Matt Bell's Blog, page 20

Profitable Ideas: Looking the Part, Just Say “No,” and More

Weekly list of curated personal finance articles from around the web.

Don’t roll your eyes: looking the part could land you that job (Wall Street Journal). How to dress for success — it’s different industry by industry.

Jonathan Haidt: I’m worried about the boys, too (The Free Press). He has chronicled the harmful impact of social media on tween girls, but there are reasons to be concerned about boys as well.

Think twice before scanning a QR code—it could lead to identity theft, FTC warns (CBS Money Watch). Their use has grown dramatically, which hasn’t gone unnoticed by scammers.

How to teach your kids money lessons by saying no (MoneyNing). Saying “no” is often very difficult for parents, but so beneficial.

5 common failures in personal finance (Best Interest). Are any of these financial landmines in your path?

It’s just a tip (VOX). This may be the personal finance story of the year—how to navigate a world where everyone seems to expect a tip.

Should I take my care to a dealership for oil changes and maintenance or find cheaper prices elsewhere? (Clark Howard). I normally agree with Clark’s advice, but not this time. I always take our cars to the dealer for maintenance. We keep our cars a long time and want to make sure they are maintained and repaired by brand-trained mechanics. Counterpoint?

Parents, just say no to raising a failed adult (Kiplinger). It’s ironic but true that oftentimes the factors that helped a parent become successful (hard work, failure) are the very things they find themselves helping their kids avoid.

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Christmas — What’s Fear Got To Do With It?

We don’t usually associate Christmas with fear. We associate it with joy and the celebration of Christ’s miraculous birth.

And yet, if you make the mistake of paying too much attention to the news, it’s easy to get all wrapped up in fear. There are wars, inflation, rumors of a recession — oh my! 

So it may come as a helpful reminder that fear—and God’s comforting counsel in the midst of fear—played central roles in the first Christmas. (I was reminded of this in a wonderful Christmas letter several years ago from my friend and mentor, Dick Towner, and his wife, Sibyl.)

When Mary was greeted by an angel, at first she was “greatly troubled…and wondered what kind of greeting this might be.” But the angel told her, “Do not be afraid, Mary, you have found favor with God. You will be with child and give birth to a son and you are to give him the name Jesus. He will be great and will be called the Son of the Most High. The Lord God will give him the throne of his father David, and he will reign over the house of Jacob forever; his kingdom will never end.” – Luke 1:29-33

When Joseph found out Mary was pregnant, knowing he was not the father, “he had in mind to divorce her quietly. But after he had considered this, an angel of the Lord appeared to him in a dream and said, ‘Joseph son of David, do not be afraid to take Mary home as your wife, because what is conceived in her is from the Holy Spirit. She will give birth to a son, and you are to give him the name Jesus, because he will save his people from their sins.” – Matthew 1:19-21

On the night of Jesus’ birth, an angel appeared to a group of shepherds, which terrified them. “But the angel said to then, ‘Do not be afraid. I bring you good news of great joy that will be for all people. Today in the town of David a Savior has been born to you; he is Christ the Lord.” – Luke 2:10-11

Isn’t it interesting that there was so much fear surrounding Jesus’ birth? I’m not sure that I’ve ever fully appreciated that.

Are you dealing with some type of fear right now? If so, my encouragement to you is to: 

Bring your concerns to God through prayer.

“Give all your worries and cares to God, for he cares about you.” – 1 Peter 5:7

Bring your concerns to others.

“Two are better than one, because they have a good return for their labor: If either of them falls down, one can help the other up. But pity anyone who falls and has no one to help them up.” – Ecclesiastes 4:9-10

Study, meditate on, and memorize the Truth of God’s Word on fear. 

“Keep this Book of the Law always on your lips; meditate on it day and night, so that you may be careful to do everything written in it. Then you will be prosperous and successful.” – Joshua 1:8

Earlier this year I found myself all wound up in fear. Nothing was wrong. My family, health, and job were all fine. But I couldn’t shake the feeling that something bad was going to happen.

So I did all that I just suggested. I regularly told God in prayer I was taking Him up on His amazing offer to cast my cares on Him. I talked about my fears with my wife and some good friends. And I studied what the Scriptures say about fear with the help of some great studies about the topic on the YouVersion app. 

I can’t say that I don’t experience fear anymore. But I’m in a far better place with it now, and all of those steps helped.

My encouragement for all of us this year is to celebrate as we usually do, that because of God’s unimaginable love for us, He sent his Son to teach us in person by word and example how to live, and to offer us the undeserved gift of eternal life. And let’s remember the name Isaiah used when prophesying about Jesus’ birth, a name that reminds us of a Truth that seems especially important right now.

“Behold, the virgin shall conceive and bear a Son, and shall call His name Immanuel.” – Isaiah 7:14

Immanuel. God with us. 

From my family to yours, blessings to you for an extra meaningful Christmas celebration this year.

Profitable Ideas: The No-Cost Lifestyle Upgrade, The Gift of Money, and More

Weekly list of curated personal finance articles from around the web.

How to upgrade your lifestyle without spending an extra penny (Becoming Minimalist). Quality over quantity is a path to a better experience with money.

Financial gift ideas for any age (Wall Street Journal). It always fits, and it’s always the right color.

Technology in the family home: add before you subtract (Public Discourse). One parent’s quest to model the healthy use of tech.

‘We’re killing the youth of America’: calls grow for crackdown on US gambling (The Guardian). “Access to legal gambling, once confined to casinos and racetracks, now sits in millions of pockets across the country…‘This is the first generation where this is normal.’”

How multiple kids in college affects financial aid (US News). Families in this situation will get less help under rules that govern the new FAFSA.

Is giving stock to kids a good idea? There might be a better way to teach them about money. (MarketWatch). While it’s a well-intentioned idea, it may teach the wrong lessons about investing.

What’s your why? (Morningstar). Reflecting on investing lessons learned early, and what really matters when you have money in the markets.

What is liquid net worth? [And why it’s so important] (Of Data and Dollars). How well can you handle financial risk?

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The Case Against Frugality

As the recession of 2008 dragged on, frugality came into vogue, and many commentators believed a new and lasting way of life had begun. The savings rate went up, people held onto their cars longer, and second hand stores became all the rage.

In 2010, 63 percent of people said the recession had “forever changed” the way they spend and save, according to a Citigroup survey.

Just one year later, the savings rate took a southward turn, credit card debt started picking up again, and parking spaces at the mall became hard to find. When Citigroup re-ran its survey, the percentage of people who said the recession had “forever changed” the way they spend and save fell to just 52 percent.

Apparently “forever” doesn’t last as long as it used to.

It happens a lot. Economic times get tough and people tighten the belt. Things get better and they spend more. When gas prices are low, SUVs fly off car dealer lots. When the price goes up, EVs look better. I call it “binge/purge” money management.

In part, I blame the word “frugality.”

What’s wrong with frugality?

To be sure, I know there are many people who think of themselves as frugal, and for them, it’s a good thing. They simply hate to waste money. They’re not living by some temporary set of rules brought on by economic tough times. Frugality is a worldview that shapes their use of money in very positive ways.

However, with apologies to those who do frugal well, I’ve never cared for the term. For me, it’s always conjured up images of refusing to tip any more than 15 percent, dogmatically avoiding coffee shops as if spending a couple of bucks on a good cup of coffee is immoral, and generally living a Scrooge-like existence. Okay, I’m exaggerating, but not by much.

Mostly, I’ve thought of frugality as not much fun, where the overarching principle is to spend as little as possible. That, I believe, is one of the main reasons we see such a rapid shift away from saving and toward spending when economic tough times turn into economic good times. People just don’t like being frugal. They’ll do it while they have to, but not a moment longer.

Repositioning frugality

A better financial path begins with a better term, and the one I prefer is “money-smart.” Money-smart people:

Use a cash flow planGive generouslyGet their biggest spending decision right, keeping their monthly housing costs to no more than 25 percent of gross income—preferably no more than 20 percentAvoid all other debtBuild and maintain an emergency fund stocked with at least six months worth of living expensesInvest 10-15 percent of monthly gross income for their later yearsKnow how to get great stuff at great prices, all the while realizing that the best option may not actually be the least expensive optionAre really good at making trade-offs, happily choosing to spend less in one category in order to spend more on something else that’s more important to them

And they do these things all the time, not just in response to a financial crisis. If everyone took these steps, what a difference it would make!

A money plan for all types of economic weather

We can’t control the economy, but we can control our personal finances. By following the approach I just described at all times, there will be no need to make major changes when times turn bad.

To my frugal friends – those who wear the word well – carry on! But for everyone who’s ever grit their teeth through a season of forced frugality, let’s put an end to all the financial binging and purging. Let’s re-brand ourselves as money-smart and get on a more sustainable and enjoyable path toward financial success.

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Profitable Ideas: Goodbye Mint, Experiencing a Better Christmas, and More

Weekly list of curated personal finance articles from around the web.

Goodbye Mint, hello…? (Sound Mind Investing). My go-to budgeting app is shutting down. Such a bummer! Thankfully, there are alternatives. 

How to make your holiday more about experiences and less about gifts (No Sidebar). You don’t have to eliminate gifts all together, but making certain experiences part of your Christmas tradition will probably create more memories than what’s under the tree.

Frugal vs. independent (Collaborative Fund). Frugal by choice is the best type of frugal.

Do you tip more or less than the average American? (Pew Research). Tipping has gotten out of control. This interactive piece may make you feel better (or worse!) See also, Tipping culture in America: public sees a changed landscape.  

Giving, the gift of happiness (Eternal Perspective Ministries). A reminder that it really is more blessed to give than receive.

For a good job by 30, do this in your 20s (Wall Street Journal). “The path to a good job still runs through college campuses.”

Nine financial tips these experts wish they knew a long time ago (Kiplinger). For most of us, there’s something about money that we wish we had learned sooner.

Your parents want to help you buy a house? Ensure this dream come true doesn’t turn into a nightmare (realtor.com). It can be a wonderful gift, just beware the strings that may be attached.

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Are You Financially Asleep or Awake? An Advent Lesson

“What does Jesus have against sleep?” One of our kids asked that question several years ago while we were on our way to church on a Sunday morning in December.

Our family had been invited to lead “a responsive call to worship” that morning – a short time at the beginning of the service in which we were to read some Scripture related to Advent and then the congregation would respond.

Advent begins on the fourth Sunday before Christmas. It’s a season of anticipation, a time of preparing to celebrate Christ’s birth and also to prepare for His return. So we were asked to read from Mark 13, where Jesus told His disciples to “keep watch because you do not know when the owner of the house will come back…If he comes suddenly, do not let him find you sleeping.”

As we practiced on the way to church, apparently the part about not being found sleeping made it sound as if Jesus was all about work and no rest. I pointed out that it was really a metaphor. To be awake is to live our lives in a state of constant preparedness for Christ’s return, which means living in relationship with Him and living as He taught us to live.

The Advent/Money Connection

One of my job hazards is a tendency for my mind to drift toward the financial implications of, well, just about everything. So, as our pastor delivered what I’m sure was a great Advent message, I kept thinking about what it would look like financially to live in a constant state of preparedness for Christ’s return.

If He came to our house tomorrow, it’s a sure bet that things would look a little messy. I don’t think He’d care about that. But I think He would care about what He saw inside our checkbook and our hearts.

Financial Identity

I think he’d want it to be clear that we know who we are, financially speaking. He’d want it to be evident that we look at the world through the eyes of a steward, not the eyes of a consumer.

Financial Attitudes

I think He’d want to see us living with contentment.

He wouldn’t want to see a hunger for stuff we don’t have or jealousy over what other people have; He’d want to see gratitude for what we do have.

He wouldn’t want to see us living under a cloud of guilt or shame over past financial mistakes. Sure, He’d want to see us taking responsibility for cleaning things up, but He’d want us to know that He is quick to forgive all who seek His forgiveness.

I think it would please him if He saw that our financial lives were marked by patience – a willingness to wait until we can afford things before we buy them, and the realization that our ultimate happiness won’t be found in what we can buy.

I think He’d understand if those attitudes didn’t come naturally or easily, and if we sometimes felt uncertain about the economy. But He’d want to see that we’re leaning into Him for strength, encouragement, and perspective.

Financial Behavior

If Jesus showed up tomorrow, I think He’d want to see that we’re not winging it with His money – that we have a plan. After all, according to His own instruction manual, it says those who profit are those who plan (Proverbs 21:5).

I think He’d want to see us living generously – not just because the Bible teaches that generosity is to be our first financial priority (Proverbs 3:9), but because generosity has become a natural way that we express our gratitude for all that He’s done for us.

I think He’d want to see that our finances are in order – that we keep some money in reserve (Proverbs 21:20), are cautious in our use of debt (Proverbs 22:7), take a slow and steady approach to investing (Proverbs 13:11), and try to be smart about spending decisions big and small. After all, He said that faith and finances are tightly intertwined (Luke 16:11).

Company’s Coming, But We Don’t Know When

When I was new to the whole experience of living a life of faith, I remember reading the Parable of the Talents (Matthew 25:14-30) and having one of those ah-ha moments. For the first time I saw the big picture of what it means to manage money from a biblical perspective.

In that parable, Jesus tells of a master who was going on a journey. While he was gone, he put three servants in charge of his property.

Of course, the master is The Master – God. And the servants represent us. God has temporarily entrusted everything we have to our care. We don’t really own any of our stuff; it all belongs to God. It’s all to be managed according to His instructions and for His purposes.

And then I read these words: “After a long time the master of those servants returned and settled accounts with them.”

My eyes lingered on that line. I realized that one day I will have to give an account for how I managed the resources God entrusted to me.

The thing is, we don’t know when that day will come. It could be 20 years down the road. It could be today.

The only way to prepare is to always be prepared.

How Prepared Are You?

What’s your response to the idea of living in a constant state of financial preparedness? Does it overwhelm you?

I don’t think Jesus would want you to feel overwhelmed, and I know He wouldn’t want you to think you’re on some sort of performance plan.

If He returned tomorrow, mostly I think He’d want it to be clear that we cherish our relationship with Him above all else. Yes, He’d want to see the fruit of that relationship, that our financial attitudes and behaviors are being increasingly shaped by His teachings and leadings. But also that we live with a sense of peace about the areas that are still kind of messy. A sense of peace that’s been shaped by His grace.

Profitable Ideas: Future You, A Saver’s Superpower, and More

Weekly list of curated personal finance articles from around the web.

Time travel: what if you met your future self? (BBC). You’d probably take better care of your health, your relationships, your finances, and more!

Why is everyone so unhappy at work right now? (Wall Street Journal). “Quiet quitting” is all the rage. Maybe we’re looking at work all wrong. See also, Finding meaning in our work.

Is that an iPhone in your pocket? (The Contessa Counts). On keeping your needs and wants in balance.

The pay raise people say they need to be happy (Wall Street Journal). How much better would your life be if you made more money? Are you sure?

Bill negotiation services are a waste of money (Lifehacker). You can do it yourself—for free.

Facebook watches teens online as they prep for college (The Markup). We’re living in the day when privacy died.

These behavioral traits lead to greater retirement savings, research finds. Yet only 10% of workers have them (CNBC). The ability to think of “future me” is a saver’s superpower. 

5 tips to keep your money secure while traveling (MoneyNing). Before hitting the road, add these ideas to your packing list.

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Just Passing Through

Shortly after moving from Chicago to Louisville in 2012, I was back in Chicago for a short visit. It was so good to be back in the city I love so much. I love the family and friends I have there, the architecture, the lakefront, the grittiness, the character, the beauty of the city, and so much more.

On the last day of my visit, still drinking in my surroundings, I was shocked by the sudden realization that I don’t live there anymore. It’s no longer my home. In an instant, my mood shifted from a deep sense of joy to a profound sense of sadness and loss.

As I drove out of town and the city became smaller in my rearview mirror, I sensed God telling me, “I have good plans for you and your family in Louisville.” And I sensed him reminding me that whether I live in Chicago or Louisville or Timbuktu, this is not my home. The Bible says, “our citizenship is in heaven” (Philippians 3:20).

Within that truth, is the power to completely transform — to radically improve — our relationship with money.

Looks are deceiving

So often, when someone has a ton of debt and a financial situation that generally doesn’t work, the common assumption is they need to cut back, tighten the belt, rein themselves in. But in many such cases, the real answer is far less intuitive. It isn’t that they need to stop stretching themselves so far, it’s that they need to stop settling for so little.

When we believe this world is all there is, and when we fall for the lie that our self-worth and satisfaction depend on the brands we wear and drive, it’s no wonder so many people live paycheck to paycheck. Life is short. If this is our one and only shot at happiness, we better get all we can as soon as we can.

That’s the misguided mindset the apostle Paul highlighted when he said, “let us eat and drink for tomorrow we die” (1 Corinthians 15:32).

A little taste of heaven

Of course, Paul knew that this is not all there is. And he said the Holy Spirit helps all believers experience that truth in very profound ways.

We know that the whole creation has been groaning as in the pains of childbirth right up to the present time. Not only so, but we ourselves, who have the firstfruits of the Spirit, groan inwardly as we wait eagerly for our adoption to sonship, the redemption of our bodies. For in this hope we were saved. But hope that is seen is no hope at all. Who hopes for what they already have? But if we hope for what we do not yet have, we wait for it patiently. – Romans 8:22-25

Incredibly, “the firstfruits of the Spirit” means the Holy Spirit’s presence in our life gives us the ability to experience a little taste of heaven here and now. And Paul said that naturally leads to two responses: A yearning for all of heaven (we “groan inwardly as we wait…”) and also the patience to wait.

Is this as good as it gets?

So let me ask you: Do you yearn for heaven?

I’ve heard people say they do, but when I first thought about it, I had to admit that I don’t. At least, I didn’t think so. I believe heaven is real. I’m just not in any hurry to get there!

If it seems that you don’t yearn for heaven either, consider this: Maybe, just maybe, you — and I — actually do.

Think about some of the most powerful, deeply enjoyable experiences you’ve ever had—meaningful time with a special friend, an incredible vacation, a memorable time engaging in your favorite hobby, watching your kids do something they love.

C.S. Lewis said that in our enjoyment of such things there is something more going on than meets the eye.

…it (is) not in them. It only comes through them and what (comes) through them (is) longing…For they are not the thing itself; they are only the scent of a flower we have not found, the echo of a tune we have not heard, news from a country we have never visited.

Mistaking them for the thing itself is where we go wrong. It’s especially when we mistake material things for the thing itself that we can find ourselves running on an exhausting and chronically disappointing treadmill of wanting, buying, enjoying, but then wanting again.

If I find in myself a desire which no experience of this world can satisfy, the most probable explanation is that I was made for another world. – C.S. Lewis

The realization that the things of this world will never completely satisfy our deepest longings is not bad news; it’s helpful news. It’s a signpost pointing us to a path on which the greatest experiences of this world are but little, wonderful glimpses of a far greater joy yet to come.

A patient yearning

Living from that perspective frees us to stop looking to the things of this world for the level of joy they’re incapable of delivering. And it actually enables us to enjoy them more.

Seeing them as good gifts from God, little tastes of heaven, but not the basis of our identity, security, or ultimate joy, is the foundation of a healthy, satisfying relationship with money and what it can buy.

I like how John Eldredge summed up the patient yearning Paul spoke of: We express our longing for God best when we “enjoy what there is now to enjoy, while waiting with eager anticipation for the feast to come.”

How do you think your use of money would change if you were clearer about the level of joy the things of this world can deliver and the ultimate joy only heaven can deliver?

Take it to heart: “Every good and perfect gift is from above, coming down from the Father of the heavenly lights, who does not change like shifting shadows.” – James 1:17

Take action: Think of one of the most wonderful experiences you’ve had over the past year. Take a minute to reflect on it and to pray about it, thanking God for that little glimpse of heaven.

Read more:  The Priceless Joy of a Little Impracticality

Profitable Ideas: Doing Good Work, Long-Term Gains, and More

Weekly list of curated personal finance articles from around the web.

The longer I do this, the less I care about results (Ryan Holiday). Doing good work in a world obsessed with followers, likes, and hearts.

4 charts that explain the stock market (A Wealth of Common Sense). Long-terms gains come with plenty of short-term pain.

As Ireland’s smartphone school ban is approved, the town where it all began (Positive News). “It’s really important for them to be in a place where they can be happy and enjoy being out, just being children.”

Discipling your family in generosity (Generous Giving). One couple’s story of fostering generosity in the lives of their children.

Nobody wants nothing (Abnormal Returns). Do your kids a favor and clear the clutter!

Here’s what counts (The College Financial Lady). For parents with college-bound kids…

All the things we should do before we die (but don’t) (The Woke Salaryman). Important things you don’t want to think about, but really should.

How I handled an unexpected inheritance (Morningstar). All too often, money acquired suddenly is just as suddenly lost. But not in this case.

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What is it About the Holidays?

We’re entering a season that seems to play out in three different ways for people.

For many, it’s “The Most Wonderful Time of the Year” — most importantly, a time of celebrating Christ’s miraculous birth.

Of course, it’s also a favorite time of year for shopping, with many people eagerly anticipating the Black Friday and Cyber Monday deals.

Unfortunately, for some, there’s something about the holidays that can also make this one of the most difficult times of the year. Perhaps they’re ill or they recently lost someone they love. As a result, all the seasonal advertising and hype, and the sense that everyone but them is having a grand old time, can bring much pain.

For the most part, I’m in the first camp. I’m looking forward to celebrating Thanksgiving with extended family and friends this year. I welcome the reminder of all that I have to be grateful for. And I look forward to celebrating the birth of our Savior who is central to all that I hold dear.

But I also have a foot in the third camp. While it’s been about 20 years since my parents died, this season always reminds me of their final days. My mom died less than two weeks before Christmas in 2003; my dad passed away less than a year later, the day after Thanksgiving in 2004. I had the honor of being at their side when they each drew their final breaths. Sometimes I’m surprised by how vividly those memories live for me.

All that to say that if the holidays bring you a mix of emotions, including some pain, I can relate.

For those who are in a good place, here’s my encouragement. This year, as you make your holiday lists—whether grocery lists or gift lists—make one more list. Think of a few people for whom the holidays might be kind of tough. And then do something about it, something to brighten their spirits. You don’t have to buy them a gift; just sending a card that lets them know you’re thinking of them and they’re important to you would mean a lot.

I know you’ll make their holidays better, and in the process, I’m pretty sure you’ll make yours better as well.

From my family to yours, in whatever state you find yourself at the start of this holiday season, I pray you’ll experience God’s greatness and God’s goodness in very meaningful ways.