Coloring Within the Lines of Personal Finance

Your children the benefits of following the rules.

From an early age coloring within the lines were always results in a much but as adults we often forget those same rules are meant to help coloring in the lines is manage money is our topic today is Rob West has some simple beautifying your financial picture.

We also have some great was lined up box we are recorded today so please hold your calls until next time, I'm Steve Moore.

Get out your friends. This is moneywise live break common sense rules that we know really are good for us, especially when it comes to managing her finances well Steve, I'm no psychologist and I don't want to play one on the radio, but if I had to guess, I'd say it's about delayed gratification of following the rules requires discipline that pays off later. On the other hand, when you break a rule, say by making an impulse purchase it feels good for the moment, although it's almost always temporary. Now following the rules often takes much longer to realize the reward saving for an emergency fund is a good example how you do it a little at a time and you don't see the benefit right away but it sure feels good to have that money available when your car suddenly needs a new transmission. Been there, done that. Okay, so you've got some rules for us that will help us color inside the lines with our money. So where do we start while the absolute most fundamental rule, you must learn to follow is spend less than you earn everything hangs on that Steve. Without it you can't save for the future and you will most certainly go into debt and of course you'll probably never spend less than you earn. If you don't live on a budget, so that's the next rule.

Prepare a written budget or spending plan detailing all of your income and expenses set spending limits for each category and stick to them. By the way our new moneywise out in whatever App store you use is available. I think you'll really enjoy it. Now that leads to the next rule and it's one we often forget about analyze your monthly bills you see, if you don't do this fairly regularly.

You may not see costs creeping up in things like your phone or cable bill banking fees tend to sneak up to so-called request to have unwanted line items removed them if they won't do it well cut the service or look for another provider.

Yeah, a lot of folks don't realize that sometimes a simple phone call can get a charge removed from your bill or maybe even a lower interest rate on a credit card.

It never hurts to ask anyway what else while the natural Steve is another absolute for managing your money. Build an emergency fund of the alternative again is dead, things break and need repair. Unplanned expenses always rear their ugly heads, and you've got have cash on hand to handle them but we talk about this next rule a lot to do and that is avoid or eliminate high interest debt. Use the snowball method to get rid of it quickly paying off the smallest balance first and so on. Let's see next is saved for retirement, Social Security won't be enough to support you when you can no longer work so you have to put money in long-term investments. By the way, Social Security was never intended to cover more than 40% of your preretirement income, and this leads Steve to the next rule.

If your employer offers a 401(k) or 403B retirement plan with matching squeeze every dime out of it. You can I'd say contribute enough to maximize your employer's contribution because it's free money and if you don't have a retirement plan at work well and IRA can be the next best option. Okay, these are coming hard and fast are any other rules about retirement savings. Oh yeah, don't touch it way too many people these days. Tap into their retirement funds to pay off debts or for other reasons that really aren't emergencies.

That's another reason why you need an emergency fund.

So let your retirement earnings grow and as we like to say your future self will think you okay, those are all great rules and regular listeners to our program certainly know about them.

I'm sure I what else are we going to a raise to the level of a rule well. The next rule is by cars for transportation, not status. I consider the reliability and fuel efficiency when buying a car. The more reliable the more fuel-efficient car is the less it will cost you down the road that pun intended J good job. So there you have it folks owe rules to help you color inside the lines and beautifying your financial picture. Thanks so much Rob you're listening to moneywise live with Rob West.

Today's broadcast is pretty recorded so we won't be taking any calls but we have some calls lined up in some great information coming your way, but I think you will find usable at the very very least, this is moneywise live on money and life run on the same track. Unfortunately, sometimes it seems like your money is heading in a different direction from your goal, and never enough three keys to financial contentment. Author Ron blue helps you to break down all your financial options to a basic floor and then shows you how to keep it all chugging along in the right direction on the same track never enough three keys to financial contentment available when you click the store button at moneywise live out of work for 30 years and sound mind investing has been helping Christians reach their financial goals. Step-by-step guidance for investors at every stage from those just getting started, those getting ready for retirement through scriptural principles and practical suggestions. SMI offers financial wisdom. More information in a short deal webinar on profit and peace of mind, no matter what's happening in is available at sound mind investing the link columnist for the New York Post, Wilson made this simple observation about the power of science and mathematics is a wonderful science, but it hasn't yet come up with a way to divide one tricycle between three small boys and all the parents math and other sciences seem to have the most answers were things are involved, but as soon as one or more people equation sciences. You see, people need to nurture and fairness above all small boys with tricycles God to help them solve life's this is David Jeremiah to get on the way God can help.

Driving start your journey home today. And if that is robbing you of freedom and peace of mind. Christian credit counselors can help where a nationwide nonprofit counseling organization has helped over 3000 individuals in the last 27 years get out of credit card debt percent faster while honoring that debt and phone to learn how Christian credit counselors can help you visit Christian credit counselors.org Christian credit counselors.or call 800-557-1985.

In addition to our radio program. Don't forget you can check us out online. You'll find this at moneywise media when you're on Facebook on our website is moneywise live.org lots of free resources. There links to past radio programs ways to connect with the kingdom advisor and much much more. Moneywise, live.org, Winnebago, Illinois hi Scott, what's on your mind today. How can we help user job following year 401(k) with my old employer need that.

Should I roll over and alter getting my new 401(k) Scott I would roll it out to a traditional IRA that you would open at another institution reason, we recommend that is it's can open up your investment options, especially in a market like we been in our prices are considerably lower than where they were three weeks ago you could get into some really high quality mutual funds based on your investment strategy, time horizon, risk tolerance, but you build a portfolio that you could move into and then not benefit from the appreciation and growth of that over the long haul, doesn't mean it won't go down before it goes up even more. But the bottom line is you would be well-positioned to take advantage of appreciation in the market down the road, but the extended and expanded investment options through the 40 excuse me through the IRA are really the best thing that you have there. Secondly, you have more control over the fee structure so inside the current 401(k) there's plan administrator fees and other fees that are putting a drag on your investments and you really have complete control over how you want the fees set up in your IRA you could go without real low cost ETF portfolio or Robo advisor you can hire an investment advisor who would manage it for you. If any number of choices, but you're in the driver seat there and so I like the idea of you rolling that out and not continuing to leave that there and then certainly bow means when you are able to begin participating in the new 401(k) specially there's matching I would jump in that, with the goal of 10 to 15% of your take-home pay and if you don't. In the meantime, what you don't have that you could not contribute to this traditional IRA that you be rolling these funds into while you're waiting again.

Now's a great time to be investing systematically into the stock market through what's called dollar cost averaging. So do you follow all that I don't I know your matches.

Okay. All right.

Well, you could certainly start with the traditional IRA, which again would give you many more investment options but you'll find that you know if you're under 50, you're gonna bump into that $6000 In terms what you can put into the traditional IRA and that's where even without a match, you're probably going to want to take advantage of the 401(k) just because there's a lot greater contribution dollars that can go into that because the limits are much higher.

So that's where even without a match, you'd still want to use that when you exhaust the annual contribution limit to the IRA tablets got thank you very much we appreciate that. Let's go to Chicago, Illinois now and we say hi to Trish Trish were so glad you called today how can we help. I never heard care credit card and my dental office finance, click it and I just received a letter that the account will be closed and I don't use it, and I don't want to ruin my regular credit that I've got to get an apartment and make sure I have banded and could no value so I don't. I heard it credit cards are closed it below. Here number your score. Yeah, sure. Traditionally help you with, you know, it's really not as big of an issue as you might think.

The first of all, do you have other accounts that are being reported to your credit report on time every month I've been taking care of okay very good so where the issue comes in is number one of the biggest issue people have is with something called credit utilization. So think about all the different credit lines that you have available to you through available credit on a credit card or something else.

There's a total there, and then think about the balances you're carrying, hopefully, are paying those off every month. But if you're curing a balance.

Think about what that is in relation to the total credit available to you again across all these accounts that number is when we convert that to a percentage of the total credit is something called credit utilization, how much credit are you using versus what's available to you in total. When you take one of the cards out of the equation. The total credit available to you comes down which means that if you're carrying a balance it's a higher percentage or a higher utilization of the whole. But if you're responsible with your credit, you're paying your credit off every month and it when you're using credit cards and that's really not a concern to you. So taking this one account. This care credit account out of the equation is not going to have much effect on you, because again you're not caring hi balances number two as long as you don't close multiple accounts in a very short period of time. It really should have a negligible effect on talking, you probably 10 or 15 maybe 20 points at the most.

But then it would come right back over a matter of months. So if this is not an account you're using. I actually like you closing this because it's one more account that doesn't have the potential to be compromised and used fraudulently without your authorization, and if it's open, you really need to be checking it regularly. Either three credit reporter through the account itself to make sure that nobody's using it without your authorization. But if it's closed and that's not an issue any longer.

So I go ahead and let it be closed if you don't have any intention of using it and I wouldn't worry about your credit. I don't think it'll be effective if it is it'll be a very negligible amount, and it would return to its previous level in a very short period of time is at. Does that make sense to understand that Trish Knight credit card through my bank and I don't know where this money would be coming from. If I used it. That's what I'm concerned about because it does say it's good for chiropractic and my insurance now I can't go to the chiropractor that I have always gone to because it's not qualified with my insurance and this shows chiropractic, so I'd almost like to use it for the awareness that money come from. This is basically just a credit card it's healthcare financing and so you can use this particular credit card to pay for your deductible or treatments or procedures, but your going to have to pay it off just like you would with any other account so there's not really any benefit to you in using this particular care credit account versus using one of your other methods of payment so I wouldn't think twice about closing and Trish were that were going to have to let you go today because they were out of time, but we wish you the best. Thank you very much. Great question. You're listening to moneywise live with Rob last time Steve Moore brief pause them will come back and chat some more. Our phone number again 800-525-7000. Do you know if you have enough enough money of house.

Do you know how much is enough. If not, one blue can help with this book. Master your money a step-by-step plan for experiencing financial contentment. Learn how to save and invest and give wisely, how to create a long-term financial plan and how to get out of debt. Find it all in master your money by Ron blue available when you click the start button moneywise live to work. Here is inverse. Q anything you did. You think because the large number of people jumped into the water as writers support this program to request this month to 5768 text the financial wealth you leave behind could be the best thing that ever happened to your loved ones or the worst, and splitting hairs, giving your money and things to your children without ruining their lives. Ron blue explains why it's important to make these decisions now, instead of forcing your heirs to do it later.

Splitting hairs will foster a real appreciation for the precious resources that God has entrusted to you, and it's available. Click the start button moneywise live.org moneywise live he's Rob last time Steve Moore and this quick reminder that today's broadcast is recorded were not really here in the studio but we planned that in advance. We've lined up some interesting callers in advance. I think you'll enjoy these and perhaps even learn something along the way so stick around Hazleton, Pennsylvania hi Teresa what's on your mind, you have come. Yeah training okay let's start there with the car you're looking to buy what questions did you have specifically related to the car you're looking to purchase and avoid by hot yes ma'am what you're referring to is some of the fees that you should expect to pay and others that you may not have to let's go through some of them there is the doc fee and this is where you pay the dealer all for all the paperwork that they have to put in place to complete the transaction. This can be anywhere from one to $500. That was a little challenging to get them to remove.

But if it's anywhere over 500. I would certainly challenge the next one is what's called the destination charge. Should this is where the charge where the automaker charges the dealer for getting the car from the factory into the lot will almost never budge on passing that along to you. So I would expect it to pay that and then there's the state sales tax year in Pennsylvania so you do have a state sales tax so you should expect to pay that as well and then beyond that, there is perhaps a may be charge if you see an advertising fee. I would try to negotiate that down or away. They may insist on charging you for it.

But in terms of the fees that you shouldn't pay there's one called the dealer preparation charge.

This is the charge for preparing the vehicle for display on the lot. I would absolutely try to negotiate that one away and then if they try to charge a fabric protection fee specifically to protect the fabric or the paint I would asked to skip those as well. So you know that the first few that I mention there probably okay as long as they're not you know higher than they should be customarily but the dealer preparation charge.

The fabric protection.

The paint protection. I'd really see if you can skip those.

Another big one Teresa that lots and lots and lots of dealers, try to sell you on is etching your Vin number into the windows in case your car is ever stolen, but the Vin number actually is attached to every different body part on the car so you really don't need it etched into your Windows. It probably cost the dealer $15 to do it may charge you a lot more.

So even if it's done before you get there. Tell them you not willing to pay that okay okay okay all right listen. All the best to you Teresa. We appreciate you checking in with us. I think the last Teresa Teresa, thanks very much. I let's go to Mountain iron Minnesota hi Lee, what's on your mind today where I could be near because my father not. I've been writing pretty fast here because I knew I didn't want to live here forever, but I will wondering night with a VA loan. I don't have an account payment and I have to qualify current $80,000 loan because it a lot but it's enough to get a decent child where we need it is not better to do than to go ahead and rent yeah so you don't have a down payment is rightly correct. I would really discourage you from doing that even though the VA will allow you to get 100% financing.

I really like you taking the time to save and have a decent down payment.

I would usually classify that as a 20% down payment.

I realize that would mean you'd have to rent for a while but I don't think that's a bad idea, especially given some of the uncertainties around the economy. So I think you moving renting for a while getting up for the lay of the land. Figuring out where you'd like to live. Ultimately I getting accustomed to the community and saving keeping your lifestyle low so you can put away a good bit to be able to put that meaningful down payment in place would be what I would encourage you to do. I think you be glad you did like I'm quite certain I'm thinking around the program (to my question really picking absolutely. We appreciate you listening and calling today. May the Lord bless you in this move. Thanks I ready Rob lots of young couples getting married and we often hear from many of those couples who say things like, we weren't sure we were in a position to buy a house during our first year of marriage, but with rates so low. Our friends and family are pretty much saying were nuts not to get a mortgage. Even if we can't afford it. After all, mama data to help us with the down payment.

I appreciate the excitement but I'm thinking little longer term will what you're feeling about Steve. I would really not use this as an excuse to get beyond what would be considered sound financial wisdom.

There's a reason that we say delay a home purchase until your ready is a new couple. You're just learning what it means to be married and combining everything in your life including your finances and kind of figuring all of that out. It's an exciting time, but to add the pressure of a home lot prematurely. Where there's financial pressure is just not something you want even though the rates may be too good to pass up. Quote" so I would say pass on it.

Were going to be in the low rate environment here in my estimation for quite a while and so I wouldn't get ahead of yourself and trying to push to do something that you're not ready for. Even though you're going to hear people tell you historic rates will come and go, you gotta do it.

Don't buy into it. As you know Rob, I tend to be a little on the older side I can remember back when we had two stations, maybe 2 1/2 stations. Everything was in black-and-white and back then the first year we were married a great rate something that really made your heart beat fast was 7 1/2%. Can you imagine that 7 1/2% anywhere blessed to be able to find that in that we had arranged. When a caller this week. He was talking about the 12% mortgage interest rate that they had so yeah, this looks pretty attractive somewhere in the twos and threes and even the force at the bottom line is, count your biblical chickens think long term. Obviously, if you can put 20% down. That's a much better approach. Even if you can get a VA loan. Any other thoughts in that regard is that much.

It I think. Well, not sure biblical chickens are but other than that, no, I think that's exactly right. And here's one other piece of advice I would have is as your thinking about getting married is your heading toward that day. How exciting. Talk about what money was like growing up start talking about the lifestyle you think God is leading you to make some of those decisions. Now as you begin to put your finances together and don't count your chickens before they hatch. That's what I meant not a Chick-fil-A reference stick around investing is more than just return it's an expression of who you are and what you value is the way you invest your money reflect your identity as a Christian at eventide. We design investments for performance and a better world so you can invest with the confidence to reach your financial goals while remaining truly are Christian values and commitments. We call this investing makes the world rejoice more is available@investeventide.com invest eventide.com Christian healthcare ministries enables believers to meet their healthcare costs affordably, biblically and compassionately. It's not insurance but a voluntary cost-sharing ministry based on the biblical example of Christians sharing each other's needs and members are defined under the law for not having health Christian healthcare ministries might be your health cost solution call 800-791-6225 or visit CH ministries.org communications major and many families that week is founding 667.

These commandments today are to be on your heart. Children want, when you lay down that's Deuteronomy 667 first. Every child needs. These four gifts from their relationship. Integrity teaching and experience the host of publishers waiting for a change. Brian Moritz just going straight, thoughtfully walking through process your copy of the data available now@moodypublishers.com that's Moody publishers.com and here's a great deal more about our money than most of us imagine Jesus is more about our use of money and possessions and about anything else, including both heaven and hell and managing God's money, author Randy Elmer and breaks it all down in a simple, easy to follow format that makes it the perfect reference to if you're interested in gaining a solid biblical understanding of money, possessions and eternity managing God's money is available in the store moneywise. Life thousands of airline employees getting furloughed while the companies wait to see if they'll get more money from taxpayer.

What else is included 20 billion for airlines and a $1.6 trillion covert 19 really proposal that's closer to the house Democrats $2.2 trillion plan but agreement still up in the air. Russian opposition leader Alexi Tebaldi who was recovering in Germany after being poisoned in Russia by a nerve agent accusing Russian Pres. Putin being behind the crime, the NFL postponing settings. Pittsburgh Steelers game in Tennessee until later in the season that's after two more people on the Tennessee team tested positive for covert, 19 stock indexes ended higher after another day of back-and-forth trading that I'll gain 35 points. The NASDAQ up 159 in the S&P picked up 17. This is SRN use God's word. John 1335 reminds us. By this all men will know that you are my disciples have love for one another that works in all sorts of times pandemic. No good to have you with us today.

I moneywise live Austin Texas Marina. Thanks so much for calling and what you question I got mine about researching Arlo know what to do. I have I want a leg up in life and I saw not directors.

So what would you recommend yeah. Well, there are some great options out there, Marina for someone who's just getting started. More than ever, and many of them are very low-cost and very easy to use and factor a 23-year-old is grown up in a digital world with a smart phone at their fingertips or some wonderful app-based solutions out there as well, but the first question I would always ask is what's the purpose of this money is this money that is truly long-term where your thinking man if she could start now and just socking away a certain amount every month, starting with what she arty has for retirement and then just not touch it and let it grow. That's that what you have in mind are you thinking investing but you want to be her to be able to use this money and within five years are certainly within 10 years. What would it be for long-term to she found her criminal worker appetite dealing idea okay well so here's what I would do. I would have her open up two accounts, one is a Roth IRA. She can put in up to 6000 this year for 2020 and she can do that as long as she has earned income.

I would open that Roth IRA probably in betterment or or through the Schwab intelligent portfolios either one of those are to be at bay still ask her a series of questions it'll build a very low-cost very well diversified portfolio for her using index ETF's and basically that's just a fancy way of saying she's going to capture the broad moves of the market and in a portfolio that's tailored to her words more aggressive. But it's not banking on one particular stock you she owns the market and shall capture again these broad moves of the market over a long period of time.

So either betterment or Schwab intelligent portfolios. Very simple to do very low-cost and she just starts putting in that 6000 this year and 6000 next year and she does that every year shall literally have hundreds of thousands of dollars when she's ready to retire. In addition to whatever she might have from a 401(k) or or something else. Then, with the balance. What I would do is encourage her to open a second account which is a high-yield savings account and have her connect that to her checking account.

She could do that it how I bank she could do that at Marcus either one of those have great websites that have great apps and shall get about 1% on the money.

But that's not why she's doing it. The key is to start saving and building up that emergency fund and then that reserve that shall pull for the down payment from its completely stable.

She don't have to worry about the loss of principal. It's FDIC insured and it's not in her checking account so it's separate from her spending account which means she's less likely to touch it if she gets these two things going. The savings account with the emergency reserve and ultimately the down payment for the house and the 6000 year in the Roth IRA if she will be well on her way to having a solid financial foundation that make sense mutual funds are some portfolio that she should do later on. Well that's that's what's good to be essentially in this Roth IRA. I mean if you want her to have a separate investment account outside of the Roth because you can't get enough in there with the 6000 limit she could open just an individual brokerage account at betterment or Schwab and put some additional money in there but I'm thinking.

Given what she's needing. In terms of buying a house someday. She probably doesn't want to put too much in investments because she may want to pull out two years from now, the market may be down and so I would just be very careful as to not over contribute to an investment account. If it's not truly long-term money. Marina is your daughter is interested in this topic as you are interested in it for her. She should want a little help on where to start. That little little boost you all and everything under all. I just want to give very little direction I want to help you with that working to send you. You stay in the line will get your contact information. We must send you a complimentary copy of the book sound mind investing and you may find this book interesting yourself, but I know your daughter will and I trust that this will help her as she moves along with your encouragement into the future were glad you called today. God bless you. Thanks so much. Chicago, Illinois hello Barb, how can we help you appreciate it found 6061 62 in September I went down part of a recent rest at our company and I was given DP but I was given a surrender value of holy company a life insurance. The 40,000 also I had nonqualified deferred comp plan of 40,000.

So my question is, what should I use that 80,060 on the Houston 12,000 on the car. We have no other debt should I use some of that money to get the payoff how the car tell me about the rest of your financial eye because I love the idea Barb of you being completely debt-free.

Obviously that's going to give you ultimate flexibility to give you some peace of mind. Obviously it will reduce the overall monthly expenses. As you no longer have these payments, which gives you more that you can plow back in the savings are giving her long-term investments.

So that's great. Beyond this money that you be receiving. Do you have an emergency fund of 3 to 6 months in savings. Do you have other retirement assets and you feel like you're on track for your future… In total assets right now it finally got through Goldstone financial tire financial group that were working with about 1.6 million in assets that my husband got quite a few hundred shares of Tesla and I never got have to pay capital gains this year on the back and I heard the three be 64 in October. He probably get to work another three years or so yes okay well you know the key with the Tesla stock is make sure you hold for at least a year. If you can, which will help out a bit give you the long-term capital gains. Obviously that stock is done quite well over the last year, but I think given the assets that you have given the position that you're at, assuming you all you and your husband have a conviction around being debt-free and that something that would give you some peace of mind. I think there's no reason not to go and just pay all this stuff off and be completely out of dad and then again take that excess that you have and use that for additional giving her additional savings opportunities but I don't see any reason why you want to continue to pay interest on on these these debts. Given this money that you can have unexpectedly Barb, thank you very much for calling today. We do appreciate that you're listening to moneywise live with Rob West, I'm Steve Moore.

It really is a pleasure and an honor to be with you each day.

If you'd like to know more about who we are really and what our ministry is work you'd like to make a donation to our ministry and do all that moneywise live.org just click the donate tab at the top of the page 20. Wise live.org will be back after this. Buying a home is the largest most nerve-racking purchase. Most of us ever make.

It doesn't help that you're entering a maze of unfamiliar words and confusing options that can leave you intimidated frustrated and afraid. You can take advantage of navigating the mortgage made by Dale Vermillion help you clear up the confusion on rack your nerves and make the best mortgage decisions possible with confidence navigating the mortgage maze available when you click the start button moneywise live.org hi I'm very glad I'm here to help you understand how urgent it is a sugar for every opportunity to the eyes of the layman living in crazy times and you can get you if you're not focused on God as your lights dimmed by the dents of the world around you.

Are you still shining brightly for the Lord, don't let your hope and trust in God be snuffed out by circumstances. Your goals look the power of God were to ignite your life even brighter.

As our world grows darker helping those living in darkness be guided in the light of Christ unless Christian understanding of beacons of light. Just as Shirley's boxers Rhonda like people living in peer drawn the people living in the light of God's word. They're searching for. From what you have when your count is prox and asked for the reason for the hope that you have within you. There asking you to share your faith. There is nothing more exciting than knowing God is using you to move people closer to join us in America. This is a engram lots of daily life for daily living pressures of day-to-day responsibility and use of crisis after crisis in our world. The problems I face within my family or ministry have an unsettling effect draw encouragement from the fact that Jesus's disciples also experience problems, pressure, and unwelcome years Jesus understood their emotional, spiritual and physical needs.

In Mark 631 come with me by yourselves or quiet place and get some rest.

Discovered that his solution for the disciples of all is his same solution for disciples today. Listen to me.

We need to have time to spend time but I don't have any extra time to spend so I have to make the time. I make sure at least once a week. Draw Sabbath Jesus for an extended time is like sending my spiritual compass at time of retreat keeps the needle in my heart and mind focused on him regardless of what happens during the week. This is a engram lots.

Most companies can't talk about most money books expected. How can you create a budget for pay down debt. If you can even talk about spending or saving. If you get tense about your just plain avoid many conversations altogether thriving in love and money like Chante and Jeff Philpott is for you and it's your screen when you donate $25 or more to moneywise live.org thriving in love and money for a better relationship not just a better project. Understanding God's Word the Bible say about that giving housing credit saving giving faith, trust, eternity how all those things impact our approach to finances in our daily use of money and if we can help you along those lines.

That's why were here. In fact, let's go back to our phones, Cleveland, Ohio hello Caleb what's in your minds are about capital gain just sold her home in Colorado walked away after each title $1000 where going to buy a home here in Cleveland and where looking at fortunate not well I think I'm not have to put all of that down 20% 20% just on a cheaper home insurance. My question would be what we put down… One. Will we be incurring capital gain on the $11,000 will be or will will even be all, this was your primary residence that you just sold Caleb's not right. And did you live thereto out of the last five years prior to the sale.

Okay so you have capital gains exclusion for a married couple of the half million dollars and that's not the sale price. That's the game. So anything you have less than that in gain of 500,000 you don't have to do anything with it. It doesn't matter what you put it into a new home or you know keep it and invested. There are no capital gains and that's as a result of the primary residence exemption there for capital gains tax. So I think what you're doing is you're thinking about an investment property in what's called the 1031 exchange. We have to take the proceeds and roll it into another like property but that's only for investment properties with your primary residence long as you meet the ownership and use test, which is that two out of the last five years as your principal residence, then you've got 1/2 million dollars worth of exemption right congratulations on that. All the best in your new endeavors. Thanks, Kenneth S so they moved from Colorado to Cleveland.

Recent meetings, a member of the Cleveland Browns. I guess we'll never know when they landed in Georgia hello Virginia what your question for Rob W. Made Way wages have a problem we join account. I put all my eye doctor data, I have them put all his salary and their bank account hardware, he painted a patient I saw phone and take them beyond the I paint foundation, Comcast, hunting out back. I know he hiding not putting all he amount everything he alone half and we are bold today that can manage he doesn't have to pay any child support anything and when lying in Allen collar account, but you don't put money because I am looking for that he's like yeah I know he week four or five in the morning. Now I need I need God like your advice how to hand in a diplomatic way calling Virginia appreciate so much. This question will just encourage you first of all, this is more common than you might think, but it doesn't mean that it's really God's design for the marriage relationship. We know clearly from God's word to become one, and so that means God's plan and design for marriage is oneness, and that includes every area of our lives. There's not any particular area at all that we hold outside of that design that God intended for his institution of marriage and so the question is how do we foster that oneness in your marriage, including in the area finances because this really ultimately is in a financial issue.

This is issue an issue about bringing you all together as husband and wife. Bottom line is, none of this money is either of years. It all belongs to God itself is ease the owner.

You are the stewards, but he's made you stewards together because you've been joined together in the marriage relationship and so now all that God has entrusted to you regardless of how he provides it whether it's through his employer, the government, your employer a windfall somebody shows up on the doorstep and turn something over to you because God prompts their heart doesn't matter how God chooses to provide for you.

The question is, as a married couple.

How are you going to manage and steward and allocate God's money, and I think that's really the fundamental shift that has to take place starting with God's design for marriage and then this this game changing idea that it's all his earth is the Lords and the cattle on a thousand hills, is what we read in Scripture. So we gotta start there and that may involve you just will first of all you need to pray and ask the Lord to open his eyes to these truths as you articulate that I think you could go a couple of directions after you pray and ask God to intervene here in ways that only he can.

Number one is you can invite him to have a conversation about that and just to listen and acknowledge just what you said. I know how hard you work and I know that what you're doing to bring income into our family, but that doesn't change the fact that we jointly have been tasked with being stewards of God's resources, which means we need transparency.

We don't need to be hiding anything we need to be together making decisions about how we allocate God's money that made begin to make some progress and I think what you would need to ask him to do is to bring transparency to this and to put it all in that one account so that you all can make decisions together and that doesn't mean that there couldn't be built into the budget particular funds of a certain dollar amount that allows you to each use it the way you want so that you have your own expression of how you want to use your money for things that you enjoy hobbies and things like that but that's the budget that's the spending plan you work on it together but it can still have a reflection of each of you in it.

Now if you don't make any progress with others. A couple of other directions you could go. I'd love to send you a copy of Howard Dayton's book money and marriage God's way. When you get done here today hang on the line will send you a copy. It's our gift to you. See if he would be willing to read through that book with you a chapter at a time where perhaps you guys take it a week at a time and and read a chapter and then you come together and talk about, see if perhaps God would use that to soften his heart. I think 1/3 option is to bring 1/3 party into the equation whether somebody from your church or one of our money wise coaches and godly accountability third-party that can walk with you and begin to articulate God's design for marriage and money and how the two of you can work more closely together at the end of the day it's good to be God working in his heart in your heart to bring you together and that's what we want to look for and pray for, so I hope that's an encouragement to you.

Stay the course start with prayer and us down the line will get your information to get this book right out to you Rob. Would it be okay if you both agreed to having separate accounts on set and separate finances. If you will is is it okay as long as you both agree to something like that.

I don't think so stay because it really just invites guess the word I'm looking for is it doesn't promote unity because now we're off doing our own thing and there's a tendency to be this is mine and this is yours and I'm doing this and I don't need to tell you because that's in my account and so I just don't really see any benefit to having separate accounts. Even if you agree to it.

I want to do everything to foster oneness. I don't want to set up any component of this that's going to drive us away from one another and I think the separate accounts have the potential doesn't mean they always but they have the potential to do that. Thanks that's good Winter Haven Florida math your 24 years old and what more do we need to know about you other than that, that's about it. I got just shy of $10,000 in a savings account not never been very good with money growing. I just throw it in there about it, but I want to move out with my parents so I'm kind of been aggressively trying to save towards getting my own place and I'm just wondering what what you guys think would be a good good next move from the investment wise never invested a dollar but must sure well good news is you're young, you've already made some good decisions in terms of keeping your expenses low, which is allowed you to live in your parents home to do that and you save some money so I think it would got some some objectives that I think we want to really pursue number one is if you're not getting.

I would start giving make data your first financial priority to give us God is prospered you. The second thing you want to do is set up an emergency fund were looking for 3 to 6 months expenses put that in a savings account mat even though it's not earning a lot of interest. It's there for the unexpected. The next thing you want to do is max out your 401(k) or 403B to take advantage of the match that's free money and after that if you have any debt we want to attack that next all that except the mortgage once you do that we want to try to get the retirement contributions up to 15% of your gross income and then once we get past that one then were starting to look for other savings goals. Maybe a down payment on a house look for additional giving opportunities and any other objectives you have down the road so hopefully that gives you some clarity on where you're going from here. But congratulations on having a really good start. Yeah Matt tell you what you might want to visit our website moneywise live.org scroll to the bottom of that page and you'll see an area that says resources. There are a lot of free resources. There will help you get started on putting together a spending plan or a budget of some biblical principles that apply all that I think will help you get on your feet financially and maybe get out of your parents house. They might want to turn your room into an audiovisual extravaganza who knows who wishes the best.

Thanks very much, realize live is a partnership between Moody radio and moneywise media.

Thanks for listening. Tell a friend drive safely.

Join us again next