Christian Finance Blog
Spiritually Prosperous, Financially Rich!

“Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pound ought and six, result misery.”

Charles Dickens

This is probably rule #1 in personal finance. Spend less than you make. If you can’t do that you need to make more money or cut expenses. Get on a budget, find out where the holes are, and fix it. That’s the only way to do it. Hard work pays off in the end.

Here are a couple interviews with financial expert and columnist Liz Pulliam Weston and Pay Yourself First Challenge winner Kristen Shaul.

1. First of all, congratulations on winning! You definitely accomplished much and I commend you and your husband. What was the hardest part of the whole experience? And the easiest?

The hardest part would have been finding a balance between cutting our expenses and going too far sacrificing small pleasures that add value to our life. On top of that, it was difficult creating a system where both Michael and I had a small fund that we could spend out of guilt free. After a couple months of tension we found a solution that both bolstered our savings, while allowing each person to spend on whatever they liked without feeling like they were taking from the family budget.

The easiest was finding alternative revenues on the side. Especially in those early months of the competition (the fall of 2008), the local economy in Omaha was still very strong. Add to that an integrated network in the community through Michael’s family, and we found it easy to find ways to earn extra cash. Although the jobs themselves required hard work, the opportunities were plentiful.

2. I’ve read on your blog about your giving. How has faith played a role in your finances and your choice of career?

Our relationship with GOD through JESUS is the foundation of our life. We chose our path in this world based upon our understanding of GOD’s heart for the nations through the Bible, as well as personal experiences we have had which burdened us to give our lives to HIM through missions. Following JESUS affects both the large decisions in our life (career path), as well as the everyday choices we make (having a family budget, impulse buying, finding the highest yield savings account, etc.). Everything that we have is HIS, we are simply administering it for a short time. We want to honor HIM in our administration.

3. How has living in another country changed your perspective on life? On the United States?

On a heart level, living in a developing country has broken us with the reality that so many live in poverty. So many people around the world live in hardship, without opportunities to live the ‘good life’ so many take for granted. This has changed the ways in which we see money, time, and investing ourselves. The reality is there is a lot of injustice out there. No perfect formula exists by which we can measure acceptable spending versus selfish spending, but our hearts have led us personally to minimize what we consume on ourselves, and maximize what we can do for underprivileged peoples. While the United States gives more aid than any other country, we still see wasteful consumption all around. Our take is most people just don’t realize what the world is out there. Because both Michael and I grew up in the United States we understand the normalcy that our culture teaches towards self-centered living. Many of us were taught that way, it’s something that has been passed down for generations, making it not completely our fault. We were privileged to have the opportunity to go and see ourselves what it’s like to. And it changed our life. But facts are facts: the US is the richest country in the history of the world, and billions of people are barley getting by.

We believe that we have been blessed so that we can bless others. Our lives should be a conduit of blessing. If we are faithful in what we have been given, GOD will continue to increase HIS blessing to us in order to reach more and more people. For those of us who are so fortunate to have been born in the States, we have a responsibility to do well with what we have. To him that has been given much, much will be expected. And we have found it is a joy doing it!

4. You seem to have a great relationship with your husband. What would be your best piece of advice to newlyweds?

Create the time and the space necessary to adjust to married life. Don’t go crazy with work schedules; instead maximize your time together. Learn to very open, and very honest with each other. Fluid communication is key in the beginning of marriage (not the mention the rest of it!). Discover those little things that you can both enjoy doing together. And finally, keep things simple, and keep love the center.

5. And finally, who is the role model who has made the biggest impact on you?

There has been a lot of people who I have looked up to over the years, it’s hard to pick just one. But someone who sticks out would be a woman named Kathryn Wilson. Her and her husband Thomi have been involved in missions (both local and abroad) for years. They did it well while raising a family of five kids. When I began doing missions work as a youth, they were my first leaders, and for years Kathryn took me under her wing. She taught me to believe in who GOD made me to be, to serve like CHRIST, and to work hard. I owe a lot of who I am today to her.

Check out Kristen’s personal blog and consider helping her and her husband’s ministry.

1. Liz, being a widely read personal finance writer, what’s the single best piece of advice you can give given the economic climate that we’re in right now?

Remember: This too shall pass. We can’t know the exact shape the future will bring, but we know things always change, and every economic cycle in the past has eventually worked itself out. This one is no different.

2. As this is a Christian based blog, what role do you think faith can play in finances?

I think gratitude should play a role in everyone’s finances. We can give thanks for all that we’ve been given by sharing with others.

3. What advice can you give someone who is out of a job and is desperately searching for one but doesn’t seem to making any progress?

Make a list of everyone you know-and I mean everyone, from your grade-school buddies to your coworkers at every one of your previous jobs to people you know from church to your relatives-and let them know you’re looking. Many people find jobs through their “weak” links or the people they don’t know that well. In other words, the co-worker from three jobs ago may be more likely than your best friend to find you your next job.

4. How important is an emergency fund especially now?

Money in the bank has always helped you sleep better at night, and it’s particularly important now as more people are lose their jobs and stay unemployed longer.

But you still have to coordinate an emergency fund with your other priorities. If you still have a job and aren’t facing an immediate layoff, I wouldn’t stop saving for retirement or halt your credit card repayment plans to build up your emergency fund. It’s tough, but you need to make progress on all fronts.

5. And finally, being so knowledgeable on finances, who or what has made the greatest impact on your financial education and what do you think every high school or college student should know about money?

My mom. She believed in saving for a rainy day, avoiding debt, investing for the long term and sharing with others. If we could convince every graduate to save at least 10% of their incomes, pay their credit card bills in full every month, invest for retirement starting with their first job and give regularly to charities, then most money problems would be a thing of the past.

Liz Pulliam Weston is the most-read personal finance columnist on the Internet and writes for MSN Money and several newspapers including the L.A. Times and others. She has also authored several books on personal finance. Check out her website or follow her on Twitter.

12 A prudent person foresees danger and takes precautions. The simpleton goes blindly on and suffers the consequences.

Proverbs 27:12 (NLT)

Prepare for the future. Budget. Even the Bible talks about planning ahead for future expenses, emergencies, etc. Don’t just live paycheck to paycheck!

So I told you about the Heartland Bank Direct online Performance Savings Account last week when it was offering 2.30%. It is already down to 2.10% 2.01% now, which is not a good sign. Still, it’s a great rate and one of the highest you’re going to find anywhere right now.

So I decided to open up an account and share with you my experience!

I started the application process on May 13th. Went to Heartland Bank Direct and clicked on “Open Now”. It asks for all your regular information like your name, social, address, driver’s license etc. You’re able to do an electronic fund transfer (EFT) or send a check for the opening deposit. I decided to do EFT and input my ING Electric Orange account details. My trial deposits were in my ING account the very next day (May 14th) which I confirmed. On May 15th, my initial deposit was deducted from my ING account.

After that I had to do the initial sign-in setup by clicking on “First Time Login”. There you have to verify your information again (name, social, etc.), input your email, and create two validation questions (just in case you forget your password and for extra security). It then tells you to wait 1-2 business days for login.

My login and registration was approved on May 18th. I had to change my login user ID and password (from the default). Then I had to register for funds transfer (verified with a validation code sent to email), which I verified the same day.

So I logged into my account and it shows zero dollars for my account balance. Also, my ING account is not showing up on the funds transfer section. So I decide to call customer service (877-444-5148). I didn’t know it was after hours and the automated system didn’t let me know that nobody was there, either. I found out the hours online which are 7am to 7pm CST Monday through Friday and 8am to 1pm CST on Saturday.

So I emailed them (support@heartlandbankdirect.com) that night instead and got a response the next day. They state that opening deposits can take up to 3-4 business days from account opening for initial deposit to show up. Oddly enough, my initial deposit was credited the same day, which, by the way, was the 5th business day from account opening but who’s counting?

They also state that the external account needs to be added again because the initial deposit and the funds transfers are on different systems. Seems like double work to me. So I had to go in and add my account in again and verify the same account twice.

They seem to be using the same CashEdge system that HSBC and FNBO use which means it’s going to be 3 day transfers. ING Direct takes 1-2 business days for me to push or pull which is really fast. So now my account is open and fully functional.

The interface is similar to many other online savings accounts and works fine, if a little bland. I don’t have any problems with the interface. However, it does show an extra 34 cents on this screen with no indication of where it came from in the detail. That’s not a good sign.

There’s a $500 minimum to open an account, but you can get the full interest rate on anything under that (with no fees). Heartland Bank Direct is a division of Heartland Bank, which was established in 1887. And yes your money is FDIC insured up to $250,000 ($100,000 after this year unless they pass a law extending this).

There is the standard 6 outbound transfers a month with a $20 fee if you go over so don’t do it. There is no hard credit pull, just a soft pull. Also, interest is deposited quarterly.

If you’re looking for an online savings rate to stash your emergency fund or your vacation fund, Heartland Bank Direct is a choice you should consider. It currently has one of the highest rates that I’ve seen and it’s FDIC insured. The opening process was relatively quick and painless. Time will tell if the rates will hold up.

Hey, I’ve got some great news! Christian Finance Blog is now available on the Amazon Kindle! It’s just another way to read Christian Finance Blog with the convenience of reading it on your Kindle or iPhone (through the Kindle app).

You can subscribe for only $1.99 a month (30% goes to support this blog and the other 70% goes to Amazon). You can try it out with a 14-day free trial. I don’t know anyone that has a Kindle, but I’d sure like to buy one.

It’s just another way to help support this blog besides giving. Thanks for all you do. I wouldn’t be here without you, the reader!

President Obama signed into law today credit card reform that was long overdue (no pun intended). The legislation had bipartisan support in the House and Senate and President Obama has been pushing it for a while. The legislation passed despite opposition from the credit card industry and I’m glad it did.

These credit card companies are taking advantage of consumers and just plain not treating them right. But if people didn’t get into credit card debt in the first place, so many Americans wouldn’t need this legislation.

Now the legislation doesn’t take effect until February 2010 which is not soon enough in my opinion.

Here’s how it protects you:

• It makes it harder for anyone under 21 to get credit cards.
• It bans rate increases until you’re more than 60 days late and restores the original rate after 6 months of minimum payments.
• It forces credit card companies to post credit rules on the Internet.
• It mandates a 45 day advance written notice of any interest rate hikes.
• It forces them to apply payments to the highest interest rate first.
• It bans universal default, where credit card companies can increase rates if you’re late on payments to any lender.

Well, here’s how you can protect yourself between now and February 2010 when all this takes effect. Get out of debt! You can’t pay any penalties if you don’t have any credit card debt. You don’t have to wait for the government to help you. Help yourself! God bless.

P.S. Did I just notice that President Obama is left-handed? I wonder how many left-handed presidents we’ve had.

“If you owe the bank $100 that’s your problem. If you owe the bank $100 million, that’s the bank’s problem.”

John Paul Getty

Ha! It wouldn’t be surprising knowing how “well” these banks are run these days…

Just got an email from FNBO Direct saying that they’re dropping rates to 1.65%. I’m glad that the online bank is being transparent but there are other online banks that offer better rates. Dollar Savings Direct is currently at 2.00% and Heartland Bank Direct is at 2.30% 2.10%.

It’s hard to find a high bank savings rate these days. Well, here’s one I just found. Heartland Bank Direct is paying 2.30% on their Performance Savings account. I found it on Bankrate so it seems legit. I’m opening an account as we speak and I’ll have a review of the account after it’s opened. Stay tuned!

“If you don’t know where you are going, you might wind up someplace else.”

Yogi Berra

Happy birthday Yogi Berra! The former New York Yankees catcher and coach was born on this day in 1925.

This quote is so profound. You need a game plan in life. Otherwise, you won’t know where you’re going. And you won’t know when you’ve reached your destination. And what better life plan is there other than the Bible? The Bible is our blueprint for life written by the one who created life.

Get a game plan!

11 They entered the house and saw the child with his mother, Mary, and they bowed down and worshiped him. Then they opened their treasure chests and gave him gifts of gold, frankincense, and myrrh.

Matthew 2:11 (NLT)

Happy Mother’s Day! This verse is about how the wise men came to seek out the baby Jesus and when they found him, they worshipped him with his mother at his side. Moms are important. Mary played an important role in the birth of the savior of the universe.

What would we do without our moms? Love her, cherish her, help her, honor her. It’s the least we can do.

Remember that Moms rock! So treat her like a rockstar today and every day! God bless!

I blogged about this contest last year and the contest has now come to an end with a winner announced! Kristen, who was saving for nursing school, was voted the winner. Congratulations to Kristen for saving the most money.

Stay tuned for an interview with Kristen as well as financial expert Liz Pulliam Weston.

“Cinco de Mayo has come to represent a celebration of the contributions that Mexican Americans and all Hispanics have made to America.”

Joe Baca

Happy Cinco de Mayo! Just in case you didn’t know, Cinco de Mayo is not Mexico’s Independence Day, which is actually on September 16. Cinco de Mayo celebrates the victory of the Mexican army over the French army at the Battle of Puebla on May 5, 1862.

23 Know the state of your flocks, and put your heart into caring for your herds, 24 for riches don’t last forever, and the crown might not be passed to the next generation. 25 After the hay is harvested and the new crop appears and the mountain grasses are gathered in, 26 your sheep will provide wool for clothing, and your goats will provide the price of a field. 27 And you will have enough goats’ milk for yourself, your family, and your servant girls.

Proverbs 27:23-27 (NLT)

I think these verses, especially verse 23 and 24, are talking about knowing the state of your possessions. Knowing what your net worth is and where your money is going is a fundamental skill in winning with your finances.

From the Life Application Bible:

Because life is uncertain, we should be all the more diligent in preparing for the future. We should act with foresight, giving responsible attention to our home, our family, and our career. We should be responsible stewards, like a farmer with his lands and herds. Thinking ahead is a duty, not an option, for God’s people.