Compound interest is a double-edged sword. Albert Einstein reportedly called it the 8th wonder of the world, saying He who understands it, earns it; he who doesn't pays it. Einstein knew that compound interest is a force to be reckoned with. Today, financial planner and teacher Rob West explains how you can either make it work for you or let it work against you. Then its your calls at 800-525-7000. A recent financial literacy survey found that individuals who fail to grasp the concept of interest that compounds have higher transaction fees, run up more debt, and pay higher interest rates on credit cards and other loans. Simple interest is what you pay on the original amount you borrowed or what you have in the bank only.Simple interest applies a fixed rate, meaning that the dollar amount you pay in interest remains the same for the life of the loan or account. Compound interest is calculated on your principal amount, plus your accumulated interest. So the amount you pay, or receive, in interest will change, it will grow over time. Compound interest works for you if you're saving money, but against you if you're borrowing. To take advantage of compound interest,do not' carry a balance on your credit card. Pay off any consumer loans as quickly as possible, making additional payments on the principal if you can. Here are some questions we answered from our callers on today's program: I am going through a divorce and am having to give 40% of my house to my ex. I am thinking of allowing my son to rent the house from me. Another option is to sell the house and use the money to pay off debt. What is your advice? Would it be smart to sell stocks and pay off the remainder of our mortgage? I am a beginner at buying stocks. Where do I start? I had a life insurance policy with my job. I have been encouraged to obtain life insurance outside of my job also. I have a student going into high school. Where should I start? Ask your questions at (800) 525-7000 or email them email@example.com. Visit our website atmoneywise.orgwhere you can connect with a MoneyWise Coach, purchase books, and even download free, helpful resources. Like and Follow us on Facebook at MoneyWise Media for videos and the very latest discussion!Remember that its your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab at the top of the page.
Most people understand that investing involves the potential for both risk and reward. There's the risk of losing our money and the potential reward of growing it. But is that all there is to it? Are there other risks more important than money? And are rewards greater than a healthy bottom line? Today our host Rob West talks with Jason Myhre to find out. Jason Myhre is Managing Partner and Director of Advocacy at Eventide, a Boston-based investment company practicing faith-based investing and a financial underwriter of MoneyWise. Jason's passion is telling folks about the importance of considering our values whenever we invest. When we talk about the risks and rewards of investing, we speak in terms of money. But we need to know that there are greater risks and rewards to investing than just losing or making it. There's also the risk of losing life's intended wholeness and integrity by profiting from businesses and activities that go against our beliefs and values. For most investors, investing looks like account statements, ticker symbols, news reports about the market, and Wall Street. Most of us aren't thinking about companies. But the problem is the not knowing. Investing is like being married to a crime boss. The wife of the crime boss enjoys great profits and a luxurious life. But she has no idea where the money's coming from. She doesn't ask the hard questions about what's happening on the other side of the door. For Christians, faith-based investing is an approach that provides investment vehicles to Believing investors whose returns don't flow from companies and sources like tobacco companies. And in some cases, as with the company I work with, to actually take a step further and to seek to generate returns that flow from companies we believe are aligned with God's heart. Faith-based investing can join in God's work. When we read Scripture for indications of God's design for work and business, we learn that God intends for his children to further his good work of creation through our own good works. Investing can be a way for us to participate in that work. Learn more about putting your faith to work in investing at InvestEventide.com. Here are some questions we answered from our callers on today's program: --Will closing our unused, store credit cards (we have no balances on them) affect our good credit score? --I signed up for a PACE program which will put a lien on my house. Should I cancel this program? They gave me a good rate: 3.8% for 30 years. --I'm in the DROP program with my employer and this is my last year before I retire. What's the best way to invest the money I'll receive upon retiring (it should be about $200,000, pre-tax). Ask your questions at (800) 525-7000 or email them at firstname.lastname@example.org. Visit our website at moneywise.org where you can connect with a MoneyWise Coach, purchase books, and even download free, helpful resources. Like and Follow us on Facebook at MoneyWise Media for videos and the very latest discussion! Remember that it's your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab at the top of the page.
If Christians were asked to name things the Bible tells them to practice in this life they'd list things like worship, love, and obedience. All of those are important, but what about stewardship? It's one of the most overlooked themes in God's Word. Stewardship is where we find joy by aligning our will with God's. Today on MoneyWise, host Rob West talks with Ken Boa about using God's resources effectively. Our guest today, Ken Boa, is a much sought-after speaker and author and the founder of Reflections Ministries. The Scriptures say a great deal about stewardship. It affects virtually every aspect of our earthly existence. To the extent that we put these biblical principles into practice we'll enjoy the freedom and fulfillment that comes only from being Christ's servants. Jesus tells us this in John 12:26, "If anyone serves me, he must follow me; and where I am, there will my servant be also. If anyone serves me, the Father will honor him." The New Testament word for stewardship "isoikonomia," from which we derive the word economy. This word means "management of a household," and it refers to the responsibility entrusted to a manager. A steward acts as an administrator of the affairs and possessions of another. He's fully accountable to his master and may act justly as did Joseph who became Potiphar's steward or unjustly as in Christ's parable of the steward who squandered his master's possessions. God is our master. All that we have is His. We're responsible to manage His affairs and possessions because we're His servants. That explodes the popular misconception that we give God His percentage and the rest is ours. According to Scripture, we are accountable to God for everything. Whether we have much or little, our key responsibility as His stewards remains the same: faithfulness. When the topic of stewardship comes up, most people think only of money. But Biblically, stewardship is all-inclusive. Stewardship is faithfully using whatever God gives us for His glory and that's a long list: opportunities, interests, skills, employment, family, talents, spiritual gifts, land, and of course, money. While selfless living is the essence of righteousness, selfishness is the essence of sin. The difference between grabbers who live for themselves and givers who live for God and others is the difference between saving our lives for our own sakes and losing our lives for Christ's sake. We can't keep what we fail to give away. Finally, in 1 Corinthians 4, Paul writes, And what do you have that you did not receive? But if you did receive it, why do you boast as if you had not received it? God entrusted us with aptitudes and abilities. As good stewards, we must use them for His glory and not our own. Paul also states in Romans 12, "And since we have gifts that differ according to the grace given to us, let each exercise them accordingly." Faithful stewardship of natural talents and spiritual gifts requires that we use them to glorify God and edify others. Our purpose is not to please ourselves, but to serve others. Here are some questions we answered from our callers on today's program: --I have about two years left on my mortgage payments. Will paying this off hurt the aid package I received that help to fund my children's college? --Please tell me the benefits of term insurance. Ask your questions at (800) 525-7000 or email them at email@example.com. Visit our website at moneywise.org where you can connect with a MoneyWise Coach, purchase books, and even download free, helpful resources. Like and Follow us on Facebook at MoneyWise Media for videos and the very latest discussion! Remember that it's your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab at the top of the page.
Hey do you know where your animals are? Not just your dogs and cats but the Bible says you should know well the condition of your flocks and herds. No sheep or cattle, well then how about your checkbook? What the Bible is getting at is to be a wise and responsible manager of your possessions. Here with some thoughts on how to practically do that is Kingdom Advisors President and our host Rob West. And in a few minutes we'll take your comments and questions at 800-525-7000. Number one is that the first part of our income is to be given to God. Proverbs 3 reads, "Honor the Lord from your wealth and from the first of all your produce." The principle of giving and tithing the first part of our increase still holds today. Next, in Matthew 22, Jesus says, "Render unto Caesar the things that are Caesar's and to God the things that are God's." Do this with the right spirit. Don't pay more than you have to, but also try not to do so grudgingly. Be happy God's given you enough to pay taxes and then pray that our elected leaders will use the money wisely. Next God tells us it's our Family. In I Timothy 5 we see, "If anyone does not provide for his own, and especially for those of his household, he has denied the faith, and is worse than an unbeliever." Providing for your family obviously includes food, clothing, housing, a savings account and even preparations for your children's education. Husband and wife together as one flesh should have this as a priority, with each using their spiritual gifts and talents. The fourth division is to Pay your debts. Psalm 37 says: "The wicked borrows and does not pay back, but the righteous is gracious and gives." Paying your debts has to be a priority, not if you can afford it. Being in debt can affect your career, marriage, credit score, emotional well-being and even your witness for Christ. Lastly, it is vital to create a surplus. And there are three reasons you have to do it. First, to meet the needs of others. In 2 Corinthians 8, the Apostle Paul encourages different churches to support each other in time of need. He writes, "At the present time your plenty will supply what they need, so that in turn their plenty will supply what you need." Second, to provide flexibility for emergencies; Prov. 6 reads, "Look to the ant, she prepares her food in the summer, and gathers her provision in the harvest." And the third reason for a surplus, to invest and multiply your assets. In Matthew 25, the Parable of the talents teaches us that a good and faithful steward manages his master's money well in order to return it with interest. Here are some questions we answered from our callers on today's program: --My wife lost her job and thus we lost our benefits. We are in our 60's. Where should we look for benefits? My wife and I have never had to budget. --We've received a large sum of money last year and are about to receive an inheritance. What is your advice on the best use of this money? --I'm 73 years old and I have a mortgage. What is the best way to pay the rest of my mortgage off quickly? --I want to retire early. Will I get penalized on my pensions? Ask your questions at (800) 525-7000 or email them at firstname.lastname@example.org. Visit our website at moneywise.org where you can connect with a MoneyWise Coach, purchase books, and even download free, helpful resources. Like and Follow us on Facebook at MoneyWise Media for videos and the very latest discussion! Remember that it's your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab at the top of the page.
As the world's largest online retailer, Amazon probably does 99.99% of its business over the Internet. However, if you wanted to call them on the phone you could fall victim to scam artists. That's right, calling Amazon has become the latest way con artists are getting your private financial information to steal your identity. Today on MoneyWise, host Rob West explains how it's done and how you can avoid it. We've said many times that you can only trust the other party if you're the one making contact. But now it seems the scammers have found a way around that barrier. Like most online retailers, Amazon prides itself with being able to handle your customer service needs online. You can log into your account and do just about anything you want to do. But occasionally, someone may want to speak to someone at Amazon, and that's where the trouble begins. Let's say you're calling Amazon because you want to cancel your Amazon Prime membership. Your guard is down because you know you're initiating the conversation but you've actually called a scam artist with a bogus number! A man answers saying Online support. You tell him you want to cancel your membership. He asks for your name and phone number and then tells you to enter support.me into a Google search bar. When you do, a web form will appear asking you to fill in your information. Some of it is financial information. If you fall for it, you've given them what they need to steal your identity. Let's say you don't fall for the scam at first. The web page with the form appears and you notice it's not the official Amazon website. So you refuse. You'd think that'd be the end of it, but the scam artist isn't ready to give up just yet. If you refuse, he'll say there's another way to resolve the problem to cancel your Prime membership, and here's where they revert back to their usual bag of tricks. They'll tell you to sign into your Amazon account, search for Google Play card, select a $100 gift card and click the buy button. Though the next step is a bit unclear, you'll probably be told to sign the card over to an entity that might have the word Amazon somewhere in its name, but that would of course be the scammer's account! Keep in mind that this type of scam could work with any online retailer. Amazon customers aren't the only ones being targeted. To avoid falling victim to this latest scheme, make sure you always visit the retailer's official website and then click the Contact us link. Don't Google for a retailer's contact page. A better option is to conduct your business online. But again, do this at the retailer's official website. A legitimate retailer will not ask for credit card information for anything other than buying one of their products, not to cancel an account. Here are some questions we answered from our callers on today's program: --How literal should we take the scriptures which seem to indicate that we should give everything we own to the poor? --Is there a conservative, alternative place to put our money into instead of a 401(k) for safe keeping for a short time? --If the accrued cash value in my home-life policy is withdrawn, does that cash value now decrease the amount of my policy if it's not repaid? --What do you think of term insurance? Ask your questions at (800) 525-7000 or email them at email@example.com. Visit our website at moneywise.org where you can connect with a MoneyWise Coach, purchase books, and even download free, helpful resources. Like and Follow us on Facebook at MoneyWise Media for videos and the very latest discussion! Remember that it's your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab at the top of the page.
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