proverbs 22:7). But in the past few decades it’s become a shell game we play, turning mortgages into perpetual debt in the quest for lower payments, debt consolidations, and equity cash-outs. Lenders love this game too. Their goal is to keep us in debt – that’s how they make their money.

Our goal should be to keep that from happening.

Have you ever refinanced? Was it a good decision for you? When is the right time to refinance? Leave your thoughts in the comments section below.

The 3 No-brainer Investments That Should Come First

By

3 no-brainer investments that should come first

Many investors are more than a bit intimidated when it comes to getting started.

They mistakenly assume that investing needs to be complicated in order to be successful.

That belief may even cause them to delay investing, or even to never get on board at all. In truth however, investing can be incredibly simple – it’s often more a matter of pointing yourself in the right direction.

Investing is actually a multi-step process. The best course of action is to start with the simplest types of investments, especially those that will set you up for more advanced investing later on. If you’re a beginner, you should start with these three investments before going any further.

Once you get these going, you’ll eventually have more experience – and more money – for more complicated investments later on.

1. “Invest” in Paying Off Debt

Investors often can’t see paying off debt as a form of investing, but that’s exactly what it is. Though it may not be the type of investment that provides you with an income, it does lower your outgo, and that’s an investment by any definition.

Whether you invest your money in something that pays you 10% per year, or one that will save you 10% per year, it’s still an investment and the return is equivalent in either direction. But paying off debt has other advantages that you won’t find in more traditional investments:

  • A tax free investment – When you earn dividends or capital gains on investments, a tax liability is created. When you payoff debt, your return (the interest you no longer have to pay) generates no tax liability at all.
  • The return is guaranteed – If you payoff a debt that carries a 10% rate of interest, you’ll have effectively locked in a guaranteed 10% rate of return on the money that you paid off the debt with. That’s a feature that equity investments cannot match.
  • It lowers your cost of living – This frees up your budget to have more money to save and invest in other areas.
  • Lowering your overall financial risk – Virtually all debt adds risk to your life; risk that you won’t be able to service the debt, particularly if your income is disrupted. By paying off debt you remove that risk from your life.
  • Eliminating mental clutter – Debt has a way of weighing on your mind and your emotions. By paying it off, you free your mind to concentrate on more productive activities.

2. Get Into Your Employer’s 401(k) or 403(b) Plan

This is perhaps the simplest way to begin actual investing. This is because it’s more about creating a savings pattern than it is about the technical details of investing. You typically have a fairly limited number of investment options, which you choose when you set up your plan, and then your only responsibility is funding the plan.

There are several reasons why you should want to participate in your employer retirement plan as soon as possible, even if you don’t feel that your financial situation is quite ready.

Consider the following reasons:

  • Contributions are virtually invisible – You set up payroll deductions with your employer and the money comes automatically out of each pay period.
  • You can invest as much or as little as you choose – Just for the purpose of getting started, you can choose an income percentage that you’ll hardly notice, like 3% or 4%. Later, you can increase your contributions as your finances allow.
  • The government subsidizes your investment – Because contributions to a 401(k) or 403(b) plan are tax-deductible, at least part of the money you’re contributing comes from lower income taxes, minimizing the impact on your budget.
  • The company match – Many employers offer a match on your contribution. This is typically something on the order of 50% of your contribution, up 6% – which translates to a 3% match. If your company offers this, then you should make the maximum contribution that will produce the highest company match. It’s virtually found money.
  • Investments grow on a tax-deferred basis – This means that any interest, dividends, or capital gains will not be taxable until you begin to withdraw the money. This will provide you with far greater investment returns than you can get with taxable investments.
  • There’s often a borrowing provision – The IRS will permit you to take loans against your 401(k) plan of up to 50% of the value of the plan, up to $50,000. This will give you the ability to access at least some of the money if you need it before retirement.

If you have a 401(k) or 403(b) plan at work, start making contributions now, even if it is a very small amount. You can always increase it later as your finances improve.

3. Buying a House – An Investment You Can Use, Complete With Tax Breaks

If you can afford to do so, you should give serious consideration to buying a house as soon as possible. This is especially important in areas where housing is relatively affordable, and may be less expensive than renting an equivalent space. Though it may be more difficult to qualify for a mortgage than it was a few years ago, property values in many markets have declined considerably, which largely offsets the tighter mortgage restrictions.

There are also compelling reasons why owning your own home should be one of your first investment steps:

  • An investment that you can live in – Even if a house does not rise in value, it’s providing shelter for you and your family – which gives it a value beyond that of any other investment.
  • A silent equity builder – As you live in a house and make your mortgage payments, your mortgage balance gradually declines. Eventually, it will be paid off completely (here’s how to do it faster) if you do nothing more than simply make the scheduled monthly payments. Once the house is paid for, you’re looking at 100% equity. This will be one of the best investments you can make.
  • Long-term price appreciation – Though property prices fell sharply a few years ago, and continue to struggle in many markets, the long-term trend with housing is up. Inflation virtually guarantees that this trend will continue in the future. The combination of mortgage amortization and real estate appreciation is a tough investment combination to match anywhere.
  • A good place to start a business – At some point in the future, you may decide to start a business. If you do, a house will afford you many more options than an apartment or rental house will.

Much like a 401(k) or 403(b) plan, owning your own home is a passive equity builder. You live in it, make the payments, and over time your equity grows. It’s a long-term process, typically taking 15 to 30 years, but once your mortgage is paid and you own the house free and clear, you’ll have all kinds of options that are unimaginable right now.

If you’re having trouble getting out of the investment starting gate, maybe you’re reaching too high. Start with the most basic investments – paying off debt, contributing to your 401(k) or 403(b) plan, and owning your own home.

If you never do anything more than those three steps, then the investment deck will still be stacked in your favor for the rest of your life.

If you want to build from this foundation, then check out my 10x Investing Course where I’ll mentor you through the process of implementing your own long-term investment strategy.

3 Ways You Can Become Self-Financing

By

3 ways to become self-financingMillions of people are on a debt treadmill. It starts the first time you swipe a credit card to cover a shortfall in your budget. Do that enough times, and before long you’re working to pay credit cards and other forms of debt.

The way to avoid that is by becoming self-financing — that’s being able to fully cover your living expenses without having to resort to credit. But how do you get from here to there, especially if you already have a lot of debt?

1. Clear Some Room in Your Budget

In many homes, the household budget is stretched to the very edge of income. That situation won’t be remedied until pressure on the budget is eased and the best way to do that is to reduce expenses.

There are two types of expenses that can be cut:

Variable Expenses

When people look for expenses to cut, this is usually where they look first. Variable expenses, like eating out, groceries, entertainment, and even clothes shopping, are popular targets because while they can’t be eliminated entirely, they can usually be cut by a good amount.

You can probably cut these expenses by 20% or more and free up a lot of your budget without impacting your lifestyle to any serious extent. Often, it can be done by using cheaper substitutes, such as buying clothing at thrift stores instead of the mall, or eating at less expensive restaurants.

Fixed Expenses

These include housing, cars, debt, insurance, and any other ongoing monthly expenses where you have little real control over the payment. Typically, you can’t cut these without making radical changes in your life, but it is possible to hit some of the smaller ones. If you really want to make some room in your budget, you can eliminate or reduce smaller fixed expenses, like cable TV and phone service.

You can eliminate cable TV or landline phone service, but sometimes it’s just matter of replacing one service with a less expensive one. In my house, we dropped our trash bill from $55 per quarter to $36 by changing providers, and also cut our landline phone bill from $142 a month to $67 by using an Internet phone service.

2. Get an Extra Income

Sometimes cutting expenses just isn’t enough, and in those situations increasing income is the only answer – or a combination of both. If that’s the case, a part-time job or side business can be the answer.

For many people, holding a second job in addition to a taxing first career is tough to swing, but maybe it can be a temporary arrangement. In the previous section we talked about the difficulty in cutting fixed expenses, but this is where an extra income can work wonders.

3. Build Some Savings

Once you have extra room in your budget from cutting expenses and/or increasing your income, the next step is to build your savings.

It’s no secret that debt is one of the biggest reasons why so many people are so tight with their budgets. When they don’t have enough money, they borrow on credit cards to make up the difference. That gets you through this month’s budget, but it also means your debt service will be a little bit higher the following month, and every one after it.

You won’t get out of that trap until you have an adequate amount of savings. Once you do, you’ll be able to tap your savings instead of your credit cards when you’re a little short. And that will end your dependence on credit.

Use your extra budget flexibility to save until you have at least 30 days of living expenses put away. Once you do, you can split your allocation between paying off more debt, and adding to your savings.

Becoming self-financing is the way to get out of debt and gain control over your finances. It starts with your paycheck and what you do with it each month. Start now to begin spending it strategically — that is, by allocating your income in a way that will give you the greatest long-term benefit. Cut expenses, find extra income, build up savings, then gradually begin chipping away at your debt to free up more income.

You’ll probably get there in less time than you think.

How close are you to being self-financing? Leave a comment!