Dear Chuck, My husband and I bought our first home in an older neighborhood where young families are choosing to live. We put 10% down and now want to build equity in our home, but we have more time than money. What are the best ways to build “sweat equity” as “do-it-yourselfers”? First-Time Homeowners Dear First-Time Homeowners, Congratulations! I am happy for you and want to give some solid advice to a question that is more complicated than it may seem. Get Rid of the PMI First Because you qualified for a mortgage without having the desired 20% down payment, you are now required to have Priv ..read more

Dear Chuck, We are senior citizens. My wife thinks we need to start stocking up on some gold. I am not so sure; plus, I would not know how to do it without getting ripped off. Any advice? Gold for the Golden Years   Dear Gold for the Golden Years,  The Bible speaks to a number of the issues raised by your question. Let’s look at the market for gold and then some advice.   Insurance or Investment  People buy gold for two primary reasons: insurance or investment. Typically, when the value of the dollar goes down, gold prices go up. When demand goes up, prices rise, and v ..read more

Dear Chuck, I thought car prices were going to drop when chips reentered the market. I’m not seeing a drop where I live, and I really need to replace a vehicle. What should I do? Waiting for a Deal on a Car   Dear Waiting for a Deal on a Car,  Most of us have never seen a car market that is so upside-down. Instead of negotiating for a price lower than the MSRP (Manufacturer’s Suggested Retail Price) for a new car, dealers are now setting the price they want above the MSRP. And in some cases, used cars are bringing more than what was paid for them new. Whew!  Let’s look at some k ..read more

Dear Chuck, One step forward and two steps back seems to be the story that describes all my efforts to achieve any financial goals. No matter how hard I try, discouragement overtakes me, and I am back to square one with too much debt, too little savings, and not enough motivation to keep trying!  Discouraged and Done    Dear Discouraged and Done,  I can’t tell you how glad I am that you somehow found us to turn to in the midst of your pain. Do you want to know why? I have been there too! Yes, I know what it is like to have past-due bills, overdraft charges, collection notic ..read more

Dear Chuck, The Federal Reserve raised interest rates—again. I’m hearing murmurs of a recession, and though most think it will be mild, it creates fear and trembling. How can I prepare myself?  Recession Fears   Dear Recession Fears,  Raising interest rates is a means to try to tap the breaks on inflation. It does not necessarily lead to a recession—although it can. Let’s look at some of the data and expert opinions related to your fear of a recession; then I will offer my advice.   Interest Rates and Recession Fears On February 1st, the Federal Reserve raised interest ..read more

Dear Chuck, I know I’m supposed to save, but I really don’t know how I can or even why I can’t seem to make progress!   No Savings   Dear No Savings, Well, you are not alone. Saving money is becoming a bigger and bigger challenge for many. According to MarketWatch, nearly one-in-five Americans saved no money in 2021. 18% contributed $0 to savings, while 48% contributed less than $5000. A December 2022 Bankrate survey reported that only 43% could cover a $1000 emergency expense from savings. 68% admitted concern about having enough emergency savings to cover one month of living expens ..read more

Dear Chuck, I have lost $300,000 in my 401k in the past 12 months, and things appear to be getting worse. I plan to retire in 5 years. Should I get my money out of the market or try to ride out the economic storms?  Worried    Dear Worried,  This question came just last week from someone I met in the airport while traveling to California. I tried to quickly summarize my view: “All other important investment factors being equal, I believe it is generally good to be optimistic and weather the storms.” She looked at me with shock because I think her mind was already made up th ..read more

Dear Chuck, We usually pay down Christmas debt with our tax refund, but I am worried we will not get as much back this year. What can we expect?  Waiting for Our Tax Refund    Dear Waiting for Our Tax Refund,  You are correct; changes to the tax laws are underway, so resetting expectations for a refund is in order. Last year’s average tax refund was almost $3,200. Unfortunately, the typical tax refund this year could drop to $2,700, which is approximately what taxpayers received in 2021 for their 2020 taxes. Many tax filers will be disappointed. Do not assume that last year ..read more

Dear Chuck My husband and I have generous hearts, but in reality, our actual giving is not so great. Do you have a plan to help people be more generous?  Generous But Average Giving   Dear Generous But Average Giving, Your honesty is very refreshing! I think most believers would likely say the same. They have a willing heart but are not very good at increasing their generosity from year to year. For twenty-one years of our marriage, Ann and I were average givers. At that time, Christians were giving about 2.6% of their gross annual income charitably. So were we. That includes all don ..read more

Dear Chuck, We’ve made financial mistakes in the past and want to improve our credit score in the New Year. What steps should we take, and what should we avoid?  Managing Our Credit Score    Dear Managing Our Credit Score,  This is a great goal for the New Year, and it will impact almost every area of your finances!  Recently, my 89-year-old father and I were comparing our credit scores. I was pretty proud of mine until he told me his. His was nearly perfect, which is a rare feat! I wondered, “How in the world was his score better?”  He knew a trick that I had not ..read more