Whether you are on solid financial footing and give regularly, or are struggling just to put food on the table, it is important to review your giving. The key to good Christian financial planning is balance and a grateful heart. Setting giving goals that are both practical and generous requires you to take a step back and look at your money habits.

Analyze your Budget

Start by figuring out what you can afford to give regularly. Though the traditional tithe is 10% of your income, there is no reason that you should not give to your full capacity, whether it be above or below that amount. Each person must come up with a figure based on his or her budget. Look for areas you can cut back. For example, if you budget 50 dollars a week for restaurant meals, consider eating at home more and then donating half that number.

Give It before You Miss It

The book of Matthew offers a bit of wisdom in this matter.

Chapter 6: 3-4: “But when you give to the needy, do not let your left hand know what your right hand is doing, so that your giving may be in secret. Then your Father, who sees what is done in secret, will reward you.“

Sometimes giving more requires a little slight of hand. Start with your employer. Ask about setting up charity donations deducted right from your paycheck. This is an effective way to track your giving for tax purposes, as well. It also encourages others to follow your lead. Your employer might even decide to match any donations – doubling the offering.

Look for charities that will automatically withdraw the funds from your bank account. This gives you the pleasure of seeing the payment go out without having decide how much to give each month.

Think Outside of the Box

If your budget is as tight as you can make it, then look for other ways to give.

Learn to super coupon – Couponing is not only a great way to save money, but can also be an awesome opportunity to help the less fortunate. Consider hosting a food drive in which all of the items have to be the product of a coupon deal. See who can provide the most (usable!) items at the lowest cost and award a small prize.

Give time instead of money – Giving doesn’t have to be monetary. Check at your church for volunteer and missionary opportunities. Call the local shelter, food bank or kitchen to see if you can lend a hand. Giving time allows you to help people in your community and make friends in the process.

Give as a family – Create activities that your whole family can do to such as collecting cans to recycle or setting up food drives two or three times a year.

Deuteronomy 16:17: “Each of you must bring a gift in proportion to the way the Lord your God has blessed you.”

In other words, if you cannot afford the traditional 10% tithe at this time, give what you can afford by setting achievable goals. With prayerful consideration and practical budgeting, you can enrich your life while helping others.

While you probably strive to give all throughout the year, the Christmas season provides a wonderful opportunity to expand on your financial giving. By planning ahead, you can enjoy the blessing of giving even more this Christmas season by helping others in need.

There are many ways in which you can help others through your financial giving this Christmas season. Here are a few opportunities for you to give more this Christmas.

Adopt a Family

Last year, we spoke with our church and asked if they knew of a family in need. They were able to facilitate our “adopting” a family anonymously so that we did not need to know who it was that was having difficulties, and they did not need to know who was helping them. It was a wonderful experience to be able to help someone out expecting not even a thank you in return.

Donate a Dinner

Your church or a local community service may be organizing programs to help struggling families enjoy a meal this Christmas. Taking part in a food drive is an excellent way to help others even if you are in the midst of a Christian debt consolidation program. Even if you cannot afford to pick up some extra food at the grocery store and cannot find any food to offer from your own cabinets, offering your time at the food drive is often the most helpful thing you can do.

Support a Charity

You can also consider giving financially to your favorite charity, missionaries, orphanage, homeless shelter or other worthy cause. In today’s difficult economic times, there are multitudes of people in need. Your giving can make a marked difference in the lives of others and have a positive effect on their future.

Give the Gift of Charity

Just can’t figure out what to get for that one family member? Consider supporting a cause that is dear to them. This is a great way to truly embody the spirit of Christmas giving, and they will probably appreciate that you are supporting something that is meaningful to them.

Maintain Your Budget

By having financial goals, you can maintain a more Biblical financial perspective. Your future objectives may include saving money for your children’s higher education, investing in a new home, buying a new car, expanding your business, etc. Maintaining your budget through the Christmas season can be difficult, especially considering all of the media hype and the ad-frenzy that is poured upon us. Maintaining your perspective in spite of the hype is a part of a Christian’s financial responsibility.

Christmas is a time that we should view as an opportunity to extend our giving above and beyond our normal tithe so that we can share the Christmas spirit with others. As the year comes to a close, it’s always a good idea to incorporate giving into your Christian budget in preparation for Christmas.

Merry Christmas!

Our last article launched our Retirement Planning Basics series by covering the Traditional IRA. In todays article, we will discuss another hugely popular retirement vehicle, the 401(k).

Whether you are finishing up a Christian debt settlement program, just starting your career as a recent college graduate with a new job or you are preparing for a Christian retirement, planning for your financial future is wise. First Peter 1:3 tells us that all the power we need to navigate our life — including our financial future — comes through the hope we have through Christ Jesus.

Part of exercising that power is educating yourself about retirement plans and packages before you make financial decisions. This article discusses some basics about 401(k) savings plans.

If numbers are any indication, this plan is one of the most popular retirement savings vehicles today. There are about 50 million individual 401(k) accounts in the United States.

Originally, 401(k) designers envisioned a tax-deferment vehicle purely as a tax break that pushed tax liability to a future date when earnings were used. Today, it is part of a retirement income stream that includes personal savings, pension and Social Security disbursements.

A 401(k) plan is an employer-sponsored plan where workers choose to contribute through payroll deductions. The maximum annual contribution for 2013 is $17,500. Plans are portable, you can rollover the account into a new account without penalties if you change jobs.

There are three distinct benefits of using a 401(k) to save for retirement.

1. Convenience of automatic deposits.
2. Employers match a percentage of deposits — typically 3% to 6% of annual salary.
3. Tax is deferred until you withdraw the money after age 59½ or for a qualified hardship.

As with any retirement plan, there are some drawbacks as well. Just like with the Traditional IRA, if you withdraw money early, you’ll pay a 10% penalty-tax along with tax on earnings. Also, some employers don’t allow early withdrawal except for resignation or termination.

People planning for a Christian retirement need to know how their investments are managed.

Employers typically contract with financial management companies to pool the funds into a basket of diverse stocks, bonds and mutual funds. Employees choose where to invest contributions from a list provided by their employer. Investments earn dividends, but there are many fees associated with a 401(k). Most fees are low — 1% to 5%; however some unscrupulous fund managers charge fees ranging from 15% to 50%. Some employers even negotiate a commission based on employee participation.

Even a small fee can devour your savings. Take this example. Let’s assume John is 40-years old, has a 401(k) balance of $10,000 today, and plans to contribute $5,000 annually until he is 65. With an 8% assumed return on investment, and a 3% fee structure, John will have $272,499 when he is ready to retire. If the fee was only 1.5%, his nest egg would be $342,715 — a difference of $70, 216.

As with any investment, do your research before selecting individual stocks or bonds. Ask about fees and rates. Calculate your tolerance based on your age, job stability and financial situation. Working with a Christian financial counselor can help your assess your finances and establish a solid saving plan for your future.

Whether you are nearing the end of a Christian debt management program or simply wanting to begin planning for your retirement, one of the first things that you will likely be investigating is the Traditional IRA. Today we’re going to discuss the basics of the Traditional IRA and explore why it should be at the top of your list of methods for funding your retirement.

What is an IRA?

Let’s first break down the abbreviation- an IRA is an Individual Retirement Account.

There are several kinds of IRAs, such as a Roth IRA, a Simple IRA, and a SEP IRA. For the purpose of this article though, we are simply going to focus on the Traditional IRA.

For a very simple explanation, an IRA is an investment account that you can utilize to save funds for your retirement with a few tax benefits along the way.

What does an IRA actually do?

The IRA provides you with an account where you can deposit pretax money, currently up to $5,000 annually or $6,000 annually if you are over age 50. The increase is because you may need to save more as you get closer to your retirement. The money in that account can then be used to purchase investments such as stocks bonds etc. This is considered to be tax-deferred, because you will not pay your taxes on the money until you pull it out of the account.

That tax deferment is the primary benefit of the IRA. Let’s suppose you are a single filer and earn $40,000 per year; by todays standards you would fall into the 25% tax bracket. To pay taxes on $5000 (the max annual IRA contribution under 50) at this point in time would cost you 25% of that income, or $1250. The expectation is that when you retire, your income is going to be reduced pushing you into a lower tax bracket. Let’s say that your income has dropped from $40,000 per year to $30,000 per year; you are now in a 15% tax bracket and instead of paying $1250 for that $5000, it would instead be $750. If you are using the IRA to its full capacity and making the maximum annual contribution year after year, this can add up to a very significant tax benefit.

What happens Inside the IRA?

While you are funding your IRA, the money is not just sitting there earning no interest. Within the IRA you are able to purchase investments. Assuming your investments are wise you are likely to receive a return on your investments, and again the income earned on the investments are tax-deferred. Over the years of making your annual contributions and in turn earning a profits from investing those funds, you are not yet paying the taxes on the income.

The difference in the tax rate from when you are in the height of your career compared to being newly retired with a reduced income can cause a major flux in your income tax bracket. As that IRA account grows and the profits from your investments accumulate over the course of say 20 years, the tax savings brought about by being charged at a different tax rate can be very substantial.

What’s the catch?

Based on everything that we’ve shared with you so far it seems very clear that this is a smart thing to do when you are saving for your retirement and, generally, it is! However, there is one very important factor to consider before starting with this type of retirement savings- the early withdrawal penalty.

As is mentioned in its name, the IRA is a retirement account. As such, you cannot access the funds without penalty until age 59 ½. If you do withdraw from the account prior to this point you are going to not only pay the taxes on the amount that you withdraw but also incur a penalty, currently 10% of what is withdrawn. Every situation would certainly be unique, but generally the benefits of an IRA will be lost if the funds must be withdrawn at a penalty.

An IRA is a great investment tool that will provide a vehicle in which you can conduct your other investments. If you have created your emergency fund, paid off your credit card debt (on your own or through our Christian debt relief program) and are ready to begin planning for your retirement, this is one avenue you will definitely want to explore.

Managing your personal finances isn’t always a simple thing to do. Whether you are trying to pay off a credit card debts, resolve your federal student loans, or save for retirement, it can be hard to know where to start. There are countless websites and television programs discussing the topic, many of which contradict each other. When trying to decide where to start your Christian debt management journey, it is important to remember the greatest tool of all when seeking advice, His word.

“Suppose one of you wants to build a tower. Won’t you first sit down and estimate the cost to see if you have enough money to complete it?”– Luke 14:28

Take the time to lay your debt all out on the table and budget accordingly. Know when you can count on income coming into the home, and know when all of your payments are due. Are there any due dates that you can request be changed to a different time of the month? You’d be surprised to see what you can work out with a payment department when you simply ask for help.

“The rich rule over the poor and the borrower is slave to the lender.”– Proverbs 22:7

No one wants to feel as if they are a slave to their debt. To make yourself feel as in control of your finances as possible you need to have a plan of action to resolve your debts. That plan of action might start with calling credit card companies to request a lower rate. Maybe your situation is past that, and you should consider a Christian debt settlement program through FaithWorks Financial. No matter how you do it, take control of your finances and don’t let yourself and your family become a slave to the lender.

“Ask and it will be given to you; seek and you will find; knock and the door will be opened to you.” Matthew 7:7

In order to avoid losing control of your finances it is a good idea to seek out help from a Christian credit counselor. For many Christian Americans the last thing you want to do is file for bankruptcy. If you are feeling too overwhelmed and need to seek outside help you should do so. You may be able to get a referral from your pastor or other church leaders for help with Christian debt counseling, or you can request a free consultation with a Christian Debt Advisor at FaithWorks Financial.

“For I know the plans I have for you, declares the Lord, “plans to prosper you and not harm you, plans to give you hope and a future.”– Jeremiah 26:11

Regardless as to how grim your situation may seem at the moment, you can be confident in knowing that God has a plan for you. Your current financial situation may be difficult or frustrating, but much peace can be found in knowing that your burdens have meaning. The Lord wants you to have a bright and happy future without the limitations of debt. If you follow His word and have a plan of action you will be able to conquer any obstacle.

For most people, financial uncertainty is something that is faced at one point or another. For Christians who go through financial difficulties, we have a loving God to rely upon, to give us faith that all will turn out according to His will.

A friend recently confided in me that he has not finding himself able to trust God’s provision. A year ago, his home’s septic broke, and he did not have the money to fix it. Facing another winter of showering and laundering at other people’s houses, he began doubting that God would provide. He started Christian financial counseling and eventually managed to save enough money to repair the septic, but he felt that he had been abandoned by God during his time of need. How can he and others like him trust God when it seems like He isn’t providing?

1. Keep a Gratitude Journal

If you are reading this article, you have the subject of money on your mind. Undoubtedly, financial hurdles are a reality in your life, be it in the past or present. When financial insecurities arise or you worry about how you are going to make this months credit card payments, take a few moments to count the dozens of blessings you do receive every day. Write down even the simplest of things- that meal you had with a friend, the unexpected refund from a utility company and the blanket you pick up instead of turning on your heat on a cold day. These things that we often take for granted are blessings.

As you focus on your blessings, your faith in God’s provision will grow. Starting every day with a gratitude journal will put you in good spirits.

2. Pray Honestly

In addition to recording all the ways God provides, consider writing down your emotions and thoughts. Like the psalmist David, your honest emotions become prayers as you pour out your fears that God won’t provide and your frustrations about your financial situation. If possible, share your struggles with a trusted friend or and pray together regularly.

3. Meditate on Scripture

God reminds us in His word that He does provide. Meditate, think on and memorize powerful scriptures like:

Matthew 6:28-31: “And why do you worry about clothes? See how the flowers of the field grow. They do not labor or spin….If that is how God clothes the grass of the field, which is here today and tomorrow is thrown into the fire, will he not much more clothe you—you of little faith? So do not worry, saying, ‘What shall we eat?’ or ‘What shall we drink?’ or ‘What shall we wear?’”
Luke 12:24-26: “Consider the ravens: They do not sow or reap, they have no storeroom or barn; yet God feeds them. And how much more valuable you are than birds! Who of you by worrying can add a single hour to your life? Since you cannot do this very little thing, why do you worry about the rest?”
Philippians 4:19: “And my God will meet all your needs according to the riches of his glory in Christ Jesus.”

4. Speak with a Christian Debt Advisor

Approaching finances from a Christian perspective is critical as you trust God to provide. You may need assistance in maintaining a household budget, reducing debt or talking with your spouse about money. Seek godly counsel as you wait on God to meet your needs. It can often be difficult to reach out to a stranger for help, but in the end you may find the right solution for you.

God’s timing is always perfect, but it is very easy for us to question whether or not He will provide. Instead of doubting, take advantage of these four tips that will build your trust. Then, wait with patient trust for His provision.

There is no denying that attending college is a great way to pave the way for your future. Aside from the education you receive and the benefit of (usually) having an easier time securing a job than without a diploma, you gain great social experiences and make lifelong friends.

On the flip-side though, it’s very easy to accumulate debt along the way. Depending on the school, curriculum and other factors, this can put you in a major financial bind after graduation. Here are some ways to pay off student loans faster so you can live a financially sound life.

Pay During the Grace Period

Many student loans offer a grace period where you aren’t required to pay until six months after graduation. This is designed to allow you time to find a job and get financially stable before payments begin.

If possible, you should go ahead and pay at least a little something during this time because you can lower your principal and have an edge once the grace period is over. This also get’s you in the habit of making those payments before there are penalties for not doing so.

Not to mention, you are creating great financial habits very early on and making decisions such as this now will lead to continued wise decisions in the future.

Look into Student Loan Forgiveness

Depending on your profession, you may qualify for student loan forgiveness. If you are a full time public servant, in fields such as education, community service (police, firefighters), the non-profit sector or even many church positions, you may be eligible to have a portion of your student loan debt forgiven after you have made a certain number of payments. This is a tremendous benefit to those who are in these positions, as it can save you tens of thousands of dollars.

Student Loan Consolidation

This strategy involves combining two or more loans into one for a more simplistic repayment structure. The benefits of this option are that it can often reduce your interest rate and it streamlines the payment process so you don’t have to remember to write checks for multiple loans each month. There are different programs available for different types of loans. Our Christian debt relief company can provide further insight into student loan consolidation and help you decide if it’s right for you.

Here is a bit more information on a Federal Student Loan Consolidation.

Get a Side Job

Another effective way to quickly get out of debt is to earn some extra income on the side. It might be a part-time gig, doing odd jobs or even starting a small business. This doesn’t need to consume your life, but putting in some additional hours on top of your regular job can mean years of difference in eliminating student debt. Paying extra usually goes right toward principal. Reducing your principal balance will also minimize interest expenses, which means less overall money to pay.

Put God First

Putting God first and being charitable should be the basis for any financial strategy. As we see written in Matthew 6:33, “But seek first his kingdom and his righteousness, and all these things will be given to you as well.”

For most families, food and grocery expenses are the second biggest line item in their budgets after rent or mortgage payments. While the budget bite from grocery shopping can be depressing at times, the good news is that there is a lot of room for creativity and savings for disciplined shoppers. One of the greatest advances in budget-conscious shopping is finding its way into America’s kitchens with great results: shopping for groceries online can rescue an out-of-control food budget.

It is well known that the internet provides opportunities abound to comparison shop for necessities like clothes and insurance; using the internet to find grocery bargains is a logical next step. Most grocery store chains offer online shopping options with free in-store pickup; a few even offer home delivery for a small fee. Wal-Mart and Amazon.com offer free home delivery, and allow you to combine grocery purchases with other items from the store. The end result is a great addition to any debt relief program- saving money by buying groceries online.
Shopping online for food makes sense for many reasons, especially for families trying to stick with Christian debt management principles. When you buy groceries online, you eliminate pricey impulse purchases. You buy only items from your list. This saves money and helps you stick to healthy choices. Eating healthy on a budget is easier using online shopping tools. Many grocery stores offer meal planning and recipe tools right on the site: You choose your menu for the week and the corresponding grocery items are automatically loaded into your shopping cart.

Most grocery websites list their weekly specials so you can buy from the store with the best prices for the groceries you need that week. Some even feature economical recipes using sale items to help you maximize grocery savings.

Shopping online allows you to compare grocery prices on the things you buy regularly so you can always get the best available price without driving to several stores. Big retailers like Wal-Mart and Amazon give you access to economical brands and product sizes that might not be available to you at your local stores.

Ordering groceries online takes the guesswork and surprise out of your food bill. You can see what your choices are costing before you purchase them, giving you an opportunity to make changes to keep costs in line with your budget.

To start harnessing the Internet for grocery savings, begin with your local grocery chains’ websites to see what’s available. Browse the grocery offerings at Walmart.com and Amazon.com to compare prices. Other sites like ShopFoodex and NetGrocer have frequent specials offering favorite foods at steep discounts and usually offer a credit toward your first order. It may take a few weeks to get used to buying groceries this way, but you will find, with practice, that online grocery shopping can be your budget’s best friend.

With the hectic daily grind that has become a part of so many peoples daily routines, it is no surprise that eating out is one of the top budget breakers. When you are running around town and have your kids in the car howling about how hungry they are, a quick pizza run may cause the kids to cheer, but your budget will not.

Last minute dining out decisions can wreak havoc on a carefully planned budget or Christian debt management plan. For families attempting to eliminate debt, this is an added expense that can kill your dream of being debt free. Eating out is such a sneaky expense, because we can always justify needing to eat. You must consider however, food purchased in a restaurant is almost always significantly more expensive than the same type of meal prepared at home.

Why Do You Eat Out So Much?

Pinpointing your motives behind your actions is the first step toward changing those actions. Many individuals cite eating out as more convenient than cooking at home and that it saves time. Forbes author Laurence M. Holland points out that when you calculate the travel time, waiting for a table, waiting to give your order, waiting for your food, and then waiting for your bill you ultimately save no time at all. Not to mention the fact that when you are eating at home, you can also be multi-tasking on other things such as catching up email, or helping your kids with their homework. Eating at home ultimately saves time.

Other individuals may say that they eat out so often because they just don’t like to cook. This is a situation where you must evaluate how important it is that you be successful with your Christian debt management program. If you are truly committed to debt elimination, then doing something you don’t necessarily like to do should not seem like that big of a sacrifice. The truth is people eat out a lot because it is less work for them. This, however, is not a good reason to endanger your budget or your path to being a debt free Christian.

How to Ensure You Eat At Home

Make a Plan

Planning to eat at home more often takes a little organization. You must have a plan. Taking thirty or forty-five minutes once a week to make out a menu and a grocery list will save you a lot of time and money later on. Make sure your menu is specific and that your grocery list will accommodate all your meals. If you are new to cooking, take a look at websites such as allrecipes.com or the Food Network for ideas and inspiration, or do a search for “budget friendly meals”.

Stick to your list

Now that you have your list put together, it’s time to go shopping! If you made a careful menu, then the items on the list will feed your family for that week. You will not have a need to buy other items. Many parents find that bringing the kids with them to the grocery store often leads to overspending. If going alone will ensure you spend less, then go alone.

Plan for eating out.

The fact that you are going through a Christian debt management program does not mean that you cannot still enjoy a meal out on occasion. If your budget has the room for it, set aside some money for eating out each month. Every situation is unique and your personal goals are going to determine the frequency at which you can enjoy a meal out. You may find that you can actually budget for a pizza night each week. We suggest that you are careful to be eating out because it was planned and budgeted rather than because you weren’t sure what else to do for dinner that night.

If you follow these suggestions, you can prevent one of the top budget breakers from getting between you and your financial goals.

“Pride goes before destruction, a haughty spirit before a fall.” Proverbs 16:18

There is no denying that people spend beyond their means for a lot of reasons. Sometimes it can be unintentional- unexpected medical expenses a reduction in income can lead to speaking beyond your means by no inherent fault of your own. Looking beyond those unintentional reasons though, one of the most common and detrimental reasons both financially and spiritually is when an individual is a prideful spender.

Pride is a sin and can really put the brakes on your spiritual life. Nowhere can pride be more easily seen than in our financial lives. Sometimes it is hard for us to see our prideful spending though. Ask yourself the following questions to determine if you have an issue with prideful spending.

Do I often purchase something only after seeing someone else with it?

This is the most common type of prideful spending, the “keeping up with the Joneses” mentality. Many people in our society define themselves by their material possessions. Because of this, when we see someone else with something nicer we begin to judge ourself as being inferior to that person.

We can combat this by taking to heart what Hebrews 13:5 shows us about where our true worth is, and it is not in our bank account. “Keep your lives free from the love of money and be content with what you have, because God has said, Never will I leave you; never will I forsake you.” This verse perfectly contradicts the modern ideal that the more you have the better you are. If you begin a cycle of buying everything you see someone else have you will soon self-destruct financially. Claim your confidence in Christ, not in possessions.

Do I give charitably in a way to be noticed?

This is prideful spending very well disguised as charity. As with many things in life, we need to take a look at our motives. If you only participate in charitable giving when you are sure to be seen, or you always make sure that people know that you were the one bestowing a gift, your motives and your heart are in entirely the wrong place.

Christianity is a generous religion. Luke 6:38 tells us, “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.”. However, if your motives are wrong, even a good action can become sinful. In fact Jesus rebuked the Pharisees in Matthew 6:1 for doing exactly that, “Be careful not to practice your righteousness in front of others to be seen by them. If you do, you will have no reward from your Father in heaven.”

This can be resolved quite simply, by making a priority of giving anonymously. Do something for someone expecting nothing in return, not even a “thank you”. Do this by not even letting them know it was you who did the favor. In time you will grow spiritually when you humbly give of your resources.

If you sense that the sin of pride could be what is throwing off your goal of becoming debt free, ask forgiveness and seek to spend and give in a way that honors Christ and not yourself. If your finances have gotten out of control as a result of prideful spending, or through no fault of your own, call 877-232-5109 to speak with one of our Christian debt relief specialists today.