__Imagine going back in time to evaluate a stock portfolio on Dec. 31, 1999. Over the prior five years (1995-1999), foreign stocks have performed well, nearly doubling in value (+95%). But then you look at your U.S. stocks, which have gained 2.5 times as much (+244%)!__

That huge performance disparity caused many global investors to pile into U.S. tech stocks during the dot-com bubble. Alas, from the dot-com bubble peak in March 2000, performance for these classes flipped back the other way. Over the next 7½ years, U.S. stocks earned a meager +13.5% (total), while foreign stocks were much better, gaining +69%.

Global investors have recently relived a similar, if even more dramatic, setup. Over the past 14 years, U.S. stocks have gained *four times* more than foreign stocks: +493% vs. +114% (13.6% vs. 5.6% annualized). As during the 1990s’ dot-com bubble, the default decision for many global investors has been to increasingly pile into large U.S. growth stocks.

__Catalysts are emerging__

The effect of 14 years of U.S. outperformance on stock valuations has been profound. The average weighted Price-to-Earnings (P/E) ratio for the MSCI U.S. Index is 26.5. For the MSCI World ex-US index, it’s just 16.1.

However, as SMI has written countless times, valuation is not a helpful timing indicator. Foreign stocks have been cheap for years now. The valuation gap tells us that if/when investors favor foreign stocks again, the reversal could pack a powerful punch. But it doesn’t tell us anything about *when* that is likely to happen.

What factors should we be watching for signs of a reversal between U.S. and foreign stocks? SMI has covered some of this ground before, specifically in the January 2024 article, *[Uncomfortable Regime Shifts](https://soundmindinvesting.com/articles/uncomfortable-regime-shifts)*. That article explained how the higher inflation environment since COVID has led to rising interest rates. Higher rates make “tangible” businesses more attractive relative to the more “ethereal” tech businesses that thrived during the recent era of ultra-low interest rates. Not coincidentally, the U.S. market is dominated by big tech companies (Magnificent Seven, etc.), while foreign markets are much less heavily weighted toward tech.

That’s a solid over-arching thesis to keep watch on. But as we’ve watched the opening months of the new [Trump 2.0 administration](https://soundmindinvesting.com/articles/trump-2-0-using-objective-investing-models-to-guide-us-through-anticipated-disruption) with keen interest, other factors have emerged to cause global investors to question their devotion to the “U.S. Exceptionalism” trade that has been the default in recent years.

__New administration policies tipping investor preferences?__

There’s considerable recent evidence that global investors are starting to vote with their feet. February and March have seen significant outflows of U.S. stocks, while foreign stocks are seeing huge inflows. Given the extent and duration of U.S. stock dominance in recent years (see chart below), we’re not willing to say this trend has definitively reversed. But given the massive degree of mean reversion possible after such a long one-sided move, it’s something we’re watching closely.


![](https://soundmindinvesting.com/assets/articles/l3-us-share-world-market-capitalization.png)


Here are a few reasons investors may be inclined to favor foreign stocks.

1. __Fiscal impulses are reversing.__
Over the past five years (since COVID), the U.S. has run enormous deficits, allowing the government to spend at a rate unprecedented outside of past wars or recessions. U.S. deficits of roughly 7% of our GDP have dwarfed the spending of other countries (most of whom have run deficits of 2-3% of their much smaller GDP levels). The net effect of this gusher of U.S. government spending has been much stronger U.S. economic growth than other countries.Suddenly, and somewhat unexpectedly, this is reversing. Much of the attention since President Trump’s inauguration has focused on cutting U.S. government spending. At the same time, tariff and treaty uncertainty has triggered numerous foreign nations to significantly boost their own plans for government spending.Put simply, the U.S. is *reducing* its fiscal spending while the rest of the world is *increasing* theirs. Government spending has a powerful short-term impact on the companies that receive it and their stock prices.
2. __Growth expectations are diverging.__
This is another angle on the prior point. The U.S. avoided a recession when most expected one in 2022-2024. In contrast, Europe and China suffered through recessions and now appear to be emerging out of them. Declining growth here vs. improving growth elsewhere changes the relative attractiveness of high-priced U.S. stocks vs. the relative bargains available overseas.
3. __Re-writing the global economic agreement.__
For many years, the global economy ran on the following rough equation: the U.S. bought everyone else’s stuff (exports), and then the rest of the world recycled many of the dollars used to buy those goods back into U.S. financial assets (stocks and bonds). That’s arguably been a bad deal for U.S. workers, but it’s been great for U.S. asset prices which have boomed.Now, President Trump has clearly stated his intent to rewrite this equation by increasing U.S. manufacturing. This means less U.S. buying of everyone else’s exports...and by logical extension, less foreign buying of U.S. financial assets.
4. __Interest rate differentials are closing.__
Interest rates are impacted by many factors, but one of the biggest is growth expectations. So it’s not surprising that after several years of very low growth expectations in major economies like Europe and Japan (plus China fighting through their own 2008-type financial crisis the past several years), improving foreign growth prospects are causing foreign interest rates to finally rise from the extreme lows of the past decade.More competitive rates at home make foreign investors incrementally more inclined to bring their capital home, rather than seeking higher yields in U.S. assets, including U.S. Treasuries. These global capital flows matter to national economies (money flowing *in* to a country creates a virtuous cycle for business, money flowing *out* tends to create challenges). And these flows matter a lot to financial markets.
5. __National pride.__
It’s easy to forget that while U.S. financial markets are disproportionately large relative to U.S. population or the U.S. share of global economic activity, the rest of the world combined isn’t far behind. International money managers control vast amounts of capital, assets that could potentially be on the move as the U.S. appears to become a less reliably friendly place for global capital.Opinions vary widely on some of the international decisions being taken by the Trump Administration. But even if they are necessary and appropriate, they clearly are triggering other nations to perceive them along a sliding scale ranging from pulling back from long-time friendships (Europe) to outright economic warfare and threats (Canadians are mad!). In addition to the purely logical points listed here, it wouldn’t be shocking to see emotions play a role in some foreign investors choosing to bring their savings back home
6. __Currency revaluation.__
Currency fluctuations are complicated, but here’s a high-level overview. When the dollar is *rising* in value relative to foreign currencies, foreign investors get a secondary benefit by owning U.S. stocks, as dollar profits are more valuable when converted back into their native currencies. Meanwhile, U.S. investors see the opposite effect from their own holdings of foreign stocks — foreign profits are less valuable because it takes more of them when being converted into stronger dollars.This dynamic flips when the dollar is *falling* relative to foreign currencies — foreign investors become relatively less enthused by U.S. returns, while U.S. investors get a boost from foreign stock returns.Many factors impact the value of currencies, so we don’t want to oversimplify here. But generally speaking, lower U.S. growth should lead to lower interest rates. Higher foreign economic growth should lead to higher foreign interest rates. These trends appear to be contributing to the dollar’s roughly -6% decline in value relative to foreign currencies since peaking in early January. The dollar decline has provided a recent tailwind to U.S. investors owning foreign stocks while potentially incentivizing foreign investors to reduce their holdings of U.S. stocks.
### 
__Broader options are a good thing for SMI strategies__

The factors we’ve reviewed here help explain why President Trump and Treasury Secretary Bessent keep repeating the idea that an adjustment period is required for the U.S. economy and that some pain may be ahead for U.S. asset prices. Starting points matter a lot in investing, and the reality is U.S. markets began 2025 with some of the highest valuations ever. In contrast, many foreign markets have very attractive valuations after being largely ignored for years.

Even if a rebalancing between U.S. and foreign markets is underway, it’s difficult to know whether this will be a rapid repricing vs. a trend that unfolds gradually. Either way, the SMI strategies will monitor this via our trend and momentum processes. Those processes led DAA into foreign stocks at the end of January, which has helped blunt the recent correction in U.S. stocks. (DAA’s foreign stock holding was up +11.2% year-to-date through March 25, while the S&P 500 was down -1.5%.) This month, [Stock Upgrading](https://soundmindinvesting.com/articles/stock-upgrading-new-fund-recommendations-for-april-2025) is buying a new foreign stock fund for the first time since December 2023.

Importantly, this isn’t the first time SMI has navigated a potentially significant trend shift away from large U.S. stocks and into foreign stocks. The years following the dot-com bubble saw huge outflows from large U.S. growth stocks that went into other parts of the market, including foreign stocks. Those years were some of SMI’s *strongest relative performance years ever*.

__The simple fact is that it’s difficult for active management to outperform when the biggest U.S. growth stocks are beating every other investment type by a wide margin. In contrast, active management tends to thrive when market activity broadens out to include foreign, small company, and value-oriented stocks. It’s too early to say definitively the trends have shifted in this direction, but the recent pickup in foreign stock returns has certainly grabbed our attention.__

Since 1990, do-it-yourself Christian investors have relied on SMI for proven strategies and trustworthy guidance.

Sound Mind Investing

Investing

Have stocks shifted in a different Direction? Recent pickup in foreign returns has certainly grabbed our attention.

Time for Foreign Stocks to Shine?

__Puritan poet Anne Bradstreet once said, *“Wisdom without an inheritance is better than an inheritance without wisdom.”* That quote sums up the challenge many Christian parents face when considering how to pass down wealth to the next generation. [Studies show](https://olin.wustl.edu/about/news-and-media/news/2023/08/unequal-inheritances-on-the-rise-as-families-change.php) that about two-thirds of parents divide their estates equally among their children. While that may seem fair on the surface, it can sometimes cause more harm than good.__

Let’s explore how a biblical and thoughtful approach to inheritance can lead to better stewardship and deeper family unity.

__The Uniqueness Principle__

Every parent of more than one child has probably asked: *How can children from the same family be so different?* They grow up in the same environment, share the same DNA, and often have similar experiences—yet they turn out to be radically different in how they think, behave, and manage money.

This is where the *Uniqueness Principle* comes into play: __Love your children equally, but treat them uniquely.__

One child might have greater financial needs, while another might be better equipped to handle money wisely. Good stewardship acknowledges these differences and responds accordingly.

In our own family, my wife Judy and I have chosen to allocate varying amounts to each of our children, depending on their emotional, financial, and spiritual needs. This decision wasn’t made lightly. It’s the fruit of prayer, discernment, and conversations aimed at honoring both love and wisdom.

__Fairness Isn’t Always Sameness__

Many parents feel an internal tug toward “fairness” in the form of equal distribution. That’s understandable. No one wants to be accused of favoritism. But fairness doesn’t always mean sameness. It means doing what is *right*, not just what is *even*.

Of course, favoritism can lead to deep family wounds—just look at the story of Joseph in Genesis. His father Jacob *"loved Joseph more than any of his other sons"* (Genesis 37:3) and gave him a special coat that sparked jealousy and division. The issue wasn’t that Joseph was treated uniquely—it was that Jacob didn’t love all his sons equally.

__Biblical stewardship calls us to avoid favoritism and recognize the reality that equal love often requires unique treatment.__

For parents concerned about conflict or resentment, there’s one key strategy: open and honest communication. Talk to your children while you're still alive. Explain your heart, motivations, and desire to bless each of them in ways that consider their individual needs.

When families understand the *why* behind financial decisions, they’re more likely to remain united—even when those decisions are complex.

__Three Questions for Wise Wealth Transfer__

I’m not saying you *should* leave unequal inheritances. I’m saying you *might*—and the best way to know is to follow a thoughtful, prayerful process. Here are three questions that can guide your decision:

1. What is the worst (or best) thing that could happen if I transfer wealth to this child?
2. How serious is it?
3. How likely is it to occur?

The purpose of these questions is not to arrive at a predetermined answer. You may end up distributing assets to your children equally or disproportionately, but that’s not the objective of these questions. The goal is to guide you toward a well-thought-out decision.

I also recognize that many parents worry about resentment among their children if they don’t divide assets evenly. The best way to handle this is through *clear communication*. Open and honest conversations while you’re alive can help your children understand your reasoning and prevent misunderstandings. Explaining your heart and thought process fosters unity and clarity.

Ultimately, wealth transfer should reflect God’s wisdom, not just human emotions. We are accountable to Him for how we allocate His resources. Factors such as financial need, spiritual maturity, and life circumstances should all be prayerfully considered.

__So, should you leave different amounts to your children? Maybe. Maybe not. The key is to seek God’s wisdom, ask the right questions, and make decisions that honor Him and bless your family in the best way possible.__

FaithFi

Articles

Puritan poet Anne Bradstreet once said, “Wisdom without an inheritance is better than an inheritance without wisdom.”

Should You Leave Equal Inheritances To Your Children?

*"Behold, children are a heritage from the Lord, the fruit of the womb a reward."* — Psalm 127:3

Welcoming a new baby into the world is one of life’s greatest blessings. It’s a time of joy, wonder, and, let’s be honest—sleepless nights. Along with the excitement, there are also important financial responsibilities to consider. A little planning now can help set your family up for success and ease financial stress down the road.

To help you get started, here’s a New Baby Financial Checklist—a guide to navigating key money matters for your growing family.

__1. Add Your Baby to Your Health Insurance__

Between late-night feedings and endless diaper changes, it’s easy to overlook paperwork but don’t let this one slip through the cracks. Most health insurance plans allow a 30-day window after birth to add your baby to your policy.

While updating your plan, check that it covers:

- Pediatric care
- Vaccinations
- Hospital visits (just in case)

Because having a baby qualifies as a "life event," you can adjust your coverage without waiting for open enrollment.

__2. Secure Life Insurance (For You, Not Baby!)__

Life insurance is one of the most important financial tools for parents. If something were to happen to you, having a plan in place ensures your family's financial security.

- The primary income earner should have term life insurance with a death benefit of at least 10 times their annual salary.
- The caregiving parent should also have coverage—even if they don’t earn an income—since the cost of childcare can be significant.

__3. Update Your Budget for Baby Expenses__

Your budget is about to change! A new baby means new expenses, so create a "Baby" category in your budget to track costs like:

- Diapers and wipes
- Baby clothes (they grow fast!)
- Baby food and formula
- Car seats, strollers, and cribs

If money is tight, consider adjusting other categories to accommodate these new costs. A well-planned budget now can prevent financial stress later.

__4. Create or Update Your Will__

Many parents put this off, but it’s one of the most important steps you can take. A will doesn’t just decide who gets what—it also names a guardian for your child in the event that both parents pass away.

This is a difficult decision, but prayerfully consider who would provide the best care for your child if the unthinkable happens. Once decided, finalize your will to ensure everything is legally binding.

Proverbs 13:22 reminds us: *"A good man leaves an inheritance to his children’s children..."* This inheritance can include wisdom and values, as well as financial assets.

__5. Build or Increase Your Emergency Fund__

If you don’t already have one, now is the time to start. Aim for three to six months’ worth of living expenses in an emergency fund.
With a baby, unexpected expenses are bound to pop up—whether it’s a medical bill, job loss, or an urgent home repair. Strengthening your financial safety net now can help you weather life’s surprises with peace of mind.

__6. Update Your Taxes__

A new baby means changes to your tax situation. Here’s what to do:

- Claim your baby as a dependent on your tax return—this could qualify you for up to a $2,000 child tax credit.
- Adjust your W-4 form at work to ensure your withholding aligns with your new situation. You may not need to have as much withheld, freeing up more money in your monthly budget.

Remember, aim for the smallest tax refund possible—you don’t want to give the government an interest-free loan!

__7. Start an Education Savings Fund__

It’s never too early to start saving for your child’s education. A 529 savings plan is a great option, offering tax-free growth when funds are used for:

- College tuition
- Private K-12 education
- Vocational or technical training

Even better, recent tax law changes allow unused 529 funds to be rolled into a Roth IRA for your child, giving them a head start on retirement savings!

__8. Freeze Your Child’s Credit__

One final step for financial protection is to place a credit freeze on your child’s file with the three major credit bureaus.

Unfortunately, identity theft can happen to minors, and fraudsters may attempt to open accounts in your child’s name. A credit freeze blocks this, keeping their financial identity safe until they’re old enough to use credit themselves.

Having a baby is a joyful, life-changing event, and planning ahead can make all the difference. By tackling this New Baby Financial Checklist, you’re taking steps to ensure a stable and secure future for your growing family.

God has entrusted you with this incredible blessing—now, with wise financial stewardship, you can provide for and protect your little one with confidence.

It's a blessing to welcome a new baby into the world. Here's a guide to navigating key issues for your growing family.

New Baby, New Budget: Your Financial Checklist for New Parents

__*"We love because He first loved us."* — 1 John 4:19__

Those six words beautifully capture the foundation of our relationship with God. We can only love and give because He first gave to us. This principle is woven throughout Scripture, including a remarkable account in Luke 8 that highlights the role of generosity in Jesus' ministry.

Luke 8 begins with a description of Jesus traveling from city to city, proclaiming the good news of the Kingdom of God. Alongside Him were His twelve disciples and a group of women who financially supported His ministry:

__*"Soon afterward he went on through cities and villages, proclaiming and bringing the good news of the kingdom of God. And the twelve were with him, and also some women who had been healed of evil spirits and infirmities: Mary, called Magdalene, from whom seven demons had gone out, and Joanna, the wife of Chuza, Herod's household manager, and Susanna, and many others, who provided for them out of their means."* (Luke 8:1-3)__

These women, having been healed of spiritual or physical infirmities, provided for Jesus and His disciples out of their resources. One name, in particular, stands out—Joanna, the wife of Chuza, Herod’s household manager.

__Joanna’s Journey: Receiving Before Giving__

Joanna was a woman of wealth, accustomed to a royal lifestyle. Yet, her journey of generosity didn’t begin with giving—it began with receiving. The Bible tells us that Jesus had healed her before she became one of His supporters.

Why does Luke include this detail? Perhaps to remind us that money alone doesn’t solve our problems—we must first receive before we can give. This truth extends beyond finances:

- We receive life from God before we can live.
- We receive intelligence, skills, and abilities before we can work.
- We receive love from God and our families before we can love others.

Paul asks in 1 Corinthians 4:7, *“What do you have that you did not receive?”* The answer is nothing. Everything we have is a gift from God, meant to be stewarded for His glory.

__The Virtuous Cycle of Giving__

Joanna’s generosity was not transactional—it was a response to Jesus’ love. She had experienced His healing and grace, and her natural response was to give back.

Later, in Luke 24, we see Joanna again. She is among the women at Jesus’ empty tomb, initially heartbroken and confused. But when she remembers His words, she runs to tell the apostles what she has seen. This shows us that generosity is a journey—a reflection of our deepening relationship with Christ. As we grow in faith, our giving becomes more sacrificial and joyful, mirroring the extravagant love we have received from Jesus.

Joanna’s story challenges us to examine our own giving. The Lord has led me to ask myself some important questions:

1. __What have I received from Christ that should shape my generosity?__ Do I truly recognize that all I have is a gift from Him?
2. __Am I a safe giver or a sacrificial giver?__ Am I giving only what’s comfortable, or am I stretching in faith?
3. __Does my current level of giving reflect how well I’ve received from God?__

I encourage you to ask yourself these questions. Be honest, pray through them, and see where the Lord leads you.

__A Prayer for Generosity__

*Lord, help me to recognize all that I have received from You. Grow my heart to be a conduit of Your love and generosity. Let my giving be an expression of gratitude, trust, and worship.*

*In the name of Jesus, I pray,*

*Amen.*

This principle is woven throughout Scripture, including a remarkable account in Luke 8 that highlights generosity.

The Generosity of Joanna: Giving as a Response to Grace

__More than 20 years ago, an idea known as “the latte factor” made its way through personal finance circles. In essence, this idea suggested that *small* daily spending decisions—buying expensive coffee shop coffee instead of making coffee at home, or buying lunch at a restaurant instead of bringing your lunch to work—cost people big-time.__

Proponents would run the numbers. “Just think, if you stopped spending $5 a day on fancy coffee during the week and invested that money instead, by the time you’re 70, you could be a zillionaire!”

Although the idea certainly has merit, getting *big* financial decisions right—how much you spend on a house or car, for example—will be far more impactful. The same can be said with investing. Getting the big things right is crucial.

__The big things__

Successful investing has much more to do with behavioral factors than financial factors. In other words, it has more to do with how *you* behave than how the *market* behaves. That should come as good news because, while you have no control over what the market does, you have a lot of control over what you do.

Here are seven big factors that will have a significant impact on your success as an investor, all of which are within your control.

- __Whether you have an investment plan.__
At one point in “Alice in Wonderland,” Alice asks the Cheshire Cat for directions. When the cat says, “That depends a good deal on where you want to get to,” Alice says, “I don’t much care where.” To which the cat replies, “Then it doesn’t matter which way you go.”You probably aren’t so nonchalant about where *you’re* going. To get to your destination, it’ll help to have a plan. A retirement plan starts with your target retirement date and how much you’re hoping to have in your retirement portfolio by then. Next, you’ll be able to figure out the best steps for getting there.
- __How much you invest each month.__
Generally speaking, for those in the accumulation phase, investing 10 to 15 percent of your monthly gross income should be enough to build a sufficient retirement nest egg. But it depends on how old you are, when you plan to retire, and how much you’re aiming to save. You can get more specific by using [MoneyGuide](https://soundmindinvesting.com/articles/planning-is-always-a-work-in-progress-moneyguide-can-help), a powerful retirement planning tool available to SMI premium members for a small one-time fee, or another retirement planning calculator.
- __Your asset allocation.__
There’s no such thing as the perfect portfolio that will put you on the right side of every market move. The “right” mix of investments is the one that generally matches your time frame and risk tolerance.If you’re using SMI’s Fund Upgrading or Just-the-Basics strategies, take SMI’s [risk tolerance quiz](https://soundmindinvesting.com/start-here/risk-tolerance-quiz). That will help you determine an appropriate level of risk in your portfolio. And *that *will help your portfolio generate the level of gains you need from a growing market as well as an acceptable level of losses in a downturn.
- __How you choose investments.__
One of the most common mistakes in investing is deciding too quickly what to invest in. The financial press fosters this, constantly touting this investment or that, as if any particular investment is right for everyone. It’s all very ad-hoc, reactionary, and stressful.It’s far more effective to choose an objective, process-driven investment strategy that tells you how to build a diversified portfolio, when to sell a particular holding, and what to buy next.
- __Your point of comparison.__
To report on the stock market’s performance, the financial press uses an index like the S&P 500. It’s tempting to use it as the benchmark for your** portfolio.However, unless you are solely invested in an S&P 500 index fund, that’s the wrong point of comparison. The right one is the average annual return your portfolio requires to accomplish your goals.
- __How often you look.__
If you pay close attention to the stock market, it can drive you crazy. It goes up, it goes down—seemingly without rhyme or reason. SMI’s primary strategies are updated once a month. That’s often enough to check on the market.
- __Your level of commitment.__
With investing, as with life, it’s easy to think “the grass is always greener on the other side.” To play the comparison game. To head in one direction, only to read a headline or see a promotion that makes you wonder if you’re moving in the right direction.Choose your strategy with care, commit to it, and stay with it.
### 
__The little things__

If you’ve gotten those *big* things right, you’ve taken some of the most important steps toward investing success. However, it will help a lot if you also let go of the following.

- __Daily market “news.”__
At the end of every trading day, investment reporters are tasked with the unenviable job of explaining why the market did what it did, so they list a reason or two. But what moves the market is usually far too complex to boil it down to a simple explanation. And more importantly, most days’ market news doesn’t even matter. Remember, you’re not in it for every market wiggle. You’re in it for the long haul.
- __The “what-if” game.__
On slow news days, investment reporters often resort to this click-bait script: “If you had invested $1,000 in XYZ company 30 years ago, it would be worth $100,000 today.” Or maybe you were seriously considering a certain investment some time ago but took a pass. You check up on it every now and then and, of course, it went to the moon. Now you torture yourself with an occasional round of “what if?”A related expression of this is questioning one particular investment in your portfolio. Diversification, which reduces risk, recognizes that it’s impossible to know which individual portfolio holding will outperform. Holding numerous investments that were chosen through an objective, rules-based process, puts the odds of success in your favor.The sooner you quit the what-if game, the better.

On this side of heaven, life will never be perfect. That isn’t bad news, it’s helpful news. With investing, it reminds us to focus on getting the big things as right as we can while letting go of the little things.

__[Image](https://soundmindinvesting.com/articles/getting-the-big-moves-right)__ used  with permission

With investing, let's focus on getting the big things as right as we can while letting go of the little things.

Getting the Big Moves Right

__God is not silent on the topic of money, both spiritually and practically. Proverbs is filled with practical principles that can shape our approach to managing the money that God has entrusted to us. Whether you are striving to save for the future, create a zero-based budget, or make wise investments, the wisdom found in Proverbs provides timeless guidance that can inform your financial planning.__

Let’s explore how the Book of Proverbs can guide us in saving, budgeting, and investing.

__1. The value of diligence and hard work in saving (Proverbs 10:4; Proverbs 12:24).__

In a world consumed with immediate gratification, the idea of diligence and hard work can almost seem countercultural. Proverbs speaks frequently about the value of hard work and how it leads to prosperity. Proverbs 10:4 says, “Lazy hands make for poverty, but diligent hands bring wealth.” Proverbs 12:24 adds, “Diligent hands will rule, but laziness ends in forced labor.”

This principle teaches that consistent effort in both work and financial discipline can lead to long-term stability. Modern-day saving isn’t just about setting money aside occasionally—it’s about establishing a diligent, consistent approach.

__How can you live this out in your finances?__

First, set financial goals.  Establish clear, achievable saving goals and remain disciplined in regularly contributing to savings or investment accounts. Second, create a monthly saving routine. Just as one sets aside time for work, setting aside time for saving is essential. Consistency in saving—even small amounts—can accumulate over time. Remember this formula:

*A little bit of money + A lot of time = A lot of money*

__2. Avoiding debt and living within your means (Proverbs 22:7; Proverbs 21:20).__

The Bible repeatedly warns against the dangers of debt and emphasizes the importance of living within one's means. Proverbs 22:7 says, “The rich rule over the poor, and the borrower is slave to the lender.” And Proverbs 21:20 reminds us, “The wise store up choice food and olive oil, but fools gulp theirs down.”

Living on borrowed money leads to financial slavery. Proverbs encourages us to live wisely, avoid unnecessary debt and be thoughtful in our financial choices.

__How can you live this out in your finances?__

First, establish a budget (Blueprint for Mission). Create a budget that limits debt accumulation and ensures your spending does not exceed your income. Second, pay off your existing debt. Use the debt snowball method to eliminate your debt, targeting the lowest balance debt first. This excludes your mortgage.

__3. The importance of planning and strategic investing (Proverbs 21:5; Proverbs 24:27).__

Proverbs stresses the importance of careful planning and diligence, both of which are essential to sound financial management and long-term financial health. Proverbs 21:5 says, “The plans of the diligent lead to profit as surely as haste leads to poverty.” Proverbs 24:27 tells us, “Put your outdoor work in order and get your fields ready; after that, build your house.

This teaches us that financial success requires forethought and the wise allocation of resources. Similarly, when it comes to investing, we are advised to plan ahead and not act impulsively.

__How can you live this out in your finances?__

First, create a financial plan. Pray and consider where you want to be financially in the next 5, 10, or 20 years. Plan how much you need to save or invest to reach your goals. Second, diversify your investments. Diversification of investments can reduce risk and increase the possibility of long-term growth.

__4. Saving for future needs (Proverbs 6:6-8; Proverbs 30:24-25).__

The idea of setting aside resources for future needs is woven throughout Proverbs. Proverbs encourages us to prepare ahead, even in times of plenty, so that we are not caught unprepared when challenges arise. Proverbs 6:6-8 talks about the wisdom of the ant, which “stores its provisions in summer and gathers its food at harvest.” This speaks to the importance of saving and preparing during times of abundance to cover periods of scarcity. Proverbs 30:24-25 says, “Four things on earth are small, yet they are extremely wise: Ants are creatures of little strength, yet they store up their food in the summer.” The ants don’t wait for a crisis to begin preparing. They are proactive, saving in the good times so that they are provided for in the lean times.

__How can you live this out in your finances?__

First, make sure you have an emergency fund (Money Milestone 5). Just as the ant prepares for the winter, we should save for unexpected expenses or periods of unemployment. Second, save for retirement (Money Milestones 3 and 6). Start early. Like the ant, the earlier you start saving for retirement, the better prepared you'll be when it's time to retire.

__5. Contentment and the right attitude toward wealth (Proverbs 30:8-9).__

Proverbs teaches the value of contentment and warns against greed. Wealth is not an end in itself but a means to honor God, serve others, and advance His Kingdom.

Proverbs 30:8-9 says, “Give me neither poverty nor riches, but give me only my daily bread. Otherwise, I may have too much and disown you and say, ‘Who is the Lord?’ Or I may become poor and steal, and so dishonor the name of my God.” This verse highlights that wealth should never be pursued at the cost of godliness. It suggests that financial security comes from a balance of contentment and proper stewardship.

__How can you live this out in your finances?__

First, guard against greed. Avoid the temptation to accumulate wealth for selfish reasons. Focus instead on how your financial success can serve God and others. Second, pursue financial contentment. Strive for contentment in your current financial situation, even while setting financial goals. A discontent heart often leads to hasty or unwise financial decisions.

__6. The blessing of generosity and giving (Proverbs 11:24-25).__

Generosity is a central theme in Proverbs, and it underscores the blessing that comes from giving to others. Proverbs 11:24-25 says, “One person gives freely, yet gains even more; another withholds unduly, but comes to poverty. A generous person will prosper; whoever refreshes others will be refreshed.” This principle applies to all areas of life, including finances. Saving isn’t just for personal gain, but to enable you to bless others when opportunities arise.

__How can you live this out in your finances?__

Practice generosity. When you get paid, give a portion to God. You can do this by giving to your local church. After you have given to your church, consider being generous to other Kingdom-advancing non-profits.

The wisdom of Proverbs offers an approach to financial management that includes hard work, strategic saving, wise investing, and generous living. By following these biblical principles, Christians can create a financial foundation that honors God and provides for their families and communities.

__[Image](https://www.christianmoneysolutions.com/blog/6-ways-the-proverbs-can-guide-your-financial-management)__ used with permission

You were meant for more. Your money was meant for more. You and your money are meant for an exciting, adventurous, and satisfying purpose. You were designed to live and give generously. And deep inside you know this and want this.

Christian Money Solutions

The More Than Money Podcast helps listeners get financially healthy for the sake of giving and living generously. In each episode, Art Rainer provides fun, practical, biblically-based financial advice through interviews and listener questions. Our goal with this podcast is for you to understand God's design for you and your money as you learn to give generously, save wisely, and live appropriately.

More than Money

God is not silent on the topic of money, both spiritually and practically. Proverbs is filled with practical principles.

6 Ways the Proverbs Can Guide Your Financial Management

__Why don’t credit cards ever drown? Because they always have a float to fall back on!__

A little humor aside, credit card float is no joke. Many people use credit cards without fully understanding how the __"float"__ works—and how it can create hidden financial risks. On the surface, credit card float seems like a great perk, allowing you to delay paying for purchases without immediate consequences. But if you're not careful, it can lead to a cycle where you're always one step behind financially.

Let’s break down what credit card float is, how it works, and, most importantly, how to avoid the potential pitfalls that come with it.

__What Is Credit Card Float?__

Credit card float is the time between when you charge a purchase on your credit card and when you actually have to pay for it. Essentially, when you use a credit card, you're borrowing money to make a purchase, but the payment isn't due right away.

For example, let’s say you buy a pair of shoes on January 1st. Your statement closes on January 31st, and your payment isn't due until February 25th. That gives you __up to 55 days__ to pay for the purchase without spending your own cash immediately. This delay in payment is known as the "float."

Now, most of us are aware that if you pay your statement in full by the due date, you won’t incur interest charges. This makes credit card float seem like a good deal—allowing you to borrow money for weeks at no cost.

However, there’s a catch. Even if you consistently pay off your credit card bill each month, you may unknowingly be __“riding the float,”__—meaning you’re using this month’s income to pay for last month’s expenses. Over time, this can leave you one payment behind without realizing it.

A simple way to determine if you're financially stable or "riding the float" is by checking if you are fully funded__.__ Here’s how:

1. Add up all your current credit card balances.
2. Subtract that total from your checking account balance.
3. If you don’t have enough money to pay off your credit card balances right now fully, you're riding the float.

This means you’re relying on your next paycheck to cover what you already spent—leaving little room for unexpected expenses or financial flexibility.

__How to Avoid Credit Card Float__

To prevent falling into the float trap, you need to make sure you have enough money before making a credit card purchase__.__ That way, when your bill arrives, you can pay it from your checking account without dipping into savings.

A few strategies to ensure financial stability include:

- __Using the Envelope System:__ If you budget using [FaithFi’s Envelope System](https://www.faithfi.com/manage), you can reconcile your credit card envelopes to ensure you’re not overspending.
- __Maintaining a Checking Account Cushion:__ Always keep enough in your checking account to cover both your credit card balance and upcoming expenses before your next paycheck.
- __Tracking Spending in Real-Time:__ Keep an eye on your available funds, not just your credit card statement balance, to ensure you’re not overextending yourself.

For example, if your total credit card balance is $2,000 and you have $1,500 in upcoming expenses, you should have at least $3,500 in your checking account to avoid financial strain.

__What If You’re Already in the Float?__

If you discover that you’ve been riding the float, don’t panic. Here are some steps to help you get out:

4. __Transfer Money:__ Move funds from savings to cover your full credit card balance plus upcoming expenses.
5. __Adjust Envelope Funding:__ If you use the FaithFi Envelope System, reallocate funds from other categories to bring your credit card envelope balance in line.
6. __Fund the Credit Card Envelope Over Time:__ If you’ve been paying off your card monthly but realize you’ve been riding the float, start funding your credit card envelope a little more each month until it matches your full balance.

__Keep Your Finances Afloat__

Many people unknowingly ride the float, believing they’re managing their credit cards well. However, there’s a difference between paying the statement balance and paying the full balance owed__.__

To stay financially secure, follow this simple rule: __Always have enough in checking to cover your full credit card balance plus upcoming expenses.__ That way, you’re never relying on next month’s income to cover last month’s spending.

If you’re looking for an easier way to manage your budget and ensure you’re staying financially stable, check out the [FaithFi app](https://www.faithfi.com/manage) at[ FaithFi.com](https://www.faithfi.com/manage). It’s a powerful tool to help you track your spending, budget wisely, and keep your finances in check.

You can also __[listen](https://www.faithfi.com/search?q=Avoiding%20Credit%20Card%20Float%20With%20Chad%20Clark&videos=true&articles=true&podcasts=true&posts=true&groups=true&events=true&support=true)__ to a related podcast on this topic.

What is it, how does it work, and how do you avoid the potential pitfalls that come with it?

Understanding Credit Card Float—And How to Avoid It

__My book *The Law of Rewards* was first published in 2003, but in 2023, I had the opportunity to update it and also add some new material, especially as it relates to Nanci’s life, death, and relocation to Heaven. I continue to be excited about this small book and its potential for big impact in the lives as believers as they get excited about investing in eternity. (The updated book is available from EPM both in [softcover](https://store.epm.org/the-law-of-rewards-softcover/) and as a [special edition](https://store.epm.org/the-law-of-rewards-special-edition/) with a leatherlike cover.)__

My long-time friend Mart Green, of the Green family that owns Hobby Lobby, is the founder of Mardel Christian Stores. He kindly wrote, “Reading *The Law of Rewards* impacted me greatly. I have read many books on generosity, but this one fleshed out biblical concepts I had never heard before. I am a book guy, but I have handed out more copies of this book than any other—by far!”

So to answer the question in the title of this blog: how does giving bring greater blessing than receiving? By not giving, we don’t just rob God or rob others of blessing. We rob ourselves of the rewards God wants to give us. How many blessings have we kept from ourselves in the last year by failing to give as we could have? How much spiritual growth and joy have we missed out on by not living by God’s law of rewards?

For Nanci and me, the process of discovering God’s will about money and possessions was exciting and liberating. Our growth in financial stewardship closely paralleled our overall spiritual growth. In fact, it propelled it. We learned more about faith, trust, grace, commitment, and God’s provision in this area than any other. These choices required us to have some challenging giving discussions which ultimately strengthened our marriage, and bonded us around common goals of investing in eternity.

That unforgettable Monday morning in 2022, when I held Nanci’s hand as she exited her body and entered the presence of Jesus, I could picture Christ’s outstretched arms and hear his loving words, “Well done.” I could imagine her broad smile as he hugged her. Home at last! And I thought of all the people from all over the world she would then meet and get to know and love—those we had the privilege of helping through our giving, and who thereby received the gospel, food, clothes, clean water, medicines, Bibles, and good books. Sometimes I feel like part of me went to Heaven with Nanci. That’s not only because of our deep love for each other, but because she and I partnered together to invest in people for eternity. I so look forward not only to seeing old friends but to having Nanci introduce me to these new friends we invested in before we ever met them!

Paul said, “God loves a cheerful giver” ([2 Corinthians 9:7](https://ref.ly/2%20Cor%209.7;esv?t=biblia)). I have found that cheerful givers love God, and that love grows deeper each time they give. To me, one of the few experiences comparable to the joy of leading someone to Christ is the joy of making wise and generous eternity-impacting choices with the money and possessions God has entrusted to me. Both are supreme acts of worship. Both are exhilarating. Both are what we were made for.

I believe that the knowledge of what eternity holds for us, and how that relates to our money, is the primary missing ingredient in most Christian books on finances. When we see money only as money, and not in light of its potential impact on eternity for others and for us, we walk away with a shortsighted vision that results in shortsighted financial decisions and lifestyles.

By looking at Jesus’ teachings about finances, I hope you’ll gain a clearer vision of the importance of living for eternity, of the types and extent of eternal rewards, and of the way God created us to be motivated by rewards. When you grasp the concept of delayed gratification in light of eternal rewards, your attitude toward giving will never be the same.

Let’s determine not to be rich fools disguised as disciples. Instead, let’s develop the heart of the poor widow, learning boldly to put all our resources at God’s disposal, as He has put all his resources at ours. I pray you will join a multitude of God’s people, past and present, in not just talking about God’s grace but also experiencing it at your heart’s deepest level.

On the wall of President Lyndon Johnson’s White House office hung a framed letter written by General Sam Houston to Johnson’s great-grandfather George Washington Baines, Sr. more than a hundred years earlier. Baines had led Sam Houston to Christ. Houston was a changed man, no longer coarse and belligerent but peaceful and content.

The day came for Houston to be baptized—an incredible event for those who knew him. After his baptism Houston offered to pay half the local minister’s salary. When someone asked him why, he said, “My pocketbook was baptized too.”

Sam Houston demonstrated the reality of God’s grace to him by reciprocating that grace through giving.

__As Sam Houston did, may we learn together the truth that Martin Luther recognized when he said that for each of us there must be not only the conversion of the heart and mind but also the conversion of the purse.__

__[Image](https://www.epm.org/resources/2025/Jan/10/giving-brings-blessing/)__ used with permission

Eternal Perspective Ministries, founded and directed by author Randy Alcorn, is focused on investing in what lasts for eternity, and helping others to do the same.

Eternal Perspective Ministries

For each one of us, There must be not only the conversion of the heart and mind but also the conversion of the purse.

Giving Brings Greater Blessing Than Receiving

__Perhaps you’ve heard the tale of the three bricklayers working on a project. When asked what they were making, the first said, “$28 an hour.” The next replied, “We’re making a wall to help support the roof.” But the third said, “We’re building a cathedral for worshipping God!”__

All were engaged in the same task. Only one caught the bigger vision.

I imagine a new version of the story featuring three investors making trades as they implement SMI’s fund recommendations. Someone asks what they’re doing. One investor says, “Oh, just placing some fund orders.” Another replies, “I’m investing for the future.” But the third responds, “I’m managing God’s money for His glory.”

When it comes to handling money, do you have a big vision? Or do you think of paying bills, investing, and giving to your church as simply part of a humdrum routine?

If you’re thinking falls along “humdrum” lines, then you’ve lost sight of the big — and exciting — picture. Your financial decisions have the potential for life-changing blessings and eternal impact — for you, your loved ones, and those you minister to through your giving! By perceiving the big picture and making wise decisions, your efforts will bring a smile to the Master, just as the actions of the faithful stewards did in the parable of the talents.

In contrast, indifference and lack of discipline lead to stewardship failures that waste a lifetime of opportunities. Consider these common failings:

- Failing to develop a spending plan that would help generate a monthly surplus;
- Failing to build a contingency fund;
- Failing to prioritize giving generously to the Lord and His kingdom work;
- Failing to be responsible in the use of credit;
- Failing to live in a home or drive a car that’s within one’s financial means;
- Failing to contribute strategically to an IRA or 401(k);
- Failing to learn the basics about investing wisely.

Taken individually, most of the stewardship tasks mentioned above aren’t particularly difficult. However, all require self-discipline. They take effort and a degree of sacrifice. But the end result is worth it. Not only because good stewards enjoy greater success in money matters but, *more importantly*, living up to one’s stewardship potential brings glory to our gracious God.

__Pastor and author John Piper put it this way in his book *[Pierced by the Word](https://www.desiringgod.org/books/pierced-by-the-word)*:__

God made us with the highest creaturely purpose in mind — to enjoy and display the Creator’s glory. This is why we were made (“All things were created through Him and *for Him*”– [Colossians 1:16 ESV](https://ref.ly/Col%201.16;esv?t=biblia)). This is why we eat and drink (“So, whether you eat or drink, or whatever you do, *do all to the glory of God*”– [1 Corinthians 10:31 ESV](https://ref.ly/1%20Cor%2010.31;esv?t=biblia)).

This is why we pray (“Whatever you ask the Father in my name, this I will do, *that the Father may be glorified in the Son*”– [John 14:13 ESV](https://ref.ly/John%2014.13;esv?t=biblia)). This is why we do all good deeds (“Let your light shine before others, so that they may see your good works and *give glory to your Father* who is in heaven”– [Matthew 5:16 ESV](https://ref.ly/Matt%205.16;esv?t=biblia)).

That is why we exist — to display the glory of God.... When we fulfill this reason for being, we have substance. There is weight and significance in our existence. Knowing, enjoying, and thus displaying the glory of God is a sharing in the glory of God. Not that we become God. But something of His greatness and beauty is on us as we realize this purpose for our being....

Not to fulfill this purpose for human existence is to be a mere *shadow* of the substance we were created to have. Not to display God’s worth by enjoying Him above all things is to be a mere *echo* of the music we were created to make.

This is a great tragedy. Humans are not made to be mere shadows and echoes. We were made to have God-like substance and make God-like music and have God-like impact. That is what it means to be created in the image of God ([Genesis 1:27](https://ref.ly/Gen%201.27;niv?t=biblia)).

Dear reader, be not shadows and echoes.... Set your face like flint to see and know and enjoy and live in the light of the Lord....

Death will but dispatch you to paradise. And what you leave behind will not be a mere shadow or echo, but a tribute on earth, written in heaven, to the triumphant grace of God.

__[Image](https://soundmindinvesting.com/articles/high-stakes)__ used with permission

Faith and Finance

When it comes to handling money, do you have a big vision?

High Stakes

__If you're worried about your financial future, struggling to pay for college, or even feeling the pinch at the grocery store, take heart—there’s still hope for joy and peace.__

Financial challenges can make joy and peace feel out of reach, but as Christians, we are called to face difficulties without anxiety. It’s not always easy, but when you have financial worries—or struggles of any kind—God’s Word offers wisdom and reassurance. Here are three biblical principles to consider:

1. Hardships are opportunities to grow in your faith.
2. Joy and peace are not dependent on your circumstances.
3. Your struggles have a purpose.

__Hardships Are Opportunities to Grow in Your Faith__

The book of James opens with a powerful challenge:

*"Consider it pure joy…whenever you face trials of many kinds, because you know that the testing of your faith develops perseverance."* — James 1:2-3

At first, that might seem like an unusual perspective on financial challenges. James appears to be saying that trials are beneficial, so we should simply be happy about them. On the surface, that may not seem logical. But Scripture reveals that joy in difficult times is possible—not because of our circumstances, but because of who God is and who He is shaping us to become.

James wrote his letter to believers who were far from home, discouraged, and facing persecution. They were dealing with trials far greater than financial hardship, yet he encouraged them, saying:

*"The testing of your faith develops perseverance, and perseverance must finish its work so you may be mature and complete, not lacking anything."* — James 1:3-4

James reminds us that trials are inevitable, but they shouldn't discourage us. Instead, we can view  our struggles as opportunities to grow. Through perseverance and  endurance, we grow in faith, becoming mature, complete, and fully equipped for what God has called us to do.

People who lift weights to stay fit know that  muscles don’t get stronger until they are torn down and built back up. No pain, no gain. In the same way, pushing through hardship strengthens our faith muscles. Painful circumstances become opportunities for our faith to increase as we learn to trust God’s goodness in all things.

__Joy and Peace Are Not Dependent on Your Circumstances__

Financial challenges are part of life, but joy is an attitude that looks beyond the pain and frustration of the moment. Nehemiah 8:10 reminds us:

*“The joy of the Lord is your strength.”*

Like joy, peace is another godly response to trials. True peace comes from knowing that nothing can separate you from the love of God in Christ Jesus (Romans 8:39). Philippians 4:7 calls it:

*“The peace of God, which surpasses all understanding.”*

In Christ, we can have that kind of peace no matter what our financial circumstances are.

People often ask, *“Doesn’t God want me to be happy?”* In other words, if God is loving, shouldn’t He protect me from circumstances that make me unhappy? But this worldview twists the truth about God’s character.God is not a cosmic Santa Claus, handing us whatever we want. He loves us more than that. We see His love in action through Jesus:

*“For God so loved the world, that he gave his only begotten Son, that whoever believes in him shall not perish, but have everlasting life.”* — John 3:16

God created us for a relationship with Him, and true fulfillment is only found when Jesus is our greatest treasure. Romans 8:17 reminds us:

*“Now if we are children, then we are heirs—heirs of God and co-heirs with Christ, if indeed we share in his sufferings in order that we may also share in his glory.”*

Happiness is fleeting—tied to external circumstances like economic trends, bank balances, and emotions that fluctuate “like shifting shadows” (James 1:17). On the other hand, God remains constant—always good, always loving, always just. Trusting Him brings us the lasting Joy that is part of the Fruit of the Spirit (Galatians 5:22).Because God’s character never changes, we can navigate any financial challenge with a heart anchored in peace and joy.

__Your Struggles Have a Purpose__

The third biblical principle to remember in financial trials is that your struggles have a purpose. In fact, there are three key reasons God may allow us to go through difficult seasons:

4. To strengthen our faith and deepen our dependence on Him.
5. To reveal His love and provision as we trust Him.
6. To redirect us when we’ve drifted off course.

One of the most comforting promises in Scripture is Romans 8:28:

*“And we know that in all things God works for the good of those who love him, who have been called according to his purpose.”*

Understanding this truth can help us navigate financial challenges with lasting joy and peace. Even when the road ahead is uncertain, we can trust that God is working all things for our good—shaping us, strengthening us, and drawing us closer to Him.

__No matter what your financial situation is today, remember this: Hardships refine us, joy is a choice, and God is always at work for our good. Keep your eyes on Him, and you will find the peace that surpasses all understanding.__

You can also __[listen](https://www.faithfi.com/search?q=Finding%20Joy%20and%20Peace%20in%20Financial%20Uncertainty&videos=true&articles=true&podcasts=true&posts=true&groups=true&events=true&support=true)__ to the related podcase on this topic.

If you're worried about your financial future or struggling to pay for college, there’s still hope for joy and peace.

Finding Joy and Peace in Financial Uncertainty

__According to the [2024 Christian Financial Health Report](https://www.christianfinancialhealth.com/report), 43% of Christians used a buy now, pay later service during the past twelve months. Pay Later (BNPL) services have become increasingly popular, allowing consumers to purchaseitems immediately and pay for them in installments.__

Companies like Afterpay, Klarna, and Affirm have gained widespread traction, especially among younger shoppers, as an alternative to traditional credit cards. But while BNPL services may seem like a convenient way to spread out payments, using them can lead to significant regret. Here are five reasons why you should think twice before using Buy Now, Pay Later services.

__1. High Interest and hidden fees.__

Yes, these services advertise themselves as having “no fees” or “no interest,” but that is not entirely true. Depending on the service provider, repayment terms that go beyond four months can include a significantly high interest rate. Additionally, the “no fees, no interest” claim usually assumes on-time payments. If a payment is late or missed, fees and interest are often applied. It is important to note that 64% of Christians who used buy now, pay later services missed a debt payment during the last twelve months. This means BNPL users are vulnerable to these rates and fees.

__2. Encourages impulse buying.__

Proverbs 21:20 says, The wise store up choice food and olive oil, but fools gulp theirs down” (NIV). The desire for immediate gratification is often a heart issue that results in financial struggles. Unfortunately, the BNPL industry encourages immediate gratification. Many choose to use buy now, pay later services because they cannot afford to purchase the item in full. Instead of saving for the item or waiting until their finances can support the purchase, BNPL services allow the item to be acquired immediately. Using these services can perpetuate poor financial behaviors.

__3. Debt can spiral out of control quickly.__

Debt tends to be an issue for BNPL users. According to the Christian Financial Report, 82% of BNPL service users also had credit card debt. BNPL payments stack up quickly. Because these services create a façade of affordability, users continue to make purchases and cannot afford the numerous monthly payments.

__4. Lack of transparency.__

As the saying goes, the devil is in the details. While the services may tout “no interest” or “no fees,” the small print often says otherwise. The absence of interest fees applied if you only meet specific conditions. As already mentioned, the service providers may tack on fees and interest if payments are late or missed.

__5. Creates a false sense of financial health.__

Buy now, pay later services may seem like they can help you manage your monthly budget more easily by breaking the purchase into payments. But this is a mental trick to create a false sense of financial health. Breaking down the purchase amount into smaller payments does not mean that the consumer can actually afford the purchase. In fact, the purchase, even when broken down into monthly, can increase financial stress and risk. BNPL services mask the fact that you are living beyond your means.

Buy now, pay later services may seem like a convenient way to spread costs over several months, but the downside to these services is significant. They increase debt, can quickly overwhelm the budget, and result in additional fees and interest costs.

__Before using a BNPL service, take a moment to reflect on your motivations. Why can't you wait until you can afford the purchase? Does the decision align with principles of biblical stewardship? Consider an alternative approach: set aside the amount you would pay each month into a savings account until you’ve saved enough to make the purchase without relying on debt.__

__[Image](https://www.christianmoneysolutions.com/blog/5-reason-why-buy-now-pay-later-stinks)__ used with permission

Debt

According to the 2024 Christian Financial Health Report, 43% of Christians used a buy now, pay later service last year.

5 Reason Why Buy Now, Pay Later Stinks

All couples have disagreements — financial and otherwise. In fact, one of today’s foremost marriage researchers, John Gottman, says a healthy marriage is not one marked by a *lack* of disagreements, but rather *how a couple works through* their disagreements.

In his more than 30 years of studying what makes for a successful, satisfying marriage, Gottman has come up with a number of very practical suggestions for working through conflicts constructively.

__Complaining is okay, criticizing is not__

A complaint focuses on the other person’s behavior; criticism focuses on the person. An example of a complaint is “We seem to be spending a lot on groceries these days.” It becomes criticism when you make it more personal by adding a comment such as, “Why can’t you manage our grocery budget better?”

That comment implies that the issue is with the person doing most of the grocery shopping—that they aren’t trying hard enough or possibly even that they aren’t smart enough to do the grocery shopping in a more cost-effective manner. Keep your comment focused on the issue and skip the insinuation.

__Avoid contempt__

Even worse than criticism, contempt insults or psychologically harms your partner. An example: “Are you even thinking about our budget before you go to the store?” Be especially vigilant about not letting these types of comments creep into your relationship.

A better way to approach this particular conversation might be to say something like this: “I know food inflation is real. Do you think there’s anything we can do about it or should we look for other areas of our budget where we can cut back in order to budget more for groceries?”

__Listen well__

When you’re on the receiving end of a complaint, your instinct may be to respond quickly. In fact, you may be planning your response while your spouse is still speaking. Instead, decide ahead of time that when your spouse raises an issue you’ll pause and listen actively to what they’re saying. Before responding, make sure you understand the issue by asking clarifying questions and mirroring back what you hear.

Here’s a more challenging and potentially even more helpful way to listen. Try to discern whether there’s another issue behind the issue you’re discussing. That’ll probably require some additional questions: “Why is this issue so important to you?” “What are you concerned will happen if we do this or don’t do that?”

Sheila grew up in a household where money was always tight. Even when she graduated from college and landed a well-paying job, her old fears of not having enough followed her. She always bought the least expensive version of whatever she was buying. Early in their marriage, she insisted that Mike do the same.

However, after getting acclimated to using the simple spreadsheet budget system Mike brought into their marriage, Sheila began to see more objectively what they actually could afford. It was more than she had assumed.

Are you having arguments about money because of a false assumption?

__Speak non-defensively__

Defensiveness, which includes avoiding responsibility and offering excuses, only turns up the heat on arguments. When she says, “I think you’re spending too much on golf,” it won’t help to respond with, “I hardly play as it is, and now you want me to play cheaper courses that aren’t as nice?”

Try this instead: “Well, let’s take a look at our budget and see how much I’ve spent this month compared to the golf budget we both agreed on. If I spent too much this month, I’ll make up for it next month by finding some less expensive places to play or playing less often.”

__Stay with it__

Marriage researcher John Gottman says men especially are likely to bail out of an argument. Some will walk out of the room. Others might remain, but check out by responding with silence. Guys: stay focused.

__Marriage math__

Gottman has drawn a couple of simple, helpful conclusions from his years of studying what makes for a healthy marriage. They boil down to the numbers five and two.

The first one is a straightforward formula: “You must have five times as many positive as negative moments together if your marriage is to be stable.” Next, “Most couples I’ve worked with over the years,” Gottman said, “really wanted just two things from their marriage — love and respect.”

Does that last one sound familiar? It comes straight from [Ephesians 5:33](https://ref.ly/Eph%205.33;niv?t=biblia): “However, each one of you also must love his wife as he loves himself, and the wife must respect her husband.”

While men and women both need love and respect, women especially need to feel loved by their husband and men especially need to feel respected by their wife. That could make for a great topic of conversation.

Men, ask your wife, “Financially speaking, what do I do that makes you feel loved?” Women, ask your husband, “Financially speaking, what do I do that makes you feel respected?”

__Answers to those questions could help you manage money in your marriage more effectively and joyfully.__

__[Image](https://soundmindinvesting.com/articles/how-to-fight-fair-about-money)__ used with permission

Personal Finance

Answers to the following questions could help you manage money in your marriage more effectively and joyfully.

Articles

Time for Foreign Stocks to Shine?

Apr 14, 2025

Have stocks shifted in a different Direction? Recent pickup in foreign returns has certainly grabbed our attention.

Mark Biller

Should You Leave Equal Inheritances To Your Children?

Apr 7, 2025

Puritan poet Anne Bradstreet once said, “Wisdom without an inheritance is better than an inheritance without wisdom.”

Ron Blue

New Baby, New Budget: Your Financial Checklist for New Parents

Mar 31, 2025

It's a blessing to welcome a new baby into the world. Here's a guide to navigating key issues for your growing family.

Jim Henry

The Generosity of Joanna: Giving as a Response to Grace

Mar 27, 2025

This principle is woven throughout Scripture, including a remarkable account in Luke 8 that highlights generosity.

Sharon Epps

Getting the Big Moves Right

Mar 17, 2025

With investing, let's focus on getting the big things as right as we can while letting go of the little things.

Matt Bell

6 Ways the Proverbs Can Guide Your Financial Management

Mar 24, 2025

God is not silent on the topic of money, both spiritually and practically. Proverbs is filled with practical principles.

Art Rainer

Understanding Credit Card Float—And How to Avoid It

Mar 3, 2025

What is it, how does it work, and how do you avoid the potential pitfalls that come with it?

Jim Henry

Giving Brings Greater Blessing Than Receiving

Feb 20, 2025

For each one of us, There must be not only the conversion of the heart and mind but also the conversion of the purse.

Randy Alcorn

High Stakes

Feb 18, 2025

When it comes to handling money, do you have a big vision?

Austin Pryor

Finding Joy and Peace in Financial Uncertainty

Feb 17, 2025

If you're worried about your financial future or struggling to pay for college, there’s still hope for joy and peace.

Carolyn Calupca

5 Reason Why Buy Now, Pay Later Stinks

Mar 13, 2025

According to the 2024 Christian Financial Health Report, 43% of Christians used a buy now, pay later service last year.

Art Rainer

How to Fight Fair About Money

Feb 11, 2025

Answers to the following questions could help you manage money in your marriage more effectively and joyfully.

Matt Bell