Money Help For Christians

7 Retirement Planning Factors You Cannot Predict

Craig — Mon, 08 Feb 2010 09:00:00 +0000

Subtitle: How not to waste your time planning for retirement.

Often we are told to ask the question, “Will I have enough for retirement?” On the surface that certainly is a valid question. However, the younger a person is the more variables exist that make the equation too complicated to properly calculate. As a thirty-something year old male, I have come to realize that most of my wondering “will I have enough for retirement?” has been almost a complete waste of time. Here are some retirement planning variables I believe we cannot either know or control:

Social Security

Right now I chuckle to myself when I read the asterisked segment of my social security statement. Here is my translation. “Hi, Mr. Ford, US Government here. Just wanted to let you know that the dollar amounts we are writing on this paper mean absolutely nothing. In fact, we don’t anticipate having the necessary funds to pay you the stated amount. Have a lovely life. P.S. We are happy to continue receiving your social security payments.” In the future I suspect that giggle with turn into a scowl.
Rate of Return

Should you plan to get a 12% rate of return? Is 6% more accurate? Should you split the difference and go with 9%? Regardless of the estimate you use, there is a good chance you are going to be wrong. Sure, you might save a million dollars, but that still might not be enough. Your asset allocation will influence you rate of return, but you still cannot know what return you will get.
Inflation

How much will $1 be worth 30 years from today? Will a Big Mac cost $15 and a gallon of gasoline $25? I don’t know. Do you?
Retirement Age

The first financial advisor I met with at the age of 21 asked me when I wanted to retire. What an impossible question to answer. Now more than a decade later I don’t think I am any closer to answering that question. I’m not even sure if retirement is the goal of life. Will I have a job I love? Will I hate what I do? Will I be healthy? Will my wife be working?
Activity During Retirement

When (could we even say if) I retire I have no idea if I will be sitting at home reading the daily newspaper and playing croquet or putting on a suit jacket and heading back into the office for another day of work. If I work part time what I need for retirement will fluctuate greatly. At this point in my life those questions only result in an “I don’t know shrug”.
Our future income

We impact our future income by our conduct, character, and work ethic. However, I cannot predict today what I will be earning 20 years from now.
The end of time

As a Christian I believe the things of this world will not last for infinity. Much like Jesus, I do not know the day or the hour, but from an earthly perspective at some point there will be a generation who will not even make it to retirement.

How Should You Plan For Retirement?

Be responsible with your retirement savings. Plan and predict. However, don’t worry or fret because who of us can add a single hour to our lives by worrying? Far too many people spend hours and hours trying to predict these things, but that is extremely difficult to do. Instead focus on the things you can control. What can you control? We’ll that’s the topic of our post next Monday.

Any other unknown variables you think should be included on this list?

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by Craig Leave A Comment
©2010 Money Help For Christians. All Rights Reserved.Money Help For Christians (MH4C) promotes a frugal, simple, debt-free, and generous lifestyle so Christians can faithfully maximize their resources by putting them at the disposal of God’s Kingdom. MH4C is committed to providing relevant resources in order to assist Christians in this effort.

Overdue Weekly Roundup

Craig — Sun, 07 Feb 2010 09:00:00 +0000

Since switching my schedule a little bit, I’ve found it hard to find a good place to fit my blog roundups. This is going to be a quick roundup with links from the last couple of weeks.

My big news

My guest post 6 False Assumptions About Debt Free Living was included in the Consumerist personal finance roundup. The Consumerist is the number one blog in the personal finance niche, so it was quite an honor that they picked up this article.

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How To File Federal Taxes Online For Free

Craig — Sat, 06 Feb 2010 09:00:00 +0000

If you have a simple or basic tax return there is no reason to pay to file your federal taxes. In addition, it is much more convenient and faster to process a tax return online.

Important FAQs About Filing Free Federal Taxes Online

Most free Federal E-filing is limited to a “simple return” – 1040-EZ.
Free File is available only to taxpayers with a maximum Adjusted Gross Income of $57,000.
Some Free E-file companies may establish their own lower income limit.
While the Free Federal E-file is a legitimate offer, many companies seek to get you to purchase additional products. Specifically, if you do a state return with the company you will need to be prepared to pay a fee to file state tax returns.
The product offerings of each company is different. Specifically, different forms and schedules that are supported under the free offer differ. Be sure to check the company’s website to determine which forms are available.

File Taxes Online For Free

To start you can go directly to the IRS website.

There will be a form similar to the one below. All you need to do is fill it out and they will show you a list of all of the companies that allow you to free E-file.

Three of the Leading Free E-File Companies

Turbo Tax

Turbo Tax Free Edition: 1040 EZ and simple returns

Free federal efile is included, but state filing is an extra cost.

This is only recommended for those with very simple returns.

If your situation is more complex, Turbo tax offers different paid products – Delux, Premier, Home and Business, and Business. When you purchase these products you then prepare your taxes for free, and E-file at no cost.

Tax Act

Tax Act: Free Federal Edition

Federal efile is included. You can prepare, print and E-file for free.

In addition, Tax Act offers free email and audit support.

Free Tax USA

Free Tax USA: Free Federal E-file

Free federal E-File included. This, again, is focused on simple tax returns. The site claims that most returns can be completed within 30 minutes. You do not download any software, but file directly online.

Do you do a free E-File? What company do you use or recommend?

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Pay Off Debt or Buy Insurance for Stay at Home Mom?

Craig — Fri, 05 Feb 2010 09:00:00 +0000

Every Friday I take a reader’s question and spend some time answering it. Our question today was submitted via my reader survey. If you want to ask a question, contact me.

If you had to choose between retiring debt and insuring a stay at home homeschooling mom which would be a higher priority and why?

I’m a proponent of debt free living. I’m glad that you’re trying to focus on paying off debt. However, to answer your question, I would buy insurance for a stay at home homeschooling mom.

But, let me clarify one thing – I’m interpreting insurance as health insurance. If you are asking about life insurance, my answer would be the same (though perhaps not as strongly).

Here’s why:

We all want our financial momentum to be moving forward. Paying off debt is a great way to progress financially. However, the first step is to be sure that we have protected ourselves from going back further or getting deeper into debt.

Medical bills are one of the leading causes of bankruptcy. Without health insurance your financial condition could self destruct in a moment.

Several years ago my wife went to a walk-in clinic with a pain in her side. She was referred to the hospital emergency room. We drove to the hospital, she laid on a gurney in the hallway for a couple of hours, and we left with vicadin and a bill for about $2,500. And there was no major issue.

The risk of not having insurance is far too much of a risk.

I’ll use a sports analogy for a moment. In hockey, at any time you can pull out your goalie so you can have 6 skaters on the ice. However, the only time teams pull the goalie is when they are down by a goal with only a few minutes left in the game. Though they get an offensive advantage, pulling the goalie is not worth the risk unless you have no other alternatives.

Insurance is a defensive purchase. While you want to get ahead on paying off your debt, don’t open the door to too much risk along the way.

You could consider a major medical policy that has a higher deductible as this would significantly reduce your premiums. However, just be sure you will be able to pay the deductible should there be a family emergency.

If you’re asking about life insurance I would also purchase the life insurance instead of paying off debt.

Here’s why:

Raising your child(ren) without a mother around would be an extremely difficult task. Having that life insurance money available gives you the flexibility to put your family first and minister to them through the transition. Otherwise, you will be forced to continue to work to support the family, but also have no options for what to do with your children. The life insurance gives you the flexibility to do what is best for your family.

Oh, and one final thing. If you’re asking detailed questions like this and trying to cut every unnecessary expense out of your budget, then congratulations. You’re on the right track to getting debt free fast. Just don’t take any shortcuts and you’ll be debt free faster than you know.

In this case, term life insurance would be best as you will have much lower premiums and can focus on debt repayment.

Any other advice?

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The Attitude Necessary for Getting Out of Debt

Craig — Thu, 04 Feb 2010 09:00:00 +0000

The following is a guest post from David. If you’d like to submit a guest post you can contact me.

David is a writer for Money Compare, a website offering people an simple way of comparing high interest savings accounts that give a good return on investment.

Its the start of a new year and start of a new decade.

Now is always is a good time to be on the road to living debt free. And so when you’ve begun to pay off those credit cards (and keeping them paid off), started chipping away at the student loan and you’re making progress on the home loan, its been asked: how do you keep going? I’m putting it out there that your attitude towards the whole endeavor is vital – its certainly has been the case for me.

Over the course of 2009, my wife and I embarked on paying off a personal loan, paying off all credit card debt and saving up for our house. Along the way there’s been some big setbacks – a minor car crash and a few other large unexpected and unwanted expenses. Now, there is nothing wrong with writing about ‘10 ways’ to do this or ‘101 Tips’ to do something else as the personal finance community so often does, I want to point out four simple attitudes. These are the attitudes that I’ve found I need to have… and there may be more.

4 Important Attitude Shifts Necessary to Help You Get Out of Debt

Dissatisfaction

A healthy dose of annoyance (and even disgust) will be helpful to your quest.

I’m calling for you to feel the dissatisfaction with the situation you’re in with your personal finances. You should not be happy about having debt. If you’re like me then when you consider that it has been frivolous spending and a lack of wisdom to blame then you should be disappointed with yourself. Let that sink in.

No matter how you ended up with so much debt, even if it was someone else caused you to get tangled up in debt – let it motivate you into doing something about it once and for all.

Intensity

One of my favorite illustrations from the Bible is the gazelle who is escaping the hunter’s attack at full pace. You can read it for yourself in Proverbs 6:5. A tip of the hat goes to Dave Ramsey for alerting me to the application of this verse to personal finances. The point is this, like a gazelle you’re going to need intensity and speed to get out of debt. Do not have that laissez-faire attitude (French for leaving things alone) which will resign you to saying something like, "Yeap, I’m up to my eye-balls in debt but I’m not going to change much." Can you really afford to have that attitude? Intensity is called for which means dealing with your debt as you are under attack!

Patience

Patience is one of those virtues that throughout your life you will learn and re-learn many times. That virtue needs to be woven into your attitude toward your personal finances.

Some people are stuck in a deep hole of debt and its going to take years to make things better. Other people could get out of debt within a few short months. Either way you need to be patient to keep going for the long course.

Don’t wait for a big payout or windfall so that one day you will get your debts paid off. I’m saying, start today and be patient as you diligently chip away at it.

Resolve

My last ‘must have’ attitude for getting serious with your finances is resolve.

You’re going to need to employ a steady, gritty resolve to overcome setbacks and not go back to having debt. That means an attitude that will not allow yourself buy things impulsively, or give up when the computer packs in, or some other financial catastrophe happens.

What are the must have attitudes that you’d say are needed?

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5 Important Things Every Rich Christian Should Do

Craig — Wed, 03 Feb 2010 09:00:00 +0000

For the Christian, money is the ultimate balancing act. To be rich is not ungodly. To be poor is not spiritual. But there is an ungodly way to be rich and there is a way to grow spiritually through poverty.

In a recent post I mentioned that I am a rich man when compared to those in the third world. What I did not mention (because I wanted you to struggle a little with that post) is that I don’t believe that it is a bad thing to be rich.

Through my wealth I am able to be a blessing to those around me. I employee two people. I provide critical transportation needs (like driving people to the hospital or providing transportation for church activities) because I own a vehicle. My home is open for Bible studies or meals. I don’t say this to brag, but to say that being wealthy in the presence of the poor is a blessing to both myself and the poor.

Being rich in the presence of the poor puts me in a unique position to help, to minister, and most importantly, witness to God’s goodness. Some may be called to give up everything while others are called to use their wealth to honor God.

Money and material things are not despised in the Bible. There are serious warnings about money, but there are also serious opportunities presented to those who have money. One who has decided to use those resources as a faithful steward can do many great and wonderful things in their life time.

How Have You Been Blessed By Wealthy Christians?

Here’s my list of ways I’ve been (am being) blessed by rich Christians.

100% of my salary comes from the freewill offering of fellow Christians.
I’ve been offered to use a vacation home for my family – at no cost.
My mortgage is 100% funded by Christian individuals (a long story for another time).
People have taken my family out to eat on more occasions than I can count.
While in college the generosity of others literally helped put food on our table.
I’ve received numerous scholarships for private Christian education (funded by Christian individuals).

To be wealthy is not evil. To be wealthy means we have been entrusted with something from God.

When God gives us gifts I think he intends for those gifts to be a blessing. God wants wealth to bring us joy. When we see all we have it should remind us of how blessed we are. Appreciation and thanksgiving for each blessing is a much healthier response than guilt. For when we are guilty we cannot enjoy the gift God has given. While wealth can draw us away from God, through thanksgiving it can also enhance our relationship with God.

5 Things Every Rich Christians Should Do

This list includes the things I think are necessary of every rich Christian. If you have wealth, but one of these things is missing in your life, I’d encourage you to find away to incorporate it into your life.

Rich Christians must acknowledge God as the Source of wealth.

When I look around at all of the many things I own it increases my appreciation. I am thankful and humbled in the presence of God. Each day before my family eats we thank God for the meal. In our prayers, we acknowledge that all we have is a gift from God because ultimately God is the source of every blessing we enjoy.
Rich Christians should give God absolute ownership.

Though the bank account might have my name, I know the money is not my own. I am a steward put in a position to administer God’s funds. As a wealthy person I must seek God’s plan and purpose for my own money.
Rich Christians use their position and influence for the kingdom.

God’s kingdom can be glorified through doctors, lawyers, and engineers who seek to use not just their money, but also their skills and gifts for the sake of others. One rich man I know teaches business courses overseas and another does surgeries overseas. They use their position and influence for the good of God’s kingdom.
Rich Christians give generously from a genuine heart.

Barnabas graciously sold a field and laid the money at the feet of the apostles (Acts 4:36-37). The church in Philippi sent money to help Paul, the missionary (Phil. 4:14-18). Apphia and Archippus who opened their home for church meetings (Philemon 2).
Rich Christians always give priority to people over things.

The Godly rich will never earn money at the expense of others. They will never seek to get things at the expense of others. There may be a way to earn more money, but if it doesn’t honor people, it is not worth considering. As such, the godly rich do not discriminate against the poor (James 2:3-4).

I struggle with this one because living overseas I’ve come to realize that I get attached to my stuff. When someone loses something that belongs to me, I take it personally as though they have done something against me. Slowly, I’m learning the lesson that people are more important than things.

If you take your neighbor’s cloak as a pledge, return it to him by sunset, because his cloak is the only covering he has for his body. What else will he sleep in? When he cries out to me, I will hear, for I am compassionate. (Exodus 22:26-27 NIV)

To be rich is not evil, but to be rich without sensing a deep responsibility can be a very dangerous thing.

What ways has your life been blessed by wealthy Christians? What other critical traits would you add to this list?

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101 Ways To Improve Your Marriage Money Relationship

Craig — Tue, 02 Feb 2010 09:00:00 +0000

So here it is.

One big fat list on how to improve your marriage money relationship with your spouse. Interestingly, many of those things listed do not directly relate to money. But, if you can’t get together on all levels – spiritually, emotionally, and physically then it will be hard to connect financially. When your entire relationship is healthy it will flow into your finances. When your relationship is struggling it will flow over into your finances.

Since money is one of the leading causes of divorce in North America, it is important to address how money impacts your marriage relationship.

101 Ways To Enhance Your Marriage Money Relationship

Pray about your finances.
Openly share your past financial mistakes – don’t have any money secrets.
Budget together.
Get a joint checking account.
Go for a long walk, hold hands, and talk about your future.
Work out a game plan together.
Set spending limits on certain categories. How much do you both think should be spent on certain items? When shopping, make sure you know if it is something your spouse would agree with you buying.
Make some important decisions once. What percentage of your income will you give? What percentage are you willing to pay for a car? Will you buy cars with cash? Once you’ve made the foundational decisions you don’t need to remake them every time you encounter a new situation.
Ask for forgiveness for past mistakes.
Talk openly about your financial background – How did you parents spend money? What ways are you like your parents? What ways are you different?
Know each other’s income. Money earned by either spouse belongs to the family.
Have a weekly budget meeting. That’s what we do and, well, it works.
Keep a list of all important financial documents. You never know when you’ll take a shortcut to heaven so make sure your spouse has easy access to all your important financial documents.
Divide financial responsibilities based on giftedness and passion. Wouldn’t the marriage be better if you each got to do what you loved and were good at? Whatever is left over agree to do it for the team.
Set ground rules for disagreements. These are simple rules. Don’t yell. Never say “you always”. Be completely humble and gentle. Honesty is the best policy.
Schedule a money planning day once a year. On this day you’ll deal with all the “big” financial decisions that have a huge lifelong impact. Here’s a long term financial goals checklist.
Get counseling.
Read a financial book together – here’s a list of 88 top personal finance books to get you started.
Take a financial knowledge test.
Husbands, love your wives, and wives, respect your husbands.
Work as a team. I know you know this already, but have you made a covenant? I will work together with my spouse no matter what happens. Make the promise and keep the promise.
Change your vocabulary – our money, not my money.
Honor the non-working spouse. Appreciate the contribution you both make. Say at least one encouraging word each day to the non-working spouse.
Take time to play together. When you feel like a team you’ll work like a team.
Agree on a budget for dates and babysitting. I think it is essential for you to take dates together. Perhaps the greatest investment any young couple could make is for a babysitter. Don’t have the money? Form a frugal community.
Learn each other’s love language, then speak each other’s love language.
Think not only of your own interests.
Never go in it alone. Don’t take a job without consulting your spouse. Don’t make a big purchase without consulting your spouse.
During a financial crisis switch into survival mode.
Hug your wife every day and tell her you love her. Compliment your husband every day and tell him you respect him.
Take premarital counseling. Identify and address important issues before they morph into marriage breakers.
Don’t talk negatively about your spouse to others – especially when your spouse is not there. Honor and respect your spouse with every word you speak.
Recognize your differences. Know that spenders will spend and savers will save. When you know what to expect of each other you are less likely to be surprised when the predictable happens.
Think of three positive things to say to your spouse every day.
Consider a policy of complete support. When you make a decision, be the wind beneath their wings – not the anchor.
Make business family decisions together. Learn how to keep your small business without losing your family.
Listen to the advice of your spouse.
Put emotions above financial gain. Do what feels right, not just what makes the most math sense. Choose a good night of sleep over a fatter wallet.
Talk frequently about each other’s work schedule. Are you getting enough time together as a couple?
Carry the financial burden together. Don’t ditch your spouse and leave them with important financial decisions. Give input and feedback as needed.
Change the environment. Talk about money at a restaurant or on a walk instead of in front of the computer.
Write a letter of appreciation to your spouse. What have they done recently that has helped your financial situation?
Ask honest questions and listen. Do you think I’m too controlling? What areas do you think I spend too much money on? Am I frugal or cheap?
Never raise your voice. Well, actually if you’re at a sports event it is OK, but I’m talking about when you disagree with your spouse.
Identify the core issues, and then brainstorm till you have a headache. Often couples talk about money symptoms, not money reasons. Debt, for example is a symptom (Larry Burkett). Why did you go into debt?
Be willing to give as often as you seek to take.
Resolve any family baggage that is contributing to the issue.
Agree together that you need to get out of debt.
Prioritize your financial game plan. What is currently your greatest financial problem or need?
Look for the sickness, not just the symptom.
Don’t accept loans from your parents. It will drive a rift between you.
Always try and side with your spouse. Some couples thrive on disagreement. They simply love the tension. Make better use of your energy and strive to agree with each other.
Know that money fights are normal.
Don’t focus on blaming each other. Focus on solving the issue.
Write down your goals – short term, medium term, long term.
Create a mock budget separately to help show your spending differences. Focus on areas of large differences.
Set up automatic deductions to reduce the financial workload.
Agree on the appropriate emergency fund amount.
Contribute equal amounts for retirement, regardless of who earns the income.
Nominate one spouse to keep financial records. Hint: choose the most organized.
Develop a credit card use policy.
Learn each other’s investing risk tolerance.
Let the nerd be a nerd, but don’t force the non-Geek to look at all the numbers.
Make big financial decisions slowly with a lot of wise guidance.
Agree on gift amounts. Who will you buy for and how much will you spend?
Hold each other accountable – kindly.
Make retirement decisions based on what is best as a couple, not just as an individual
Purchase enough life insurance to protect your spouse.
Prepare a will together.
Go deeper and share your fundamental view of money. Why do you want it? When do you have enough? How do you define financial peace? What do you do when you have enough?
Know that money fights often reveal issues in other parts of your relationship.
Recognize and honor the financial commitment each of you are making to the marriage.
Don’t avoid money concerns; your frustration will only increase.
Take a romantic weekend away at least one weekend a year.
Take regular dates.
Set goals based on your joint values.
When you meet together always set action items. What needs to be done and who is going to do it?
Keep talking about purchases until you are both in complete agreement.
Decide to find lost money – review the budget and cut out unnecessary expenses.
Agree together about where you want to give and how much you want to give.
Let the financial nerd research, but present ONLY the relevant information to the non-nerd.
Answer all financial questions and doubts before proceeding. Both individuals should feel comfortable with the decision.
Have a garage sale and agree to sell some stuff.
Have a night out where you agree not to talk about money at all.
Care more about your spouse than your net worth. Communicate that priority.
Both of you should know what your money is doing and where it is going.
Be sure both of you have a general sense of your financial standing. Do you know your net worth?
Make investment decisions together.
Agree that it doesn’t matter who makes the money.
Revisit your financial game plan at significant life stages – birth of children, children in school, empty nest, retirement years.
Attend a marriage seminar.
Join or form a small support group for married couples.
Do a bible study together on the topic of money.
Send a random email thanking your spouse for their involvement in the finances.
Recognize and reward small changes.
Set a BIG goal like a vacation. Keep those goals in front of you to motivate you to work together. Always enjoy the rewards together.
Agree that it is better to have little money with love than a lot where there is strife in the home.
Work together to teach your kids about money.
Attend church together.
Allocate spending money for each partner.
Visit the financial advisor together.

Photo by Martin Kingsley.

Any other tips on how to improve your marriage and money relationship?

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10 Unique, Personalized, and Cheap Valentines Day Gifts

Craig — Mon, 01 Feb 2010 09:00:00 +0000

This post was co-authored by Craig and Jeri Ford. Jeri wrote it. Craig stole it, and added some of his own thoughts and ideas.

Jeri is an amazing wife who always writes fantastic posts for her personal blog. Occasionally, (like this post) her husband (that’s me) steals them for his own site. Craig was jealous of her giftedness and convinced her to come on board as a regular writer for Help Me Travel Cheap, a frugal family travel blog. If you’re interested in writing your own guest post, contact me.

Before you rush out the night before Valentine’s Day and pick up the leftover wilted flowers at your nearest convenience store, check out these ideas. There is no doubt that I’m a big fan of home made gifts. In fact, many of these 50 homemade Christmas gift suggestions can evolve into some awesome Valentine’s gift ideas too.

There are more ways to show love than chocolates and diamonds. Showing your valentine that you love them can be inexpensive and thoughtful if you take a little extra time and creativity. After all, it is the thought that counts, isn’t it?

One year I got a friend to help guide me around the jungle bush area here to find some wild flowers. I gave those flowers to Jeri as a gift to plant in our garden. All but two of the flowers died, but to this day my wife still loves the gift (at least she says she does).

Bonus tip: Know your spouse’s love language (The 5 Love Languages: The Secret to Love That Lasts). If you know how they ‘hear’ I love you then you can scan over this list to find the perfect idea that will speak to them. For example, if they are a person who loves words of affirmation, try #4. If time is their love language, then go for #2 or #5. Even if gifts are their love language you can create your own gift like #10 says. Personalize this list and you’ll have a great Valentine’s Day gift.

1. Instead of eating out (again!), make dinner for your spouse.

This will be much cheaper than eating at a restaurant and allows you to be a little more creative. Make something you rarely make that you know he or she loves. When you avoid the restaurant you also avoid the hoards of people who eat out on Valentine’s Day.

Don’t be afraid to use the fancy china usually reserved only for special guests.

Add a homemade heart-shaped dessert to top off the delicious meal.

2. Take a long walk together.

If it’s cold, bundle up and head out for a long walk. It’s much easier to talk when you walk together because there’s nothing else to do. Make sure you do your fair share of listening, too.

Instead of stopping at the nearest Starbucks afterward, head home and make your own cup of hot tea, hot apple cider, or favorite coffee and cuddle on the couch.

If you need a babysitter and your family is not available, try forming a frugal community and doing a baby sitter exchange. Sure, you might not be able to go out on Valentine’s Day, but just plan an at-home date that night and go out a few nights later.

3. Make your own Valentine’s Day card.

Buying a Hallmark card is easy, but it’s definitely not the most meaningful way to express your emotions.

This activity is not limited to elementary school children. Borrow your kids’ glue, scissors, and construction paper and get to work on your own card to say “I love you”.

4. Write a story or blog post for your Valentine.

If you enjoy writing, draft a creative story for your true love. If you maintain a blog, write and dedicate a post to honor someone you care about.

5. Plan an inexpensive getaway.

Use Hotwire or Priceline to plan a spontaneous getaway for a night or weekend. These two sites let you book cheap last minute hotels. If you don’t want to drive a long distance, consider getting a hotel right in your own town.

Take your own snacks and breakfast foods to save on dining costs. Don’t be embarrassed to use Entertainment Book coupons or other discounts.

Get more cheap travel tips.

6. Do an at-home date.

This saves on the cost of your meal and babysitting fees. Put the kids to bed first, then transform one room of your home into a ‘restaurant’ or any other venue you’d like to be in. You can even plan the event together – one person can be in charge of food, the other creates the right atmosphere.

Our last at home date – dinner on the back porch.

7. Have a popcorn picnic.

Invite your Valentine to a popcorn picnic. Instead of using microwave popcorn, pour your love and effort into making your own popcorn on the stove. It’s much cheaper and healthier that way, too. In small bowls, offer a variety of popcorn flavors at your picnic: spicy (add taco seasoning), sweet (sprinkle with powdered sugar), buttery, or any other flavor you can think of. Top it off with a homemade note, and your Valentine will appreciate your thoughtfulness.

8. Do something your Valentine has always wanted you to do with them.

Maybe she’s always wanted you to ice skate with her or participate in her swing dance lesson. Maybe he’s been waiting to show you his car collection or help him write a song. Participate in one of your Valentine’s favorite activities – even if you’re not good at it. It will give you both something to laugh about.

9. Serve.

What better way to show someone you love them than to serve them? You could try giving them coupons for things you’d like to do for them. (I’ve tried giving coupons to many people and have had very few ever redeemed.) Instead of offering to do something, just do it.

If your spouse usually bathes the kids at night, take a turn or two. If you don’t usually do the cooking, give your Valentine a break (you might even grow to like black pancakes). Find a way to serve – with a smile.

10. Make a homemade Valentines Day gift.

Do you like to sew or build? Scrapbook, paint, or draw? Use one of your many talents and make a gift that your Valentine is sure to treasure. They’ll love the fact that it’s made from your own hands and heart and not bought from a store. Need some inspiration? Start with these 50 homemade gift ideas or try these 101 ways to give.

Photo by Pink Sherbet Photography.

What other ways can you show your Valentine you love them on this special holiday without spending lots of money?

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Options When You Can’t Make Student Loan Payments

Craig — Fri, 29 Jan 2010 09:00:00 +0000

Every Friday I take a reader’s question and spend some time answering it. Our question today was submitted via my reader survey. If you want to ask a question contact me.

How does one pay back student loans when they can barely make rent and buy groceries?

The reason most financial folks call student loans “good” is because of their flexibility. And in this case, that is a good thing for you.

Sometimes you just need a little breathing room to get your finances under control.

Short Term Solution: Student Loan Deferment or Forbearance

Deferring Student Loans

Deferring your student loans means that you will have a period of time where your payments are not required. Such deferments are typically offered if you are returning to an eligible school, facing economic hardship, or you are currently unemployed.

Based on your question, it seems as though you would qualify for a student loan deferment (due to economic hardship).

In addition to meeting the necessary requirements your loan must be active (not in default).

If you are eligible you should contact the holder of your loan and request the necessary paperwork to file for a student loan deferment.

Student Loan Forbearance

When one is offered a student loan forbearance they are given a set period of time where they have permission to stop making payments. A forbearance can be for up to one year at a time. To qualify, you typically need to prove your poor health, have extenuating personal problems, your inability to pay within the maximum repayment term, or your monthly payments equal more than 20% of your monthly income.

Note: Interest will continue to accumulate during the forbearance.

If you are eligible, you should contact the holder of your loan and request the necessary paperwork to file for a student loan forbearance.

I’d try and get a student loan deferment as it seems like you are an eligible candidate. The process is really quite simple and I know of many people who have received a deferment without much effort. In fact, when my wife and I went to grad school we had my wife’s student loans deferred. If you are not eligible and your monthly student loan payments exceed 20% of your income, then get the forms for a student loan forbearance.

Is a student loan deferment biblical?

When you make a loan of any kind to your neighbor, do not go into his house to get what he is offering as a pledge. Stay outside and let the man to whom you are making the loan bring the pledge out to you. If the man is poor, do not go to sleep with his pledge in your possession. Return his cloak to him by sunset so that he may sleep in it. Then he will thank you, and it will be regarded as a righteous act in the sight of the Lord your God. (Deuteronomy 24:10-13 NIV)

The Bible has always promoted fairness in lending and does allow for economic hardship deferral.

Remember, the intention is not to escape your obligation to repay. It is simply to make time for you to get your financial act together.

Long Term Solution

Increase Income

From your short question, I’d say the missing link is your income – it simply is not enough.

Start by seeking out a good paying part time job. Here is a list of 50 part time jobs to consider. In addition, this might be a perfect time to make a few extra dollars as a 2010 census taker or work doing some mystery shopping.

From there I would map out a long term game plan on how you will use your education, gifts, and passion to find a more profitable full time job.

Reduce Spending

Be sure that you are keeping a written budget every month. Learn how to make a budget. Also, cut costs by being resourceful. Make frugal your new favorite word.

I hope this information helps and I hope that you can find a way to get free from this financial burden. Let me know if there is anything else you need.

Disclaimer: None of this information should be considered legal or professional advice. You should additionally seek out the advice of a financial professional. Your exact situation depends on facts unknown to me.

Anyone else have any advice? How would you advise/encourage this reader?

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10 Tips For Knowing When To Refinance A Mortgage (with Free Mortgage Refinance Worksheet)

Craig — Thu, 28 Jan 2010 09:00:00 +0000

Refinancing your home could be a great way to save some money and even accelerate your house mortgage repayment. Unfortunately, people commonly do a refinance in order extend their term and thereby lower their payments. Any time your extend your term you are agreeing to pay more for the mortgage in the long term.

Refinancing your mortgage could be a great financial move as long as you follow some important guidelines.

Important Guidelines to Consider When Refinancing Your Mortgage

Don’t extend the length of the loan. Remember, your goal in this process is to get out of debt. The fastest way for that to happen is for you to take as short of a term as possible. If you are going to use the refinance as an excuse to extend your mortgage then skip the refinance.
Consider reducing the length of the loan if it fits into your budget percentage categories – 25-35% of your take home pay. In fact, if you are reducing your rate and you can handle a small increase in monthly payments you will save a ton of money over the life of the loan. For example, for a $150,000 loan at 6% over 30 years you will have a monthly payment of $900.00 and you will pay a total of $324,000. If you could reduce your rate to 5.5% and get a 15 year loan you would pay $220,590.00 over the life of the loan. Your payments would be $1225.50 per month.
Contact multiple banks. Since banks are always competing, don’t just visit your local branch. Shop around and be sure that you are getting at least the national average. Visit www.bankrate.com to get the national loan average.
Negotiate. If you feel better about one company but their rate is not as competitive, don’t be afraid to let them know the situation. Use one simple negotiating tip – ask if they can do any better.
Anticipate your plans. If you plan to or might move within two years the refinance might not make sense. Using the forms below you will be able to find out how valuable a refinance will be if you plan to move soon.
Don’t add anything more to the mortgage. Sometimes people use a refinance as an excuse to borrow more money. Once again, this would be a step in the wrong direction. Don’t borrow more money. In fact, paying off your mortgage early can be a great idea.
Stick with a fixed rate loan. Fixed rates are predictable. When it comes to your place of residence you need the security of knowing you can afford mortgage interest rates. Any significant increases will be too costly.

When Does A Mortgage Refinance Make Sense?

When you it doesn’t force you to assume any extra risk (assuming you use the guidelines above).
When it saves you money (see the free refinance mortgage calculator and worksheet below).

Free Refinance Mortgage Calculator and Worksheet

Download your free mortgage refinance spreadsheet now - mortgage refinance spreadsheet (23)

How to Use the Free Downloadable Mortgage Refinance Spreadsheet

You can download, edit, distribute and change the form (please leave the attribution link).

The form can be easily customized based on loan length, interest rate, and mortgage amount.

Download the worksheet.
In section “B2” (highlighted yellow) enter your actual mortgage rate.
Go to “D20”(highlighted in blue) and enter your current monthly payment (from the chart – just find your loan length and your current interest rate).
Go to “D21”(highlighted in red) and enter your new monthly payment according to the available interest rates you are finding.
Go to “D24” (highlighted in green) and enter the closings costs for your refinance.
If “D25” (highlighted in purple) is a positive number then you should consider refinancing. Obviously, the larger the number the more important it is that you refinance.

Photo by mescon.

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2. Take a long walk together.

3. Make your own Valentine’s Day card.

4. Write a story or blog post for your Valentine.

5. Plan an inexpensive getaway.

6. Do an at-home date.

7. Have a popcorn picnic.

8. Do something your Valentine has always wanted you to do with them.

9. Serve.

10. Make a homemade Valentines Day gift.

Options When You Can’t Make Student Loan Payments

How does one pay back student loans when they can barely make rent and buy groceries?

Short Term Solution: Student Loan Deferment or Forbearance

Deferring Student Loans

Student Loan Forbearance

Is a student loan deferment biblical?

Increase Income

Reduce Spending

10 Tips For Knowing When To Refinance A Mortgage (with Free Mortgage Refinance Worksheet)

Important Guidelines to Consider When Refinancing Your Mortgage

When Does A Mortgage Refinance Make Sense?

Free Refinance Mortgage Calculator and Worksheet

How to Use the Free Downloadable Mortgage Refinance Spreadsheet