Managing Debt

A new part of the COMPASS resources this year are live chats with thought leaders on the month’s theme featured on the blog. During March, COMPASS has focused on “Managing Debt: Loans and Money in March.”

Sandy Crozier, Stewardship Development Director of The Free Methodist Church in Canada

Sandy Crozier, Stewardship Development Director of The Free Methodist Church in Canada

This past week Sandy Crozier presented on Managing Debt offering tips and ideas for how to repay debt, have emergency savings, and to be financially fit. The recording of the chat is available here to watch the discussion and gain Sandy’s wisdom.

Please note, as this was the first COMPASS Live Chat there were a few technical issues in the first 5-10 minutes of the recording, but after that, it worked well.

Enjoy the presentation, and please share any thoughts, questions, or comments on the topic that you may have here in the questions and we’ll continue the faith and finances conversation about managing debt together.

This blog is a component of the Ecumenical Stewardship Center’s COMPASS initiative to engage young adults in conversations about faith and finances. Like what you see and want to know/do more? Visit the COMPASS web page and join the COMPASS community on Facebook.

Faithful Fun with Finances in February

How is that for some alliteration? COMPASS’ focus and mission is on creating conversations related to faith and finances for Millennials and young adults. This month on the COMPASS blog, we will dig deeply into some fresh financial topics such as credit scores, credit cards, taxes, income tax filing, and student debt. In March, we’ll continue a focus on finances with a closer look at debt management.

February is a month with more than just Valentines. We are going to have fun thinking about #faithandfinances.

February is a month with more than just Valentines. We are going to have fun thinking about #faithandfinances.

I am looking forward to sharing posts with you on the blog from persons who have far more expertise on these topics than I do. To start the conversation though, I have a few thoughts about some of our February topics.

Credit Scores

I am no expert when it comes to credit scores, but I have checked my wife’s and mine a few times because of having a credit card and paying student loans. I have learned that paying bills regularly and on time has a positive impact on your credit score. The credit score is one factor that is used when deciding if you will be approved for loans or other credit.

Income Taxes

In the United States, income taxes must be filed by Friday April 15th this year. Because of this, I am guessing that most of you have not yet started preparing your tax forms. I have to admit, I haven’t either. It’s on my agenda for this month, and I will let you know on the blog how that goes. Here are some things you can start doing now before filling out your paper or e-form:

  1. Find your 2015 receipts that you might use for deductions.
  2. Make sure that you have received all W-2s and other such forms (like 1099-Misc.) which you receive.
  3. Do a little research to determine the best way for you to do your tax preparation (e.g., do you need an accountant, tax preparation software, do you do it by hand??). The approach will vary based on your level of patience, time, interest, and expertise.

Student Loan Debt

At the start of each month my wife Allison and I make sure to set up payments for our student loans. Because we try to pay enough to reduce the principal in addition to the interest, it’s always nice to see that the total amount has gone down, thanks to the previous payment! If possible, adjust your payment schedule and/or amount to pay more than just the interest on student loans.

These are just a few observations from my experience. It’s also helpful to remember that in spite of all of the stress that financial matters can create, God is present with you. One of my favorite passages to remember which helps me put things in perspective and gives me patience is Isaiah 43:1-7.

“Do not fear, for I have redeemed you; I have called you by name, you are mine. When you pass through the waters, I will be with you; and through the rivers, they shall not overwhelm you; when you walk through fire you shall not be burned, and the flame shall not consume you… you are precious in my sight, and honored, and I love you… Do not fear, for I am with you.” ~  from Isaiah 43:1-5, NRSV.

What are some financial questions and topics that you have been wondering about?

About the Author: Timothy blogs regularly and serves as the Communications Associate for the Ecumenical Stewardship Center with a focus on COMPASS. He also serves at Messiah Lutheran as the congregation’s mission developer.

This blog is a component of the Ecumenical Stewardship Center’s COMPASS initiative to engage young adults in conversations about faith and finances. Like what you see and want to know/do more? Visit the COMPASS web page and join the COMPASS community on Facebook.

Image Credit: Hearts

Budgets, Charity, Giving, and #GivingTuesday

We begin a new month today, December. Over the weekend, those of us in liturgical Christian traditions began a new season and church year as well, with the beginning of Advent. Today also happens to be #GivingTuesday, a day that follows Thanksgiving and the likes of “Black Friday,” “Small Business Saturday,” and “Cyber Monday,” days that are focused on spending and supposed deals with potential for savings.

Hands holding a gift box isolated on black background

Giving- what does it mean to give? 

In this spirit, the COMPASS blog is sharing reflections and insights about budgets, charity, and giving during December. We’ll ponder about how to give on a budget. Among the reflections and perspectives you will hear from in the weeks ahead, are from people working in philanthropy for congregations, churches, and nonprofits.

For today though, this #GivingTuesday, I want us to reflect on what it means to give?

Paul writes to the Corinthians, “And God is able to provide you with every blessing in abundance, so that by always having enough of everything, you may share abundantly in every good work” (2 Corinthians 9:8, NRSV). As I have written before, I believe that God has entrusted us with all that we have, and what we do with this is our joyful response. For me, this means intentionally budgeting to give, being generous, and helping be a part of God’s work in the world.

My wife Allison and I started having budget breakfasts a few years ago, where at least once a month, and lately usually twice a month, we check in and see how things are going. At these meetings, we strive to always take at least 10% of what we have earned or been given over the previous month, and direct that to giving, usually in our congregational offering. Believing that all that we have has been entrusted to us by God, what we have is not ours then, rather it’s God’s. Thus, we return to God a portion of what God has entrusted to us (kind of like the “Parable of the Talents” in Matthew 25).

Allison and I give both because we see needs in the world and know that we have an ability to partner and respond, but also because we are so grateful for everyone near and far who have (and continue to) supported us thus far.

Allison and I give both because we see needs in the world and know that we have an ability to partner and respond, but also because we are so grateful for everyone near and far who have (and continue to) supported us thus far.

We also try and give a little each year to at least one of our alma maters as a way of paying it forward. We have been blessed with great scholarship support over our years of study from people who believe that education matters. We agree, and likewise want to help others in their pursuit of it.

Additionally, in our budget we leave some for potential usage or giving to respond to particular needs that may come up, or organizations doing good work that connect with our passions.

As today is #GivingTuesday, I want to invite you to consider giving some to an organization or group that you have heard about or seen in action that does good work responding to some of the needs of the world or local community. If you need some added motivation, there might even be incentives to give today like prizes or matching gifts. Of course, there is also the fact that your gifts are likely tax deductible and with it being December, the tax year will end at the end of the month.

What does it mean to you to give? Why do you give?

Are you participating in #GivingTuesday? If so, what types of causes or organizations are you supporting today and why?

This blog is a component of the Ecumenical Stewardship Center’s COMPASS initiative to engage young adults in conversations about faith and finances. Like what you see and want to know/do more? Visit the COMPASS web page and join the COMPASS community on Facebook.

Image Credit: Giving.

Frugal Fall: A Financial Self-Examination

During October, the COMPASS blog is sharing thoughts, tips, and reflections about having a Frugal Fall. Today, we are happy to welcome back regular contributor Nicole Brennan, a Marketing Assistant at Barnabas Foundation. Nicole shares some important ideas and reflections about a “Financial Self-Examination.”

Nicole and her friends having some fun this fall, on their visit to see Pope Francis while he was visiting the United States.

Nicole and her friends having some fun this fall, on their trip to see Pope Francis in Philadelphia while he was visiting the United States.

There is an underlying pressure to make the most of the hot weather during the summer months. My days and evenings were booked trying to squeeze in bike rides, family outings, church fundraisers, date nights, and road trips. Now that autumn is upon us, it almost seems the slight chill in the air makes everyone slow down a bit. Take advantage of fall inactivity and whatever breathing room you have to assess your financial health!

I am very money-minded while travelling on a budget, but my “big-picture” finances tend to get a bit away from me. I have automatic withdrawal for all my bills and automatic deposit with my paycheck. Since everything is pre-programmed, it is very convenient, but the details (and my overall financial health) are sometimes lost. I recently asked myself these four questions to audit myself and see how I am doing.

Am I Following My Budget?

I use my credit card for everything- gas, groceries, clothes, and all the miscellaneous stuff in between. When the email comes saying “Time to Pay!” I look over the expenses to make sure they are accurate, maybe add them up if I have time, and spend my accrued points. If you haven’t made up a budget, a monthly spreadsheet in Excel only takes a few minutes to set up, and you can see your immediate monetary stats all in one place. If you already have one, now is a great time to update it, and make adjustments as needed.

What Do My Retirement Savings Look Like?

My financial advisor (aka- my dad) has always taught me to save, and it’s a value I hold near and dear. If you have a company retirement plan, take advantage of it! If not, then personally set one up ASAP! Your HR representative will be able to help if you are with a company. However, if you are an entrepreneur and/or don’t have company help, consult a financial advisor. (You can try to “go it alone,” but if you are unfamiliar with the financial world, it will be difficult. To get started, do some research about 401(k), 403(b), Roth and IRA options at IRS.gov.)This is a great calculator to help you understand what your projected retirement saving goals look like and where they need to be. It factors in rate of return, current and future salary, current age, age of retirement, and a few other factors. It’s fairly simple to understand, and there’s a handy glossary of common terms below.

Did I Use All My Benefits?

Most companies are re-upping for their health/dental/vision insurance and their HSA/FSA  (Health/Flex Spending Accounts) about this time of year. If you have these, have you taken full advantage of them? Have you gotten your annual physical and dental check-up, yet? If you have money left in your HSA/FSA, spend it! And speaking of your HSA/FSA, evaluate whether you need to add more or subtract some for next year.

Have I Donated to Charity and My Church?

During your self-audit, it’s very easy to adopt a “broke” mentality. “I’m so broke, I only have this amount in my savings!” “I’m so broke, I can barely stay within my budget!” “I’m so broke, I can only squirrel away a tiny portion towards my retirement!”  It also might be easy to deny tithing or giving to your church and charity, because of this mentality. The truth is we are abundantly blessed by God. We have enough, and the OPPORTUNITY for enough, to pay our bills, visit a doctor, and save what we can. It is an honor to bless those places and people when and where we can. There is a joy that comes from giving. Make room in your budget to experience that joy!

COMPASS resources explore the connection between faith and finances, so looking honestly at your financial health is an important spiritual practice. Deuteronomy 8:18 says, “But remember the Lord your God, for it is he who gives you power to get wealth.” (NRSV). It is essential to be wise with what God has blessed us with here on earth, and that means knowing and improving your financial situation as God gives you the ability to do so.

profileAbout the Author, Nicole Brennan: Hello there! I’m passionate about living a stewardly lifestyle, while being adventurous and frugal. I currently live in community with six other 20-somethings in downtown Chicago and work as a Marketing Assistant at Barnabas Foundation, a partner of ESC and COMPASS. In my off hours, you can find me volunteering at a nearby homeless shelter, enjoying live music with friends, or watching reruns of Parks and Rec. Email me at nicoletbrennan@gmail.com or tweet me at @BarnabasFdn.

This blog is a component of the Ecumenical Stewardship Center’s COMPASS initiative to engage young adults in conversations about faith and finances. Like what you see and want to know/do more? Visit the COMPASS web page and join the COMPASS community on Facebook.