Christian Finance Blog

1 Come now, you rich, weep and howl for your miseries that are coming upon you! 2 Your riches are corrupted, and your garments are moth-eaten. 3 Your gold and silver are corroded, and their corrosion will be a witness against you and will eat your flesh like fire. You have heaped up treasure in the last days. 4 Indeed the wages of the laborers who mowed your fields, which you kept back by fraud, cry out; and the cries of the reapers have reached the ears of the Lord of Sabaoth. 5 You have lived on the earth in pleasure and luxury; you have fattened your hearts as in a day of slaughter. 6 You have condemned, you have murdered the just; he does not resist you.

James 5:1-6 (NKJV)

From the Nelson Study Bible:

In the spirit of the Old Testament prophets, James pronounces judgment on employers who treat their employees unjustly (Is. 3:14, 15; 10:2). God will judge those who oppress the poor (see Ezek. 18:12, 13).

I just saw a post on FatWallet that talks about the Provident Direct online high yield savings account that’s currently paying 4.50% (edit: now only 3.75%)! It seems like a good deal especially given today’s market conditions. However, the Fed is expected to drop rates again tomorrow so who knows how long this rate is going to stay competitive. Currently, it’s the highest that I know of. It’s also FDIC insured at Provident Bank which has been around since 1886. The online portion has been around since November 2007.

It says that there are no minimum balance requirements and no monthly fees. You only need a dollar to open. The major downside is that withdrawals are limited to $5000 per transaction but you can do multiple transactions per day. However, savings accounts are government regulated and cannot exceed more than 6 transfers out in a month. Any withdrawals after that will be charged a $5 fee. You can bypass the $5000 limit by “pulling” from another account rather than “pushing” from the Provident account. Apparently there’s also a $25 fee for closing the account within 180 days and a$5 monthly fee if the balance dips below $300.

I’ll have a full review when I open an account in a little bit. I’m going to wait and see what happens to the rate first. It would be a great place to park my emergency fund which is currently only earning 3.85% at FNBO Direct.

In other news, there’s a new concept in the online savings space that I stumbled onto today. It’s called SmartyPig and it basically combines an online savings account with social networking. The basic premise is that you need to set goals that are funded by monthly deposits into SmartyPig. The goal is active until it is reached. The social aspect comes in when you make your goal public. People can help fund your goal by using a credit or debit card (with a $4.95 processing fee). Once goals are met, you can “withdraw” the money via MasterCard debit card or a gift card from participating retailers. At this time, there is no way to receive that money via ACH transfer in cash. This is apparently done so that it’s harder to use the money since the purpose is to save it.

Deposits are FDIC insured and held at West Bank, which has $1.3 billion in assets. Deposits also earn a very competitive 4.30%, albeit with some limitations. I think it’s a good idea, but I definitely wouldn’t use it to hold my emergency fund because it’s not liquid enough. However, I don’t think it was intended for that purpose either. I think there’s a market for this and if it helps people to set savings goals and encourages them through the social aspect, it could be a winner. I’m holding off on it for now, but maybe I’ll revisit it later. Maybe I can set up a public goal to get out of debt and you guys can contribute!

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7 Render therefore to all their due: taxes to whom taxes are due, customs to whom customs, fear to whom fear, honor to whom honor.

Romans 13:7 (NKJV)

Yes, the Bible talks about paying taxes! Benjamin Franklin said, “In this world nothing can be certain, except death and taxes.” Even in Biblical times they had to pay taxes. It’s nothing to get all upset about. We have to pay taxes in the United States and most anywhere else in the world. The best thing we can do is to try and minimize our taxes as much as possible instead of complaining about them.

I haven’t filed my taxes yet although I am pretty much finished with most of it (I use computer tax software). I just need to finish up some last details and find some paperwork and I’ll be done. I’m thinking about e-filing this year just because it’s more convenient. Last year I mailed mine out after printing the forms out from my tax software and I just think e-filing is less of a hassle plus I can get my refund faster. The IRS has reported that 46.9 million taxpayers have already filed their 2007 tax returns for a total of $106.7 billion in refunds through February 22. Out of those, 38 million e-filed. The average refund is $2,708.

I’m getting about $700 back this year not including the secondary stimulus package refund that I’ll be getting later that President Bush signed. That’s still too much for me. I like to get as close to zero as possible so I may have to adjust my withholding. Remember that if you receive a large refund you’re loaning the government an interest-free loan. That’s money you could use every paycheck to help pay off debt, bolster your emergency fund, or something else. But if you don’t have the discipline to use the money wisely, it may be a good idea to keep your withholding the same so it forces you to save. The math doesn’t work out but if it works for you, it works for you.

It’s tax season so start now! The sooner you start, the better off you’ll be and the faster you’ll get your tax refund. Plus you may be eligible for the stimulus refund. God bless!

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Warren Buffett is now the richest man in the world with an estimated $62 billion mostly due to the stock price of Berkshire Hathaway (his company). Mexican Carlos Slim is now at number two with an estimated $60 billion fortune. He was number one for a little while. Bill Gates is now number three with $58 billion. He was the world’s richest man for 13 straight years.

Buffett seems to have been born with an entrepreneurial spirit. The most well-known investor bought his first stock at age 11 and he filed his first tax return at age 13 while delivering newspapers.

What can we learn from Warren Buffett? People with wealth don’t necessarily have to flaunt it. He still lives in the same house he bought in 1958 for $31,500 and drives a Cadillac DTS. He will give away most of his fortune at his death to charity with 83% going to the Bill and Melinda Gates Foundation. He currently gives 5% of his shares in Berkshire Hathaway to charity every year.

The principles of biblical finances applies even to unbelievers. The principle of sowing and reaping applies because it is God’s law. God blesses those who give, but that shouldn’t be the reason we give! We give because we love God.

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Free Money Finance (great blog by the way, and is on my blogroll) is doing its annual March Madness event again! Christian Finance Blog is once again participating in it and there are two posts that I’ve entered! Last year, I never made it past the first round, so hopefully I’ll go further this time so please vote for my posts! The first one is in round 1 game 9 with my post titled “Fed Cuts Rates Again: Here’s Your Action Plan“. Check it out and check out the Free Money Finance Blog.

16 You didn’t choose me. I chose you. I appointed you to go and produce lasting fruit, so that the Father will give you whatever you ask for, using my name.

John 15:16 (NLT)

So God gave me this awesome verse during my morning prayer today. Isn’t it awesome! Sometimes we think that God chose us, but the truth is that He first chose us! And because we chose Him, we can now have what we ask the Father in Jesus’ name! Isn’t that an awesome promise of God?

From the Life Application Bible:

Jesus made the first choice - to love and to die for us, to invite us to live with him forever. We make the next choice - to accept or reject his offer. Without his choice, we would have no choice to make.

15 Be diligent to present yourself approved to God, a worker who does not need to be ashamed, rightly dividing the word of truth.

2 Timothy 2:15 (NKJV)

From the Life Application Bible:

Because God will examine what kind of workers we have been for him, we should build our life on his Word and build his Word into our life. It alone tells us how to live for him and serve him. Believers who ignore the Bible will certainly be ashamed at the judgment. Consistent and diligent study of God’s Word is vital; otherwise we will be lulled into neglecting God and our true purpose for living.

4 Love is patient and kind. Love is not jealous or boastful or proud 5 or rude. It does not demand its own way. It is not irritable, and it keeps no record of being wronged. 6 It does not rejoice about injustice but rejoices whenever the truth wins out. 7 Love never gives up, never loses faith, is always hopeful, and endures through every circumstance.

1 Corinthians 13:4-7 (NLT)

This verse is about the true love that the Bible talks about! Happy Valentine’s Day!

From the Life Application Bible:

Our society confuses love and lust. Unlike lust, God’s kind of love is directed outward toward others, not inward toward ourselves. It is utterly unselfish. This kind of love goes against our natural inclinations. It is impossible to have this love unless God helps us set aside our own natural desires so that we can love and not expect anything in return. Thus, the more we become like Christ, the more love we will show to others.

Oprah and Suze Orman are giving away FREE digital copies of Suze’s newest book, Women & Money! Just go to the download page and you can download the English or Spanish version for free! But the download only lasts until February 14, 2008 at 8 pm EST so hurry!

Today President Bush is expected to sign the now $170 billion economic stimulus passed by Congress recently. He hopes that this will prevent a recession or lessen the impact. I’m not sure if it will work or not, but it sure will help a whole ton of low to middle income people. I’m not complaining about the free money!

Some changes to this bill from the $150 billion one was that tax breaks for equipment purchases by businesses, payments to disabled veterans and senior citizens were added. That’s where the extra $20 billion came from.

The rebate checks still range from $600 (for individual taxpayers) to $1,200 (for couples) plus $300 tax credit per dependent child under 17. The income cap (AGI - adjusted gross income) is also still at $75,000 for individuals and $150,000 for joint filers. If you don’t owe any income tax but had at least $3,000 in earned income or Social Security benefits you can qualify for $300 per person or $600 per couple. Also, you might be able to receive partial money if you go over the income limits. You will lose 5% over the income limit up to a certain amount.

You must file a federal tax return for the year 2007 to be eligible for the tax rebate even if you are not required to. You can expect the checks to start showing up between May and early July if you meet the April 15th tax deadline!

So what are you going to do with your tax rebate? Just leave a nice comment! I’m going to pay down debt and save some of it!

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