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.

The new year finds many folks making resolutions to lose weight and get in shape. Some of us may be in great physical shape but what we need is to go on a spending diet.

Did you know that a lot of the same tricks that can help you lose weight can also help you save more money and cut down on unnecessary spending?

Write It Down

One of the best ways to keep track of the calories you eat every day is to write down everything you eat. The same is true when you are trying to better understand your spending habits. Writing down everything you spend for several days, can help you pinpoint where you are blowing money. It can also help you identify what you are doing right as well. Spending like eating has a mysterious quality to it, and in many cases individuals never truly know how much they are spending until they can see it written down in front of them in black and white.

Make a Plan

If you do not have a set plan for what you will eat each day then you run a greater risk of just eating whatever you like in whatever amounts. This works the same with your money.

Money left to itself tends to disappear.

A well-established budget will designate a job for every dime. Some of that money may be for spending freely, but you must decide ahead of time what that amount will be. To simply pay your bills and then consider all of the rest of your income as “extra” is a recipe for disaster. Assign every dime in your budget and then stick to that religiously.

Accountability

Setting up a system of accountability for your eating and work out plan can increase your chances of success with your weight loss goals. The same holds true for financial goals.

Many people accomplish this by incorporating the help of an accountability partner. You can do this with your money goals as well. Choose a friend or relative who you can trust but whom you know will use tough love with you to make sure you stick to your money commitments. Designate certain check in times either weekly or semi-weekly to go over your spending journal and discuss the strengths and weaknesses during the past few days. It doesn’t need to take very long, just a few minutes should do. Knowing that you will have to sit down and discuss your choices will help you to think twice about unnecessary spending.

Get Professional Assistance

To achieve weight loss goals, many people will consult a dietitian or a personal trainer. When you are trying to shed some extra credit card debt, it may be wise to consult with a debt relief company. The Christian debt relief programs offered by FaithWorks Financial can help you set and achieve your financial goals.

Avoid Temptation

If you are truly committed to your diet, Dairy Queen should not be somewhere you hang out regularly. There are also certain places or people you should avoid when you are on a spending diet as well. If certain malls or stores are always a spending temptation to you, do not visit those places. If certain people influence you to spend more than you should, then either limit your time with them, or make sure you have no money with you when you spend time with them. This may not go over well at first with some friends or family members, especially if these people are taking advantage of you in some way, but stick to your commitments and soon they will learn what the new boundaries are.

Reward Yourself

When you reach a weight loss goal it is a good idea to reward yourself in order to encourage yourself to further success. When you have reached a money goal you should reward yourself as well. Your rewards should not necessarily be a spending reward, though. If you have successfully contributed to your savings account every week, perhaps you could reward yourself by using some of that savings to open a CD, money market account or some other low risk investment. The boost in confidence will further fuel your financial efforts.

A smart runner entering their first marathon does not simply lace up their shoes and show up at the start line on the day of the race. They prepare for the marathon through daily training runs. Often, they will compete in smaller distance races – maybe a 10K or a half-marathon – to help their body become acclimated to the rigors of running long distances.

The same principle can be applied to eliminating debt. Getting rid of debt is often the no.1 goal when someone wants to manage their money with Christian principals. Dismantling the debt in baby steps is often a necessary task.

Like a runner preparing for a long distance race, debt needs to be attacked in stages. Nothing good is accomplished in paying off so much debt at once that it forces you to go without basic necessities like food and clothing. Cash flow should always be an important part of the debt reduction equation.

Not all debt is equal. When deciding how much debt you need to pay down, there are a few questions that you should always ask yourself.

How big is your debt?

Small debts are easier to eliminate without having a negative effect on your cash flow. In this situation, it makes sense to pay off the remaining balance right away. You’ll save money by avoiding interest and it will not be too difficult to replenish your cash flow. If your debt still requires more than a year to pay off, wiping out your savings to pay it all now can cause problems down the road – especially if an emergency arises.

How high are your interest rates?

The interest rates on your accounts can be a major determining factor in how quickly you pay down a loan balance.

If the interest rate is low enough that paying it off quicker results in negligible savings, it makes more sense to just make smaller loan payments that fit within your monthly budget. You might want to approach high interest accounts before lower ones, especially when it is a 0% interest rate.

If your interest rates average 13% or higher, you might greatly benefit from our Christian debt relief programs.

How much on-hand cash do you have available?

If you do have large cash reserves, paying off a loan rather than continuing to pay interest makes more sense. The rule of thumb for an average household is to have a savings account with enough cash to cover your monthly budget for 3 to 6 months. If you have surplus savings on top of that amount, reducing the debt right away may make the most sense.

Proverbs 27:12 counsels that “The prudent sees danger and hides himself, but the simple go on and suffer for it.” Planning ahead is the smartest thing you can do to balance debt reduction efforts with your cash flow needs. Anticipate major expenses – car repairs, household costs, medical bills – and set aside enough money in your monthly budget to cover these things.

Though simple in concept, budgeting can be a daunting task in the eyes of many people. Keeping track of where your money goes may seem like a chore that is time-consuming and difficult, but it doesn’t have to be this way. Budgeting and keeping track of expenses can be as simple or complicated as you want it to be.

A budget is the foundation of your finances.

Why Keep Track?

Keeping track of your expenses will show you where your money really goes.

Do you know how easy it is to spend an excessive amount of money on unnecessary items? If you get a mocha or latte at Starbucks twice a week for the year, you’ve spent well over $500 on coffee alone.

Removing the Unnecessary Sink Holes

Almost all of us have opportunities for improvement in our budgets. Once you have created your budget and realize where you are spending the largest amount of money each month, you will be able to think about cutting down unnecessary costs that are dragging you down.

Perhaps limiting yourself to one coffee shop trip a month (and making your own the rest of the week) is something that helps you have more cash for other important things. Or maybe you realize you are pumping money into cable TV each month, when you are barely home to enjoy it. Or maybe you find that the money you spend going out for food more often than not would be less costly if you chose to cook at home a few more times a week.

If you aren’t willing to take a good look at where your money goes, then you will continue to spend the same. Saving up, paying debts and living within your means are facets of a solid steward. Don’t squander what you’ve been given–be responsible with it.

You Can Still Have Fun

This might sound like if you keep track of where your money goes then you will feel guilty for having any fun, but that shouldn’t be the case. Having a special column in your expenses for entertainment is a good idea, but this should be the lowest cost of the month or a treat for when you settle your first debt on your Christian debt settlement plan. Entertainment would include TV, desert and coffee, shopping for fun and doing other entertaining things like going to a basketball game or concert.

Getting Started

Whether you use a piece of paper, an excell spreadsheet, or software you find online, the important thing is to take action.

There are programs out there that offer to take your card spending and filter it into a readable format of expenses. You can also do it yourself, but the most important part about this is that you start immediately and you keep up with it!

Each week you should enter your costs that you have paid out and any money you have brought in. Keeping your receipts for the day until you can enter them into the computer will help you not forget what you’ve spent money on.

Your budget is going to be the foundation of your finances. Take the time to create an honest budget and you will be well on your way to achieving your financial goals.