Inaccurate bills can cost you

In a world of online bill pay and automatic payment withdrawals we can forget that sometimes computers and humans make mistakes. There is a chance that your bill could have inaccurate information on it causing it to be higher than it should be. I came across this short article written by Trisha Wagner with useful information.

A few highlights of the article are:

• In an economy where every dollar counts it is imperative that you get in the habit of checking each account statement carefully…
• You should check all of your bills regularly and pay close attention to charges that seem unfamiliar or out of place.
• To prevent billing errors in the future make it a point to make sure you understand any new services you may sign up for.

My social security statement is not a bill but it stated that I only made $8,400 in 2008. Obviously, this is wrong so I have to call to have this corrected. We should always take a few minutes to review documents like bills and statements in case there is a human or computer error.

If something seems odd or looks out of place, pick up the phone and make the call. No one wants to throw money away. Proverbs 4:1 says “…and give attention to know understanding.” Not paying attention could end up costing you.

The Riches of Simplicity

I was watching a movie this morning on TV named “For Richer or Poorer” about a rich, married couple on the brink of divorce. They owned a fine home, several real estate properties, expensive cars and clothing and lived the typical wealthy lifestyle. However, they found themselves owing millions of dollars to the IRS due to a corrupt accountant. The couple fled a couple IRS agents and ended up in an Amish community where life is all about simplicity. The Amish value simplicity and self-denial over comfort, convenience and leisure.

A Humbling Experience

Naturally, at the beginning of this experience, they hated it because they were far removed from the comfort of their “things.” The community didn’t have flashy cars, their clothes were made of rags, they didn’t dine in expensive restaurants and didn’t care for the conveniences prevalent outside of their community. Their home was simple without the decor and design that the wealthy couple were accustomed too.

Slowly and day by day something funny happened; the more they spent time in this community they realized it really doesn’t take much to be fulfilled. The wife had meaningful conversations with the other women while cooking, scrubbing floors and doing other household chores. Through the process she began to build character while developing the spirit of a finisher. Prior to this experience, she never finished any of the tasks she started The husband, who was very successful with the company he built, was reminded of the fulfillment of helping someone without the promise of a payment attached to it.

The experience also saved their marriage. They had come to a place in their marriage of continuos arguing and fighting. They had become more concerned about “stuff” and less concerned about their relationship with each other. They both admitted they were different people and realized they had lost themselves in all their money, flashy cars, expensive homes and designer clothes.

The Attitude of Simplicity

I wouldn’t say to truly be fulfilled you have to completely adapt the attitudes and customs of the Amish community but it’s a good place to start. The bible says to be careful because “…real life is not measured by how much we own.” (Luke 12:15) When we begin to base our life and our success on what we possess we have completely missed out on the “true riches” that life offers. Advertisers will spend millions of dollars telling you to buy more and own more and you will be much happier or more fulfilled but you will soon find out like the couple in the movie that “things” will never truly satisfy you. It’s not healthy to seek wealth only to enrich yourself without consideration for the needs of others.

The True Riches

What is the makeup of a fulfilled life? It’s not a one-time event that happens but it’s a process of continuous gratefulness and contentment for what you have until God gives you more. For some it’s the laughter of friends, for others it’s a walk in the park with their soul mate. Some find it in the birth of their child and seeing them grow year by year, others find it in watching the sun set or sitting on the lake fishing with family. True riches are found in positive relationships with family and friends. For richer or poorer we all should seek true riches in the peace, love and tranquility of God. Our relationship with Him is more important than our bank accounts and possessions.

So while we advance in our net worth, careers, bank accounts, wealth building and possessions let us not forget that our true riches are in our stewardship, obedience and relationship with Jesus Christ. How do you stay humble as you prosper in your finances? By continously reminding yourself that God is the reason for your success.”

Common mistakes of a home purchase

Believe it or not, this is one of the best times to buy a home. Many people are looking to get out of their homes for various reasons and they are selling them for much less than they are worth. Bad deal for the seller but good news for the buyer!

What makes you ready to buy a home? Shouldn’t we learn from our current economic situation that it would be wise to be completely prepared before we make a purchase? Financial guru Dave Ramsey says you should be completely debt free and have three to six months of living expenses set aside for emergencies. Reflecting on today’s economy that’s a wise plan because we never know what type of storm could come and it’s good to be prepared.

An article on SmartMoney lays out 10 Mistakes that First-Time Home Buyers Make. Obviously, we should be prepared first before we start preparing for a purchase. An outline of the ten mistakes are:

1. Not knowing how much house you can afford.
2. Assuming foreclosures are great deals.
3. Letting your true feelings show.
4. Failing to find a good buyer’s agent.
5. Underestimating the costs of owning a home.
6. Failing to budget for property taxes.
7. Assuming your first offer will get accepted.
8. Skipping the inspection.
9. Doing too much too fast
10. Failing to include a contingency clause in the contract.

We should never build or purchase a house before we can afford it. If the plan is “we can make it work,” it’s probably not wise to move forward. Proverbs 24:27 says “Do your planning and prepare your fields before building your house.” These words of wisdom are telling us to make sure things are in order such as an outlined budget of being able to comfortably afford a house, an emergency cushion in case “life happens” one year after the move in and considering the taxes, insurance and repairs. Plan, Prepare, Purchase!

The Faithfulness of God

Unemployment is setting record numbers and the ones who are employed are nervous about lay-offs. I believe if there was ever time that we should trust and seek the Faithfulness of God, that time is now. It takes courage to believe in God’s Faithfulness. The local and national news stations are reporting everything that would produce thoughts of doubt that may cause you to doubt God’s Faithfulness.

What do we know about God’s Faithfulness?

We know that he told Jacob in Genesis 28:15 that “What’s more, I will be with you and I will protect you wherever you will go. I will someday bring you safely back to this land. I will be with you constantly until I have finished giving you everything I promised.” We also have to believe this promise because facing the unknown makes life uncomfortable but the Faithfulness of God promises “I will be with you!”

We know that “The Lord is not slack concerning his promise, as some men count slackness.” (2 Peter 3:9) He will not disappoint us when it comes to Him taking care of us and providing for us. It’s not in His character to back out on a promise.

We know that “the Lord is faithful and he will strengthen and protect you…” (2 Thessalonians 3:3) I take this promise personally because it’s not that I don’t trust God but many times I’m weak and not sure about the direction of my life. It’s good to know that God will not only be my strength and make me strong but He will also protect and cover me from constant doubts of uncertainty.

We also know that “It is because of the Lord’s mercy and loving-kindness that we are not consumed, because His [tender] compassions fail not. They are new every morning; great and abundant is your stability and faithfulness.” (Lamentations 3:22-23) It’s good to know that everyday God willingly responds with help when we ask. It’s easy to forget but trusting in God’s faithfulness day by day makes us confident in His promises for the future.

God’s Faithfulness and my situation

If we would be honest with ourselves, something hard to do at times, we would admit that sometimes when we have a problem we don’t want to be fed a bunch of scriptures. It’s understandable because I get that way but I have to realize that they aren’t just words on a paper or words to fill up space in a book. God’s word gives life; “it’s a lamp for my feet and a light for my path.” (Psalm 119:105) The Faithfulness of God isn’t contingent upon the adversity of my situation but the level of trust I have in him.

Knowing He is Faithful we can place our trust and confidence in Him and humbly expect our requests. Our situation does not cause God to change his mind and He will never doubt His own authority but just as much as He is Faithful to us we have a duty to seek a closer relationship with Him. Why? Hebrews 11:6 tells us “..that He is a rewarder of them that diligently seek Him.”

His Faithfulness is our Hope

The encouragement we have to depend upon God to carry us through uncertain times is the truth that He is Faithful! This is our foundation of confidence and our justification for hope because “…He remains Faithful for He cannot deny himself!” (2 Timothy 2:13)

The Roth IRA

One of the smartest money moves you can make is save for retirement. How many times have you been in a conversation and someone says “this year flew by?” We have to accept the fact that retirement is coming and if we aren’t careful it will sneak up on us. How do we get to the destination of a suitable retirement? We can’t use the money in the jar method but we need a better savings vehicle…the Roth IRA.

The Roth IRA is one of the best retirement plans because your money grows tax free so while your money accumulates you won’t have to worry about any of your money being taken for taxes. Another plus is when you withdraw the money at retirement, your withdrawals are 100% tax free.

Some information concerning the Roth:

• Withdrawals begin at age 591/2 and there is no mandatory withdrawal age.
• It is possible to make too much. If you are single and earn more than $105k, you can’t contribute. If you are married and earn more than $166K, you can’t contribute.
• The max amount you can contribute to a Roth for one year is $5,000 for 2009. You have until next year’s tax deadline, April 15th, to contribute for 2009.
• You can only contribute to a Roth if you have earned income.

If a 30-year-old contributes $5,000 each year until retirement and makes a modest annual return of 9%, he would have nearly $1.4 million saved by retirement. With the Roth, this money is all his and he would owe absolutely NO taxes on it if he waits until retirement to withdraw the money. That’s right, Uncle Same won’t get a dime.

If you are new to investing for retirement you should first consider the Roth because of it’s saving power and tax free status. The one exception is if your employer matches your 401k contributions; you don’t want to pass up that free money. Also, the Roth is more flexible than other “taxable” retirement plans because you you usually have more options to invest in.

So while it may seem you are a long way from retirement and you feel like you have plenty of time, the best time to start preparing for retirement is today! If you are not able to contribute the maximum amount, remember “…he who gathers money little by little makes it grow.” (Proverbs 13:11)