A huge amount of our monthly budgets are set aside for food.

Food is a strange expense because it can kill a budget but it is not the kind of spending that you could just cut out if you wanted to. You do have to eat, but you do not have to spend massive amounts of money to do so. The food industry has devised very clever ways to make sure we spend more than we should on this most necessary of expenses.

If you can understand some of these ploys, however, you can stop falling into their trap and begin taking control of how much you spend on food each month.

It Starts at Home

The restaurant business must start their ploys before you ever set foot in their establishment.

Food has a lot of very strong emotional and psychological strings attached and the powers that be in the food industry know this. That is why they spend millions of dollars every year on television commercials. When you begin seeing images of food and family and friends having fun together while you’re sitting at home watching television, it gets the wheels of your mind turning. These images can have a powerful effect on your decision making.

The way to avoid letting these images change your budget is to have a set night of the month or nights of the month that you designate as evenings you will eat out… if your budget permits eating out.

Stick to this schedule and when you begin to feel tempted by what you see on television, jot down on your calendar what restaurant you would like to visit on your night out. You will then have something to look forward to and not feel you are at the mercy of advertising.

Another great trick is to look at a restaurant’s menu at home before ever entering the establishment. According to financial author John Pacenti, restaurants actually employ menu engineers to design a menu that works on your psychology when you are hungry. However, if you look at the same menu online when you are not hungry you will most likely choose something entirely different, and usually less expensive.

The Convenience Trap

The fast food industry also uses television images to work their magic, but in most cases our own crazy schedules and lack of planning, provide plenty of opportunity for them to swoop in with their quick drive through windows and sabotage our food budget for the week.

The fast food industry has done everything in their power to make their restaurants the fastest, simplest option for dinner, but they are not the cheapest option. The money you spend on one fast food meal for a family of four could generally be used to buy three times that amount of food in a grocery store.

The trick to beating them at this game is plan, plan, and plan and then have a backup plan.

If you are blessed with a large, busy family you cannot just leave meals to plan themselves. If everyone is working outside of the home then you have to be even more careful to plan out what will be eaten when. Menus made up a week or two ahead of time will give you a sense of control over the whole, “What’s for dinner” dilemma. Some websites provide menu planning that can help you get accustomed to planning meals in advance.

Grocery Store Games

Grocery stores are next in line when it comes to manipulating you into what to buy. Grocery stores are arranged in such a way to make sure you pass expensive items over and over.

The key here is to take the menus you have created each week and write a very detailed list of exactly what you are going to buy, and then stick to that list as if your life depended on it. Decide what you will buy while you are still in the safety of your home, before you begin to get bombarded with advertising psychology at the store. Also never shop hungry, you will buy more unnecessary items just because of your own hunger.

The Biggest Food Related Money Saving Tip Of All

Eat. Healthy.

Contrary to popular belief, it is much less expensive to eat healthy than not. Boxed meals are quick and convenient and seem inexpensive. The truth is though, you can often make twice as much of a dish for the same price when made at home. It may take a few more minutes to prepare the meal from scratch instead of from a box, but the savings will add up.

The real whammy comes down the road though. Eating your whole grains, fruits and veggies may save you from a heart attack, high cholesterol or diabetes. Aside from your health, you can save thousands on medical expenses by preventing them in the first place.

Our food is one of our largest expenses. Fortunately it is one expense that we do have a great deal of control over. Happy eating!

When you’re deep in debt and struggling to pay the bills, it’s easy to feel like everyone else is doing better than you.

Just flip through the channels on any given night, and a sense of pride or self-pity will seem completely justified. The cunning marketing campaigns seek to drown out reality: “You’re worth it. It’s your turn. You deserve this.” Even if you can’t afford it.

During the last few years, in the wake of the 2008 recession, the slogan, “We are the 99 percent” has practically become a household phrase. Members of the Occupy movement adopted it as a rallying cry to draw attention to the large concentration of wealth among the top 1 percent of income earners in the United States.

They’re correct in saying that the wealthiest Americans control a huge piece of the pie, but they’re missing the bigger picture— the global picture.

Here’s the Truth

If you’re living in the United States with a roof over your head, food on the table, and you can read this sentence, you are not the 99 percent.

In fact, there’s a good chance you are actually the 1 percent.

A London-based digital marketing company created an eye-opening project called the Global Rich List. It allows you to see where your wealth ranks you among the world population. According to the Global Rich List, if you make at least $33,000 a year, you’re in the top 1 percent. You are one of the richest people on earth.

Maybe you don’t make that much money. In fact, maybe you make less than half that amount. Guess what? With a $15,000 salary and no benefits, you still make the top 8 percent.

If it’s still not sinking in, here are some quick facts via Compassion:

When envy creeps into your mind as your neighbor shows off his new car, or your friend shows up in yet another new outfit, it’s easy to forget that 1.4 billion people live on $1.25 a day or less (visualize that number through the World Bank’s interactive map).

Of course, just knowing how fortunate you are on a global scale isn’t enough. Thankfulness is a decision, and it’s one we must make on a daily basis.

King Solomon knew what he was talking about when he wrote, “Whoever loves money never has enough; whoever loves wealth is never satisfied with their income. This too is meaningless.” (Ecclesiastes 5:10, NIV).

If we aren’t careful, we’ll go through life constantly wanting and never satisfied. But for those who follow Christ, there is always a reason to be thankful. And there is always a way out when envy, pride or greed starts to creep in.

Hebrews 13:5 says, “Keep your life free from love of money, and be content with what you have, for he has said, “I will never leave you nor forsake you” (ESV).

The Message puts it this way: “Don’t be obsessed with getting more material things.”

It can be an uphill battle living in America and pushing back against the consumerism that lurks around every corner, but God calls His people to a higher standard.

Remember, “religion that God our Father accepts as pure and faultless is this: to look after orphans and widows in their distress and to keep oneself from being polluted by the world” (James 1:27, NIV).

We are not the 99 percent. God has trusted us with a lot. Let’s strive to be faithful with every dollar.

Ever worry that the information on your credit report might be wrong?
This infographic from Quizzle shares the facts.

Somewhere between the first celebrations of a Christian saint and the mass production of greeting cards, red roses and all things sugar, Valentine’s Day got out of hand.

According to the National Retail Federation, Americans plan to spend nearly $18 billion on Valentine’s Day-related purchases this year. That breaks down to just over $133 per person—spent largely on gifts that will be either be gobbled up and quickly forgotten…or wither and die within the week.

Don’t allow a holiday that’s centered on candy hearts to put your budget into cardiac arrest. Here are five Valentine’s Day ideas that will keep your spending well below the national average.

Team Up and Save

Valentine’s Day is marketed as a time to splurge on an expensive dinner for two, but who says you can’t share the love with some friends? Instead of dropping $100 at a fancy (and crowded) restaurant, have a double- or triple-date at someone’s house. Some candles and decorations from the dollar store can set the mood for just a few bucks. Share the cooking duties or order some inexpensive take-out to split. If you’re single, grab some friends and have a game night or movie night to celebrate on the cheap.

Just Do Dessert

If the urge to join the restaurant-loving masses is just too strong, go straight for the dessert. By eating a light dinner at home and saving your cash for a sweet treat, you can keep most of your money while still enjoying the ambiance of your favorite dining establishment. Even pricy restaurants tend to keep their dessert menus in the $5-$10 range, and who doesn’t love dessert?

Get Creative for Free (Or Close to It)

Roses and chocolates are great, but they don’t exactly say, “I’ve put a lot of thought into this.” Do you have a way with words? Try writing a poem or just a heartfelt note. If music’s your thing, make a playlist of meaningful or funny songs that remind you of your significant other, and include explanations with your gift. Photo albums, video messages and non-store-bought cards are other great ways to show your love for less.

Take Advantage of Money-Saving Sites

Discount websites can really come to the rescue when Feb. 14th rolls around. Check out Groupon, LivingSocial and Half Off Depot, to name a few. Restaurant.com is also a great way to save money on some nice eateries. Just make sure you check the reviews before you choose a restaurant. You don’t want to pick a dud and land in the doghouse.

Skip the Holiday Altogether

Just because society dictates the recognition of all things Valentine’s Day doesn’t mean you have to join the costly festivities. Some couples happily skip the crowded restaurant scene and enjoy a romantic night in. Take the $130 you might spend on the holiday and put it towards something more useful, such as debt or savings. Nothing says romance like financial freedom.

When the most recent recession hit our country, many people were really traumatized as their long held ideas about money were destroyed.

For a few generations, America had bought into the idea that wise money management was defined by your credit score and anyone with a college degree and a 401K was financially invincible. Then companies closed, 401Ks disappeared and engineers with master’s degrees walked into unemployment offices for the first time. We have had to rethink our ideals concerning money on a personal as well as national level.

Many people are going farther than just re-thinking their ideas on money, though.

Many individual’s are beginning to realize that our core ethics are really at the heart of our money choices. When poor money choices determine the rise and fall of an entire nation affecting millions of families in the space of just a few years, it becomes apparent that we are dealing with something much more profound than just personal financial choice. We are dealing with a morality issue, not simply a money issue.

Indulgence, excess and entitlement are all contributing factors to money mismanagement on every level; personal, business and national. We indulge ourselves with possessions beyond our budget, our spending exceeds our income and we justify it all with a prevailing sense of entitlement that has no basis in the Christian religion.

There is a movement in America, especially among Christians, to reverse these ideas and to establish a new money morality that can be passed on to our children so that the next few generations will not face the same disasters.

No Easy Money

One tenant of this new view is to realize that there is no such thing as easy money or a free pass.

Working hard to earn a college degree is a wise investment of time and money, but at best it can only increase your odds of good employment opportunities. There are no special groups that get special employment opportunities. We must all do our best to secure honest employment for our self and we are all at the mercy of our economy.

Rethinking Social Status

Another aspect of our money morality that is changing, although slowly, is the way our society thinks of social status.

Social status has traditionally been defined by our education, employment and possessions. However, there is a new way of determining who we admire in many of our social circles. Financial security is the new cool kid on the block and it is better than brand new cars, three story houses or designer clothing. Manageable mortgages, paid for vehicles and chunky emergency funds are what many turn green with envy over.

After watching families lose their homes and struggle to even put food in their mouths, many Americans are much more concerned with security  than they are with impressing their neighbors.

Less Is More

One of the most apparent changes folks are making to reflect their new money morality is to scale back things such as vacations, birthdays, and holidays. Many families are finding that simple vacations, low key birthdays and modest holidays can be just as enjoyable as the excessive, indulgent events of the past.

The feeling of maintaining control and sticking to a budget is much more fulfilling than the short lived enjoyment of extravagant spending.

Explaining Yourself to Others

If you are among these financial revolutionaries there will be some who do not understand your new stand on financial choices. When you are facing questions from others you can take one of two approaches. You can either try to explain all of your reasoning behind your choices and attempt to educate others, or you can simply inform people that this is your new financial lifestyle, nothing more needs be explained than that.

Many individuals in our country have undergone severe financial difficulties. If not you, likely your neighbor. We must learn from the troubles that have arisen from living in excess. We must adopt a new money morality and change our entire outlook on money management, especially if we are wishing to manage our finances from a Christian perspective.

There are a lot of things that society tends to dictate as being “normal” and “acceptable”, even if that is very far from reality. This applies socially, politically, religiously and financially.

Over time, our society has adopted certain modes of financial management that have become the normal way of life. The problem is that many of these financial practices are unscriptural and are based on greed, indulgence and laziness.

These misconceptions are why so many Americans are swamped with debt, live above their means, cannot be charitable and have little hope of preparing for the future.

One of these financial philosophies that so many of us tend to swallow hook, line and sinker is the belief that owing a car payment is just a way of life and because you will always owe a car payment you might as well owe it on the coolest, newest model.

This is simply not true… You do not have to always owe a car payment.

You can drive clean, reliable, attractive vehicles with absolutely no payment. You can even upgrade to another vehicle every four or five years and STILL not owe a car payment.

Sound impossible? Think again.

The Facts

According to financial hero Dave Ramsey, the average American whose pride insists they drive a brand new car every year or so is dragging around a debt of about $26,000 at a 9.6% interest rate. The “plan” in most cases is to never pay off these vehicles, but rather drive them until a newer, nicer model comes out and then trade in with the previous debt still hanging on.

This is financial insanity and is entirely based on pride. There is no other explanation for why an individual would choose that sort of debt when a used, clean, reliable car can accomplish the same task as a brand new one. The task of the car is to move you from one place to another in a reliable fashion. Let’s be honest, a five year old car can do that. A ten year old car that was well cared for can do that. So what would be the reason behind strapping yourself with almost $30,000 dollars of debt?  

The reason is the need to impress others with our possessions. An un-Christ like desire to draw the attention and envy of others.

The Alternative

The alternative to this prideful, financially destructive practice is to evaluate need first. Do you need a vehicle right now? If the answer is yes, I need to purchase a vehicle right now then you need to tap cash reserves and purchase the cheapest car you can trust and pay cash for it.

Let’s say you buy a $2,000 clunker. To begin with you may have to drive something less than attractive in order to get your vehicle plan on the road, so to speak. If you are a prideful person this will be a sacrifice and a healthy exercise in humility. Buy your clunker and drive. While you are driving begin plopping the amount you would normally spend on a car payment into a savings account.

By most standards the amount will be around $300 a month. You save this for twelve months. After twelve months sell your clunker maybe for $1,000. Add that cash to the savings and buy a nicer $4,600 vehicle. You continue to save your $300 a month you would spend on a car payment. Perhaps this nicer car will last you two years. After two years you’ve saved (before interest) $7,200. You sell your current car for $2,600. Add that cash to your savings and you now have almost $10,000 cash which will buy you just about any nice used vehicle you want.

This only took you three years! Less time than it would take to pay off a brand new car that is depreciating each month.

This vehicle will last you several years if you maintain it properly. And while you are driving this nice, used vehicle which you love and are not ashamed of, you will still be saving for your next vehicle. If you continue to save $300 a month and drive your car for five years then re-sell it you will have over $20,000 in your car fund!

If you increase your common sense and decrease your pride there is nothing you cannot accomplish financially. Don’t fall into the vehicle trap!

$2,803

That’s the average individual tax refund Americans got last year. That’s a pretty big chunk of change, and many people wasted it in record time, missing out on an opportunity to make an impact with that money.

So, how can you make the most of your tax refund this year, without looking back in three months and wondering where all that cash went?
Here are four ways you can go against the consumer-driven culture and make your refund work for you.

Pay Off Debt

This may seem like an obvious one, but a lot of Americans refuse to use their tax refunds to pay down debt. But let’s say you have a $5,000 loan with 5% interest, and you’d like to pay it off this year. You’re already planning to pay $500 a month. At that rate, it’ll take you 11 months, and you’ll pay $118 in interest. Now let’s say you get the average tax refund of $2,803 and you throw the entire amount at that loan. By knocking off more than half of your balance, the loan will be gone in five months and you’ll pay $25 in interest—a savings of six months and $93. Wouldn’t it be nice to obliterate that loan by the 4th of July instead of December or January? Now that’s Christmas in July!

Beef Up Your Emergency Savings

If you’re serious about living a debt-free lifestyle, emergency preparedness is a must. When a tire blows or a medical bill pops up, the goal is to stay away from the credit card and use cash to pay that bill off immediately. By using a $2,000 or $3,000 tax refund to build up your emergency savings, you’ll be ready for whatever this year throws your way. No credit card required.

Give

As Josh pointed out earlier this month, a few dollars can go a long way towards helping people who are suffering around the world.

Consider using your tax refund to make a donation to your church or to a worthy organization like Compassion or World Vision. With the average $2,803 tax refund, you could provide 35 families with safe water—not for a couple of weeks or a month—but for life. Can’t afford to give away your entire refund? Consider giving a percentage of it to a good cause and using the rest to pay off debt or increase your savings.

Anticipate a Big Expense and Save

Treat your refund as you would a normal paycheck instead of “extra” money.

Some people view a tax refund as “free money” instead of seeing it for what it really is: a portion of their hard-earned paychecks that the government is giving back to them.

What would you do with your refund if you treated it like another paycheck?

One thing you might do is think about some upcoming expenses and sock away some money so you’re not caught off guard. Do you have a wedding to attend later in the year? An upcoming surgery? A major home repair you’ve been putting off? Put your refund in a savings account to be used for that special expense. If you wouldn’t take your regular paycheck and blow it on a vacation, don’t do the same with your tax refund.

“The plans of the diligent lead surely to abundance, but everyone who is hasty comes only to poverty” – Proverbs 21:5, ESV

Once you have a plan for your tax refund, you’ll want to get your hands on that money as soon as possible, right? The IRS says the fastest way to get your money is to e-file and use direct deposit. By using the web instead of mailing your return, you can put that refund to use in a matter of days instead of weeks.

To check the status of your refund, the IRS has a nifty online tool called “Where’s My Refund?” You’ll need your social security number, filing status and the exact amount of your refund. If you mail a paper return, you can start tracking your refund four weeks later. If you e-file, you only have to wait 24 hours or less. Happy planning!

Divorce is almost always a sad turn in life. It certainly is not the Christian ideal nor is it ever the plan. Life does not always go according to our plans, though, and life does not always snugly fit into our box of ideals. As such, today we’ll take a look at the impact that a divorce can have on ones finances.

When the initial emotions surrounding a separation begin to subside, individuals must look toward the practical aspects of their newly altered finances.

Married finances are quite different from single finances and many divorce proceedings will greatly revolve around financial issues. The Financial Planning Association cites divorce as one the leading causes of bankruptcy in America. The hurt feelings that are often involved in a divorce mixed with the powerful emotions surrounding our money can be a recipe for trouble.

We must keep in mind that we are to imitate Christ in all of our dealings, even with an ex-spouse and even when money is involved.

The Golden Rule

The funny thing about Christ’s admonition in Luke 6:31 (a.k.a.The Golden Rule) is that we easily forget that it does not only apply in certain situations.

If someone cuts you off in traffic or your neighbor lets their dog tear up your trash those are times to use The Golden Rule. If you have been betrayed by a spouse and are facing a complicated divorce this does not mean that all bets are off and it’s every man for himself! This is not scriptural- we are to behave as Christians even under the worst betrayals.

Personal Security

This is not a time to let your basic financial sense be thrown out the window.

The tenants of sound financial action that held true for you as a married couple still hold true for you as a divorced person. You still need an emergency fund set aside for unexpected expenses. You still need to be paying down debts. Even if you are distraught emotionally and strapped for cash, maintain those basic best-practices.

Who Pays What?

Very early on in a separation or a divorce you should establish who is responsible for which debts. A couple will often work together to pay down things such as student loans, car payments and medical bills. However, just because you were married does not mean that all of your ex-spouse’s debt is your responsibility.

Figure out which debt you are legally responsible for and continue to consistently pay it. If you can continue to work as a team, do what is necessary to ensure all debts continue to be paid so that your credit reports do not suffer.

Legal Investment

While it would be ideal to have a friendly and well-mannered separation, it is not always the case.

If you sense a difficult divorce, consider the use of an attorney. Think of the money you will have to pay for legal representation as an investment. If you invest in a good lawyer you increase your chances of coming out on the other side of your divorce without too much financial damage to your financial plans.

Divorce laws can be a complicated labyrinth of loopholes that could be used to your detriment. Having a lawyer you can trust will guide you through this confusing process.

Change of Beneficiaries

Do not overlook small details such as who is the beneficiary on insurance policies and other financial accounts.  Make sure to change this information very soon after your divorce so that it does not negatively affect your family in the event of your death.

Tackling Retirement Alone

In most cases couples have planned their retirement investments with the thought in mind of growing old together.

When a divorce has changed that scenario it is important to take charge of your own retirement plan. If you had left much of the financial planning up to your spouse then it might be a good idea to consult with a Christian financial advisor so that you will be aware of what all of your options are and you can start making decisions that are good for you.

Scary but Necessary

Taking control of your own finances and facing life as a single, divorced person is scary, but there is always a silver lining.

Having sole control of your finances, savings and investments can also be an empowering feeling that you may not have been able to enjoy while married. Use this time to take control and find out just what you are capable of. You might be surprised at just how capable you are.

Throughout the recent recession we have heard the term downsizing quite a bit. Downsizing is the act of moving to a new home or apartment in order to better your financial situation. Many individuals have found bigger more comfortable houses for less money because they tweaked their idea of the acceptable home. Most people are very emotionally attached to their homes, and moving can be an emotional event which is why it is important to carefully consider this drastic financial step.

When It Is a Must

There actually are not many situations in which downsizing is the only option.

If you are facing a possible foreclosure in which you have exhausted all means of reversing the situation, then selling or short selling your home may be your only option. This may seem like a bleak option at first, but it is a far better option than outright foreclosure.

Many people find that once they are out from under a burdensome mortgage they are very relieved and can focus better on work, family, God and rebuilding their finances. Selling your home to avoid a foreclosure is not the end of the world; it could be the beginning of a much better financial life for you.

Wiggle Room

Beyond pending foreclosure, another reason to downsize might be because the payments on the home just take out too big a chunk of the budget. There is no money for savings, giving, investing or other actions that could improve your financial situation.

When the house has become a big money pit, downsizing could be an option that would give you more wiggle room financially. You should only consider this huge step, though, if you are committed to using the extra money to improving your financial health or using it to pay off other debts.

If there is no plan in place for the money you will be no better off than you were to start with.

Owning vs. Renting

Selling a house, getting rid of a mortgage entirely and switching to a rental home is another form of downsizing that many people find financially liberating. There are a lot of hidden costs associated with owning a home. You are responsible for all maintenance, home owner’s insurance and property taxes.

When you choose to rent, all of those costs simply disappear as well as the stress of dealing with repairs. Renting can be a great permanent choice, or it can be a great temporary choice to help you while you are paying off other debts or working through a Christian debt settlement program.

Cheaper but Bigger

Some families have discovered that when they reevaluate their standards of housing, they can actually get a bigger home for less money. The closed minded ideas of having a home only in a certain neighborhood or only of a certain appearance can really hinder your efforts to find affordable housing.

Housing farther out in rural areas is almost always cheaper. Think outside the box and you might really like what you find.

It may be well worth foregoing certain luxuries to be more financially comfortable. This is a temporary dwelling, after all!

Family Concerns

If you have a spouse or family you must consider that they will all be very greatly impacted by a decision to move. Although you may understand all of the financial reasons that would make downsizing a great option, you must understand that the other members of your family may not have that same knowledge.

A move is a huge step that should not be done suddenly if possible. It should be discussed in depth with your entire family. When huge changes are sprung on people suddenly it can sometimes result in resentment. You do not want to sacrifice your family relationships for what looks like a good financial move. Take time to discuss this with your family and make an effort to understand everyone’s emotions on the topic.

Avoiding the Downsize

Want to avoid the stress of the move? Consider the option of renting a room of your home. That mother-in-law suite could be the exact solution to help you navigate debt troubles.

If that isn’t possible or doesn’t quite cut it, our Christian debt settlement program can help you resolve your credit card debts with a much lower payment. Complete the form on the right hand side to find out how what a debt settlement program would look like for you.