LifeChange Concepts

The Transforming Power of Generosity

Tue, 18 Mar 2025 14:44:34 GMT

By Logan Beek, LCC Board Director

Recently, my pastor preached a sermon from the book of Philemon. He talked about how generosity is supposed to transform our lives. In the letter, Paul calls for Christians to be generous in many ways. The greatest form of generosity was demonstrated by Christ coming to dwell among us and die for us. We get to live our lives based on that generosity. I decided to comment on a few of his points and challenge us to meditate on the basic truths.

Generosity reflects thankfulness. It demonstrates we understand who truly owns what we have. Thankfulness kills the greed and discontentment in our lives.

Generosity meets real needs. We live in a physical world with physical people. People need things like clothing and food, which cost money. If we give, we meet real needs.

Generosity is based on partnership in the Gospel. We don’t just give for the sake of giving. We give to reflect the Gospel, Jesus, the greatest gift ever given, to those around us, not to flaunt our moral superiority and goodness.

Generosity cultivates more generosity. Often, the more willing we are to give, the more willing we are to give more.

When we sacrificially give of our time, talents, and money, we get to love families, serve the poor, engage in missions, and fulfill the Biblical mandate to be faithful stewards of what we have been given. This was personally challenging for me. Often, I have the “big picture” ideas down but miss the small things, the day-to-day issues of faithfulness and giving.

Jesus says in Luke 16:10 that whoever is faithful with little will be faithful with much, and whoever is dishonest with little will be dishonest with much. We must live our lives faithfully with what God has given us. Our family, job, ministry, money, house, cars, belongings, church, community, and the entire world belong to him. Let us live in response to God's lordship.

The world asks: what does a person own?

God asks: how does a person use what they have been given?

How To Replenish Lost Savings

Thu, 14 Nov 2024 16:21:58 GMT

What Should I Do After Exhausting My Savings?

Imagine you're working hard one day and the next you are out of work. Years of hard work learning and growing your team's belief and trust in you goes out the window. The nightmare of no income and bills increase your heart rate and blood pressure.

Then all the sudden relief comes over you, knowing you prepared for this. You smartly put money aside in stocks and savings accounts just for emergencies. A few months later the opportunity comes to go back to work, and a new fear comes to reality. How do you replenish all the savings used to pay bills and feed you during this unemployment period?

Here are some tips on how to gameplan to grow your emergency fund:

1. Don't try to recover lost funds:

Our Board President Jeremy Burton recently went through this exact scenario, and one of the things he tried was making up the lost funds and building up his savings. Make your game plan like you're starting off brand new, when trying to replenish and make up lost funds you will quickly find that you're not setting one goal but two. This will create stress when it comes to creating a new budget from your new income. As a young adult, the compound interest that you get in 20-30 years will replenish all the savings you lost during your unemployment. “Compound interest and compounding can supercharge your savings and retirement potential. Successful compounding lets you use less of your own money to reach your goals.” (1)

Ultimately, no matter if you had to use your emergency funds or not, your compound interest is what will build your retirement wealth, not your investment.

2. Create new Goals:

Another lesson Jeremy learned from this season is that he had to create new goals that aligned with the setback. A lot of Jeremy’s investing was going to be his home down payment. After several years of growing and adjusting he could simply not go back to the plan he had before being unemployed. In essence, he started back at ground zero and will work his way up. Even though the goal is the same, the market is always changing. So instead of using foundational stocks like caps and dividends, he plans to benefit from the interest rate and keep the money for the down payment of his home in the more conservative, and less volatile, money market.

3. Start small:

When it comes to the amount and how often you invest, take the first couple months slow. Whether your income changes or not, it is essential to take the first few weeks to create a new budget. Once again Jeremy learned a valuable lesson when he found himself needing money for gas and being a few days away from payday. Even though he had an increase in pay he did not correctly allow time to see the pattern of his new paycheck and assigned more money to different places in his life then he had. Quoting Jeremy ; “It is never fun when a twenty - eight year old has to go to his dad and ask for gas money to get to his new job.” It's ok to start with a few dollars here and there for a few weeks and then start putting in a few hundred dollars to invest.

4. RELAX:

At the end of the day, the biggest thing Jeremy realized is that he is still young even if his back and knees yell at him every day. He still has a lot of raises, time, and promotions coming that will allow him to not stress and be able to rest in God that the funds will be there when he retires or needs it. It may not be the amount he wished for, but it will be enough for him to be a steward of God's money entrusted to him. The world tells us that we need to chase this wealth for things that don't matter. We know God is in control and he will provide for not only Jeremy but you in time of need. Does that mean we don't properly invest and poorly use it, of course not. But we invest knowing that whatever comes of it will be for the Glory of God. We give praise to him that we have an emergency fund when we are unemployed, when we are able to use our investments to send a kid to camp or pay for someone to go serve on a mission trip. We praise him when using it to continue to allow the gospel to grow and be presented to those whose hearts are hardened to God’s unending love.

And never forget while resting easy that,

“The Lord is my shepherd; I shall not want. He makes me lie down in green pastures. He leads me beside still waters. He restores my soul. He leads me in paths of righteousness for his name’s sake. Even though I walk through the valley of the shadow of death I will fear no evil, for you are with me; your rod and your staff, they comfort me. You prepare a table before me in the presence of my enemies; you anoint my head with oil; my cup overflows. Surely goodness and mercy shall follow me all the days of my life,and I shall dwell in the house of the Lord forever.” Psalm 23

Even though you feel like if you don't recover the lost funds you will be in the shadow of death in your later years, God promises us that no matter what we are in fact presently and forever be by still water and we can rest in the green grass as you start a new journey in your investing, just like you are in your career.

1.Curry , Benjamin. “The Life-Changing Magic of Compound Interest.” Edited by Kate Ashford, Forbes, Forbes Magazine, 20 June 2024, www.forbes.com/advisor/investing/compound-interest/.

How To Handle Financial Tension

Sun, 18 Aug 2024 17:53:24 GMT

When Financial Tension Becomes Productive Fruit

Tension is something we seem to easily find in daily life, whether in family, friendships, or our professional relationships. Quite often, the reason for tension is due to the human condition of trying to conform other people to be more like us; instead of both parties focusing their eyes on Christ and trying to grow closer to the Image of Christ. It is in that image that we were originally made in the Garden of Eden (Genesis 1:27).

When it comes to financial tension in building relationships, we are choosing to not be stewards of the Lord, but trying to developing a better version of ourselves in the other person. Looking throughout the storyline of the Nation of Israel, which mirrors our own lives, we see that anything in the image of man will not last and lead to brokenness, pain, and sin. That is why we see so many broken friendships, relationships, and divorces not only in the secular world but in the church as well. Through this blog, James 1:19-20 will be used to show how beauty can come from tension in regards to our slowness to anger and speak but being quick to listen and to see how tension decreases as our dependency in Christ increases.

To begin, individual financial stress is difficult enough. I have heard a lot of my fellow young adults refer to finances and the stress like being a fish trying to swim upstream. When it comes to being slow to anger and slow to speak, my heart reminds me of John 3:30 where John says; “ I must decrease and he must increase.” To get where we all strive to be, as a husband, father, or CEO, it costs a lot of time and money to grow and enter the experience needed to reach those wonderful positions. Even after reaching these goals, anger and frustration can be the most commonly produced fruit, rather than the fruits of the spirit like love and patience.

“Feeling beaten down by money worries can adversely impact your sleep, self-esteem, and energy levels. It can leave you feeling angry, ashamed, or fearful, fuel tension and arguments with those closest to you, exacerbate pain and mood swings, and even increase your risk of depression and anxiety. You may resort to unhealthy coping mechanisms, such as drinking, abusing drugs, or gambling to try to escape your worries. In the worst circumstances, financial stress can even prompt suicidal thoughts or actions.” (1)

Connecting back to John 3:30 , we know that the fruit produced comes from two places: us or God. When we try to make it about ourselves, we can anger quickly and speak without thinking, making our world revolve around us instead of pointing to Christ who is the one with all the answers to lead us to financial joy. Though we may be stressed through bills and put in tough spots, not knowing how you will get to next paycheck, we will find our peace and joy in God who will deliver us from all things.

Secondly, John 3:30 shows us that quick listening can lead to beautiful things when dealing with financial stress. When we are quiet and listen in prayer/ conversation with God or we are listening to a spouse or a Godly financial advisor, we can hear the voice of God through the quiet. We know God uses our alone time to speak to us through his word. But he will also use people that we have a deep connection with to speak to us.

When I am quick to listen, I often have patience and respond to God's word closely. When we are quick to listen, be patient and respond to God's word we are creating a three step process to know we are truly following God in our daily life. Our financial situation can be seen through two types of conflict: internal conflict (self v self) or external conflict (self v another person). Regardless of which conflict, the ability to listen and be patient allows each person to see that when we are quick to anger and speak, we are placing blame on one another, instead of listening and understanding blame is not important now.

What’s important is resolution. “Active listening is essential for conflict resolution because it can help you uncover the underlying issues, needs, and interests that are driving the conflict. Often, conflicts are not caused by what people say, but by what they feel or want. By listening actively, you can discover the hidden emotions, values, and motivations that are influencing the behavior and communication of the other person. This can help you empathize with their situation, acknowledge their feelings, and validate their concerns. Active listening can also help you avoid assumptions, biases, and defensive reactions that can escalate the conflict or create resentment.” (2)

Through John 3:30, we ultimately see that the beauty in financial conflict is understanding our dependence on Christ. We cannot be quick to listen or slow to anger without the mercy and forgiveness of God in our own hearts first. A quick story in my own life, a few months ago i was in financial conflict with myself about my yearly budget and what it would look like to start a new business, my heart was filled with fear of how I would get the foundation laid or how I would be able to invest time and money into it with other bills taking 90% of my income and multiple jobs.

Understanding that my time and money was not mine to begin with and the company was in fact Gods and the success of everything I put my heart into will be used for the glory of God. And even if this business fails was the catalyst to what turned my anxiousness to peace. Regardless of what happens, the gospel will be presented in everything I do and God will be glorified in a successful company because it ultimately doesn't matter about profit, or how long the company lasts or how successful we can pass it onto the next generation. But what lasts is how many gospel seeds will be planted into hearts, and how many seeds are watered through our operations.

Though my mind does get overwhelmed often, my heart is at peace and excited for where this new adventure leads. Ultimately, when we see the need for Christ in a financial crisis, we see the ultimate beauty in a financial crisis. The trait of selflessness is needed in any situation, and any internal or external conflict. The ultimate beauty is growth through our selflessness, patience, and listening when the world throws temptation our way.

In conclusion, James 1:19-20 allows us to grow in listening, patience, and selflessness to not only find beauty in financial conflict, but in our goal to grow closer to God. First, the beauty of the peace that comes from being slow to anger and speak. Then, when we are quick to listen, we often can turn our focus from blame to resolution. And finally, the true beauty in conflict is finding new ways to see our dependency in Christ and his love and forgiveness grow in our life. In any conflict, the resolution is not how we should resolve it ourselves, but find the abundant peace in giving it to God and allowing him to produce the fruits of the spirit in us to find resolution.

1. Robinson, Lawrence. “Coping with Financial Stress.” HelpGuide.Org, 6 June 2023, ww

2. Conflict Resolution “How Can Active Listening Help You Identify the Root Cause of a Conflict and Find a Win-Win Solution?” Active Listening Skills Examples for Conflict Resolution, Conflict Resolution, 19 Jan. 2023

Buying A Used Car

Sun, 21 Apr 2024 20:52:57 GMT

Logan is a board director for LifeChange Concepts. He's also in his mid-20s and has bought, as well as sold, over 30 vehicles. So he's uniquely qualified to share his expertise on buying a used vehicle. His wisdom is also insightful for young adults purchasing their first vehicle.

Outside of purchasing a home, buying a vehicle can be one of our most significant personal expenses. According to Kelley Blue Book, even with prices trending downward, the average sold new car costs $47,401 (1). Financially, this is unrealistic for most young adults without some form of financial assistance or loans.

Since new cars typically fall outside the budget of most young adults, many decide to purchase a used car. This option, however, can be equally financially harmful. Kelley Blue Book reports that the average advertised used car price, even with prices trending downward, remains at $25,328 (2). When consolidated to an auto loan, the average annual cost for a used vehicle is $6,384 (3).

This is a notable portion of the average income for the average young adult. The U.S. Bureau of Labor Statistics indicates that the average earnings for workers between 16 and 24 years old in 2023 were between $29,424 and $35,088 annually (4). At LifeChange Concepts, we teach people to follow the “8% rule.” If you cannot pay cash for a vehicle, you should spend no more than 8% of your net income on a car payment. For a young adult earning the average wage, their car payment should not exceed $2,354 to $2,807 annually. To compare, for someone to meet the 8% rule on the average annual used car loan, they must earn $79,800 annually.

LifeChange Concepts director Bill Renje works with many young adults who spend 20-25% of their net income on their car payments. Allocating excessive amounts of income toward a car prevents you from saving for things like education, retirement, or a down payment on a house. To illustrate the long-term effect this can have, I will contrast two young adults:

Young adult one earns $30,000 annually, spends 20% of their income on a car payment, and saves 20% of their income to buy a house in five years.

Young adult two also earns $30,000 annually but saves 40% of their income to buy a house in five years.

Both young adults purchase the same house with identical terms. The house cost $300,000 with a 30-year mortgage at 7% interest.

Young adult one has saved $30,000 for the down payment (10% of the house cost). Their monthly payment is roughly $2,321. The total amount paid after 30 years is $835,560.

Young adult two has saved $60,000 for the down payment (20% of the house cost). Their monthly payment is roughly $1,998. The total amount paid after 30 years is $719,280.

Young adult one paid $116,280 more than young adult two over 30 years, all because of the car they paid for as a young adult.

To be transparent, I am not your average statistic when it comes to vehicles. At 23 years old, I have never purchased a new vehicle. I have purchased almost 20 used vehicles since I was 17, most of them being sold for a profit or parted out within my business. I have never paid more than $5,000 for any personal vehicle, including my two current daily drivers. My dad is a master mechanic and aircraft technician who taught me how to work on vehicles and diagnose common issues.

However, I do not believe you must be a master mechanic or a financial expert to make sound decisions when purchasing a used vehicle. The below-outlined steps do not guarantee that you will quickly find an affordable, reliable vehicle, but I believe they will increase the likelihood.

1. Know the Difference Between Your Needs and Wants

This is the first and simplest step in searching for a car. You need to know what your needs are. How many people do you need to fit in your car? How important is safety to you? Does your vehicle need to fulfill any additional needs beyond commuting? Do you need a truck, sedan, or minivan? For example, when I began searching for my last vehicle, I knew I needed a truck to haul things for my business.

You also need to know what your preferences are in a vehicle. For example, I preferred a truck larger than a single cab for additional dry storage and to drive multiple people. I also preferred a truck with good gas mileage because I knew I would potentially be driving large distances. Maybe you dream of cruising down the street settled into burgundy-red Cadillac couch seats. Maybe you want to convert a hearse and refilm Ghostbusters. Maybe you want to don the shades and import a Supra to live Fast and Furious.

Joking aside, I believe there is a difference between financially beneficial and unbeneficial preferences. I might prefer luxurious heated leather seats and a premium sound system, but these are not necessary needs or preferences, especially when searching for a first or an affordable used car.

2. Search Criteria

Once you identify your vehicle needs, I believe the primary factor to consider is vehicle dependability and reliability. There are different organizations with differing opinions concerning vehicle reliability. One example, Consumer Reports, reported that Lexus, Toyota, Mini, Acura, and Honda were the highest predicted reliable brands, while Chrysler, Mercedes-Benz, Rivian, Volkswagen, and Jeep were the lowest (5).

You should combine your vehicle needs with researched predicted reliability. From my experience, most people have a personal brand preference, but these are often just that: preference. Even if I love Chrysler, if they are at the bottom of researched predicated reliability of all current automakers, I should reevaluate my commitment to that brand. Your needs paired with reliability are more important than brand loyalty.

Once you narrow your search to a particular vehicle (or several), research common problems associated with those vehicles. For example, during my Tacoma research, I found they are prone to front lower ball joint failure. If I purchased a Tacoma, and the previous owner had not already replaced these parts, I would need to potentially replace them, which I did in this exact scenario.

3. Begin the Search

Once you have identified your needs, researched reliability or other criteria important to you, and have narrowed down to a particular vehicle, you can search for an actual car. The below-outlined steps have served me well when searching for a reliable, affordable used vehicle.

If possible, stay away from dealers. This includes name-brand dealerships, local used dealerships, and individual licensed dealers or car flippers. As someone who sells cars and car parts for a living, my experience is that some dealers focus on the largest, quickest, most profitable vehicle turnover, not selling affordable, reliable vehicles. Though a dealer will often be the easiest and quickest option, they might not be the most affordable or reliable.

Look for private party individual sellers. There are many methods for locating private sellers, including word of mouth and social media posts, but the most beneficial for me have been Craigslist and Facebook Marketplace. Craigslist has declined over the years, but I found my current Tacoma on Craigslist in 2022. Facebook Marketplace might be a better consistent option. When responding to an online ad, ensure that you are dealing with a real person and not a scammer. Watch out for newly created social media profiles, blurry pictures, identical listings from the same profile, or requests for any personal information.

Once you have chosen a method, begin searching for a vehicle. For example, within my budget, I was regularly looking at 1 ^st generation 1995-2004 Tacoma trucks. I advise checking every day when you are seriously looking and ready to purchase a vehicle. From my experience, most used vehicles on Facebook Marketplace sell within several days of being listed. If they do not sell quickly, it could mean the car is priced too high or something is wrong it.

There are several ways of determining the fair value of a used vehicle. Kelley Blue Book offers a free “My Car’s Value” tool on their website. Once you input basic information, such as the make, model, mileage, and condition, they indicate the private party value range for the vehicle. An additional method is to observe the values of cars through online sites like Facebook Marketplace. For example, the KBB value for my Tacoma was notably lower than the listed price when I purchased it in 2022. However, after months of searching, I had a difficult time finding anything reliable closer to the book value. Even though my truck cost more than the book value, the market at the time was driving demand and prices higher. Book and market value should be considered together.

Once you locate a specific vehicle, there are several imperative criteria to evaluate:

Make sure the car has a clean title in the seller’s name. Stay away from any vehicle with a salvage or rebuilt title. This means the vehicle was physically or mechanically totaled by insurance and then repaired. They are worth less than a clean title vehicle and could potentially have significant, often hidden, body and mechanical issues. For the same reasons, avoid vehicles that have been repainted and/or in known accidents. Sellers might not disclose these. Running a Carfax can help with this and other vehicle history but does not always indicate everything.

Make sure the car is not stolen. The National Insurance Crime Bureau offers a free VIN check tool on its website for stolen or salvage vehicles.

Make sure you can pay cash. Private-party sellers will not accept major credit cards, auto loans, an IOU, or indentured servanthood. Ensure the car reflects your cash budget. Right now, many reliable used cars can be found in the $5,000-10,000 range, sometimes even less.

4. Looking At a Vehicle

Once you’ve found a researched vehicle that will meet your needs within the fair market value range, you can evaluate purchasing the vehicle. I will list several criteria that I watch for when looking at a car. Some of these things are noticeable in the listing description and pictures, while others must be seen in person or asked of the seller. I would strongly advise having a mechanic or mechanically inclined person to inspect the car with you. Here are some things to ask or watch for:

- How long has the seller owned the car? Do they have maintenance records? Why are they selling it? If something seems positive or negative about the seller, their story, or their reasons, it must be factored in your purchase.

- Does the car have any physical damage on the exterior or interior? Can you tell if the seller has taken care of the car or neglected it? Does the car have any indication of being in an accident, such as disproportionate body panels or being repainted? Does it need anything replaced? These detract from the value, desirability, and in some cases, reliability, and safety.

- Has the car passed emissions? Emissions requirements vary from county to county. Ensure that the vehicle will meet your county requirements or be prepared to potentially repair emissions equipment.

- Does the car have high mileage? Some cars can reliably run for well over 200,000 miles, like my Tacoma, which currently has over 250,000. It is ideal to look for a car with 150,000 miles or less or be prepared for more mechanical repairs.

- Inspect the bottom of the vehicle and the frame. Check for any rust. Cars from certain areas of the United States are notorious for rust. This can affect value, desirability, and most importantly, in some cases, reliability and safety.

- Inspect the engine oil, transmission fluid, brake and power steering fluid, and radiator coolant. Are all the fluids properly filled to the required amount? Are any fluids miscolored/dark, low, or missing from the dipsticks? Does the coolant in the radiator have any rust or contamination? These can indicate improper vehicle maintenance and potential mechanical wear or damage.

- Inspect the tires and brakes. How much tread do the tires have left? When were the brakes last serviced? Does the A/C, heater, mirrors, windows, and radio work? Items like these factor into your total potential vehicle cost.

- Some vehicle engines have a timing belt, while others have a timing chain. Look up the engine type of your car to see if it has a belt or chain.

Timing belts typically have a service lifetime of around 100k miles. Depending on the engine, if they are not replaced and break, they can cause significant damage. If the previous owner does not have record of replacement or it is close to the required service interval, that is a significant maintenance expense to consider.

Timing chains can go bad, but typically last much longer than a timing belt and do not instantly break. My Tacoma, for example, currently has over 255k miles on the original timing chain.

- Take the car on a test drive. How does it sound and drive? Does it have any abnormal noises or shaking? Does it accelerate and brake normally? Does the transmission shift between gears smoothly?

This list is not comprehensive but should provide a foundation for looking at a used car. If the car fails some of these criteria, such as needing new tires or brakes, do not automatically walk away, but factor how much work and money you want to put into the car. Be willing to negotiate with the seller. Make a cash offer that reflects the fair market value minus any known issues with the car. However, if the car has bad rust, the tires are bald, and there’s a loud knocking coming from the engine, you should walk away.

5. To Buy or Not to Buy?

If the car meets most of the criteria, and the negoti ated price fairly reflects condition and suspected reliability, you can consider buying it. If the car fails essential criteria or is notably more expensive than the book and market value and the seller refuses to negotiate, be willing to walk away. I have walked away from more vehicles than I have bought for myself. I looked at hundreds of cars online and inspected roughly half a dozen in person before I purchased my Tacoma. Do not become emotionally attached to any vehicle before you buy it. It can be frustrating and annoying, but it is better to walk away from a bad deal than be stuck with a bad car and need major repairs, or even worse, another car.

Resources:

https://www.kbb.com/whats-my-car-worth/

https://www.carfax.com/vehicle-history-reports/

https://www.nicb.org/vincheck

References:

1. “Average New Car Price Tumbling,” Kelley Blue Book, February 13, 2024, https://www.kbb.com/car-news/average-new-car-price-tumbling/ .

2. “Average Used Car Price Down 4% Since Last Year,” Kelley Blue Book, February 19, 2024, https://www.kbb.com/car-news/averaged-used-car-price-down-4-since-last-year/ .

3. “Average Car Payment and Auto Loan Statistics 2024,” LendingTree, March 7, 2024, https://www.lendingtree.com/auto/debt-statistics/ .

4. “Labor Force Statistics from the Current Population Survey,” U.S. Bureau of Labor Statistics, https://www.bls.gov/cps/earnings.htm#demographics .

5. “Who Makes the Most Reliable New Cars?,” Consumer Reports, November 29, 2023, https://www.consumerreports.org/cars/car-reliability-owner-satisfaction/who-makes-the-most-reliable-cars-a7824554938/ .

https://www.consumerreports.org/cars/car-reliability-owner-satisfaction/who-makes-the-most-reliable-cars-a7824554938

1. “Average New Car Price Tumbling,” Kelley Blue Book, February 13, 2024, https://www.kbb.com/car-news/average-new-car-price-tumbling/.

2. “Average Used Car Price Down 4% Since Last Year,” Kelley Blue Book, February 19, 2024, https://www.kbb.com/car-news/averaged-used-car-price-down-4-since-last-year/.

3. “Average Car Payment and Auto Loan Statistics 2024,” LendingTree, March 7, 2024, https://www.lendingtree.com/auto/debt-statistics/.

4. “Labor Force Statistics from the Current Population Survey,” U.S. Bureau of Labor Statistics, https://www.bls.gov/cps/earnings.htm#demographics.

Top Financial Mistakes Made By Young Adults

Fri, 16 Feb 2024 21:51:16 GMT

“Overly spending on leisure and entertainment is a problem with almost all my friends. There is also a mindset of not preparing for the future or thinking ahead but living in the moment. Talking about saving money, let alone retirement money, is like pulling teeth with some of my peers. It takes a big picture perspective to understand that every $1 saved and invested at 20 years old equals around $88 at retirement.” – Logan, LCC Board Director of Young Adult Discipleship & Mentoring.

My favorite subject is history because I believe, as it's been said, that if you want to know where you are going, you have to know where you've been. From a financial perspective, what we've been is a consumption-based culture, relying on debt since the 1980s. But it's important to understand, which is why I cover it in classes I teach, that we weren't always a consumption-based culture.

Prior to the 1980s, we were a production-based culture, which means that our value came from what we produced, what we added to the culture around us through our labor. I'm old enough to remember the 1970s where work ethic, thrift, savings, delayed gratification were still values and concepts that were taught and lived out. But that’s all gone now.

Today, we have a generation of young adults, who've known nothing but growing up in a consumption-based society that's told them that their value comes, not from what they’ve worked for and produced, but what they buy and consume. It's been great for Wall Street, for the wealth creators and generators, the powers that be and the big banks. But not so great for Main Street where the cultural messaging has taken root that fulfillment in life comes through consumption of entertainment, leisure and products.

This may sound controversial to some, but the current social-economic climate in the West, particularly the US, is at its root anti-Gospel (in my opinion). The consumption-fueled mentality is based around self-pleasing, self-centered, instantly gratifying behavior, disregarding the role of wise financial stewardship, let alone Gospel-centered financial stewardship. I do not believe that is what Christ desires from or for His people.

According to the young adults on our board, here are 10 main mistakes young adults make :

1. Spending over half their earnings on eating out or hanging with friends.

2. Racking up credit card debt due to poorly budgeting strategies.

According to Experian “The average credit card balance among consumers in their 20s was $2,709 in Q2 2019. Credit card debt increased the most among 20-year-olds year over year….” (1) . Even though this article is from 2019, we can only expect the numbers to increase as we study the trends of spending habits.

One good recent example our team came upon was with a student in one of our classes. After going through the course and learning the foundations of a budget, he noticed that 60% of his earnings were being thrown down the drain while constantly eating out with friends. As we told him, we don't discourage hanging out with your friends. But we do encourage limiting how much you spend, while budgeting the number of events and amount you can spend per week , paycheck, or month.

The next four mistakes can seem little at the moment, but overtime can have young adults paying thousands of dollars extra in loan interest.

3. Buying cars, typically newer with high interest and high monthly payments.

4. Not paying extra on bills while they are single (extra money on student loans)

5. Relying too much on student loans (as a ministry, we’ve seen college students take out loans in excess $75,000 for

low-paying degrees.)

6. Renting vs living with parents

Jeremy, our board president, can speak from experience in regard to this section of mistakes. Luckily, in his case, he will enjoy the prospering fruits in the coming years of not making some of these mistakes, unlike a lot of young adults his age. Though Jeremy decided to go out of state and leave the opportunity of the HOPE Grant. He did take advantage of the online program at Liberty University , graduated with a four-year degree and with the help of grants left school with less than $30,000 in debt.

Jeremy also pays $100 extra month on top of his monthly consolidated loan payment, which he is able to do since he still lives with his family and has limited bills. He’s on track to pay off the loan early, which will save him anywhere between $2,000- $3,000 in interest that he will see later on in the loan cycle.

Lastly, these mistakes will hinder young adults in the future.

7. Not setting up a retirement account

8. Not caring about credit score

9. Not setting up a savings account in case of an emergency fund

10. Not using a financial advisor

A young adult's mind is full of life, ideas, and adventure; but also can be full of short sightedness and lacks the wisdom of experience. This is the time every 50-year-old would love to go back to and change one or two small things in their life to make their life a little easier with their retirement or savings account.

The introduction of a financial advisor in your young adult life will bring not only discipline into their budgeting and spending. But it will also develop an easier time for them when they are older and can truly appreciate their hard work in saving up for retirement and those pesky emergencies.

“You can’t predict the future, but you can prepare for it. A financial advisor can help you cope with the fallout of life's unexpected events and adapt your strategy to stay on track.” (2)

While it’s impossible to put the ketchup back in the bottle, we can teach, and more importantly model, as Christians that our identity comes from our God who created us. And that God-given value comes from and through our work, our giving of our time and money and our service to the culture and world around us.

We can also teach good, solid biblical financial stewardship principles to a largely financially illiterate society and culture around us. Whether its grandparents, parents or young adults, the mission of our LifeChange Concepts ministry is to wed both biblical financial stewardship principles, and practical financial literacy tools to free young adults to live out the plan, the purpose and the ultimate mission that the Lord has for them.

Feel free to contact us if you need help addressing any of the top ten financial mistakes listed above!

1. Tatham, Matt. “Americans in Their 50s Have the Highest Average Credit Card Debt.” Experian, Experian, 5 Nov. 2019, www.experian.com/blogs/ask-experian/research/credit-card-debt-by-age/#s1 .

2. Sabharwal, Sanchit. “Benefits of Working with a Financial Advisor - New (US: En).” Edward Jones, Edward Jones, www.edwardjones.com/us-en/working-financial-advisor/benefits-working-financial-advisor. Accessed 14 Feb. 2024.

Investing 101 - How Do I Get Started?

bill@lifechangeconcepts.com (Bill Renje) — Thu, 14 Jul 2022 15:09:46 GMT

It's never been easier to build wealth, especially for young adults. Here's some simple, basic steps.

1. Open up an on-line account. There’s several reputable sites. It’s quick and easy to do so. We have Fidelity and E*Trade accounts.

2. Choose a Roth IRA. Your earnings grow tax-free and can be withdrawn tax-free when you turn 59 ½.

3. Investing is long-term (at least 10 years) and we're assuming your looking to set this up as a retirement account. But if not, you can open up a traditional individual or joint account.

4. Link your external bank account to your investment account.

5. Pick your investments. I prefer funds instead of individual stocks. Funds are a basket of stocks that spread your money,

and your risk, across several different companies as opposed to stocks which are invested in individual companies.

a. My three favorite funds are VOO , FSKAX and SCHD . You can click on those symbols to view the holdings of each of

these funds and the different companies they will invest in for you.

b. VOO is a Vanguard fund that tracks the S&P 500 (500 largest companies).

c. FSKAX is a Fidelity fund that tracks the total stock market (S&P 500, Dow Jones, NASDAQ and Russell 2000).

d. SCHD is a Schwab fund that pays regular dividends (profit sharing).

6. Set-up a monthly auto withdrawal from your bank account to be deposited in your investment account.

7. Set-up a monthly deposit from your investment account to your three investment funds.

a. For example, $75 per month into VOO, $75 per month into FSKAX, $75 per month into SCHD

b. This is called “dollar-cost averaging” and is the best way to invest. Because your investing on the highs and lows of

the market.

c. Over the course of 30 years , a $225 monthly invested can result in an investment portfolio worth $565,000 ( Source ).

8. At that point, there’s nothing left to do but watch your portfolio grow.

Note – We always recommend it’s important to meet with a qualified, reputable investment advisor to create a balanced portfolio for LONG-TERM growth.

Easy Steps to Buying a Vehicle With Financing

bill@lifechangeconcepts.com (Bill Renje) — Thu, 19 May 2022 14:46:46 GMT

Save, Save, Save - You should bring 50% as a down payment (including your trade-in if you have one).

Buy newer-used – Find a vehicle that’s 2-3 years old, with under 30,000 miles and save 20-30%. You can find that brand new $35,000 vehicle for $25 - $27,000. If you are a younger, first-time car buyer, buy a 5-6 year-old vehicle in the $12,500 range.

Find your vehicle ahead of time* – Use sites like True Car, Kelley Blue Book, Carvana. Compare and contrast to find the best vehicle with year, and mileage being the main criteria.

When you walk into the dealership, know exactly the price, you’re willing to pay.

Sell your existing vehicle to a private party - get 20% more than trade-in value. If you go the trade-in route, printout the Kelley Blue Book quote to take to the dealer with you.*

Hold firm, and do not take less than the blue book quote.

Lock in your interest rate ahead of time* - Third-party dealer interest rates are typically 2-3% higher. However, after they make their initial offer, if you show them the interest rate you qualified for ahead of time, they will match to get your business and close the deal.

Monthly Payment* – Figure out a monthly payment that fits your budget. Use an on-line calculator to figure out a payment.

Hint 1 – if you are a middle-class family, you cannot afford an average car payment of $500+ a month. Your range should be $250 +/- and the length of the loan should be 36 months for a 5-6 year-old vehicle (48 max for newer-used).

Hint 2 - DO NOT tell the salesperson ahead of time what payment you “can afford.”

Hold Firm - They need you more than you need them. If you can’t agree to price and terms, politely shake hands and walk away. Most likely, they won’t let you leave and will give you your price & terms.

*Printout documentation to bring with you.

What If You Invested Those Interest Payments?

bill@lifechangeconcepts.com (Bill Renje) — Sun, 30 Jan 2022 21:53:03 GMT

You should build wealth from your money, not the banks

As consumers, we are conditioned to ask “how much is the monthly payment”? That’s how banks and lending institutions get rich off your money instead of you.

Here’s a breakdown of what investing that interest you’re paying the bank could look like for you!

Here’s how much debt Americans have at every age

Tue, 25 Jan 2022 17:42:23 GMT

The average American has $90,460 in debt.

Here’s how much debt Americans have at every age:

This is how banks and lending institutions build wealth from your money, by charging you interest and fees on your debt, instead of YOU building wealth from your money by earning that interest.

It’s how they can afford to pay billions of dollars in naming rights for sports stadiums all over the country…

Vehicle Monthly Expense Comparison - What's the better value?

Tue, 08 Sep 2020 14:40:06 GMT

Getting the most bang for your buck with a vehicle purchase

Vehicle Monthly Expense Comparison

What's the better value?

2018 Toyota Corolla SE * 2015 Ford F150, Auto.**

Fuel (1) $ 70.00 $110.00

Insurance (2) 225.00 225.00

Maintenance & Repairs 118.00 153.00

Taxes & Fees (3) 20.00 20.00

Vehicle Loan Payment (4) 305.00 400.00

Total Monthly Expenses $738.00 $908.00

Notes:

(1) Based on 1,250 miles driven per month and $1.98/gallon cost of gasoline

(2) Based on a 21-year old with a good driving record and a 700-credit score

(3) Sales tax paid upon purchase is included in the vehicle loan

(4) Based on a $5,000 down payment, and 48-month used vehicle loan at 6% interest on the balance. Assumes a purchase price of $18,000 for the Toyota and $22,000 for the Ford pickup.

* 28K miles on this vehicle

** 105K miles on this vehicle

Unless you live in a urban location with efficient mass transportation, a vehicle is a necessity, a “need” as opposed to a “want”. But if we’re not careful, what we need in a vehicle can quickly giveaway to what we want, and what we ultimately purchase or, more accurately speaking, what we finance, can far exceed our means.

Due mainly to the enhancements in technology that cars come equipped with these days, the average new car price has risen to $35,000, with the average car payment being $550 per month.

We’ll never pay more money, for anything that depreciates faster than our vehicles. If we’re not careful, nothing will choke out our monthly budget quicker than our car payment(s). And if you’re young, just starting out and trying to get ahead in life, buying more car than you can afford can put you quickly into debt, while setting you back years on saving for a down payment on a house, as well as establishing a savings and investment plan.

New vehicles depreciate 30% after the first two years, then 10% a year thereafter. So let’s say you finance a $25,000 vehicle with no money down at 4.5% for 5 years. You’ll end up paying almost $28,000 with interest and financing charges for a vehicle that will be worth $10,000, with a trade-in value far less than that, once the vehicle has been paid off. And that’s not including $1000s in regular maintenance, repairs, fuel and insurance costs. Even more staggering to our monthly budget is the $465 payment.

So whether you are a young couple, single individual or an established family, what’s the best way to go about purchasing a vehicle? Rather than ask, “what car payment can I afford?”, here’s a few helpful steps we would recommend:

1. Keep your vehicle for 10-12 years, or until maintenance expenses rise to the level that justifies purchasing another used vehicle. Most properly maintained vehicles will go well beyond 200,000 miles before this decision has to be considered. It’s amazing how many people complain about having to spend $200/month in maintenance costs for a nine-year-old vehicle, but have no problem signing up for a $500/month car payment for 6-7 years.

2. Extend the life of your vehicle. Properly maintain it by budgeting $125-150/month for maintenance (oil changes, windshield wiper blades, brake pads, tires, etc.).

3. Buy a newer-used vehicle. Vehicles depreciate 30% in the first two years – let someone else pay for that! After the first two years the depreciation slows to about 10 percent per year. The cost of that new $35,000 vehicle drops to $21,000 - $24,500 after two to three years. While a new $25,000 vehicle depreciates to $15,000 - $17,500 after two or three years.

*Use the internet to your advantage. 20 years ago, the dealers held all the information and buyers were in the dark on what they could be expected to pay. Now you can do your homework and research through sites like Kelley Blue Book and True Car to read reviews and printout an exact breakdown of what you should pay for a vehicle.

Based on that information, calculate what you’re willing to pay, and be prepared to walk out if the dealer doesn’t meet your price expectations. When you walk in to a dealership armed with this information, they’ll know you’re an informed buyer.

Never tell an auto salesperson, if he/she asks, what monthly payment you want. Stay focused on the price you want, not the monthly payment. If you give them a monthly payment amount, then they may meet your requirement by changing the length of the loan, rather than reducing the purchase price of the vehicle. [Note: calculate at home before car shopping begins the monthly payment for the amount you will need to borrow and the length of the loan. You will need to check with your bank to get the interest rate on a car loan in order to complete the calculation. You can use a loan payment calculator at Bankrate.com or other websites to calculate the monthly payment] If your credit score is below 660, then you would be wise to not borrow for a vehicle purchase – more on the credit score in future blog.

4. Pay cash for your vehicle or only finance your vehicle for 36 months. Because of rapid depreciation, you’re likely to be “upside-down” (owing more money than the vehicle is worth) after 36 months of financing. That’s why dealerships sell gap insurance* for $500-$1000, which is another cost to avoid.

*Gap insurance pays off the vehicle in the event of an accident where the vehicle is “totaled” and the amount owed is more than the vehicle is worth.

To accomplish paying cash or short-term financing, here’s two scenarios to follow depending on where you are in life:

Scenario 1 - For those who are just starting out (typically those in their teens and early-to-mid 20s), this is important because biting off more than you could chew on an auto loan and car payment can set you back for years.

If you think you could “afford” a $250-$350 a month car payment, save that money, and scratch and claw for two years. Note that I put afford in parenthesis because I’ve known people who work part-time minimum wage jobs who have $200 car payments. If you save that money, in two years, you’ll have around $7,000 saved which can use to pay all cash for a semi-decent starter car.

Next, plan on grinding it out, and driving that car for 3 to 5 years in which you’ll no car payments. You’ll also have to put $150+/- on average per month into repairs to extend the life of that vehicle. But you’ll save on costs such as insurance by having an older vehicle as well. All that said, after five years of no payments, if you’re disciplined and frugal in committing to $250 a month in car savings, that’s $15,000 cash you can pay for a three-year old vehicle that was $25,000 brand new. Within a few short years you’ll be ready for the next scenario.

Scenario 2 – For those who are established and at that level where they feel they can afford a $35,000 new vehicle and a $550 monthly payment. May I suggest letting somebody else pay for the depreciation for the first two years and instead pay $25,000* +/- for the same vehicle, albeit two-years older.

Now let’s you say you drive your older vehicle for an additional three years. Assuming you spend $150 on average monthly repairs to extend the life of your own vehicle for those three years, and save the remainder of the $550 you would’ve spent on a car payment, that’s an additional $14,400 to put towards a down payment on that $25,000 vehicle. And that’s not including what you’ll save over those three years in insurance costs by driving your older vehicle.

If you had a $10,600 loan* for 36-months at 4.5% for that $25,000 two-year-old vehicle, your payment would be $315 a month. That’s an additional $235 a month you’ll have the next three years. And an additional $550 a month after that simply by extending the life of your old car for an additional three years, while forgoing the purchase of a brand-new vehicle to buy the same make and model that’s newer-used.

That’s a lot of cash that you’ve suddenly freed up to bolster the savings for your kids or grandkids college fund, your investment portfolio for retirement or to give away more to your favorite ministries, charities and causes.

*Investing the $4,000 (in a mutual fund averaging 8% annually) that you’ll save on the interest alone on a $10,600 / 36-month loan as opposed to a $35,000 / 60-month loan would be worth $40,250 in 30 years. If you added the $235 per month saved in years 1 through 3, and the $550 per month saved in years 4 and 5, that same investment grows to $178,000!

All in all, cars are more expensive than ever, and if we’re not careful, they can eat up more and more of our disposable income than ever. As always, be smart, be wise, make good choices through prayer and consultation with those who are wise. If you’d like to talk more about these scenarios, or are interested in a budget analysis, feel free to contact me!

$ Saving Tips + Delayed Gratification = Stress-free Security

bill@lifechangeconcepts.com (Bill Renje) — Wed, 02 Sep 2020 18:10:21 GMT

10 practical money saving tips towards financial security

Based on average stock market growth of 10% per year, if you invest $83 per month ($1,000 a year) from the age of 21 until 65, you will have almost $700,000 for retirement.

Here’s 10 practical money saving tips to come up with $83 per month:

1. Have a monthly budget

2. Eat out less (pack brown bag lunches)

3. Cancel or limit monthly subscriptions – Netflix, Hulu, Spotify, Gym, etc. – that you don’t need

4. Get rid of cable or satellite and use a more affordable streaming option (YouTube TV)

5. Save money automatically (have $ directly transferred each month from checking to savings/investment account).

6. Analyze your cell phone bill regularly, check w/ cell provider to look for promotional saving opportunities

7. Be aware of the temptation to have the latest gadget or clothing item. You don’t need a new iPhone or favorite shoes when they come out.

8. Buy newer-used vehicles

9. Know the difference between a need and a want, especially with big-ticket items like housing / cars

10. Live debt-free – don’t use credit cards; avoid buy now, pay later (no interest, no payments for 6 months) schemes

Taxes - Info For Beginners

bill@lifechangeconcepts.com (Bill Renje) — Mon, 29 Jun 2020 15:55:13 GMT

Tax Information

• FICA is an acronym for “Federal Insurance Contributions Act.” The FICA tax is a mandatory payroll deduction. It is money taken out of a workers’ paychecks to pay older Americans their Social Security and Medicare benefits. Social security is retirement income, while Medicare is healthcare insurance.

• FICA tax is usually 7.65% of earnings up to $127,200. Employees pay 6.2% of their earnings for Social Security benefits and their employer pays 6.2% for a total of 12.4% of a worker’s income. An additional 1.45% tax is also collected to fund Medicare benefits and this, too, is matched by employers.

• The federal income tax is levied by the Internal Revenue Service (IRS) on the annual earnings of individuals, corporations, trusts, and other legal entities. Federal income taxes are applied to all forms of earnings that make up a taxpayer's taxable income. Examples include employment earnings or capital gains on investments.

• The state income tax is the tax levied by the state on the annual earnings of individuals, corporations, trusts, and other legal entities. Georgia has rates ranging from 1.00% to 5.75%. Georgia’s brackets top out at $7,000 for single filers, which means the majority of full-time workers will pay the top rate.

• A tax deduction lowers a person's tax liability by lowering his taxable income. Deductions are typically expenses that the taxpayer has during the year. These expenses can be applied against or subtracted from his gross income in order to figure out how much tax is owed.

• A standard deduction is given on federal taxes for most individuals. The amount of the federal standard deduction varies by year and is based on the taxpayer's filing status such as whether not the taxpayer is married with dependent children. The states individually sets its own tax law on standard deductions. Most states also offer a standard deduction at the state tax level. Taxpayers have the option to take a standard deduction or to itemize deductions. If a taxpayer chooses to itemize deductions, then deductions are only taken for any amount above the standard deduction limit. Examples - Healthcare costs including medical and dental bills, prescription drugs, Property taxes, Mortgage interest, Home office and other job-related expenses.

• Ways to File – Manually printout Form 1040 from IRS.gov, E-File through sites like Turbo Tax, Hire a Certified Public Accountant

*Tax rate - Single Married, filing jointly Married, filing separately Head of household

10% - $0 to $9,700 $0 to $19,400 $0 to $9,700 $0 to $13,850

12% - $9,701 to $39,475 $19,401 to $78,950 $9,701 to $39,475 $13,851 to $52,850

22% - $39,476 to $84,200 $78,951 to $168,400 $3 9,476 to $84,200 $52,851 to $84,200

24% - $84,201 to $160,725 $168,401 to $321,450 $84,201 to $160,725 $84,201 to $160,700

32% - $160,726 to $204,100 $321,451 to $408,200 $160,726 to $204,100 $160,701 to $204,100

37% - $510,301 or more $612,351 or more $306,176 or more $510,301

*2019

Investing 101 - A Guide For Beginners

bill@lifechangeconcepts.com (Bill Renje) — Thu, 28 May 2020 15:59:31 GMT

Basic Types of Investments

Checking & Savings

The difference between checking and savings accounts comes down to access to your money.

Checking accounts are better for everyday transactions such as purchases, bills and ATM withdrawals. They typically earn less interest — or none.

Savings accounts are better for storing money and earning interest, and because of that, you have a monthly limit on what you can withdraw. – Nerd Wallet

Money Market

A money market account is essentially a hybrid between a checking and savings account. It lets you write a limited number of checks each month and sometimes make debit purchases. And your money will earn a higher interest rate in a money market than it will in a checking or savings account. But keep in mind that this type of account may come with monthly minimum balance requirements and maintenance fees. – Credit Karma

Bonds

A bond is a fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental). A bond could be thought of as an I.O.U. between the lender and borrower that includes the details of the loan and its payments. Bonds are used by companies, municipalities, states, and sovereign governments to finance projects and operations. Owners of bonds are debtholders, or creditors, of the issuer. Bond details include the end date when the principal of the loan is due to be paid to the bond owner and usually includes the terms for variable or fixed interest payments made by the borrower. - Investopia

Stocks

Stocks may be the most well-known and simple type of investment. When you buy stock, you’re buying an ownership share in a publicly traded company. Many of the biggest companies in the country — think General Motors, Apple and Facebook — are publicly traded, meaning you can buy stock in them. – Smart Asset

Mutual Funds & Exchange Traded Funds (ETFs)

Mutual Funds and ETFs are a pool of many investors’ money that is invested broadly in a number of companies. They can be actively managed or passively managed. An actively managed fund has a fund manager who picks companies and other instruments in which to put investors’ money. Fund managers try to beat the market by choosing investments that will increase in value. A passively managed fund simply tracks a major stock market index like the Dow Jones Industrial Average or the S&P 500. Some mutual funds invest only in stocks, others only in bonds and some in a mixture of the two.

Mutual funds carry many of the same risks as stocks and bonds, depending on what they are invested in. The risk is lesser, though, because the investments are inherently diversified. – Smart Asset

Three major stock indexes –

Dow Jones - tracks 30 largest companies

S&P 500 – tracks 500 largest companies

NASDAQ – technology companies

Types of Stocks & Mutual Funds

Small Cap – shares of small companies. More upside, but more risk

Mid-Cap – mid-size companies, moderate risk

Large Cap – shares of large companies. Less upside, but safer, less risk

Domestic Fund – American companies

International Fund – Foreign companies

REITs – Real Estate Investment Trusts

Index Funds – Track stock market indexes like S&P 500

*Key is to meet with a qualified, reputable investment advisor to create a balanced portfolio for LONG-TERM growth. S&P 500 (500 largest U.S. companies) has had an average annual return of 10% since its inception in 1927.

Largest Drop (since The Great Depression) – 37% in 2008

Biggest Gain (since The Great Depression) – 45% in 1954

Where Does My Money Go?

bill@lifechangeconcepts.com (Bill Renje) — Thu, 21 May 2020 16:33:25 GMT

If lower-income and younger wage earners could cut back their spending on financial vices...

Tips For Buying A Small Business

bill@lifechangeconcepts.com (Bill Renje) — Sun, 17 May 2020 19:01:06 GMT

Basic Guide To Acquire A Small Business

• Study the market and become an expert – know the past, present and future economic and political trends of your area. Know your potential competition better than they know themselves. Who will you serve and how will you best serve them. Ways to learn the market and the competitors would be to interview employees, have them quote a job for you, review social media accounts/reviews on websites, what is their BBB rating, etc.

• Learn the true "why" of why they are selling the business? There's the stated reason, and then there’s always the underlying motive? This will give you leverage on negotiating a price.

• Try to determine how much personal “goodwill” is factored into the profitability of the business. Personal goodwill is the reputation of the owner in a hands-on business, such as a restaurant, that adds to the profitability.

Note - It’s important to have an understanding if the goodwill will follow the owner, thus reducing the value of the business.

• Look for comparable sales of sold businesses

• Do a database review of employee records, account agreements, supplier accounts (the purchase records from these can help support the sale numbers accuracy).

-What existing warranties are there that you're responsible for?

-You need to see 3-5 years of trailing tax returns

-What's the gross income of the business?

-What are the expenses?

-Once you know the income and expenses, you'll know the net income.

• Values for the business are calculated a few different ways with multiples on bottom line (net) profit as well as top line(gross) revenue. Factors that contribute to the multiple going up or down can be barrier to entry into the businesses like specific licenses, government requirements, sophistication of production, access to materials etc.

To value the business by a multiple of its net income, simply multiply the net income by the multiplier used within that particular industry.

Note – the multiplier can vary depending on a number of different factors across the business spectrum. But for demonstration purposes here, we’ll use a multiplier of 3x on bottom line net profit and .6 which is the national average on top line gross revenue.

-$1,500,000 gross x .6 = $900,000

-$300,000 net x 3 = $900,000

Valuation = $900,000

• What are the terms of the financing?

Length in years, interest rate, monthly payment

What's the recourse if you miss or are late on a payment?

Note – ask your lender to compare Small Business Administration financing to conventional financing. The difference traditionally is upfront expenses can be less on SBA. But terms may be a higher interest rate with minimum number of years before you can pay off without penalty.

*This is a basic guide on practical steps to assess whether or not to purchase a small business. Professional legal advice as well as a certified public accountant should be sought before any final decisions are made.

COVID-19: Some Perspective, The Fallout & The Role of Christians

Sun, 05 Apr 2020 03:50:17 GMT

Plagues, famines, and the devastating fallout that follows is nothing new within the scope of human history. Whether it was the plagues and famines of biblical proportions that we see in the Old Testament or as recently as the last century with the Spanish flu of 1918-1920, and the Great Depression, there is nothing new under the sun. What's changed is that we've been blessed in the last two to three generations with a higher standard of living than we’ve ever known, with advancements in science, medical treatment, the kind of large-scale government intervention that we’ve become accustomed to, and entertainment outlets. All of which alleviate, lessen and/or soothe our suffering.

I will in no way minimize what we are going through; and will continue to go through with the Coronavirus Pandemic in terms of loss of life and the ensuing economic loss that's forthcoming. Though it's hard to imagine living in a time when plagues ravaged entire European populations, or 100 years ago when 675,000 Americans (the equivalent of 3.5 million today) succumbed to the Spanish flu, or the Great Depression where an estimated 25% of Americans stood in lines at soup kitchens every day; where millions of Americans had to make the decision on which kids they would feed at night and which ones would go to bed hungry.

But even so, while keeping things in perspective, we live where we live and we live in the times which we live. And for the times we live, this is a devastating experience. 10s of thousands of Americans will die, jobs will be lost, families will be hit hard economically. The social isolation we are all facing now will lead to domestic abuse, divorce, mental health issues and a whole host of other issues.

None of which catches God by surprise. Throughout His word, He doesn’t promise to end, alleviate, minimize or sooth our suffering. But rather instead, he promises us the strength to preserve, to endure and to be strengthened spiritually, emotionally and mentally through our various struggles and trials. He promises to use our struggles and afflictions for His glory.

This is the time for us as Christians to really dig in, to grow in our faith by getting more into the word, more into prayer and more into meditation than we ever have before. This is the time for us to allow God to strengthen us individually, and to allow Him to strengthen our marriages as well as our families. The time is now. Most of our usual distractions have been removed for the time being. And in the aftermath, with so many who will have suffered the loss of friends or family, or those who will be hit hard economically, or marriages and families that will be fractured, the opportunity will be there for the Body of Christ to be the hands of feet to those in need through our culture like no time within the last three or so generations.

The question is, will you be ready?

What will my monthly mortgage payment be?

bill@lifechangeconcepts.com (Bill Renje) — Mon, 02 Mar 2020 22:49:58 GMT

"What will my monthly payment be" is the wrong question? The right question is, "how much interest will I pay?"

What will my monthly payment be on my car?

bill@lifechangeconcepts.com (Bill Renje) — Mon, 02 Mar 2020 22:44:43 GMT

"What will my monthly payment be on my car?" is the wrong question? The right question(s) is, "how much interest will I pay?" and "how can I better put that money to work for me?"

What car payment can I afford?

Fri, 27 Dec 2019 18:03:28 GMT

We’ll never pay more money, for anything that depreciates faster than our vehicles.

Due mainly to the enhancements in technology that cars come equipped with these days, the average new car price has risen to $35,000, with the average car payment being $550 per month.

2. Extend the life of your vehicle. Properly maintain it by budgeting $125-150/month for maintenance (oil changes, windshield wiper blades, brake pads, tires, etc.).

*Gap insurance pays off the vehicle in the event of an accident where the vehicle is “totaled” and the amount owed is more than the vehicle is worth.

To accomplish paying cash or short-term financing, here’s two scenarios to follow depending on where you are in life:

Mr. Visa Friend or Foe

Mon, 16 Dec 2019 01:19:13 GMT

“Make sure that your character is free from the love of money, being content with what you have; for He Himself has said, ‘I will never desert you, nor will I ever forsake you.’” Hebrews 13:5 (NASB)

Scripture Reading: John 15:12-17

In last month’s devotion we looked at the first deception of debt: if you can make the monthly payment for something then you can afford it.

Today, lets’ look at the second deception of debt: the creditor is your friend and wants to help you. My wife recently got the typical credit card offer that had at the top of the page in big bold letters, “Exclusive Offer.” Then they went on to tell her all the wonderful things they could do for her. For those who have had the misfortune to get behind on their credit card and car payments, they know that it doesn’t take much for this relationship to sour. Very quickly you are no longer on their “friend list” and the nasty letters that arrive in your mailbox prove it.

Mark Twain hit the nail on the head when he said, “A bank is a place where they lend you an umbrella in fair weather and ask for it back when it begins to rain.” Most banks are not into building long-term relationships. They really don’t care about helping you through your tough times. They are in the business of making money.

I don’t have a problem with companies having goals to make money. It is this capitalistic system that has given us the highest standard of living in the world. But we must remember that we live in a sin filled world, and many who work for banks are greedy and ambitious and care more about their next promotion than helping someone get through a period of job loss.

Too many of us spend through our money and run up debt to buys things that we think will make us happy. We buy things we don’t need with money we don’t have to impress people that we don’t really like. Ultimately though, it’s ourselves we don’t really like, with creditors preying upon our fixation of dressing up the outside to try to make the inside feel good. So we use our “friend”, the credit card, to sooth ourselves with the short-term fix of whatever pleasure we’re purchasing. In the end, it doesn’t take long to rack up thousands of dollars in high-interest debt, while we’re left feeling empty again once the newness of our new toys wears off.

But who is our true friend? Jesus said “Greater love has no one than this, that one lay down his life for his friends.” We are friends of Jesus and He has promised that He will never leave us nor forsake us. He, unlike the creditor, is a friend through good times and bad times. Seek Him and fill that void to acquire pleasure and fun by building true, authentic relationships that aren’t based on keeping up with the Joneses.

The Psalmist said, “I run in the path of your commands, for you have set my heart free.” If you want financial freedom, trust Jesus for your needs, and cut up that fair-weather friend and throw him in the trash can.

But I Can Afford the Monthly Payment

Tue, 24 Sep 2019 17:21:17 GMT

“Do not boast about tomorrow, for you do not know what a day may bring forth.” - Proverbs 27:1

Scripture Reading: James 4:13-17

Satan has used the world’s money system to destroy families and their finances. Sadly, the culture in America today is one that is comfortable with debt. Individual families, corporations and the government see no other way to live, except with debt.

We have embraced debt as our friend that helps us to be who we would want to be by allowing us to make small monthly payments while we have the pleasure and use of what we have purchased now. But long before the finish line we feel tired and empty. Our toys no longer bring us pleasure.

In this devotion, I want to expose two deceptions of debt that Satan has used to create this flawed thinking of debt. The first deception of debt is; If you can make the monthly payment, you can afford it. This is the most hideous of all the deceptions, because this kind of thinking locks people into a lifetime of paying more for everything. Making the monthly payment that is near the minimum payment on a credit card with a 15% interest rate and a current balance, will nearly double the cost of the item purchased because of the finance charges.

The stats are daunting. According to Northwestern Mutual, The average American now has about $38,000 in personal debt, excluding home mortgages. 25% of that amount is credit card debt, which is the worst kind of debt because of high interest and fees. Add to that, mortgage and car payments, monthly wireless plans where the cost of a $1,000 phone is baked into your payment, subscriptions to multiple streaming services, student loan debt, etc. and we are way overextended financially as a culture to the tune of over a $1,000 a month per household, just in interest / fees.

The other problem with monthly payments is that they don’t go away when your circumstance change for the worse. God warned us in Proverbs 27:1 not to presume upon the future, because none of us knows what the future holds. Few adhered to this warning during the go-go years of the housing boom between 2000 and 2006, and as a result, many suffered dearly for it when the housing bubble burst. And from the looks of the current financial cycle, we may be heading that way again.

We must develop a habit of saving for the things we want to buy, and this includes our vehicles. Use the compounding payment method where you allot a set amount to go towards debt and when one debt is paid off, you roll that payment into another debt payment, to pay off your debt quickly. While you are paying your debt off cut up your credit cards and pay cash for everything, including your next vehicle. And remember, the next time a sales person tells you that you can afford the monthly payment, show them the best way by writing a check for the full amount!

Email LifeChange Concepts at bill@lifechangeconcepts.com a list of all your debts so that we can do a debt analysis showing you how quickly you can pay off your debt. We will need the current balance, interest rate, and monthly payment for each debt.

Student Loan Insanity

Sun, 18 Aug 2019 21:33:17 GMT

As of June 2018, Forbes reported that total US student debt was $1.5 trillion. 44 million people owed debt, with an average student debt of $38,390.

As I thought about the $1.5 Trillion in student loan debt the other day, I couldn’t help but break out into thanks to God for giving me parents who understood the importance of a college degree. My father was the first in his family to get one and my mother had only her High school diploma. They sacrificed things like vacations, a new car every 3-4 years, eating out for lunch and dinner (we ate out as a family one time per year – Easter Sunday), and more so they could save enough money to pay for my sister and I to graduate from college debt-free. My sister and I honored our parent’s sacrifice by graduating in four years with degrees that would allow us to continue their legacy – my sister a teaching degree and me a civil engineering degree. They also taught us a strong work ethic and to never spend more than you make.

I hear all this nonsense from Bernie Sanders and those who want the government – i.e. the taxpayers - to pay off student loan debt for people who took 5-6 years to graduate with a degree that sometimes got them a job making a little over minimum wage. While many use student loans frugally as a springboard. My experience shows that many used student loans to pay for meals at restaurants with friends and week-end excursions. I even knew a friend who traveled to Europe on a student loan. Sadly, these are not outliers.

A byproduct of easy loans, is a buy now, pay it back later mentally void of a sense of ownership in one's own education when a student is working on weekends and summers to contribute to, to have a stake in, their education. Likewise, we don't believe in "free" education for two reasons. For one, there's no such thing as "free", as somebody is always footing the bill. In this case, it's the American taxpayer. And the pride of ownership isn't there in one's education if they don't at least have a stake in paying the costs of their education.

With regards to the government, the system has set it up so you can actually get more money each semester than you need to pay for tuition. Part of the problem with higher education is the escalating cost of college which has exceeded the rate of inflation for the past 25-30 (this is actually a bi-product of the readily available student loans which raised demand while supplies remained the same), making it far more expensive today than it was 50 years ago.

I have a solution that all taxpayers should pass on to their state delegates. Each state currently gives millions of dollars to state colleges with NO strings attached. If our elected officials would attach a string to this annual gift from the taxpayers, I believe we would see college tuition dropping instead of rising for a number of years. The string would work as follows: take the total amount given to the college the previous year and tell the college that they will get the full amount if they reduce tuition by 2 percent. If they reduce tuition by 1.5 percent they will receive 75 percent of the amount; by 1.0 percent, then 50 percent; and 0.5 percent, then 25 percent. I realize that the colleges may just say no thanks and chart a course without the government, believing that the pain of losing the free money would be less than the pain of actually cutting spending in order to lower tuition. But even in that scenario the taxpayers benefit because the government isn’t spending that money.

Just a thought? What are yours?

Lets Improve Your Credit Rating

Sat, 10 Aug 2019 22:42:15 GMT

Impact of Interest Charges

Compounding Interest – Your Foe

Improving your credit rating can lead to subtle changes in the interest rate you qualify for, and big savings in the long run.

Contact us to learn more about steps you can take to improve, and repair your credit score!

The Little Foxes

Fri, 02 Aug 2019 16:42:40 GMT

I enjoy a Starbucks and a drive-through lunch as much as anybody. But here's how some subtle changes can add to your long-term financial growth.

Whether its restaurant dining, the fast food drive-through, our favorite flavored coffee or the gas station "Big Gulp" sodas, one of the most overlooked areas in curbing our expenses, balancing our budgets and saving / investing for the future is what we spend "eating out". 35 years ago, flavored coffee was non-existent and restaurant dining was a luxury for special occasions, now its a way of life. The Bureau of Labor reports that the AVERAGE household spends $3,000 a year on dining out.

As with anything, balance and moderation is key when it comes to your spiritual, physical and financial health. Perhaps instead of hitting the drive-through for lunch everyday, you brown bag it while treating yourself to your favorite lunch once a week. Maybe limit your favorite coffee or 7-11 type-soda intake to twice a week, while enjoy eating out with your family once or twice a month, instead of once or twice a week.

The above chart is just a small indicator of what small changes can mean to your long-term financial vitality. Call us at LifeChange Concepts to discuss further or for a budget analysis.

Options for a Debt-Free College Education

Thu, 18 Jul 2019 14:31:42 GMT

From Ray Lynch - Founder & Past President LifeChange Concepts, Inc.

Below are ways to avoid going into debt in order to fund a college education:

1. Attend a local community college for 2 years, live at home and work a part-time job.

2. Work for a year before entering college or until you have enough saved to pay for the first two years.

3. Scholarships/Grants – Apply early at Fastweb . According to various sources, approximately $3 billion per year in scholarship funds go unused. Click Here for Source. Source

4. Attend a public state school.

5. Have parents and relatives save via Traditional or Coverdell Educational IRA, Prepaid Tuition Plan, 529 College Savings Plan.

6. Begin working and use employer education reimbursement benefit.

7. Do well academically in high school. (Bright Scholars Awards)

8. Dual enroll in college courses during high school.

9. Partake in military service

10. Attend a trade school, look for apprentice programs and / or employers who will help pay for college or trade school.

11. Work for the government (e.g. teacher) where students loans are paid off after working for a certain number of years.