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75 gas saving tips (for cars, trucks, etc)

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Remember the good ‘ol days when you could fill up your gas tank for about $10?

75 gas saving tips for cars

Well, since those prices don’t seem to be ever coming back again, we might as well figure out how to not use as much!

To give you a little head start, I scoured the internet looking for the best tips I could find to save gas and here is what I found….

The Most Effective Gas-Saving Tips

Edmunds.com did a real-world test of a few of the common gas saving tips to see how they stacked up and these were the tips they found to be most important.

1. Stop Aggressive Driving

In their road tests this was the most important factor in saving gas. They found up to a 37% savings with an average of 31% savings. That is like getting $4.00 gas for $2.69 – it sounds like a no-brainer, but I am still amazed at how many people still drive like they just robbed a bank. Edmunds says, “If you slowed your 0-to-60-mph acceleration time down from your current 10 seconds to a more normal city pace of 15 seconds, you’ll feel the savings immediately.”

2. Drive Slower

This one is a difficult one to get used to. Personally, I find that I am just more comfortable driving at certain speeds. 55mph on the highway isn’t in my comfort zone, but I have tried to make a point to drive 5 mph slower than I used to and believe it or not I am getting used to it.

Their test consisted of driving 50 miles on cruise control at 75mph and 65mph. They found that by driving slower you can save up to 14% with an average of 12%. Not to mention the savings from not having to pay speeding tickets.

3. Cruise Control does save gas

In my research to find all these gas tips, I found that there is some debate on this issue, but I think I am leaning toward using cruise control – I think it depends on the type of driver you are and the size of engine you have. But for most people, in my humble opinion, I think you would save more by using it.

Edmunds was surprised by the effectiveness of using it. They got up to 14% savings on gas with an average savings of 7%. That would equate to about a 25 cent discount on each gallon. The exception to this is for mountainous driving. It will try to keep you up to the speed you’ve set and will use a lot of extra gas downshifting to lower gears to accomplish this.

4. Avoid Excessive Idling

Another one they found to be important is not to idle very long. They said that by avoiding excessive idling you can save up to 19% on fuel consumption. They suggest that if you are stopped for longer than a minute to shut down the engine.

Recommended app to help you save money on gas: GetUpside. By using this app I saved 40 cents per gallon. Here are the details of how it works.

Not as Important as Some Think

5. Should you use A/C or windows to save gas?

This is another hot topic among the gas-saving tips. A/C’s have become more efficient over the years, but they do put a strain on the engine. And of course having the windows open will create more wind-resistance than not having them open. But, their tests found no measurable difference in fuel consumption.

Personally, I love having the windows open. But another thing to consider is the health factor. If you are driving in a lot of traffic, you may be breathing a lot more of the exhaust by having the windows open. Many cars have cabin air-filters that (at least try to) filter the air that comes in to the car. I don’t know how well they work, but I would think it is better than not having a filter at all.

6. Checking Your Tire Pressure

Keeping your tires properly inflated is another common gas saving tip. They say they saw no measurable difference on this test. They still recommend keeping them properly inflated, but they say not to expect much savings.

I have been doing this one over the last few years. I thought I had an improvement each time I filled them to the proper level when they were very low. Since I didn’t measure it I am wondering if it was just all in my mind. 😉

Other tips for saving money on gas

How can I use less gas when driving?

The art of driving to save gas

7. Drive steadily. Slowing down or speeding up wastes fuel. Also avoid tailgating – the driver in front of you is unpredictable. Not only is it unsafe, but it affects your fuel economy if he slows down unexpectedly.

8. When you see a hill ahead, build up speed before you reach it, then maintain your speed on the slope. Then coast down the other side.

9. Avoid accelerating when driving uphill. It uses a lot of gas. If your car has a display that shows your instantaneous gas mileage, try it out. You’ll see your mileage plummet — from 25 or 30 MPG… down to 6 MPG — or sometimes even as low as 2 or 3 MPG.

10. When driving, keep your eyes moving and your feet still! Keep your steering wheel still too. The more you weave back and forth, the farther your car has to travel and the more gas is consumed.

 

11. If you must stop for more than 30 seconds, don’t idle your car. The engine is more fuel efficient if you turn it off and restart it.

12. Avoid “revving” the engine, especially just before you switch the engine off; this wastes fuel needlessly and wears out the cylinders.

13. Eliminate jack-rabbit starts. Accelerate slowly when starting from dead stop. Don’t push the pedal down more than 1/4 of the total foot travel.

14. Avoid panic stops. When possible, coast to stops such as traffic lights.

15. Don’t forget to release the emergency brake before pulling away.

16. Exceeding 40 mph forces your car to overcome tremendous wind resistance. Never exceed the legal speed limit. Primarily they are set for your traveling safety, however better gas efficiency also occurs.

17. Traveling at 55 mph give you up to 21% better mileage when compared to former legal speed limits of 65 mph and 70 mph.

18. Use only your right foot for accelerating and braking. That way you can’t accidentally ride the brake and use excessive gas. The slightest pressure puts “mechanical drag” on components, wearing them down prematurely. This “dragging” also demands additional fuel usage.

19. Manual shift driven cars allow you to change to the highest gear as soon as possible, thereby letting you save gas if you “nurse it along”. However, if you cause the engine to “bog down”, premature wearing of engine parts occurs.

20. Shift into high gear as soon as possible. If you have automatic transmission, lift your foot from the accelerator about one second early.

21. Automatic transmissions should be allowed to cool down when your car is idling at a standstill, e.g. railroad crossings, long traffic lights, etc. Place gear into neutral position. This reduces strain on the transmission and allows it to cool.

22. If you have a manual transmission and want to save some gas, you need to shift up early and shift down late. Traveling at fast rates in low gears can consume up to 45% more fuel than is needed.

23. Pass other cars as soon as you see you are overtaking them. Don’t wait.

24. Stoplights are usually timed for your motoring advantage. By traveling steadily at the legal speed limit, you boost your chances of having the “green light” all the way.

25. When you use overdrive gearing, your car’s engine speed goes down. This saves gas and reduces engine wear.

26. Turn off the A/C five minutes before you reach your destination and don’t keep it working until the last second.

27. Park your car in the shade if you can and crack your windows to allow air to circulate in the car, so you won’t have to keep the AC working as hard when you go somewhere.

28. Park your car so that you can begin to travel in forward gear; avoid reverse gear maneuvers to save gas.

PLANNING THE TRIP

Thinking to save gas

29. Before getting into your car, ask yourself “Is this trip really necessary?”

30. For short trips, try walking or bicycling. It’s good exercise.

31. Consider carpooling and share the gas bill. Carpools reduce travel monotony and gas expense, assuming all riders chip in to help you buy. Conversation helps to keep the driver alert. Pooling also reduces traffic congestion and gives the driver easier maneuverability. For best results, distribute passenger weight evenly throughout the car.

32. Organize activities and perform as many errands as possible in one trip. Make a list and do all the grocery shopping once or twice a week.

33. If possible, avoid driving during rush-hour & other peak traffic periods.

34. Do they deliver? Let them pay for the gas! Try mail order firms, too.

35. Let the kids run some of the errands. Let them walk to school, too.

36. Better planning reduces the need for speeding to get there in time.

37. Shop around for service stations with the lowest gasoline prices. – also use GASBUDDY!!

38. Keep tuned to radio traffic reports to avoid traffic jams and other delays.

39. Public transportation may be cheaper, especially when you are traveling alone.

40. Pack as little in your car as necessary so it has less weight to carry.

41. Avoid rough roads whenever possible, because dirt or gravel can rob you of up to 30% of your gas mileage.

42. Avoid heavy traffic and lots of traffic lights. The shortest route is not always the most fuel efficient if you have to stop a lot.

43. Use alternate roads when safer, shorter, straighter. Compare traveling distance differences – remember that corners, curves and lane jumping require extra gas. The shortest distance between two points is always straight.

WHEN BUYING A CAR

Look for high MPGs

44. If you are in the market for a new car, you definitely should consider fuel efficiencies. I would consider a hybrid just for the better fuel economy if I were in the market for a new car. You can easily calculate how much money you would save a year and weigh that against the cost of the car (plus the potentially higher maintenance cost).

45. In hot climates, drive a car with light colored exterior and interior, to reflect light, heat. Tinted glass also prevents heat buildup. Stay away from Black! I have owned black and beige cars and I can tell you that black cars get a lot hotter than lighter colors. Therefore with a black car you will need to use the A/C more often.

46. Operate as small a car as possible for your driving needs. (Small cars weighing half as much as large cars use about half as much gasoline!)

47. Avoid cars with gas-consuming options such as air conditioning, power equipment such as window, door locks, etc. and automatic transmission, etc.

48. When buying a new car, keep in mind that a sunroof helps disturb smooth air flow (and gas mileage).

49. It’s not commonly known, but Diesel engines can give you a much better gas mileage than Hybrids on long distance drives. That’s one of the reasons hybrids aren’t popular in Europe but Diesels are. The downside is that diesel fuel costs a good chunk more than unleaded right now.

BUYING GASOLINE

50. Buy gasoline during coolest time of day – early morning or late evening is best. During these times gasoline is densest. Keep in mind – gas pumps measure volumes of gasoline, not densities of fuel concentration. You are charged according to “volume of measurement”. (I know the effectiveness of this one is debated, but it won’t hurt.)

51. Choose the type and brand of gasoline carefully. Certain brands provide you with greater economy because of better quality. Use the brands which “seem” most beneficial.

52. Avoid filling the gas tank to the top. Overfilling results in sloshing over and out of the tank. Never fill gas tank past the first “click” of fuel nozzle, if the nozzle is automatic. It could also leak or spill in heat or on a hill.

53. Set the Pump Trigger on the lowest position.

54. If a gasoline truck is pumping into the storage tanks, don’t buy.

55. Don’t fill up unless you are on empty, since all this gas weighs a lot and more weight reduces efficiency.

THE CAR ITSELF

Seasonal fuel-saving tips

56. Auto air conditioners can reduce fuel economy by 10% to 20%. Heater fan, power windows and power seats increase engine load; the more load on your engine, the fewer miles per gallon.

57. Use snow tires and/or chains as little as necessary because they make your car work harder and use more gasoline.

58. Remove snow tires during good weather seasons; traveling on deep tire treads really robs fuel!

59. During cold weather watch for icicles frozen to the car frame. Up to 100 lbs. can be quickly accumulated! Unremoved snow and ice cause tremendous wind resistance. Warm water thrown on (or hosed on) will eliminate it fast.

60. Avoid prolonged warming up of your engine, even on cold mornings – 30 to 45 seconds is plenty of time.

Maintenance tips

61. Keep wheels aligned for better gas mileage – longer tire life, too.

62. Make certain your gas cap fits properly.

63. Keep brakes properly adjusted. Dragging brakes increases resistance.

64. It’s not a bad idea to make sure there are no gas leaks. Gas spilling out on the road doesn’t help your mileage either.

65. Regular tune-ups ensure best economy; check owner’s manual for recommended maintenance intervals. Special attention should be given to maintaining clean air filters… diminished air flow increases gas waste.

66. Inspect suspension and chassis parts for occasional misalignment. Bent wheels, axles, bad shocks, broken springs, etc., create engine drag and are unsafe at high traveling speeds.

67. Inflate all tires to maximum limit. Each tire should be periodically spun, balanced and checked for out-of-round. When shopping for new tires, get large diameter tires for rear wheels. Check manufacturer’s specifications for maximum tire pressures.

Good idea adjustments to your car

68. Get a locking gas cap – stolen gas really hurts your MPGs 😉

69. You can also try to reduce the mass of your car by emptying out the trunk and removing heavy items that you don’t need (keep your spare tire and car lift, but get rid of the gardening equipment). Extra weight reduces mileage, especially when driving up inclines.

70. If you drive a car with a car top carrier, bike rack, or really any thing attached to it, you may want to take it off to reduce air drag.

71. Remove vinyl tops – they cause air drag. Rough surfaces disturb otherwise smooth air flow around a car’s body. Remove items that cause wind resistance, such as luggage racks.

72. Use radial tires for less friction between tire and road. Radial designs are the recognized fuel-savers.

73. By using the recommended grade of motor oil you can improve your gas mileage by 1-2 percent. For example, using 10W-30 motor oil in an engine designed to use 5W-30 can lower your gas mileage by 1-2 percent. Using 5W-30 in an engine designed for 5W-20 can lower your gas mileage by 1-1.5 percent.

74. Look for motor oil that says “Energy Conserving” on the API performance symbol to be sure it contains friction-reducing additives

Advanced ways to save gas

75. Eco-tuning. Many tuners offer replacement chips for your engine computer that increase the power while at the same time saving gas. How? They improve both ends of the curve. At the upper end they give you more power (with reduced efficiency) and at the lower end a better efficiency. You choose with the gas pedal which mode to use. Make sure you use manufacturer approved tuners if you don’t want to lose your warranty.

76. Hypermiling. This is a series of techniques that can be a bit excessive, but can really save a whole lot of gas.

This article was originally published on August 14, 2013. For more tips check out the inspiration for this article:
Cartalk.com, fueleconomy.gov, edmunds.com, howtoadvice.com

How to be good with money [start by never buying these 7 things]

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(The following is an abbreviated transcription from a video Linda and I recorded. Please excuse any typos or errors.)

are you good with money?

We found an interesting list: “Seven things that people who are good with money NEVER buy.” So this is not our list, but we wanted to share it with you.

We loved going through it and seeing how we stack up. Linda and I look at each one of these points individually to see how we’re doing.

You can judge for yourself, to see how you’re doing, too. All right… Let’s see if we are good with money or not!

I recorded our discussion that you can listen to on our Podcast.

Bob: So, this is from an article on medium.com, “7 things people are good with money, never buy.”

1. They’re not buying brand new cars

Bob: Number one, they’re not buying brand new cars. feel like we talked about this nonstop. 

Linda: Yeah. This is like the number one thing we keep talking about. 

Bob: Probably probably, Yeah. But no, we did buy our Honda Fit brand new. That is the only new car we bought. From then on, we don’t buy new cars.

Linda: That was a good purchase for us. Which I think is interesting. Let’s talk about that. Let’s take that angle. 

Bob: Yeah. So a new car loses 10% of its value in the first month, 20% in the first year. If you think about that $30,000 car, that means it’s loses $3,000 in the first month. And that would be what about $6,000 in the first year of ownership? So the value that you’re losing is just flying off that vehicle so fast. Versus if you buy a car that’s three years old, it’s already lost a good chunk of that depreciation. You’re just saving yourself a lot of money by buying a used car.

Now, the key is to hang onto it for longer. The worst thing you can do is buy a new car and then traded in two years later and just keep doing that because you are the one who is eating all the depreciation and having to make up for it each time you buy a new car. So you want to be on the other end.

My crazy car buying experiment

You don’t have to go as crazy as I did buying, what was the Taurus 13 years old? So this was a crazy experiment we did. We talk about this in our book. That’s coming out in March, I believe, hopefully. But no, I bought a old Taurus off my sister.

She was trading into a dealer, bought it for a thousand dollars. Bought it as a third car that we didn’t need at the time, because it was just a thousand dollars. And our other two cars are getting old. I’m like, this will be an insurance policy in case they blow up. One of them did blow up. So we drove that car for a few years I think four years and because it was so old and so far down in the depreciation curve it just really wasn’t depreciating any more. And so I sold it for the same price I paid for it five years later, how cool is that? 

Linda: He was so happy with himself, when that happened. 

Bob: Pretty proud of myself I’m not going to lie. 

Linda: He was real excited.

Why did we buy a new car?

Linda: Okay. But let’s answer the question. Why did we buy a brand new car? Like, what’s the reasoning for that when we want to buy used? 

Bob: So in 2006, we bought a Honda Fit. The reason we bought that purchase, I’m going way back here tapping into the archives, but the reason we bought that car new was because you couldn’t buy it used. It was the first year that they had them in America. They were making them Japan or somewhere. You could drive them in other parts of the world, but they didn’t have them here.

And if you remember, this was like the first time that gas went through the roof. It was the first time we hit $4 a gallon in the U S. So everybody was freaking out about gas prices.

Linda: I remember driving and paying 99 cents for gas or less 89 cents for gas. We’re really dating ourselves now. 

Bob: Yeah, we ended up buying this car new because we couldn’t buy it used (here’s steps you shouldn’t skip when you do buy a used car). I wanted to buy a Honda because I had done all the research and determined that Honda and Toyota were basically the two best brands to buy in terms of reliability.

So the combination of all these things kind of made for the, all right I’m going to break my own rule here and buy a new car. But what I knew was we’re going to drive this car for 10 years.

I bought it with the intention of driving it for 10 years. I’m like, if we do that, then we spread out the depreciation long enough that it might make it worth it. And we did. We drove it for basically about 10 years.

Linda: We really gave that car a lot of love. 

Bob: And it was fantastic car. 

Linda: It was a fantastic. 

Bob: Ugly car. I mean… 

Linda: Super ugly… 

Bob: I mean, I’m sorry, if you have a Fit and you think they look good, but…

Linda: It looked like a mini minivan is what it looked like. We have a minivan now, which is funny. Because we just upgraded as we added more people to our family. But it looked like a tiny minivan and it was such an ugly car. But man, it had way more space than you’d think.

Bob: Yeah, we had that car for 10 years and nothing went wrong with it, other than battery or a light bulbs. It burned through light bulbs pretty quick. But other than that, no repairs, it was amazing. I mean to have a car for 10 years and basically have no repairs.

Linda: And we sold it.

Bob: And then we sold it for a good amount because it’s a Honda and they sell well. That that’s a real long story of not buying new cars, but that’s the first point here. Don’t buy a new car if you can avoid it. And if you do, hang on different while.

Linda: Okay. 

2. And they’re not leasing new cars either

Bob: Next point. People who are good with money, according to this author, they’re not leasing new cars either. Yes. I hate to break it to a lot of people, but you are not getting a deal if you were leasing a car. Now I’m not saying there aren’t reasons in times where maybe you… 

Linda: It makes sense. 

Bob: It might make some sense, but you just have to understand the financial benefit you’re getting from it is not the reason that it makes sense. So I’ll just leave it at that and you can run the numbers and do all the math. Don’t go to a dealer and talk to him about the numbers. Don’t don’t go to somebody. Who’s trying to sell you the lease and ask them for the numbers, but go look at just Google it. Read the independent articles that people actually run the numbers and then evaluate for yourself if that’s the best financial move now (how cars affect your financial freedom). We always say “All decisions are not financial decisions.” So there might be other factors involved in why you’re leasing it. So we’ll just leave it at that. 

Linda: Nope. But then you bring up a good point because it is important who you ask, what questions to.

Bob: That is a really good point.

Linda: Right? Like you can go to one person and hear what you want to hear. Or you can go to another person, hear wisdom and hear what the Bible says or what you need to hear. You know what I mean? So just be careful who you’re asking, what questions to. 

3. They don’t buy houses that they can’t afford

Bob: Number three in this list. They don’t buy houses that they can’t afford. What do you think about that? 

Linda: I mean, I think that’s very wise. That’s a great idea. 

Bob: Yeah. The biggest reason is that you won’t get it taken away from you by the bank. 

Anything can happen

Linda: Right? Especially, again, post 2020, like this is the thing that I feel like we keep talking about. Anything can happen. Like, I feel like we were just watching a show and they’re in the show they’re going to be talking about 2020. And Bob was like, go back to January/February of 2020.

Imagine like how you would’ve thought about the next year. 

Bob: How optimistic… 

Linda: Yeah think about how optimistic we all were like, this is the twenties, the roaring twenties. All the excitement. And then just a couple months in, there was a freaking quarantine, like who saw that coming? Nobody. That, that was unbelievable and everything that’s gone on since then, anyway, 

Bob: I want to be like the anti pandemic on this podcast. 

Linda: I know we don’t want to talk about the pandemic the whole time or any of the conspiracy theories or any of that stuff. 

Bob: Let’s talk about all of it. Let’s talk about politics. We’re already talking about religion. Let’s just do it. 

Linda: It was just very surprising and it put us in the position of, okay anything can happen. The things that we didn’t think were going to happen, happened. 

Bob: Yeah. 

Linda: Yeah. We were surprised by a lot of it. 

Bob: Yeah. Okay. So the takeaway, I think is life is unknown. We don’t know what’s going to happen. It’s wise to prepare for things that could happen. 

Linda: Yeah.

Listening to God and preparing

Bob: Let’s just go back to Joseph in the Bible in Genesis. God had given him a heads up. But like he prepared, he took steps in the times of abundance, he saw you know, by God’s heads up that there’s a famine coming and he got prepared for it. And as a result, not only did he survive it, but he was able to bless a whole bunch of other people and a whole bunch of other people were able to survive it because of his foresight.

And I think there’s a lesson here for us, financially or in other areas of our lives. Like we should be paying attention to the signs. We should be paying attention to what’s going on. And this doesn’t mean we need to get all doomsday prepper and build a bunker and whatever else, but, but let’s just start thinking about what could be and what could be.

And what are the hints? What are the things that could be coming down the pike? And how should we adjust our lifestyle now? How should we adapt what we’re doing now? Thinking about the future, right? 

Linda: Yeah. And especially if you feel like you are having dreams or things that God is highlighting to you, be paying attention. Right? 

Bob: Exactly. 

How do you determine if you can afford a house?

Linda: Okay. But I have another question about this. How do you determine if you can afford a house or not? Cause that’s what this is saying. You don’t buy a house that you can’t afford. Because what I would love for everyone to do is to pay off their house and never have a mortgage again. I think that is a great goal.

I want you all to know that it’s possible. We’ve done it. We didn’t grow up in houses where our parents did that. So it’s not like we came from all this money. But, what is a reasonable idea here of what can we afford? 

Bob: I know this might be a cop out. I just don’t like talking about this, but 28% of your income. You know, this is a rough guidelines of what a lot of financial experts say should go towards mortgage expenses.

So roughly a third of your income, or ideally less, should be focused on that. I don’t really like that because we’ve never operated on that. We’ve operated on pretty much as low as we can get by on. And this is the thing, this is where personal finance is personal. Because that didn’t mean getting the cheapest house we could possibly find because we could find things cheaper in parts of the area or city we didn’t want to be in that were… 

Linda: Or, it didn’t make sense for our family.

Bob: …didn’t make sense for us or were more dangerous or whatever.

But on the other hand, it wasn’t just, where do we want to be? It doesn’t matter how much it costs. We’re just going to go there. Like our goal has always been, how can we get a house that suits our needs for as little as possible so we can get it paid off as fast as possible. The goal has always been, how do we become mortgage-free as fast as possible.

And. That ratio is not going to help you get there. Now, the worst thing you can do is just go to the banker and ask him how much you can afford, because even after the housing crisis of 2008. You would think that they would be, and there were a lot more cautious for a little bit, but still they’re always overestimating for you and I in many cases. If you’re an entrepreneur and new in business, they’re hopefully underestimating. But that’s not who you want to go ask how much you can afford. And that’s what a lot of people do, unfortunately.

And especially pre 2008. That’s part of why we had the crisis that we had with the housing mess is because the banks were just lending way more money to people than they should have been. 

Linda: So again. Who are you asking your questions to, right? 

Bob: Yeah. But anyway, that’s a rough, dirty answer to maybe give you a little bit more direction and point you in some direction with that. 

Linda: Okay. Great. 

4. They’re not buying things on credit that they can’t pay for

Bob: All right. Number four, on our list, they are not buying things on credit that they can’t pay for.

Linda: Okay. So in other words, if you’re putting it on a credit card, it should be paid off every month. 

Bob: Yeah, I liked that. 

Linda: Okay. Which we have. You’ve got to tell them about the Chase Card. 

Our favorite credit card

Bob: Okay. Let’s talk about the Chase Card. 

Linda: Let’s talk about it really fast since we are talking about credit. 

Bob: So, the Chase Card. Yeah. So I, again, only talking to people who are paying every credit card off every month.

If you’re not just tune out for the next minute or two, it doesn’t really matter. But yeah. So Chase Sapphire ultimately is our favorite credit card we’ve used. I’ve tried out at this point, I think 34 different credit cards. This is how I roll what I do. 

Linda: That stresses me out, but he’s fine with it. 

Bob: So, yeah, so I tried out 34 different credit cards, and this is just the best for most situations and ours being one of them.

How we’ve traveled for free

And so we’ve traveled for free. Yeah. Over a hundred hotel nights and flights we’ve gotten completely free. Mostly because of this card and the points that we’ve earned from it without going over all of the details, a lot of these cards have points programs, but this particular points program just… 

Linda: It’s just better. 

Bob: The money just goes further. The points just go further. So it’s like a currency that’s worth more than other currencies, if that makes sense. So all of this to say… 

Linda: The reason why we’re telling you about this, because right now they have like a hundred thousand… 

Bob: Yeah. At the time of this recording… 

Linda: …hundred thousand point bonus. 

Bob: Yeah. There’s a hundred thousand point sign up bonus. So it’s pretty crazy. 

Linda: Which most of our flights. Let’s just put that in perspective. Most of our flights are probably under 20,000 points. 

Bob: Yeah. So we were just, we just booked my mom a flight up here, and I think it was like 7,000, 9,000 points for her to fly from Florida to here.

And so, yeah, so hotels, like some of the hotels we stay at are 5,000 points at night. 

Linda: Depends on where they are. 

Bob: Yeah. But the point is, is that those points go really, really far. Yeah. Anyway, there’s the, a sidebar on that. So my encouragement is if you just pick some random credit card, cause it’s just what you’ve always had or they give you a free t-shirt to sign up or something, it might be time to try one that might yield you some more benefit.

And if you’re not using credit cards, that’s cool too. Like no need to use them. We had many years of our marriage where we didn’t use them because they didn’t make sense for us. And we couldn’t control our spending. 

Linda: Right. 

Bob: But if you are disciplined with your spending, you’re paying them off every month. There’s a lot of benefit and rewards that you could get. 

Linda: Yes. 

Bob: So anyway, all that to say back to point number four you do not want to be paying for things. You don’t want to be buying a pair of shoes and be paying interest on it for 12 months. We want to avoid that if at all possible. I think we all know this, right? This is pretty common sense, but all right. 

5. They’re not buying luxury goods from brand-name designers

Bob: Number five. They are not buying luxury goods from brand name designers. What do you think? 

Linda: Well, I have been for years trying to figure out how to convince you that this was a good idea, because there are some things that you can really like, if you’re going to do the “I’m going to buy this and then resell it” Like you’ve done this before. 

Bob: Give me an example, let’s talk.

Linda: Like a Louis Vuitton purse. 

Bob: Do you can think you can sell a Louis Vuitton?

Linda: You can definitely sell a Louis Vuitton. 

Bob: You think you can sell it for half of what you would pay for it?

Linda: Oh yeah. 

Bob: You think so? 

Linda: More than half. Yeah. And there are even some like super high-end luxury bags, at least that you can sell for more. 

Bob: Okay. So here’s what I propose that we do… 

Linda: As they like become vintage and whatever. 

Bob: Alright. Here’s what I propose that we do. We buy one used. 

Linda: Yeah. 

Bob: A, cool vintage-y one used. 

Linda: Okay. 

Bob: And then let’s get a good deal on it when we buy used. And then, yeah, let’s go for it. 

Linda: Are we doing this? Are we buying it with business money? Because it’s an experiment for the business. This is the other thing I do. 

Bob: If the IRS is watching, this would be real fun. 

Linda: Okay. So anyway but in general, I agree with this. I think the point is… 

Bob: Okay, I would say, I don’t know this world that well, but a lot of high end design stuff is just so grossly overpriced. 

Linda: I agree. 

Bob: And there isn’t a super strong secondary market where you can resell it. So anyway. 

Linda: No. I agree. And I think the point of this is you’re just consuming. Like I think that’s what this point is, is the consuming aspect of it. So if you’re going to do this, I think making wise decisions and trying to resell when you are no longer interested. 

Bob: Yeah. 

6. They’re less likely to load up on material items at all, opting for quality over quantity

Bob: All right. Number six. They are less likely to load up on material items at all, opting for quality over quantity. So, yeah. So I think there’s a tendency to kind of look at these two and say that they’re contradictory. 

Linda: Yeah they’re contradictory. 

Bob: But they’re not. I think you have cheap stuff, then you have quality stuff and then you have…

Linda: Designer. 

Bob: It’s really high level thing. 

Linda: It’s really just a label. 

Bob: Yeah. And so even like, if we’re being honest about Louis Vuitton, for example, a Saddleback leather bag that I used to have made of this leather, that’s like this thick. Like, it really was super well-made amazing quality stuff. It was expensive. It’s like $500 for a bag, but…

Linda: That’s actually still less than a Louis Vuitton. 

Bob: Yeah. And made a whole lot better. You know, Louis you’re paying so much for the name and it might be well-made compared to a Coach bag or something like that. But I think the reality is it’s probably not that much better than a Coach bag, and maybe it’s 50% better or something. I mean, I’m throwing these numbers out of thin air,. But point is, it’s not like whatever 10 times or a hundred times better, like the price would make you think.

Linda: No, but I mean, this is true. So I for a long time shopped at H&M. I still like H&M, this sweatshirt is actually H&M, it’s one of my favorites. But we bought some t-shirts from Freedom Co, their quality is a whole lot better than H&M. You know, when you wash them the seam isn’t like sideways and stuff like that. And they last a whole lot longer. So they are, there are more expensive. That brand is great. You should definitely check it out, but they’re more expensive. However, it’s something that you can have for. like 4 5, 6 years until it starts really wearing out.

Whereas I can buy like six H&M shirts, it’s going to cost me the same thing. Not as good of quality. 

Bob: Yeah. 

Linda: And won’t look that’s good. 

Bob: Well, yeah. And oftentimes, like, in the case of Freedom Co, it’s ethically made. That’s their main thing is that it’s ethically made clothing. And so whereas a lot of things that are cheaper, in fact, most things that are cheap are not. Made in sweatshops or whatever. 

Linda: But also like you think about that shirt and you said it’s your favorite shirt to wear and you’ve bought other t-shirts and worn them a few times and been like, I’m ready to get rid of this. 

Bob: That is a frustrating 

thing. When you buy something, that you love it in the store and then you get it home and it’s like, it washes and it’s terrible.

Linda: Quality over quantity.

7. They probably aren’t planning lavish, expensive weddings

Bob: All right. Number seven on this list is they probably aren’t planning lavish, expensive weddings. 

Linda: Should we tell them about our wedding? 

Our Wedding

Bob: I don’t know man. I think we nailed it with this. And part of it was just because this is what you wanted 

Linda: Yeah. This was what we wanted. Well, and it part, but I would tell you a big piece of it was I was seeing how much everything was going to cost. I went and tried on a dress and I did not have money to buy a dress. This was like all happening to me at one time where it was like, I was seeing how much things cost. I was seeing how in debt I was, we were getting married. We were trying to get our finances on track. So that was kind of the culmination of all these things that were happening at one time.

And I went to go try on a wedding dress. And I was like, this is the dress. This is the one. It was beautiful. I felt gorgeous in it. You know, the whole thing. And it was going to be a thousand dollars to get this dress. And I still hadn’t bought shoes or accessories. I hadn’t gotten my hair done or getting my makeup put on. 

Bob: $1,000 Which is nothing compared to what a lot of people were spending on dresses now. 

Linda: Right! In my head. I was like, I cannot spend a thousand dollars on this. And so we ended up just deciding if we don’t really want to spend that much money on this, like this is telling us something, right? So we went for a super simple wedding. We did immediate family only. I worked at my church at the time, so they let us get married in the building for free. We tried to pay our pastor. He gave us the money back, which was so kind and sweet. And…

Bob: We had a reception at a nice restaurant in town afterwards with our immediate 

family. 

Linda: Well, or after, yeah, that was just with our family. And then my mom hosted a reception for us at her home a month later. It was really just so sweet and it was really intimate. Like we actually really loved it. 

Bob: Yeah the best thing about it was the stress reduction of the entire wedding process. Because I had enough foresight to know, cause I’m just analytically wired to think, all right, this is one day. Like we’re going to be married this whole time. I’m more interested in our whole time married than I am this one single day.

And I don’t really want to spend whatever $20,000 in this one single day. But I would have happily done it. I would have happily done it for you. But since you were kind of cool with this, I’m like great! This is awesome. And so then we just had the super simple wedding, like almost all the stress was gone. And it’s just like… 

Linda: It’s so true. It actually became like the celebration of us being able to start our lives together instead of it being like this event. Which I know that’s not for everybody, but…

Bob: Yeah, we’re not putting this on everybody, but I’m saying for us, like, it just fit. 

Linda: Yeah it was really great for us. 

Bob: And we really enjoyed it. And I, part of me honestly, was scared that you might regret it at some point.

Linda: I do not regret it at all. 

Bob: And yeah, that’s, that’s awesome. It’s a win! 

Linda: It’s a win! We all win. 

Benefits of having a simple and small wedding

Bob: So, yeah. And so we were able to actually have some money to buy a bed, which we desperately needed a bed. And many of the things at the beginning of our marriage, because we were completely broke. But yeah, it was a good financial move.

One of the better decisions of our marriage. I think. 

Linda: I agree. 

Bob: So, Yeah. So I think just remembering that it’s one day is, is helpful, regardless of whether you’re going to a big wedding or a small wedding. Cause it’s so easy to caught up in the frenzy and in all of the typical expenses when… 

Linda: Yeah, and I have to do this.

Bob: Yeah. Like you have to ask that question, like, do I really have to do this? And the answer is not it’s, it’s often different than you think. Just because everybody else does it that way. Doesn’t mean you have to do it that way. And that’s such a liberating thing to understand. 

Linda: Also capping your spending limit on that, just saying, “okay, we’re only going to spend this much.” Usually brings out so much more creativity. It gives your friends and family a chance to participate in ways that brings you all together. Because it’s really such a special time of a new thing happening in your life.

And I think it gets overshadowed so often by the party and it has to be a certain way. It even can cause a lot of conflict because… “well, I want it this way.” And “well, I’m paying for it. So it should be this way.” Well, but it’s my day so it should be this way, you know? That, that doesn’t need to be there. So yeah, I think there’s so much to think about with all of that, and I think part of that can really be saving a lot of money. 

Bob: Yeah. Amen.

Summing things up

Bob: All right. So those are the seven things that this author, we don’t even have author’s name. Bummer! 

Linda: Business Insider. 

Bob: Business Insider says “people who are good with money, never buy these things.” So there you go.

All right. That’s all for today. If you haven’t liked this video or whatever, subscribe to the podcast or whatever the thing is, hit the like button, do all that stuff. We love you when you part of the SeedTime family with us.

That’s all for now. See ya! 

Tithing in the New Testament & Old

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As long as I have been a Christian, I can remember people arguing and debating about tithing (just read the hundreds of comments below to see what I mean).

Some say Tithing was only an Old Testament Law that doesn’t need to be followed as believers under the New Covenant.

And some say that tithing is just as relevant to New Testament Christians as it was in the Old Covenant.

tithing in the new testament

Tithing in the Bible

My goal with this page is to shine a light on what the Bible says about tithing (in both the New and Old testament) and answer many questions you may have about it.

I tapped into the wisdom of others who have studied tithing in the Bible to great depths and hopefully we can better see what we as New Testament Christians need to know about tithing.

Additionally, since this page is nearly the length of a Kindle book, I decided to create an index to help you navigate through.

What is tithing?

Let’s start by looking at a few tithing definitions:

Wikipedia defines the tithe:

“A tithe (/taɪð/; from Old English: teogoþa “tenth”) is a one-tenth part of something, paid as a contribution to a religious organization or compulsory tax to government. Today, tithes are normally voluntary and paid in cash, cheques, or stocks, whereas historically tithes were required and paid in kind, such as agricultural products.”

Google defines tithing like this:

And Webster’s Dictionary defines tithe like this:

“a tenth part of something paid as a voluntary contribution or as a tax especially for the support of a religious establishment”

What the Bible says about tithing

Does the Bible actually say to give 10 percent?

If you search for the word tithing in the Bible (and tithe), you will find about 14 scriptures mentioning it (depending on which version you are using).

For the sake of brevity, I won’t list them all here, but these are a few of the most popular Bible verses about tithing:

The first mention of tithing in the Bible

If you are wondering where this idea of tithing came from, this is our first example of it:

“Then Melchizedek king of Salem brought out bread and wine. He was priest of God Most High, and he blessed Abram, saying, “Blessed be Abram by God Most High, Creator of heaven and earth.  And praise be to God Most High, who delivered your enemies into your hand.” Then Abram gave him a tenth of everything.”

Genesis 14:18-20 NIV

The most popular Tithing scripture

“Bring the whole tithe into the storehouse, so that there may be food in My house, and test Me now in this,” says the LORD of hosts, “if I will not open for you the windows of heaven and pour out for you a blessing until it overflows.”

Malachi 3:10 NASB

The New Testament scripture on tithing

So, what does the new testament say about tithing? Not a lot, but Jesus said this in Luke…

“But woe to you Pharisees! For you pay tithe of mint and rue and every kind of garden herb, and yet disregard justice and the love of God; but these are the things you should have done without neglecting the others.”

Luke 11:42 NASB

It is pretty clear from all the Bible verses on money and tithing (let alone the three above), that tithing is a Biblical idea.  Now, what it means for us today is a hotly debated topic that we will explore in a bit.

Malachi 3 10 Tithing Scripture

The 3 types of tithing and the 2 you shouldn’t do:

Tithing Isn’t A Means Of Salvation

This is incredibly important to understand. Our salvation is based on Jesus’ finished work on the cross, not on works.

You can’t earn your way to Heaven by giving, and you won’t be excluded from Heaven by your lack of tithing.

“For it is by grace you have been saved, through faith—and this not from yourselves, it is the gift of God— not by works, so that no one can boast.”

Ephesians 2:8-9 NIV

Out of our Faith, our good works manifest. So, in my opinion, if someone truly understands how great of a gift they have been given, they will expend a lot of energy giving back.

Tithing Verses In The New Testament

What the new testament says about tithing - #tithing #tithes

There are plenty of verses about tithing in the Old Testament and a lot fewer in the New Testament. So it is true that tithing isn’t talked about nearly as much in the New Testament as the Old Testament.

Personally, I don’t believe that in any way nullifies the value of it as a practice.

Under the New Covenant, our salvation is not based upon our obedience to the 10 Commandments, but does that mean that we shouldn’t still follow them? Are they suddenly of no value? I think the same can be said of tithing.

While you can debate all day long about whether or not it is a command for New Testament believers, I don’t see any reason why it would not still provide a blessing just like it did in the Old Covenant.

History of tithing in the new testament church

Do The New Testament Tithing Scriptures Command It?

Is tithing a new testament principle? In the next section, you can see what Jesus says about tithing, and He clearly does NOT command us to tithe.  But, that in no way means that we shouldn’t do it!

As Rev. Bill Miller puts it in his Biblical Financial Newsletter:

“Many believers who don’t want to tithe say that there are no scriptures in the New Testament that tell us we (must) tithe. And I say there weren’t any scriptures for Abram and Jacob either. Why would there be scriptures to repeat for us to do something that God has ALREADY said can be done of one’s FREE WILL in exchange for a blessing?

For those who don’t tithe, what are you doing that is scripturally superior to honor God sufficiently enough to warrant His favor and blessing in return?”

What Did Jesus Say About Tithing?

Blogger FMF brings up a great point about New Testament tithing (Jesus words himself)…

Jesus Endorsed The Tithe

In Matthew 23:23 and Luke 11:42 Jesus referred to tithing as something that should not be neglected…

“Woe to you, teachers of the law and Pharisees, you hypocrites! You give a tenth of your spices—mint, dill and cummin. But you have neglected the more important matters of the law—justice, mercy and faithfulness. You should have practiced the latter, without neglecting the former.”

So if you have been wondering what Jesus said about tithing or if “tithe” is in the New Testament, you have it right there in Luke 11:42.

Tithing BEFORE the Old Covenant

The concept of tithing was actually around before the old covenant was established.

“The first person to make a TITHE, which means a tenth (ten percent) of one’s INCREASE, was Abram (Genesis 14:20) … Notice please: Abram’s TITHE was not under the LAW which came more than six hundred years later. It wasn’t requested by anybody. It wasn’t suggested by anybody. It wasn’t coerced by anybody. It was purely a VOLUNTARY act of gratitude to HONOR “the Most High God, Possessor of heaven and earth.” Abram simply appreciated God’s FAVOR and gave up something of value in order to HONOR the One who had helped him get the victory.”

– Rev. Bill Miller (source)

Is tithing required for Christians today?

Like mentioned above, tithing is NOT a requirement for salvation, God’s love for you, or even God being pleased with you.

There are many leaders who I greatly respect who would answer this question differently, but I really like how Rev. Bill Miller (source) answers it:

“There is only one time in your Bible where tithing was a REQUIREMENT and that was during the fifteen hundred years before Jesus came while Israel was under the LAW.

Before that, there was a bigger picture of HONORING God with one’s substance. An honoring occurs when something that is of value to the one doing the giving is freely or voluntarily giving to someone as a sacrificial gesture of thanksgiving or appreciation. Is God worthy to be highly esteemed for what He has done and what He still does in our lives that we would specially HONOR Him for it? If it was that way before the LAW, how much more should He be esteemed under the New Covenant where we have been given a BETTER Covenant with all things in Christ (Hebrews 8:6)?

Even during the LAW where a specific form of tithing was REQUIRED, it was only for some of the people. There was never a universal tenth that was REQUIRED from everybody. In addition, even during that time after the tithe was instituted at the beginning of the Israelites’ second year in the wilderness, God PREFERRED freewill offerings. Study all this out for yourself starting in Exodus 35:5.

Friend, giving to God is about HONORING Him for the great things He has done in our lives. It ALWAYS has been that way even under the LAW. We are not REQUIRED to tithe under the New Covenant. But where is the scripture that says we can stop honoring God under the New Covenant?”

Quick Sidenote: If this post encourages you to give less, then you’re reading it wrong. Rather, regardless of whether or not tithing is REQUIRED, the goal of this post is to help us all shift our motivation from legalism to one of voluntary, sacrificial, and cheerful generosity as Paul lays out in 2 Corinthians 9.

Billy Graham on Tithing

It comes as no surprise to me that Billy Graham has a succinct, yet powerful quote about tithing in his life that I believe to be 100% true as well:

“We have found in our own home…that God’s blessing upon the nine-tenths, when we tithe, helps it to go farther than ten-tenths without His blessing.” –Rev. Billy Graham

Billy Graham Quote about Tithing

He Said We Could Test Him

Do we have any better invitation than to actually test it out and see if it really works? Most of us who do tithe were non-tithers at one point and had to step out in faith and overcome our fears to try it.

What does God promise about tithing?

“Bring the whole tithe into the storehouse, that there may be food in my house. Test me in this,” says the LORD Almighty, “and see if I will not throw open the floodgates of heaven and pour out so much blessing that you will not have room enough for it.”

Malachi 3:10 NIV

It really is like all the other areas of our walk with God – it requires FAITH.

My experience (and in that of countless of our readers) it is an essential part of living the Christian life to the fullest.

Every tither that I can recall talking to has had times where it required lots of FAITH to tithe. And when we are stepping out in faith, that is when we get to see God do the miraculous.

And that my friend is what makes the Christian life so fun.  Being a part of the amazing adventure that God leads us on if we obey His voice is one of my favorite things about being a Christian.

No, it doesn’t make sense that when we give all this money away, things will actually be better  – but I have found it to be true in my own life and from the countless other tithing testimonies I have heard, clearly, others have as well.

“I Never Would Have Been Able To Tithe The First Million Dollars I Ever Made If I Had Not Tithed My First Salary, Which Was $1.50 Per Week.”

—John D. Rockefeller

“I don’t tithe because the preacher is just trying to get my money”

Years ago I worked at a bank as a teller, and I witnessed a local pastor do some things with tithe checks that didn’t quite sit right with me. There was nothing illegal going on (that I knew of any way) and there was no proof that he wasn’t using the money as he should.

But it definitely didn’t look good.

As a young Christian trying to wrap my brain around all this, it was definitely a struggle.

But as I wrestled with that, God showed me that when I give to my church, I am giving to God.  Not to man.

So it doesn’t matter if he is stealing from the Church. It doesn’t matter if he is using the funds wisely.

That is between him and God, but my job is to give and give in faith to God.

It is similar to how we are called to work heartily unto the Lord (Col 3:23) regardless of how terrible a boss we have because God is our promoter (Ps 75:6-7) who gets us where we need to be.

God sees our hard work, and he honors that and promotes us at the right time.  I believe it is no different with giving to the church.  Our job is to give in faith and trust God to take care of the rest.

Are you cursed for NOT tithing?

Here is the verse from which this question arises:

Malachi 3:8-9: “Will a man rob God? Yet you are robbing Me! But you say, ‘How have we robbed You?’ In tithes and offerings. You are cursed with a curse, for you are robbing Me, the whole nation of you.”

As Christians, we have to understand that the Old Testament verses like these have to be viewed in light of Jesus’ work on the cross.

In this case, Galatians 3:13 clearly states that “Christ redeemed us from the curse of the law by becoming a curse for us.”

“Christian believers have been specifically REDEEMED from the Curse of the Law (Galatians 3:13)…If we have been redeemed from the curse of the law, then there is no way we can be cursed for not tithing…So under an entirely New Covenant, it seems to me unscriptural to be telling people that if they don’t tithe, they’re going to fall under a curse because the Curse of the Law no longer applies to believers…”

(source)

Can You Be Blessed Without Tithing?

The short answer is yes.

Just do a quick search for the word “blessed” over at Blue Letter Bible and see for yourself all the opportunities we have to be blessed by God.

But, just like any other opportunity that we have to be blessed, tithing is no different.

It is just a promise that we have available to us in Malachi 3:10 that God will bless those who tithe.

The bottom line is that there is undoubtedly a blessing that comes to givers.

“Give, and it will be given to you. A good measure, pressed down, shaken together and running over, will be poured into your lap. For with the measure you use, it will be measured to you.”

–Luke 6:38 (NIV)

God Loves A Cheerful Giver

The fact is that HOW we give is of utmost importance. As with everything, man looks at the outward appearance, but God looks at the heart.

If we are giving to impress people, we are wasting our time.

If we are giving because we are being pressured or coerced to give, we are missing it.

2 Corinthians 9:7 (NIV) makes this as clear as day:

“Each man should give what he has decided in his heart to give, not reluctantly or under compulsion, for God loves a cheerful giver.”

What if you aren’t cheerful about your giving?

Over the years of my giving journey, I have had plenty of moments where I was giving in faith. Moments where I could tell God was asking me to give beyond my comfort level.

Many of these times I wasn’t smiling and jumping up and down in excitement, because it was a huge step of faith and I was battling fear.

If we look at 2 Cor 9:7 again it specifically says that we should NOT give out of compulsion, but it doesn’t say that if we aren’t cheerful about it, we shouldn’t give. It just says that God loves it when we are.

And as I have given in faith over and over through the years, I have found myself becoming more cheerful in those tough moments of obedience.

Each time you step out in faith and see God come through, it just makes it that much easier to get excited (and cheerful) about what God is going to do.

Quick example:

Last year God called me to take a 1-year Sabbatical.  And initially, I fought a lot of feelings of fear of how I was going to provide for my family if I didn’t work at all.  But as I recounted all the times that God had called me to takes bold steps of faith – and how every single time He had come through – I began to get excited about it.

For me, every major blessing in my life was preceded by a step of faith. And it seems that the bigger the step of faith, the bigger the blessing on the other side.

And as I began to let that dominate my thoughts, instead of the fear I began to get really excited about what God was going to do.  I would even say that I was “cheerful” about taking that step of faith.

Bottom line, if you give in faith, and meditate on what the Bible says about giving you will begin to see it more from God’s perspective, and I am convinced that as we do, we become cheerful givers.

Tithing the first fruits

I first got ahold of the power of tithing from our first fruits from Chapter 2 of Robert Morris’ “The Blessed Life.”

A discussion about the first fruits could be a whole book by itself, but suffice it to say: to me, it is clear scripturally that God wants us to give from the first of our income.

Not giving from what is leftover, but rather a deliberate and intentional giving of the first of our income that comes in.

Robert Morris puts it like this:

“It always requires faith to give the first. That’s why so few Christians experience the blessings of tithing.  It means giving to God before you see if you are going to have enough. By tithing, it is as if we are saying to God, ‘I recognize You first. I am putting You first in my life, and I trust You to take care of the rest of the things in my life.’ That is why tithing is so important.  It is the primary way we acknowledge that God is first.”

Here are a few scriptures for you to dive into for more on this:

  • Exodus 13
  • Deut 18:4
  • Romans 11:16
  • Exodus 23:19

Tithing is a heart test

Earlier on this page, we see how tithing is the one area where God says that we can test Him.

But, tithing is really a test for us.  If you do a Bible study on the number 10, you will see a pattern with it: it often represents a form of testing.

Robert Morris says it like this:

“How many times did God test Pharaoh’s heart?  The answer is 10. How many commandments are there? … How many times did God test Israel while they were wandering in the wilderness?  And how many times did God test Jacob’s heart (by allowing his wages to be changed) when he was working for Laban? Or how many days was Daniel tested in (Daniel 1)? In each case, the answer is, of course, 10…

In Matthew 25, 10 virgins had their preparedness tested. Ten days of testing are mentioned in Rev 2:10… the number 10 is associated with testing throughout the Bible. And the tithe represents the ultimate ‘heart test’ for the believer.”

Tithing vs. Giving

I once heard someone say, “Tithing isn’t giving, it is simply returning to God what is His”.  While I think you could find a Biblical argument to support this, I think for most of us giving (or returning) 10% of our income is a big step of faith and it certainly (at least) FEELS like giving.

So many of us are living paycheck-to-paycheck and squeezing out just 1% of our income feels like a stretch, that I don’t personally don’t want insult someone who steps out in faith to tithe by essentially saying, “that’s nice, but you really haven’t done anything yet.”

Additionally, you could argue that not only is the 10% rightfully God’s but actually, 100% if you use the Parable of the Talents as a guide.

So, for me, the bottom line is that I think the best thing we can do as Christians is to view ourselves as stewards and always be GROWING in our giving and never being complacent regardless of what percentage we are giving.

What to do when Tithing doesn’t seem to be “working”

For as many tithing testimonies as I have gotten from readers over the years, I get a fair share of readers who say that “tithing didn’t work” for them.

I decided to write a whole article on this topic, which you can read here.

It Is So Much Bigger Than Us

The Much Bigger Issue Here Is That God’s Kingdom Needs To Be Advanced!

Who does He use to do that? Us, the believers! If we aren’t funding and financing Kingdom activities, then who will? How are the lost going to be reached if we don’t send those to preach? (Romans 10:15)

We shouldn’t be getting all caught up in percentages and what we “have to do” according to the Bible – what we (as God’s people) need to do is to forget about our ambitions, goals, and motives and pick up God’s plan. We have been saved from eternal separation from God by grace! With all that we have been given, how can we do anything else but give all we have?

What if we could get our minds off of our earthly bank accounts and focus instead on sowing things that will have eternal value.

“I judge all things only by the price they shall gain in eternity.”

– John Wesley

Not sure if you know, but eternity is a LONG TIME! 😉

We can either be doing things with our time and money that may benefit us for a few years down here, or we can see ourselves as the eternal beings that we are, get our priorities lined up with God’s, and start giving in a way that will actually last for eternity!

“But store up for yourselves treasures in heaven, where moth and rust do not destroy, and where thieves do not break in and steal.”

–Matthew 6:20 (NIV)

When we give tithes and offerings into our churches and into ministries that are reaching the world, we get to be included in their eternal reward. We are the BODY of Christ, we all have a part to play.

“…from whom the whole body, being fitted and held together by what every joint supplies, according to the proper working of each individual part, causes the growth of the body for the building up of itself in love.”

–Ephesians 4:16

The amazing thing is that as we start getting our focus off of ourselves and on meeting the needs of others, we will have our needs taken care of.

“But seek first his kingdom and his righteousness, and all these things will be given to you as well.”  – Matthew 6:33 (NIV)

It is just the way God set it up. He is so good, isn’t He?

Simple Money Rich Life

How to go way beyond tithing with your giving

This book is teaches everything I did to go from stranded with only $7 to paying off $400k of debt and giving 40% of my income. Hint: it was God.

It lays out the 4-part formula we followed (that you can copy) to be great stewards with what He has entrusted us with to be in a position for Him to do miracles.

It’ll help you earn more, save more, and have more fun giving than you dreamed possible.

Learn more

Some practical FAQs about Tithing

Is tithing tax deductible?

In theory, tithing is tax-deductible. But whether or not you can do it depends on your tax situation. Tithing comes under the tax deduction category of charitable contributions. That makes it tax-deductible.

But there’s a glitch. It’s only deductible if the amount of your tithe, plus other tax-deductible expenses, exceeds the standard deduction. For 2018, that deduction is $12,000 for single taxpayers, $18,000 for heads of household, and $24,000 if you’re married filing jointly.

The 2018 standard deductions are a lot higher than what they were for previous years. But there’s also a bit of sleight-of-hand. The new standard deductions have been dramatically increased due to the elimination of the personal exemption. The 2018 standard deduction is higher than the combination of the previous standard deduction, plus one or two personal exemptions, that apply for 2017.

But at the same time, the new standard deduction limits are so high that far fewer people will be able to itemize.

For more on the specifics of this check out is tithing tax deductible?

Should you tithe on your tax refund?

Technically, if you are tithing on your gross income rather than net income, then you would have already tithed on that income, and it is simply money coming back to you.

But I truly believe that we can’t go wrong giving more.  We cannot outgive God.

As LG Tourneau says “I shovel it out, and God shovels it back, but God has a bigger shovel.”

But for more discussion on this, check out this post: do you tithe on your tax refund?

Should you tithe while paying off debt?

I also talk a lot more about my thoughts on if you should tithe while paying off debt in the video below:

Need a Tithing Calculator?

God in his infinite wisdom made the math so simple that we don’t really need a calculator to calculate our tithe amount.

My wife says I am good at math, so this is pretty simple to me, but I can sympathize with those who HATE math as much as she does. 😉

Your own tithing calculator right there in your brain!

To calculate the tithe amount, all you need to do is just move the decimal place 1 to the left.

For example: if you earned $1,234.56 you would just move that decimal one place over, and you would get a tithing amount of $123.45.

See how simple that is?  I’m sure, even the worst among us at math can do that – right?

Can you give tithes online?

Many churches are making online, mobile, and text giving available, and according to the statistics, all these options are actually increasing giving amounts.

According to one study, “Churches that accept tithing online increase overall donations by 32%.”

If your church doesn’t offer this option, you might want to point them to a few tools that will help them make it possible.  Here are a few:

Should you automate tithing?

Using some of the tools listed in the section above, you can make tithing automatic by automating it. While I am thrilled that technology is making it easier for us all to give, I personally like making a bit more of an “event” and use it as an opportunity to give in faith.

So even though we don’t use checks anymore to tithe, we use the app on our phone and Linda and I do it together and pray over our giving each time we do.

It is just a simple way that we can still stay (somewhat) connected to our giving.

That said, for some people creating a set-it-and-forget-it approach to giving is the easiest way for them to stay consistent with it.

So if that is what you need to do, by all means, go for it.  I would just encourage you to regularly remind yourself of what is happening automatically and pray over your giving.

Final thoughts

If you have read this far, it should be clear as day to you that I am an advocate of tithing.

For years I always thought the preacher was trying to get my money when he talked about tithing, but if you are a skeptic (like I was) then let me remind you that I have nothing to gain by encouraging you to tithe.

The ONLY reason I would be banging the drum about this so much is that I legitimately care for you and absolutely want God’s best for you!

You see, as a fellow believer, we are brothers and sisters in Christ, and we are on the same team.  And God has put a fire in my heart to see His children get ahold of what the Bible says about money.

The fact of the matter is that my life has been changed so dramatically by tithing and giving in faith that I can’t help but encourage others to do the same.

We have some radical financial testimonies as a result, but It goes so far beyond money.

God has done a work in my heart.  Submitting to Him and yielding and trusting Him in this area has brought me so much closer to Him and I have gotten to be part of some miraculous adventures.

Like a child jumping into his father’s arms who knows without a shadow of a doubt that he will catch him, I pray that we would learn to trust God in the area of tithing as well as all areas of life!

I would love to hear your comments – so please share them below.  Differing viewpoints are absolutely okay, just please be civil. Deal?

5 lessons from a secretary who invested her way to $7.2 million [Grace Groner]

By

The Grace Groner story

how to invest your way to millions

I came across a really interesting story about a woman who was a lifetime secretary for 43 years.

And she invested her way to 7.2 million dollars!

Which I think is really cool because it proves this thing that we are constantly trying to hammer home:

That you don’t need a high income in order to have a high AUM (assets under management), or net worth.

I want to just highlight some of her story and some of the lessons that we can take from this.

We’re pulling a lot of this from an article that we found. And we’re going to discuss 5 lessons to take away from her investing story.

Before we get into these lessons, I recorded the discussion Linda and I had that you can listen to on our Podcast, but, if you would rather read the full transcription, you can do so here in this article! Enjoy!

(The following is an abbreviated transcription from a video Linda and I recorded. Please excuse any typos or errors.)

Grace Groner: secret millionaire

Bob: But a little bit of her background, she was an orphan. She was apparently raised by her neighbors. Which, I don’t know what that looks like. But it’s an interesting start. At age 25, she becomes a secretary at Abbott Pharmaceuticals. I don’t know that many pharmaceutical companies, but apparently this was a big one. 

Linda: Yeah. I don’t know it either.

Bob: She continues to work there for 43 years. Now, here’s what happened. Her first year working there, she bought three shares of Abbott stock for a total of $180. Okay. Three shares, a $180 investment. 

Grace Groner and her 3 shares of stock that made her a millionaire

Linda: Which, was probably a whole lot of money then.

Bob: Probably was. But as a secretary she somehow managed to come up with $180. She invests that money into those three shares. And then she reinvests the dividends.

The shares she bought were dividend paying stocks. So they might pay a couple percent each year and she takes those payments puts it back in to buy more stock. And just does that over and over and over again.

That’s reinvesting your dividends. 

Linda: So she lives off of her paycheck. And any of the dividends she would get, she would just reinvest them? 

Bob: Yeah, she did that for 75 years until she died. And that led to 7.2 million dollars. 

Linda: That is crazy. 

Bob: That’s mind blowing and I love it. That’s so cool. And so there’s five lessons that we can learn kind of from her story. Do you wanna read these? 

Lesson 1: Compounding is powerful

Linda: Yeah. So number one is compounding over time is a powerful tool and the rate of compounding matters greatly. 

Bob: Yeah, compounding. Apparently, I don’t know if this is true or not, Einstein has reported have said it’s the eighth wonder of the world. It’s just an incredibly powerful force.

Now, the other thing to notice here is that you can’t really save your way to 7.2 million dollars. Especially in today’s current interest rates that we’re dealing with. In this article they specifically talk about this and I love it. It said if she had $180 in a bank at 3% for that 75 years, it would’ve left her with $1,652. 

Linda: Unbelievable. 

Bob: So this is the thing that’s so important. 

Linda: This is the difference.

Bob: Compounding is huge! But the difference between 3% and 12% (whatever the Abbott stock was, I don’t know) is astronomical… $1,600 to 7.2 million dollars! 

Don’t be afraid to ask

Linda: One of the ways I like to look at this, because this is something where I feel like I don’t know enough. And you know, I don’t even know how to do that.  I make up a lot of excuses that are maybe because I really truly don’t understand what to do. But asking someone is an easy way to solve that problem. Right?

Bob: Yeah. 

Linda: But you have said to me like, “Linda, if someone was going to pay you 7.2 million dollars to figure this out, do you think you could do it?” And I would go. Yeah, actually I think I could do that for 7.2 million dollars! 

Bob: Yeah. 

Linda: I mean, that’s a really easy way to kind of flip this on its head. Instead of going well, I don’t have the smarts to figure that out. 

Bob: Yeah. I love that.

Linda: Asking yourself: “well, if somebody even paid you a million dollars or $500,000, would it be worth it to you to try and figure it out?”

And I think almost always the answer would be yes. 

Bob: Yeah. That’s a great way to look at it. So what’s your takeaway from that specifically? 

Linda: I think my takeaway would be if I did not have you in my life doing this for me, which let’s be honest, that’s what’s happening. 

Bob: It’s a nice perk, isn’t it? 

Linda: It is a nice perk. Not everybody has that though. Like before we were married, I think that was my thing is I was well I’m just… I can’t figure this out. I don’t know how to do it. I don’t even know where to start. It’s like, well you could start with someone who just has a little bit more information than you. Maybe your boss? 

Bob: Just asking some questions? Yeah, for sure. 

Linda: It’s like ask your boss if they know anything. Ask HR, you know, there there’s some easy ways.

Ask Bob, honestly, just send us a message on Instagram.

Bob: I’d be happy to answer anything I can.

Linda: Yeah, he’ll give you a starting point at least. 

Our 10X Investing Course

Bob: Yeah. Well, that’s why we made our 10X investing course.

Linda: Right. 

Bob: Because that’s the whole point is for people like you who don’t know where to start and don’t know what to do. It’s like, all right, we’re gonna lay this out step by step as much as possible. So you have something to start. So you have something to run with, you know? 

Linda: And again, if somebody’s gonna pay you a million dollars to figure it out and invest… you can probably make it happen. Right?

Bob: I think so. All right, let’s go to the second point. 

Lesson 2: Slow and simple wins the race

Linda: Number two is a simple plan executed over a long period of time usually beats a complicated plan that is adjusted constantly. 

Bob: Yeah. 

Linda: That’s really interesting. And again, those are for the people like me, who it can be really complicated. 

Bob: But it’s not like, that’s the thing. It’s not that complicated. The financial industry has tried to convince us all that we’re not smart enough and that it’s so complicated to figure out investing. 

Linda: I think you need to say that again, so people in the back can hear it. 

Bob: Yeah, I worked in this financial industry for years. And I just know how it works. They want you to think that it’s more complicated than it needs to be.

Investing wisely

Bob: Grace just happened to buy this stock at a company that has performed well over the period of time. And she could have bought Enron, or something, and lost it.

But the point is, investing over the long term and just letting it sit and just do its own thing. That’s where the power is. And this is why we’re huge advocates for index funds. Particularly US stock market index funds, because they’ve just consistently performed so well over the long term. And it’s a set it and forget it investment that you can set up. 

Investing advice from Warren Buffett

Linda: And that’s the one that Warren Buffett has his wife’s investments going to? 

Bob: Yeah. I mean, it’s not just that, but yeah.

Linda: So in other words, Warren Buffett suggests it. 

Bob: Yeah, Warren Buffett is always recommending for people who don’t know how to invest, to pick S&P 500 index fund and put your money in that.

 And I think the point is we have all kinds of people day trading and trying to go in and out and flip all this stuff. Running around like they’re crazy. And it’s just been proven over and over again, the tortoise beats the hare. And it’s the same idea, the same principle.

In fact, Warren Buffett a couple years ago ended up taking out a million dollar bet with some of the top hedge fund managers. And saying, “I bet that the S&P 500 index fund over a 10 year period is going to beat your hedge fund.”

Linda: Did he win?

Bob: And he won. 

Linda: That’s awesome. So how many of them had to pay him a million dollars to grow his financial numbers? 

Bob: Well, I think he gave it all to charity. Which is a perfect illustration of this idea that a simple plan executed over a long time will beat a complicated plan.

Linda: That’s really interesting. 

Bob: Almost every time. 

Lesson 3: Let your investment ride

Linda: Okay. So that leads us into number three, which is she held onto it through a whole lot of different events and circumstances.

Bob: Stock market corrections, wars, everything. She just held for a long, long time and didn’t do anything else. I think what happens oftentimes, or I know what happens, is people get freaked out. It’s like, uhoh, we might be going to war or Russia might start World War III, or whatever, so I’m going to sell all my investments. Or there’s a recession or covid hits. So I’m gonna sell my investments.

And you know, I’ve been guilty of this. I think most of us have. We get freaked out and we sell. And that’s the worst time to sell. If you just honestly forget that you even have it and just let it ride.

Individual stocks

If it’s an individual stock that’s not necessarily always the best way, depending on the way the particular approach that you’re taking. So I buy stocks with that in mind. Knowing that I want to hold the stock for decades.

Index funds

And I buy index funds that I’m planning on holding for decades. In that case, then it just makes a whole lot more sense to just forget about it and stop looking at it. Delete the thing on your phone, you know, showing whether it’s going up or down every day. Because it doesn’t matter, you’re just holding over the long term and that’s what you need to be doing. It saves some mental energy. And it performs better.

Linda: Well, and again, this is actually where I would shine is because I really would forget about it. And then have a pleasant surprise later in my life. 

Bob: Yeah. And that’s just the best way to do it. 

Lesson 4: Invest early

Linda: Okay. So number four is investing from an early age can make a huge difference in eventual results.

Bob: They have an illustration in this article that I think is perfect. It said if Grace had invested to save $180, the same $180 in 1945 instead of 1935 when she started, she would’ve died with 1.7 million dollars instead of the 7.2 million dollars. 

Linda: 10 years later? 

Bob: Yeah. So just 10 years difference. It made that much of a difference, 1.72 million to 7.2 million. And this is why I and everyone else is always saying, alright you’re in your twenties… you’re in your teens… get ahold of investing now. Trust me you are going to thank me later. Because time is your number one ally when it comes to investing growth. 

How to easily set your kids up financially

Linda: Well, and really this is a great thing for parents of kids who are graduating high school or college to start your kid off investing young.

I think that would be a terrific graduation gift to give or to receive. Because if you just put money into investments and just let it sit, maybe not even tell them that it’s there. Then that will eventually grow to something that is, man… 

Bob: Yeah, I just did another podcast or video about this, it is fascinating. If your parents or my parents would’ve invested $2,000 for us the day we were born.

Linda: Oh, no. 

Bob: Invested $2,000 one time. And did nothing else to the S&P 500 index fund. When at age 65, we’d both have a million dollars. 

Linda: Wow.

Bob: $2,000 investment, one time, that’s it. Over 65 years.

Linda: Wow. 

Bob: That is fascinating to think about. But that’s the power of starting investing early.

Linda: We should do that for our kids. Why haven’t we done that? 

Bob: Well, we’ve started some stuff. 

Linda: Oh, okay. Good. 

Lesson 5: Not letting your wealth define you

Linda: Number five, lastly, the most important lesson.

Bob: I don’t know all of her story, but they’re pulling out something here is that I think is an important part. 

Linda: Yeah. So it says that the last and most important lesson is that she was happy and probably would’ve been happy even without the giant nest egg. 

Bob: Yeah. 

Linda: Which I think is just really cool. It’s just a good reminder that money isn’t everything. And even though this was a lovely thing for her to end her life with… she ended up donating it all.

She didn’t depend on this money to make her happy. And I think as believers, we should not either, we do not depend on money. The joy of the Lord is our strength. Joy is one of the fruit of the spirit and being able to walk around showing that like who the Lord is through our joy. 

Bob: Yeah, because it’s interesting to me how she really just set up this investment and forgot it. And then just let it go. I don’t know how often she checked her investments, maybe she forgot about ’em for a decade. But it’s interesting because it feels like we see that a lot. Where people who are not thinking about their investments a lot, are kind of disconnected to them. Versus those who are watching them every single day. They are possibly a little bit more tied up in them than they should be from a happiness perspective. 

Don’t obsess on what stresses you out

Linda: Well, we’ve even had this happen with the business. Back in the early days of the business I think because you hadn’t been blogging for very long, I remember you were checking every single day on the Google analytics and all the different numbers. You’re like, I want to see what’s working. And you know, part of that is because it was your job and it was new and you wanted to make sure that you were making progress. But it got to an obsessive point for you.

Bob: Yeah. 

Linda: If you saw a little dip, you were like, “oh my gosh, the business is over.” And you’d get really bummed out, you’d be depressed the rest of the day. I mean, it was pretty interesting. And you said, “I have to stop doing this.” And as soon as you stopped obsessing, it really change. And now we’ve seen big spikes and…

Bob: Big drops. 

Linda: …some big drops. 

Bob: Yeah. 

Linda: You’re a lot more even keeled than you were at that point. 

Bob: For me it was very fear based. I was nervous that our business was just going to blow up and dry up. It’s like watching the news every day.

Linda: Right.

Bob: If you watch the news daily, you’re gonna see all the stuff that’s gonna stress you out. You’ll see all these indications of things that seem like bigger deals than they are. 

Linda: Yeah. 

Bob: But if you remove that, then you just live a less stressed life. Because so many of the news stories are just things that people are freaking out about, but don’t actually happen. It’s a fine balance. I want be aware of what’s going on, but… 

Linda: To be honest, there’s little that I watch my on local news that affects my daily life. But if I’m watching it and focusing on it, then I notice that I’m so much more stressed out and that affects my daily life greatly.

Bob: Yep. It really does. 

Investing lessons learned

Bob: So anyway, I just thought this was a really interesting story. And I love hearing stories like this because it is honestly part of how I built the 10X Investing Course, from real stories. And lessons learned from real people in my life.

17 or 18 years ago, I met with my millionaire mentor. And he shared his story of how he was a middle aged school teacher before he ever invested a single dollar. I don’t think he even started investing till his late thirties as on a school teacher salary. When I met with him, he was in his mid sixties and a multimillionaire. And asked, “all right, how’d you do it?”

I wanted to know how he did it. And so hearing his first-hand story and then some of his other successes, really motivated me. For example he paid off his house with some Starbucks stock that he bought fairly early on. He realized wow, it’s really gone up a lot. We could pay off our house. And then they did.

His story really encouraged me to actually take action. It’s a real person I know and this actually happened to him. 

Linda: Well, yeah and he wasn’t making a bajillion dollars a year. 

Bob: Oh yeah.

Anyone can buy stock and have a similar story

Bob: So anyway, that’s part of why I want to share Grace Groner’s story. I just think it’s so cool. And it’s something that anyone can do.

Now whether or not you pick a single stock, that’s not necessarily the point. The point is just doing a little bit for a long time consistently. That’s the point I want you take from it.

Because, it’s not about whether she picked Abbott stock or whether she would’ve picked GM stock, or whatever. There’s any number of stocks that she could have picked that it would still be millions of dollars. It’s just a matter of whether it was 7 million or 10 million or 5 million…

Linda: Anything over a million sounds good to me. 

Bob: Yeah. The point is that she’s doing really well at the end of her life. And she had a whole lot to be able to give away at that point. I just think that it’s a fascinating story.

Your homework

Linda: So get on it, start investing. That’s your homework!

Bob: That’s your homework. Let’s figure out how to leave you, or have you leaving 7.2 million dollars when you die. I think that’s a good goal. 

Linda: Yeah. 

Bob: All right I think that’s all for today. I would love to give you a high five or take you out to coffee next time you’re in Nashville. By supporting our site through subscribing to our emails, leaving blog comments, taking one of our courses, following us on Instagram, subscribing to our Podcast and even giving us a thumbs up on YouTube… like it just help us.

But yeah, but that’s all. You’re awesome. Have a great evening and we’ll see you next time.

Links: The Grace Groner foundation

How to handle money with record-breaking inflation

By

(The following is an abbreviated transcription from a podcast Linda and I recorded. Please excuse any typos or errors.)

Today we’re talking about the four steps that we’re taking with this crazy record-breaking inflation we are experiencing right now.

According to CNBC, I read this article and they just came out with the newest inflation rates, inflation rates are up 8.5% of the US CPI (Consumer Price Index).

So we’re gonna talk about the four specific steps we’re taking right now, because this is mind blowing.

Before we get into the steps we’re taking, I recorded our discussion that you can listen to on our Podcast. But, if you would rather read the full transcription, you can do so here in this article!

Enjoy.

Record-breaking inflation IRL

Bob: I just shared this post from the New York Times on Instagram (so you should follow us on Instagram if you’re not already, we’re @seedtime), but it shows the annual price changes. So since March of 2021, it shows how much things have gone up and it’s mind-blowing. A year-over-year change, fuel prices have gone up 70% per the Bureau of Labor Statistics. Crazy!

Linda: Oh gosh. Which I don’t think many of us are surprised by that because we’ve seen how the prices have just skyrocketed! And you actually found some cool new app to help us save money at the gas pump. 

How we save money at the pump

Bob: We sent an email about this. So be sure to get on our email list, if you’re not on the email list, subscribe at: seedtime.com/subscribe. But yeah, we share with our email subscriber this app called Get Upside. Which, I think a lot of people are talking about right now because it’s a great way to get some cashback on gas.

So for example, the first time I used it, we ended up saving like 44 cents per gallon. Well, they gave us 44 cents per gallon back.

Linda: So it’s kind of like Rakuten a little, but for gas.

Bob: Yeah a different cashback type of app. But anyway, just a really cool app.

Inflation rates of various purchases

Bob: This is nuts used cars and trucks are 35% higher than they were last March 35% for used cars.

Linda: Yeah. Which, you know, and I knew that they had spiked. And I think it’s because new cars are really hard to come by. Like you got to get on a waiting list for that, eight months-10 months for some of these cars. 

Bob: Yeah. And airline fares are up 23% (check out how we travel for free)! Meat, poultry, fish and eggs are up 13%! Electricity is up 11%! Fruits and vegetables, 8%!

Yeah, like it’s just nuts. The CPI, consumer price index, gives a whole list of a variety of different items (it’s a basket of 35 different categories of goods) and how the prices have gone up. But on average, they’ve determined that average rate of inflation is 8.5%.

And so bottom line, if it feels like things are tighter, they are because a lot of prices have been going up.

Linda: So I went to the grocery store the other day. I only ended up getting half of the items on my list because honestly I was not feeling very good. I needed to, and I had a kid who was, yeah. Being a little bit intense, but I ended up spending like $500.

When I saw this number, I was like, “oh my gosh, I didn’t even get everything we needed to get!” Typically, for us to buy about that amount of groceries, it would have normally have been like $300-$350. I mean, I got a bunch of stuff, but it wasn’t even a normal amount of groceries (check out ways you can save on groceries!).

I was blown away that I had just spent $500. When I brought the groceries home, you were like “where’s the rest of it? Well you just weren’t checking prices” and dah, dah, dah. And I’m like, I got the same things that I’ve been normally getting and he was blown away looking at the receipt at the price of things.

Bob: Yeah. Because things have gone up. It’s just crazy! It’s crazy.

Our game plan

Linda: We gotta talk about our game plan. Because I think everybody else needs a game plan as well with all these rising prices. 

Step 1: Focusing on the truth of The Word

Bob: I think the first thing that we’re doing that we are always doing, no matter what our financial situation looks like, is focusing on the truth of The Word. Philippians 4:19 is one of my favorite verses and it will always apply.

“And my God will meet all your needs according to the riches of his glory in Christ Jesus.” Philippians 4:19 (NIV)

God is our provider and so it doesn’t matter what inflation is doing. It doesn’t matter what the government’s doing. It doesn’t matter if there are wars, like none of this stuff matters. Whether it’s macro, micro, whatever the situation is, trucker convoy, etc. It’s always going to be true in any and all circumstances and situations.

And so, it’s easy to forget that when we’re staring at the news all day, or staring at all of the crises and everything that’s happening… but it is true. I think that’s one of the most important things to focus on in the midst of this. It’s my biggest encouragement to anybody who is freaking out about the inflation rates and how expensive things have gotten.

So that’s number one.

Step 2: Focus on your household budget

Bob: The second thing I’m encouraging people to do is making sure that your money management is tight. Make sure that there aren’t any holes in your bucket where you’re just losing money. Where you’re just wasting money.

We’ve talked to so many people who think they know what’s going on. Think they know how much they’re spending and they don’t. And when you’re not actually paying attention, when you don’t know exactly what’s going on, it gets really, really sloppy.

The Real Money Method

Bob: Our recommendation for this is our Real Money Method course.

Linda: This is the only thing that has actually worked for us.

Bob: Yeah. And we ended up developing a budgeting method that has just worked really, really well for us.

Linda: It’s super accountable.

Bob: Like there’s no, there’s no fudging the numbers. And it’s by far, like I’ve created a lot of products over the years of doing all this stuff, the best product that we’ve ever created in terms of just constant amazing testimonials and results from students. It’s just mindblowing the results that so many of our students get. And it’s just a simple process to hone in your money management, build in some accountability.  

Linda: And it’s easy to understand, 

Bob: Even for some easier than any budgeting tool that I think we ever used, right?

Linda: Yes, which is why I like it. Well, originally you had tried all these other budgeting apps. You know, fancy budgeting software or whatever method. This was the thing that we had done originally when we first got married and I said, “dude, you got to figure all this other stuff out.”

If anything ever happens to you and I have to take over, I’m going back to the original method. And that’s what this is, The Real Money Method. It’s just really simple method.

Bob: Yeah. So we started there. Then took a long and winding road trying fancy or shiny or new budgeting things, and then came back to the good old faithful.

But anyway, that’s what’s worked for us. And if you need help, check it out. But the point is, you need to make sure your money management is tight.

Do you have unused subscriptions?

Bob: So another example here of something that blows my mind. I’m on top of this stuff, but I just went into our iTunes account or Apple account to cancel one of our subscriptions. I don’t remember if it was a Discovery+ or Disney that we subscribe to. And I thought, “oh, we stopped watching whatever show it was, so we don’t need that subscription anymore.”

So I went to cancel it, and there were three other subscriptions running. I’m like, how did we miss this? We’ve been paying for this for the last three months?! And then it was the same way with Amazon. I went into Amazon prime and there were multiple subscriptions where we’re not even using.

The kids aren’t even watching that anymore. We’re wasting money on these unused subscriptions. So that simple exercise we probably saved $50 or $70 a month just by going through our subscriptions and cancelling the ones we no longer use. 

Bob: My point is, you gotta be on top of that stuff, especial in this situation of this world of crazy inflation. When things are getting tighter, let’s pay attention.

Linda: It might even be time to say, you know what, we’re going to have Netflix for this month and we’ll have Hulu the month after that, you know? Or just focus on one at a time. 

Step 3: Storing less money in savings accounts

Bob: All right. Number three is three. And this is a little bit more of a strategy in terms of inflation and the hit that it’s taking. But what we are doing is storing less money in our savings account.

And the reason being is because we have a savings account just like anybody else does, and we’re getting half a percent interest in there. And that that’s completely pointless if the dollar is being devalued by 8.5% each year.

Linda: And so apparently we should move it into a used car and truck or gasoline. We should start controlling the gasoline in the area. It’s a good investment! 

Bob: Yeah. Anyway, so that’s something that we’ve been shifting. I’m all for having an emergency fund and I think that’s really good. But, each person will have to make this decision according to how you want to manage risk and everything else. But for us, we’ve moved more of that money out of savings and more into investments that can keep pace with inflation. 

Linda: So you’re not talking about tucking it under your mattress, when pulling cash out of savings?

Bob: No. I mean, we do have cash have some cash set aside that we can use for certain types of emergencies. But the investments are different. That’s a different thing than kind of as a hedge against inflation. Because again, that money is being eroded really quickly by inflation. But there still is a value in that in certain crises and situations.And so I feel a little better having a little bit cash.

Anyway, that’s part of the equation, but in general, You don’t want to have tons and tons of money sitting in a savings account right now.  

Linda: It’s just not the time to do that because you’re just basically losing a ton of money every year.

Bob: Yeah. And there are phases in the economic cycles where it makes a whole lot of sense to have money in savings because the rates are really great. But right now, the interest rates are terrible and inflation is high. It’s just not where you want to be and have a lot of money tied up in a savings account.

Investing in T.I.P.S.

And so I’m not going to go real deep with this because we can talk about this for hours. But one simple thing that we’re doing is we started investing in T.I.P.S. (Treasury Inflation Protected Security).

So basically it’s a type of bond that you can buy from the government that keeps pace with inflation. And so it’s really, really cool. And you can also buy I bonds, which function really similarly. And like the current rates for I-bonds, I think it’s like 7.1%, and that will adjust up to the 8.5%. It just continues to match where the, whatever the inflation rate is. And so it’s a great way to at least keep pace with inflation.

Our 10x Investing Course

And we go into a lot of other different ideas along these lines and different ways to invest in our 10X Investing Course for anybody wants to dive deeper. But it’s just a great way to not have money sitting in a savings account and keep pace with this rate of inflation.  

Linda: Yes, exactly. Because that’s the thing we’re all trying to avoid is just our money becoming worthless, or the dollar becoming worthless. Which I think when we see big spikes like this with inflation, it can feel like all of a sudden I’m not making enough money. Or, I’ve got to work harder or take on another job or start a side hustle or whatever. Which is true, maybe you do need to do some of that. But I think every little bit helps.

Bob: Yeah. That’s what I’m saying.

Step 4: Stocking up on goods

Bob: And I think this one is really underutilized and under appreciated. But stocking up on goods. So food items, household items, things that hold their value. And I remember Mark Cuban talking about this saying one of the best ways for most average Americans to invest their money is by bulking.

In bulking up on sale items that they can throw in the freezer or that they can keep it a pantry for a couple of years, because say you can buy something, whatever, maybe it’s ground beef, 20% off or something like that. And you can buy two years worth of it. Like you’re basically making a 20% return on your money, which is fantastic.

And I think it’s specially in terms of inflation, I’m stocking up in all these things that you can stock up in that you are actually going to use. If you can buy them at today’s prices, rather than having to buy them next month. Or in the case of a sale, even a discounted price, it’s a great way to just take advantage of that and set yourself up (check out our article on how to find the best price for all the stuff you buy). On top of that, given the fact that there’s a war going on that we could possibly be drug into, it makes sense to stock up on some stuff a little bit.

Linda: Like, we saw what happened with COVID (a total unexpected financial challenge) with the toilet paper shortage. You know, you’re seeing families with five kids and they can’t find toilet paper anywhere. They’re driving all over town because they just got one roll left. 

Bob: Biden said a couple of weeks ago that there’s gonna be major supply shortages because of what’s going on.

Linda: So this is your tip. So don’t miss out on that!

Bonus tip: Inflation is working against your lenders

Bob: And I’ll just add another piece here. Because this is a question I got just the other day, too. We don’t have any debt right now, but if we did have debt I’ll tell you, what should we be thinking about? I don’t know exactly what we would be doing, but the thing is with debt in the case of inflation, the bank or the lender is the one who’s taking the hit.

Okay. So, you could argue we didn’t pay off our mortgage early because it made the most sense mathematically. My accountant and other people in my life were like, that’s just a bad idea. That’s a bad math. And I’m like, I understand it’s bad math, but it’s good stewardship of my family and of my peace of mind.

And so, we sleep better knowing that the bank doesn’t own our house, we do. I’m glad we made that decision. It wasn’t a math problem, you know, but along those lines, another additional argument against paying off your mortgage right now, I’m just throwing out the counterpoint here is that.

That situation right there at the inflation is working against the bank. It’s working against the lender. So they’re the ones who are taking the hit from that. And that’s an argument for not racing to pay down debt in this situation. I’m not saying I recommend that and I don’t even know that we would pause a slow down, but it would definitely be something I’d be thinking about.

Linda: Right. And get in the information so that you can evaluate your situation better because everybody’s situation is different.

Bob: Yeah. And so somebody was asking me just the other day, should I slow down on my debt payments so that I can save more money in an inflationary period like this. And, I think it makes a lot of sense to have debt.

Bob: After COVID, especially. We had emergency fund before that, but once COVID hit, it’s like, all right, everyone should understand the importance of having an emergency fund and having some somewhat liquid cash available. If you don’t have an emergency fund, I suggest you start saving now.

You know, typically I like having an emergency fund in a savings account. But again, in this situation that what’s going on with inflation, I still want it to be liquid (as in we can access it pretty quickly). But it doesn’t have to be like right this minute. So our savings account, we still have some money in a savings account that we can get to probably within an hour. But some of our other investments are liquid enough that we could get to them within a day or two, you know? So it’s not like a house where it might take you months to get to.

Linda: Is this T.I.P.S.? Is that one of those investments now? 

Bob: Yeah. The way that we’re investing in T.I.P.S. it’s that is fairly easily accessed at our bank.

Linda: Well and maybe we don’t need to tell them necessarily what we’re doing, but what are some of those assets that could be easily.. 

Bob: …liquidated? Yeah, so investing in stocks or anything. Like it’s so easy. You can sell them, at worst by the end of the business day on a regular business, and then have it.

In closing

Bob: Yeah. So those are the four of the things (plus bonus tips!) that we’re doing right now of how we’re working through this crazy inflation that we’re dealing with.

Simple Money, Rich Life

And, when this article comes out, our book will probably already have been released. We would love for you to order a copy for yourself! We really believe lives are going to be changed through this book, which you can get at seedtime.com/SMRL (stands for Simple Money, Rich Life – the name of our book).

I think that’s it. Hope you have an awesome day. We’ll talk to you soon.

6 Graduation Gift Ideas (That Make a Financial Impact on Your Grad)

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Grad Gift Ideas

It’s that time of year that everyone is getting the invites to graduation parties.

And, of course, what happens next is that you are on the lookout for graduation gift ideas that add value (and if you are like me) ones that have a lasting financial effect.

After all, there are only so many inspirational plaques and trinkets with a graduation year on them that a person can collect.

Yes, you can always give cash (and there are plenty of unique ways to give cash), but how about some gifts that help set up your graduate for financial success?

Here are a few graduation gift ideas that do just that, and they can work for graduates at the high school or college level.

1. Buy them a share of their favorite company

Yes, you can actually buy stock as a gift as an alternative to giving cash or a gift card.

Stockpile allows you to buy stock as a gift card for as little as $5. This is possible because Stockpile allows you to buy fractional shares of stocks instead of a full share.

And if your graduate is an adult, they will have full control over the account.

Think of it as a savings bond upgrade: instead of just giving money, you buy a Stockpile gift card that allows them to buy stock in a company that genuinely interests them. Choose from Amazon, Disney, Google, Nike, Tesla, and more, or let the graduate pick if you are confident that won’t overwhelm them.

With Stockpile, there are no fees and no minimums, and if your recipient wants to invest more of their own money in the future, they can do so for just $0.99 per trade.

You can order a physical gift card for an extra fee or choose an e-gift card and print it out at home to avoid that upcharge and receive your gift card more quickly.

2. Gift Card for the Real Money Method System

The Real Money Method course

The Real Money Method is a budgeting course that combines the mentality of the old-fashioned cash envelope system with the technology of digital payments. (I mean, let’s bring things into the 21st century, right?)

For young people, this will keep their spending within their available cash – not just within their credit card balance or within arbitrary budgeting numbers on a screen – and as a result they will develop strong cash management and spending habits.

Purchase a Real Money Method gift card for your recipient here.

3. Simple Money, Rich Life Book

As the feedback and reviews have been coming in since we released our book Simple Money, Rich Life, it’s been exciting seeing how many readers are making this their go-to book to give to graduates and new married couples.

and this…

4. Audible Subscription

“You will be the same person in five years as you are today except for the people you meet and the books you read.” ― Charlie Tremendous Jones

While I don’t 100% agree with this quote, I think we all get the point. Reading is one of the best ways to change the trajectory of our lives. Reading changes our thinking and as such changes us.

I do enjoy reading actual books, but I find that listening to audiobooks with Audible helps me greatly increase the number of books each year.

And Audible lets you gift books or even 3-12 month subscriptions to anyone you like.

5. Buy a goat in their honor

Heifer is a great charity that works with more of the approach of “teaching a man to fish” rather than just “giving him a fish”. They allow you to give cows, goats, chickens, and other livestock to those in need in developing nations. The recipients then have a sustainable source of milk or food that they can obviously use themselves, but also help others in their community.

They make it really easy to give gifts in honor of someone, so this is a pretty unique idea that I personally love.

6. Gift Card for 10x Investing Course

If investing-related gifts are of interest to you, then help your grad get a solid understanding of investing through the 10x Investing Course.

They will learn terminology, conservative best practices, and be guided step-by-step on where and how to open their own investment accounts with as little as $100.

This is our newest course offering, but we are hearing great things from students who felt like investing was an alphabet soup of gobbly gook, but now have a clear path forward and have taken the first steps toward a diversified investment portfolio.

Purchase a 10x Investing Course gift card for your recipient here.

Wrapping this up

I hope these graduation gift ideas helped inspire you to encourage your new grad in their financial success as they set off into this next season of life!

And if you have any ideas of your own on how to set new grads up for financial success, let us know in the comments!

What to do when your investments are losing money

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This is written for students of our 10x Investing course who are following the strategies we teach to pick solid investments. But regardless, if you have picked solid investments and are wondering what to do when they are losing value, this will help.

Over the last few days I have been fielding a lot of questions from readers, listeners, and students who are freaking out because they are watching their investments go down.

If you are one of our 10x Investing students, much of this will sound familiar, but for those who are not, I think this will help.

These are just a few questions i’ve heard:

Why are my investments losing money? Is everyone losing money in the stock market right now? What do I do when my investments are dropping in value?

1. This is completely normal

Even though it feels like the sky is falling, it is important to remember that market corrections are always happening.

Investing in the stock market, bonds, real estate, or anything with any decent potential for gains is always going to have ups and downs.

Now, let’s talk about S&P 500 index funds (which are a good general representation of the U.S. stock market as a whole). The chart below shows the performance of the S&P 500 for the last 90 years.

S&P 500 losing money and making money
SRC: Macrotrends.net

Notice that there have always been ups and downs. And notice there are many 1 year periods where you would have lost money.

Also notice there are far more where you would have made money.

And it is important to note that over the worst 10 year period the worst you would have done is about a -3% return.

And zooming out even further, there hasn’t ever been a 15-year period where you would have lost money.

And when you average it all together, you get an average annual return of about 10%.

So when I zoom out to see the big picture and not just the panic and the noise going on all around us, I sit back with a reasonable expectation of earning an average of about 10% per year on my investments in the S&P 500.

Side note: I show you exactly how to set this up in our 10x Investing course if you need help

2. You’d probably be better off not looking

For my long-term investments (which are almost all of them) I check them once per year. I know many people think that is crazy, but having done the check-3-times-a-day and doing the once a year thing, I think the constant checking is crazy.

It certainly added a lot more stress to my life with nothing to show for it.

The way I see it, If I am investing for the long-term, then there is no need for me to look at what is going on now. I invested in index funds and stocks that I plan on holding for 5-10 years and so it doesn’t really matter if it drops by 10% or even 50% because I am not planning on selling it for a long time.

And what the market thinks in a freak out moment doesn’t (or shouldn’t) change my mind about my conviction of why I chose that particular investment.

If I needed the money next month and it dropped by 50%, then that is a completely different story – which is why I don’t invest in the stock market for short-term investments – because you never know what might happen in the short term.

3. You haven’t actually lost any money until you sell

This is an important distinction to make because I keep talking to students who are saying that “their investments are losing money” or that they “lost X amount of dollars in the last week”.

And the truth is, the value of a particular investment might be down, but you haven’t lost anything (or made anything) until you sell.

I know it might feel like splitting hairs, but this point is an important one if you are viewing it from a long-term perspective.

For me, with investments that I am excited about, this just confirms that now is definitely not when I should sell. Because I don’t want to sell at a 30% loss, i’d rather wait until I can sell at a gain.

Which leads to the next point…

4. Panic selling is almost always a bad idea

The temptation is to see investments going down in value is to run and sell them off before it goes any lower. I’ve made this mistake enough to know that in most cases, it is a bad idea.

The best investors learn to have nerves of steel and can stand by their investments with conviction that they are good investments (assuming they are) regardless of how the market is freaking out at the moment.

This is why Warren Buffett is widely viewed as the best investor of the last 100 years. He often gives the advice “Be fearful when others are greedy, and greedy when others are fearful” meaning when everyone is making tons of money, that’s when we should be cautious, and when everyone is losing money, that’s when we should see the opportunities to buy in at lower prices.

This is the time when the best investors get excited because things are “on sale”.

If your favorite ice cream went on sale at the grocery store and was 30% off you might stock up and buy a few because it is a good deal.

It is the same with good investments. When I see a stock that I want to own because I am so confident in the company and it is at a 20-30% discount, why not buy more?

The price of an investment (at any given moment) is based on people’s emotional responses and whether the masses are panicking.

But this is often completely disconnected to the actual value. And over the long-term we tend to find that the price eventually catches up to the reality of what’s going on.

Quick example

At the end of 1999 (at the peak of the Dotcom boom) Amazon’s stock price was $106 per share. Over the 2 years that followed, as the Dotcom bubble burst, the price of Amazon’s stock dropped all the way down to about $6 per share as everyone was panic selling all their tech stocks.

Jeff Bezos said that during that time Amazon’s business growth was stunning. Every metric showed they were on a path to becoming a thriving business, but yet the stock price indicated the complete opposite.

Wise investors spotted this and invested in Amazon at a great discount and made a lot of money when the stock price eventually more accurately reflected the truth of what Amazon was worth.

5. God is still on the throne

One of the best things I have ever done for my mental health in this area is to start saying “eh, it’s just money”.

It has been helpful when an investment didn’t go as planned, when people have stolen from me, when I got laid off, when I had to drain our emergency fund because of unexpected medical bills, and a lot more.

At the end of the day, God is our source. He is our provider. He is the one who is responsible for taking care of our needs – and He will always do a better job than you and I ever could.

And when I find myself in the position of clinging to the money in my account, or frustrated that I lost a bunch of money, I always sense Him gently reminding me that He is my source and my trust needs to be in Him.

Not in what I can do in my own strength.

So just a reminder; He is still on the throne. He isn’t surprised by what has happened to your investments, and He isn’t scratching His head trying to figure out how to take care of you.

Phil 4:19 has always been and will always be true:

My God shall supply all your needs according to His riches in glory by Christ Jesus.

So, do yourself a favor and write this down and meditate on it day and night until peace comes.

That’s all for today!

Your friend and coach,

bob

How are SeedTime and Dave Ramsey different?

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Let me start by honoring Dave Ramsey because he has been a big influence in my life and I am so grateful for the millions of people that he has helped over the years.

But to be honest, for a while I struggled… wondering if I should even go through the work of writing a book or creating courses because “is it really needed if Dave Ramsey has one?”

As a creative, it is easy to feel like what we have to share and offer doesn’t matter because someone else is already doing it.

But if you apply that logic to many other areas, it doesn’t hold up. Let’s take restaurants, for instance.

We probably have 10-15 tex-mex restaurants within 20 mins of my house.

And just last week, another one opened up.

There wasn’t a single part of me that was annoyed or even thought that was a bad idea on their part.

I am just excited to see how they will create a taco. Sure, countless others have created a taco in a million different ways, but I am excited to see what they do differently.

And I enjoy the variety.

Dave, SeedTime, & Suze Orman

And if we take this analogy down a level, I might even say that Dave and SeedTime are both the same type of restaurant. So we might be Tex-Mex, whereas Suze Orman might be a burger joint.

But within this Tex-Mex category that Dave and SeedTime both reside (because we have a lot of similarities) Dave might be a beef burrito while we are fish tacos. Both good, many similarities, but also distinctly different.

And if all you have ever eaten is beef burritos, you might enjoy trying a fish taco.

Or maybe not.

But I think it’s nice to at least have that option…

And that’s why we wrote a book. That’s why we create courses.

It’s not because we don’t like beef burritos. It’s just that we think some people like fish tacos, too.

And we want to serve the people who love fish tacos as best as we possibly can.

And at the end of the day, Dave, his team and the SeedTime team all work for the same restaurant owner. And I believe that He loves His customers enough that He wants to give them some different menu options.

The challenge: can we sell more books than Dave in a single day?

One of the fun things about Amazon’s best-seller list (as opposed to the old standards like NYT or WSJ) is that Amazon updates their list much more frequently and is constantly showing the results.

And so when you launch a book and have an amazing community of supporters like we have in the SeedTime family, you get to watch the book climb the charts throughout the day.

I was curious to see if we could grab the best-seller spot on the Amazon list, even just for a day.

Dave Ramsey consistently sits at the top of this list and so grabbing the #1 spot is a pretty big feat considering he has a team of 900 (we have a team of 4) and his book has been on the market for nearly 20 years.

And not to mention all the other great books out there selling loads of copies…

But apparently some of y’all like fish tacos…

So from the bottom of our hearts, Linda and I just want to say thank you to all of you who decided to try fish tacos this week.

We hope you enjoy your fish taco!

And if you have yet to try our fish tacos, I recommend starting here.